Document:

Exhibit

SUBSCRIPTION AGREEMENT
Aquiline Technology Growth Fund L.P.
c/o Aquiline Capital Partners LLC
535 Madison Ave, 24th Floor
New York, NY 10022 

Ladies and Gentlemen:
1.The subscriber named on the signature page to this Subscription Agreement (the “Subscriber”) hereby applies to become a limited partner of Aquiline Technology Growth Fund L.P., a Cayman Islands exempted limited partnership (the “Partnership”), or at the discretion of Aquiline Technology Growth GP Ltd., a Cayman Islands exempted company (the “General Partner”), to become a limited partner of any Parallel Fund (as defined in the Partnership Agreement referred to below), in each case, on the terms and conditions set forth in this Subscription Agreement and in the Amended and Restated Exempted Limited Partnership Agreement of the Partnership, as the same may be amended, restated, and/or supplemented from time to time (the “Partnership Agreement”), a copy of which has been furnished to the Subscriber.  In the event the Subscriber subscribes for interests in a Parallel Fund as discussed above, any references herein to the Partnership, the General Partner, a Limited Partner, a Partner, Interests and the Partnership Agreement shall, where applicable, mean such Parallel Fund, any general partner thereof, a limited partner thereof, a partner thereof, limited partnership interests therein and the agreement thereof governing the rights of the partners thereof. Capitalized terms used in this Subscription Agreement and not otherwise defined in this Subscription Agreement shall have the meanings assigned to them in the Partnership Agreement. All references herein to “dollars” or “$” are to U.S. dollars.
2.    (a)    To the fullest extent permitted by law, the Subscriber hereby irrevocably subscribes for a limited partnership interest in the Partnership (an “Interest”) with a Capital Commitment as set forth on the Subscriber’s signature page hereto (subject to reduction as provided in Section 3 below).  To the fullest extent permitted by law, the Subscriber understands that it is not entitled to cancel, terminate or revoke this subscription or any agreements of the Subscriber hereunder.
(b)    The Subscriber acknowledges and agrees that it shall be obligated to pay the amount of its Capital Commitment in such increments, at such times and in such manner as is determined by the General Partner pursuant to the Partnership Agreement.
(c)    The Subscriber further acknowledges and agrees that, in accordance with Section 2.9 of the Partnership Agreement, if the General Partner structures a potential Portfolio Investment or restructures an existing Portfolio Investment using an Alternative Investment Vehicle or Intermediate Entity, the Subscriber may be admitted as a partner, member or other equity holder of such Alternative Investment Vehicle and/or Intermediate Entity, and if so, shall make capital contributions directly to such Alternative Investment Vehicle or such Intermediate Entity to the same extent, for the same purposes and on the same terms and conditions as Partners are required to make Capital Contributions to the Partnership, and such capital contributions shall reduce the Unpaid Capital Commitment of the Subscriber to the same extent as if Capital Contributions were made to the Partnership with respect thereto.  In the event that the Subscriber is admitted as a partner, member or other equity holder of an Alternative Investment Vehicle and/or Intermediate Entity, the continued accuracy of all of the representations made by the Subscriber in this Subscription Agreement shall be deemed to be confirmed by the Subscriber upon the admittance of the Subscriber to such entity.

(d)    The Subscriber acknowledges and agrees that, in accordance with Section 2.10 of the Partnership Agreement, the General Partner may assign all or a portion of the Subscriber’s Interest to a Parallel Fund.  In the event that the Subscriber is admitted as a partner, member or other equity holder of a Parallel Fund, the continued accuracy of all of the representations made by the Subscriber in this Subscription Agreement shall be deemed to be confirmed by the Subscriber upon the admittance of the Subscriber to such Parallel Fund.
3.    The Subscriber acknowledges and agrees that the General Partner, on behalf of the Partnership, reserves the right, in its sole and absolute discretion, to accept or reject this subscription for an Interest (which includes the Capital Commitment applied for by the Subscriber and set forth on the signature page hereto) for any reason or no reason, in whole or in part, at any time prior to acceptance thereof, notwithstanding execution of this Subscription Agreement by or on behalf of the Subscriber.
4.    The Subscriber acknowledges and agrees that the General Partner shall notify the Subscriber in writing as to the acceptance, in whole or in part, or rejection of the Subscriber’s subscription for an Interest.  An Interest shall not be deemed to be sold or issued to, or owned by, the Subscriber until the date that the Subscriber’s subscription is accepted by the General Partner acting on behalf of the Partnership (notice of which shall be given promptly in writing to the Subscriber and which date shall not in any event occur prior to the date on which the General Partner first accepts subscriptions on behalf of the Partnership and executes the Partnership Agreement (the “Initial Closing Date”)).  The Subscriber agrees that the General Partner reserves the right, in its sole and absolute discretion, to admit the Subscriber to the Partnership either on the Initial Closing Date or on the date of any subsequent closing following the Initial Closing Date.  For purposes of this Subscription Agreement, “Closing Date” means the date, if any, on which the Subscriber is admitted as a Limited Partner to the Partnership.  The Partnership Agreement shall become binding upon the Subscriber, and the Subscriber shall be admitted as a Limited Partner and shall have all the rights of, and shall comply with all the obligations of, a Limited Partner as set out in the Partnership Agreement, on the applicable Closing Date.
5.    Subject to Section 8 hereof, if this subscription is rejected in full, or in the event the closing applicable to the Subscriber does not occur (in which event this subscription shall be deemed to be rejected), this Subscription Agreement shall thereafter have no force or effect except as set forth in this Section 5.  If so rejected, the Partnership shall return to the Subscriber, without interest or deduction, any payment tendered by the Subscriber, if any, and the Partnership and the Subscriber shall have no further obligations to each other hereunder, other than an obligation to keep information relating to the Partnership and the offering of Interests confidential.
6.    The Subscriber agrees to furnish to the General Partner all information that the General Partner has requested in this Subscription Agreement (and in the Prospective Investor Questionnaire, the Anti-Money Laundering Supplement and CRS and the UK CDOT Self-Certification Form attached hereto and forming a part of this Subscription Agreement), or may hereafter reasonably require, in order (i) to comply with any laws, rules or regulations applicable to the Partnership, the General Partner, Aquiline Capital Partners LLC (the “Manager”) or any of their Affiliates, (ii) to determine whether or not the Subscriber is, or shall be on the Closing Date, (a) an “accredited investor” as defined in Regulation D, promulgated under the United States Securities Act of 1933, as amended from time to time (the “Securities Act”), (b) a “qualified client” within the meaning of Rule 205-3 under the United States Investment Advisers Act of 1940, as amended from time to time (the “Advisers Act”), and (c) a “qualified purchaser” as defined in Section 2(a)(51) of the United States Investment Company Act of 1940, as amended from time to time (the “Investment Company Act”), (iii) to determine the number of persons by which the Interest to be acquired by the Subscriber would be considered to be beneficially owned 

for purposes of Section 3(c)(1) of the Investment Company Act, and (iv) to determine the tax status and residence of the Subscriber.
7.    The Subscriber hereby represents and warrants to, and agrees with, the General Partner and the Partnership that the following statements are true and correct as of the date hereof and shall be true and correct as of the Closing Date applicable to the Subscriber:
(a)    The Subscriber is acquiring the Interest for its own account, solely for investment purposes and not with a view to, or for resale in connection with, the distribution thereof in violation of the Securities Act.  The Subscriber is not obligated to sell or transfer the Interest purchased hereunder pursuant to any binding agreement, undertaking or arrangement and the Subscriber has no current plan or intention to sell or otherwise dispose of the Interest in any transaction that could be integrated with the purchase and sale of Interests contemplated by this Subscription Agreement.
(b)    The Subscriber acknowledges that (i) the offering and sale of the Interests have not been and shall not be registered under the Securities Act and are being made in reliance upon federal and state exemptions for transactions not involving a public offering and (ii) the Partnership shall not be registered as an investment company under the Investment Company Act.  In furtherance thereof, the Subscriber (x) represents and warrants that it is an “accredited investor” (as defined in Regulation D promulgated under the Securities Act), a “qualified client” (as defined in Rule 205-3) of the Advisers Act, and, unless otherwise indicated in the Prospective Investor Questionnaire, a “qualified purchaser” (as defined in the Investment Company Act), and that the information relating to the Subscriber set forth in the Prospective Investor Questionnaire, the Anti-Money Laundering Supplement and the CRS and UK CDOT Self-Certification Form attached hereto and forming a part of this Subscription Agreement is complete and accurate as of the date set forth on the signature page hereto and shall be complete and accurate as of the Closing Date applicable to the Subscriber and (y) agrees to notify the General Partner of any change in any such information occurring at any time prior to the dissolution or the termination of the Partnership.
(c)    The Subscriber (either alone or together with any advisors retained by the Subscriber in connection with evaluating the merits and risks of prospective investments) has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of purchasing an Interest, including, without limitation, the risks set forth under the caption “Risk Factors and Potential Conflicts of Interest” in the Confidential Offering Memorandum for the Partnership (as amended or supplemented from time to time the “Offering Memorandum”), and is able to bear the economic risk of such investment, including a complete loss.  The Subscriber understands that (i) the Interest has not been and will not be registered under the Securities Act or the securities laws of any U.S. state and accordingly may not be offered, sold, transferred or pledged unless the Interests are duly registered under the Securities Act and all other applicable securities laws or such offer or sale is made in accordance with an exemption from registration, (ii) the Partnership Agreement (as modified by any side letter between the Subscriber and the General Partner (the “Side Letter”), if applicable) contains substantial restrictions on the transferability of the Interest, (iii) no market for resale of any Interest exists or is expected to develop, (iv) the Subscriber may not be able to liquidate its investment in the Partnership and (v) any instruments representing an Interest may bear legends restricting the transfer thereof.

(d)     The Subscriber understands that the offering and sale of the Interests in non-U.S. jurisdictions may be subject to additional restrictions and limitations and represents and warrants that it is acquiring its Interest in compliance with all laws, rules, regulations and other legal requirements applicable to the Subscriber in jurisdictions in which the Subscriber is resident and in which such acquisition is being consummated. In connection with the purchase of an Interest, the Subscriber meets all suitability standards imposed on it by applicable law.  Further, to the Subscriber’s knowledge, no governmental orders, permissions, consents, approvals or authorizations are required to be obtained, and no registrations or other filings are required to be made, in connection with the purchase of an Interest by the Subscriber.
(e)    The Subscriber has been furnished with, and has carefully read, the Offering Memorandum and the Partnership Agreement and has been given the opportunity to (i) ask questions of, and receive answers from, the General Partner or any Affiliate thereof concerning the terms and conditions of the offering and other matters pertaining to an investment in the Partnership and (ii) obtain any additional information which the General Partner can acquire without unreasonable effort or expense that is necessary to evaluate the merits and risks of an investment in the Partnership.  In considering a subscription of Interests, the Subscriber has not relied upon any representations made by, or other information (whether oral or written, including any information provided by the General Partner through an online data site) furnished by or on behalf of, the Partnership, the General Partner, the Manager or any of their respective directors, officers, employees, agents or Affiliates, other than as set forth in the Offering Memorandum, the Partnership Agreement or the Side Letter (if applicable).  The Subscriber has carefully considered and has, to the extent it believes such discussion necessary, discussed with legal, tax, accounting and financial advisers the suitability of an investment in the Partnership in light of its particular tax and financial situation, and has determined that the Interests being subscribed for by it hereunder are a suitable investment for it.
(f)    The Subscriber, if it is a corporation, limited liability company, trust, partnership or other entity, is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization and the execution, delivery and performance by it of this Subscription Agreement and the Partnership Agreement (each as modified by the Side Letter, if applicable) are within its powers, have been duly authorized by all necessary corporate or other action on its behalf, require no action by or in respect of, or filing with, any governmental body, agency or official (except as disclosed in writing to the General Partner) and do not and shall not contravene, or constitute a default under, any provision of applicable law, rule or regulation or of its certificate of incorporation or other comparable organizational documents or any agreement, judgment, injunction, order, decree or other instrument to which the Subscriber is a party or by which the Subscriber or any of the Subscriber’s properties is bound.  The signature on the signature page of this Subscription Agreement is genuine, and the signatory has been duly authorized to execute the same, and this Subscription Agreement constitutes, and the Partnership Agreement, when executed and delivered by the General Partner on the Subscriber’s behalf, shall constitute, a valid and binding agreement of the Subscriber, enforceable against the Subscriber in accordance with its terms.
(g)    If the Subscriber is a natural person, the execution, delivery and performance by such person of this Subscription Agreement and the Partnership Agreement are within such person’s legal right, power and capacity, require no action by or in respect of or filing with, any governmental body, agency, or official (except as disclosed in writing to the General Partner) and do not and shall not contravene, or constitute a default under, any provision of applicable 

law, rule or regulation or of any agreement, judgment, injunction, order, decree or other instrument to which such person is a party or by which such person or any of such person’s properties are bound.  The signature on the signature page of this Subscription Agreement is genuine, the Subscriber has legal competence and capacity to execute the same, and this Subscription Agreement constitutes, and the Partnership Agreement when executed and delivered by the General Partner on the Subscriber’s behalf shall constitute, a valid and binding agreement of the Subscriber, enforceable against the Subscriber in accordance with its terms.
(h)    Unless otherwise indicated in the Prospective Investor Questionnaire, the Subscriber is not a participant-directed defined contribution plan (such as a 401(k) plan), or a partnership or other investment vehicle (i) in which its partners or participants have or shall have any discretion as to their level of investment in the Subscriber or in investments made by the Subscriber (including the Subscriber’s investment in an Interest), or (ii) that is otherwise an entity managed to facilitate the individual decisions of its beneficial owners to invest in the Partnership.
(i)    If the Subscriber is a private investment company or non-U.S. investment company exempt from registration under the Investment Company Act pursuant to Section 3(c)(1), 3(c)(7) or 7(d) thereunder, unless otherwise indicated in the Prospective Investor Questionnaire, the Subscriber’s Interest constitutes, and after the Closing Date applicable to the Subscriber shall continue to constitute, less than 40% of each of the Subscriber’s total assets and committed capital.
(j)    Unless otherwise disclosed in writing to the General Partner, the Subscriber is not a registered investment company under the Investment Company Act, is not required to register as an investment company under the Investment Company Act and is not a business development company as defined in the Advisers Act.
(k)    If the Subscriber is a “charitable remainder trust” within the meaning of Section 664 of the Code, the Subscriber has advised the Partnership in writing of such fact and the Subscriber acknowledges that it understands the risks, including specifically the tax risks, if any, associated with its investment in the Partnership.
(l)     If the Subscriber is purchasing its Interest with funds that constitute, directly or indirectly, the assets of (i) an employee benefit plan subject to Title I of the United States Employee Retirement Income Security Act of 1974, as amended from time to time (“ERISA”) or Section 4975 of the United States Internal Revenue Code of 1986, as amended from time to time (the “Code”), or (ii) or a governmental plan subject to any federal, state or local law substantially similar to Title I of ERISA or Section 4975 of the Code (“Similar Law”), it acknowledges that the Subscriber (and, as applicable, any person responsible for the decision to purchase an Interest) has evaluated for itself the merits of such investment, is qualified to make such investment decision and, to the extent it deems necessary, has consulted its own investment advisors and legal counsel regarding the purchase of an Interest and it has not solicited and has not received from the General Partner, the Manager or any of their respective directors, officers, employees, agents or Affiliates any evaluation or other investment advice on any basis in respect of the advisability of a subscription for an Interest in light of the plan’s assets, cash needs, investment policies or strategy, overall portfolio composition or plan for diversification of assets and it is not relying and has not relied on the General Partner or any director, officer, employee, agent or Affiliate thereof for any such advice.  The Subscriber represents that, based 

upon the assumption that the assets of the Partnership do not constitute “plan assets” under Title I of ERISA or Section 4975 of the Code, neither (x) the execution and delivery of this Subscription Agreement nor the purchase of the Subscriber’s Interest in the Partnership will result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or under Similar Law; and (y) if the Subscriber is a governmental plan subject to Similar Law, the investment by the Subscriber will not cause the assets of the Partnership to be subject to any such Similar Law.  If the Subscriber is subject to Part 4 of Subtitle B of Title I of ERISA, the Subscriber acknowledges that none of the General Partner, the Manager or any of their respective Affiliates is a “fiduciary” (within the meaning of ERISA) of the Subscriber in connection with the Subscriber’s purchase of Interests.
(m)    If the Subscriber is subject to Title I of ERISA and/or Section 4975 of the Code (a “Plan”), then the Subscriber on behalf of the authorized fiduciary of the Plan (the “Fiduciary”) represents, acknowledges and agrees that: (i) the purchase of the Interests by the Plan is an arm’s length transaction related to an investment in securities or other investment property; (ii) the Fiduciary is either (A) a bank as defined in Section 202 of the Advisers Act or similar institution that is regulated and supervised and subject to periodic examination by a state or federal agency, (B) an insurance carrier which is qualified under the laws of more than one state to perform the services of managing, acquiring or disposing of assets of a plan, (C) an investment adviser registered under the Advisers Act or, if not registered an as investment adviser under the Advisers Act by reason of paragraph (1) of  Section 203A of the Advisers Act, is registered as an investment adviser under the laws of the state in which it maintains its principal office and place of business, (D) a broker-dealer registered under the United States Securities Exchange Act of 1934, as amended from time to time, or (E) an independent fiduciary that holds, or has under management or control, total assets of at least $50 million; (iii) the Fiduciary is capable of evaluating investment risks independently, both in general and with regard to the purchase of the Interests; (iv) the General Partner and the Manager have informed the Fiduciary (x) that none of the General Partner, the Manager, or any of their Affiliates is undertaking to provide impartial investment advice or to give advice in a fiduciary capacity in connection with the offering or purchase of the Interests, and (y) of the existence and nature of the General Partner’s and the Manager’s financial interests associated with the purchase of the Interests, including the fees and other distributions that the General Partner and/or the Manager anticipate receiving from the Partnership on account of the purchase of the Interests; (v) the Fiduciary is a fiduciary under ERISA or the Code, or both, with respect to the purchase of the Interests by the Subscriber, and is responsible for exercising independent judgment in evaluating such purchase of the Interests; and (vi) none of the General Partner, the Manager, or any of their Affiliates has received, or will receive, a fee or other compensation directly from any of the Subscriber, any fiduciary of the Subscriber (including the Fiduciary), or any participant or beneficiary of the Subscriber, for the provision of investment advice (as opposed to other services) in connection with the purchase of the Interests by the Subscriber or otherwise.

(n)    Unless otherwise indicated in the Prospective Investor Questionnaire, the Subscriber is not a Benefit Plan Investor1 as defined under Section 3(42) of ERISA and any regulations thereunder.  The Subscriber agrees to promptly notify the General Partner in writing if there is any change in the percentage of the Subscriber’s assets that are treated as “plan assets” for the purpose of Section 3(42) of ERISA and any regulations promulgated thereunder.
(o)    If the Subscriber is an insurance company and is investing assets of its general account (or the assets of a wholly owned subsidiary of its general account) in the Partnership, then, unless otherwise indicated in the Prospective Investor Questionnaire, such assets underlying the general account do not constitute “plan assets” within the meaning of Section 401(c) of ERISA.  The Subscriber agrees to promptly notify the General Partner in writing if there is any change in the percentage of the general account’s assets that constitute “plan assets” within the meaning of Section 401(c) of ERISA.
(p)    If the Subscriber is a corporation, limited liability company, trust, partnership or other entity organized under the laws of a jurisdiction outside of the United States, the Subscriber represents and warrants that it is not aware of any foreign laws or regulations that might restrict its ability to make Capital Contributions pursuant to the Partnership Agreement.
(q)    The Subscriber (i)(A) is subscribing for Interests solely for its own account, own risk and own beneficial interest, (B) if it is an entity, including without limitation a fund-of-funds, trust, pension plan or any other entity that is not a natural person (each, an “Entity”), has carried out thorough due diligence as to, and established the identities of, such Entity’s Related Persons2, holds the evidence of such identities and shall maintain all such evidence for at least six years from the date of the completion of the liquidation of the Partnership and shall make such information available to the Partnership and the General Partner upon the General Partner’s reasonable request, and (C) does not have the intention or obligation to sell, pledge, distribute, assign or transfer all or a portion of the Interests to any other person (whether directly or indirectly, including without limitation, through any option, swap, forward or any other hedging or derivative transaction), or (ii)(A) is subscribing for Interests as a record owner and shall not have a beneficial ownership interest in the Interests, (B) is acting as an agent, trustee, representative, intermediary, nominee or in a similar capacity for one or more natural persons,
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1 A “Benefit Plan Investor” includes (i) an “employee benefit plan”  that is subject to the provisions of Title I of ERISA; (ii) a “plan” that is not subject to the provisions of Title I of ERISA, but is subject to the prohibited transaction provisions of Section 4975 of the Code, such as IRAs and certain retirement plans for self-employed individuals; and (iii) a pooled investment fund whose assets are treated as “plan assets” under Department of Labor Regulations 2510.3-101, as modified by Section 3(42) of ERISA because “employee benefit plans” or “plans” hold 25% or more of any class of equity interest in such pooled investment fund.
2 A “Related Person” means, with respect to any Entity, any investor, director, senior officer, trustee, beneficiary or grantor of such Entity; provided that in the case of (i) an Entity the securities of which are listed on a national securities exchange or quoted on an automated quotation system in the United States (a “Publicly Traded Company”), (ii) a wholly-owned subsidiary of such an Entity that is a Publicly Traded Company or (iii) a tax qualified pension or retirement plan in which at least 100 employees participate that is maintained by an employer that is (A) organized in the United States or (B) any United States government or any state department or other political subdivision thereof or any non-U.S. governmental body, agency, authority or instrumentality in any jurisdiction exercising executive, legislative, regulatory or administrative functions of or pertaining to government (a “Qualified Plan”), the term “Related Person” excludes the investors and beneficiaries of such Publicly Traded Company or such Qualified Plan.

Entities, nominee accounts or beneficial owners (each such person or Entity, if any, for whom the Subscriber acts as agent, representative, intermediary, nominee or in a similar capacity, a “Beneficiary”3), and understands and acknowledges that the representations, warranties and agreements made in this Subscription Agreement are made by the Subscriber with respect to both the Subscriber and each such Beneficiary, (C) has all requisite power and authority from each such Beneficiary to execute and perform the obligations under this Subscription Agreement, (D) has carried out thorough due diligence as to, and established the identity of, each such Beneficiary (and, if a Beneficiary is not a natural person, the identities of such Beneficiary’s Related Persons (to the extent applicable)), holds the evidence of such identities and shall maintain all such evidence for at least five years from the date of the completion of the liquidation of the Partnership and shall make such information available to the Partnership and the General Partner upon the General Partner’s reasonable request, and (E) does not have the intention or obligation to sell, pledge, distribute, assign or transfer all or a portion of the Interests to any person (whether directly or indirectly, including without limitation, through any option, swap, forward or any other hedging or derivative transaction) other than any such Beneficiary.
(r)    If the Subscriber is a grantor trust, S Corporation or entity treated as a partnership for U.S. federal income tax purposes, (i) at no time during the term of the Partnership shall substantially all of the value of a Beneficiary’s interest in the Subscriber (directly or indirectly) be attributable to the Subscriber’s ownership of the Interest, or (ii) the Subscriber does not have, in acquiring the Interest, a principal purpose of permitting the Partnership to satisfy the 100 partner limitation in Treasury Regulations Section 1.7704-1(h)(1), and, to the best of Subscriber’s knowledge, no Beneficiary has such a principal purpose.
(s)    Either (i) the Subscriber is not, and will not become, a disregarded entity or grantor trust for Federal income tax purposes, or (ii) the Subscriber is a disregarded entity or grantor trust and the Federal tax owner or grantor, as applicable, of the Subscriber agrees to be bound by the representations and warranties of the Subscriber contained in Section 7(r) of this Subscription Agreement as if such owner or grantor, as applicable, were the Subscriber.
(t)    The proposed investment in the Partnership by the Subscriber or any Beneficiary, as the case may be, shall not directly or indirectly contravene any applicable anti-money laundering laws, rules and regulations (a “Prohibited Investment”) and no Capital Contribution to the Partnership by such Subscriber or, if applicable, any Beneficiary shall be derived from any illegal or illegitimate activities.  The Subscriber does not know or have any reason to suspect that the proceeds from the Subscriber’s investment in the Interests will be used to finance any illegal activities.

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3 For the avoidance of doubt, to the extent that the Subscriber is acting as an agent, trustee, representative, intermediary, nominee or in a similar capacity for one or more Beneficiaries, the representations, warranties and agreements made in this Subscription Agreement shall be deemed representations, warranties and agreements of each Beneficiary, as if such Beneficiary completed this Subscription Agreement.

(u)    The Subscriber understands that federal regulations and executive orders administered by the United States Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) and other U.S. government agencies prohibit, among other things, the engagement in  transactions with, and the provision of services to, certain foreign countries, territories, entities  and individuals4. The Subscriber further represents and warrants that none of the Subscriber, any of its Affiliates, or, if applicable, any Beneficiary or Related Person, is a country, territory, person or entity named on an OFAC list or any other applicable restricted party lists, including OFAC’s Specially Designated Nationals List, and none of the Subscriber, any of its Affiliates, or, if applicable, any Beneficiary or Related Person, is a natural person or Entity with whom dealings are prohibited under any OFAC regulations.
(v)    Neither the Subscriber nor, if applicable, any Beneficiary or Related Person, is, receives deposits from, makes payments to or conducts transactions relating to a foreign bank without a physical presence in any country other than a foreign bank that (i) is an Affiliate of a depositary institution, credit union or foreign bank that maintains a physical presence in the United States or a foreign country, as applicable, (ii) is subject to supervision and inspection by a banking authority in the country regulating such affiliated depositary institution, credit union, or foreign bank (each, a “Regulated Affiliate”), (iii) has a fixed address, other than an electronic address or a post office box, in a country in which it is authorized to conduct banking activities, (iv) employs one or more individuals on a full-time basis, (v) maintains operating records related to its banking activities, (vi) is subject to inspection by the banking authority which licensed the foreign bank to conduct banking activities and (vii) does not provide banking services to any other foreign bank that does not have a physical presence in any country and that is not a Regulated Affiliate.
(w)    The Subscriber acknowledges and agrees that, notwithstanding anything to the contrary contained in any document (including the Partnership Agreement, any Side Letters or similar agreements), if, following the Subscriber’s investment in the Partnership, the General Partner or the Manager reasonably believes that the investment is or has become a Prohibited Investment or if otherwise required by law, the General Partner on behalf of the Partnership may be obligated to “freeze the account” of the Subscriber, either by (i) prohibiting additional Capital Contributions, (ii) restricting any distributions, (iii) declining any requests to transfer the Subscriber’s Interest and/or (iv) segregating the assets in the Subscriber’s account in compliance with governmental regulations.  In addition, in any such event, the Subscriber may (A) forfeit its Interest, (B) may be forced to withdraw from the Partnership or may otherwise be subject to the remedies required by law, (C) to the fullest extent permitted by law, shall have no claim against any Indemnified Party (as such term is defined in the Partnership Agreement) for any form of damages as a result of any of the actions described in this paragraph and (D) shall promptly pay or reimburse the Partnership, the Manager and General Partner for any and all expenses and costs incurred by the Partnership, the Manager or the General Partner in connection with any such actions (which such payment shall not be deemed a Capital Contribution).  The Partnership may also be required to report such action and to disclose the Subscriber’s identity or provide other information with respect to the Subscriber to OFAC or other governmental entities.
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4 The lists of OFAC prohibited countries, territories, persons and entities can be found on the OFAC website at <www.treas.gov/ofac>.

(x)    Except as otherwise disclosed to the General Partner in writing: (i) neither the Subscriber  nor, if applicable, any Beneficiary or Related Person, is resident in, or organized or chartered under the laws of, (A) a jurisdiction that has been designated by the Secretary of the Treasury under Section 311 or 312 of the Uniting and Strengthening America by Providing Appropriate Tools Required to Interrupt and Obstruct Terrorism Act of 2001 (the “PATRIOT Act”) as warranting special measures due to money laundering concerns or (B) any foreign country that has been designated by the Financial Action Task Force as having strategic deficiencies in its anti-money laundering and counter-terrorist financing standards (a “Strategically Deficient Jurisdiction”5); (ii) the subscription funds of the Subscriber and, if applicable, any Beneficiary, do not originate from, nor will they be routed through, an account maintained at (A) a Foreign Shell Bank,6 (B) a foreign bank (other than a Regulated Affiliate) that is barred, pursuant to its banking license, from conducting banking activities with the citizens of, or with the local currency of, the country that issued the license, or (C) a bank organized or chartered under the laws of a Strategically Deficient Jurisdiction; and (iii) neither the Subscriber nor, if applicable, any Beneficiary or Related Person, is a senior non-U.S. government, political or military official or any other Senior Foreign Political Figure (as defined in the PATRIOT Act) (each, a “Politically Exposed Person”), or an immediate family member or close associate of a Politically Exposed Person.
(y)    The Subscriber agrees to promptly notify the Partnership should the Subscriber become aware of any change in the information set forth in paragraphs (a) through (y) of this Section 7.
(z)    The Subscriber understands that legal counsel to the Partnership, the Manager, the General Partner and to any of their respective Affiliates shall not be representing the Subscriber or any other investor in the Partnership, and no independent counsel has been retained to represent the Subscriber or any other investor in the Partnership.
(aa)    The Subscriber acknowledges that the Interest will not be issued until such time as the General Partner has received and is satisfied with all the information and documentation requested to verify the Subscriber’s identity.  Where, at the sole discretion of the General Partner, the Interest is issued prior to the General Partner having received all the information and documentation required to verify the Subscriber’s identity, the General Partner reserves the right to refuse to make any withdrawal payment or distribution to the Subscriber, until such time as the General Partner has received and is satisfied with all the information and documentation requested to verify the Subscriber’s identity.
(bb)    The Subscriber acknowledges and agrees that any distributions paid to it by the Partnership shall be paid to, and any contributions made by it to the Partnership shall be made from, an account in the Subscriber’s name unless the General Partner, in its sole discretion, agrees otherwise in writing.

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5 Subscribers should visit: http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/ for a complete list of Strategically Deficient Jurisdictions.
6 A “Foreign Shell Bank” means a foreign bank without a physical presence in any country that is not a Regulated Affiliate.

(cc)    The Subscriber agrees, to the extent permitted by law, to promptly provide any information requested by the General Partner which the General Partner reasonably believes shall enable the Partnership or its agents to comply with all applicable anti-money laundering laws, rules and regulations, (including, without limitation, the Money Laundering Regulations of the Cayman Islands), including any laws, rules and regulations applicable to an investment held or proposed to be held by the Partnership and information related to the Subscriber which the General Partner reasonably believes is necessary to allow the Partnership or its agents to comply with any tax reporting, tax withholding or tax payment obligations of the Partnership or such agents to establish the Partnership’s, any Alternative Investment Vehicle’s or any Portfolio Company’s legal entitlement to an exemption from, or reduction of, withholding tax including U.S. federal withholding tax, or any other taxes or similar payments. The Subscriber understands and agrees that the Partnership or its agents may release confidential information about the Subscriber and, if applicable, any Beneficiary or Related Person to any Person, if the General Partner, in its sole and absolute discretion, determines that such disclosure is in the best interests of the Partnership in light of relevant laws, rules and regulations concerning Prohibited Investments, and any such disclosure shall not be treated as a breach of any restriction upon the disclosure of information imposed on any such person by law or otherwise.
(dd)    The Subscriber acknowledges and agrees that:  (i) the Partnership has only recently been formed and has no financial or operating history; (ii) there are substantial risks incident to purchasing Interests, as summarized in the Offering Memorandum under the heading “Risk Factors and Potential Conflicts of Interest” and in other portions of the Offering Memorandum; (iii) the Manager pursuant to the Investment Management Agreement, and the General Partner shall receive substantial compensation in connection with the management of the Partnership; (iv) neither the General Partner, the Manager, nor any of their respective Affiliates has acted as or is an agent or employee of or has advised the Subscriber in connection with the investment in the Partnership by the Subscriber; (v) no federal, state, local or foreign agency has passed upon the Interests or made any finding or determination as to the fairness of the Subscriber’s investment; and (vi) any investment returns set forth in the Offering Memorandum or in any supplemental materials thereto are not necessarily comparable to the returns, if any, which may be achieved on investments made by the Partnership.
(ee)        The Subscriber acknowledges that it has received Part 2A of Form ADV of the Manager prior to the Closing Date.
(ff)        If the General Partner determines that the Subscriber (or any beneficial owner of the Subscriber) beneficially owns 20% or more of the voting securities of the Partnership at any time, the Subscriber acknowledges and agrees that it (or such beneficial owner) shall (i) complete and furnish to the General Partner a Rule 506(d) supplement to this Subscription Booklet allowing the General Partner to make the determinations required by Rule 506(d) of Regulation D under the Securities Act and any other applicable laws and regulations, (ii) update such Rule 506(d) supplement as requested by the General Partner from time to time and (iii) promptly notify the General Partner of any change in any such information. 
(gg)    The Subscriber has read carefully and understands the privacy statement of the Partnership attached hereto as Annex C.
(hh)        The Subscriber is not subscribing for the Interest as a result of (a) any advertisement, article, notice or other communication published in any newspaper, magazine 

or similar media or broadcast over television, radio or the internet, in each case, relating to the Partnership or (b) any seminar or meeting whose attendees, including the Subscriber, have been invited by any general solicitation or general advertising related to the Partnership.
(ii)        The foregoing representations, warranties and agreements shall survive the Closing Date applicable to the Subscriber.
8.    Unless otherwise agreed by the General Partner in writing, the Subscriber shall, to the fullest extent permitted by applicable law, indemnify each Indemnified Party and the Partnership against any losses, claims, damages or liabilities to which any of them may become subject in any capacity in any action, proceeding or investigation arising out of or based upon any false representation or warranty, or breach or failure by the Subscriber to comply with any covenant or agreement made by the Subscriber herein, or in any other document furnished to the General Partner or the Partnership by the Subscriber in connection with the offering of the Interests.  The Subscriber shall reimburse each Indemnified Party and the Partnership for legal and other expenses (including, without limitation, the cost of any investigation and preparation) as they are incurred in connection with any such action, proceeding or investigation (whether incurred between any Indemnified Party or the Partnership and the Subscriber, or between any Indemnified Party or the Partnership and any third party).  The reimbursement and indemnity obligations of the Subscriber under this Section 8 shall survive the Closing Date applicable to the Subscriber and shall be in addition to any liability which the Subscriber may otherwise have (including, without limitation, liabilities under the Partnership Agreement), and shall be binding upon and inure to the benefit of any successors, assigns, heirs, estates, executors, administrators and personal representatives of any Indemnified Party and the Partnership.  The parties hereto intend that each Indemnified Party be entitled to be indemnified under this Subscription Agreement, and have the right to enforce such indemnification as though they were parties hereto. Except with respect to each Indemnified Party under this Section 8, a person who is not a party to this Subscription Agreement shall not have any rights under the Contracts (Rights of Third Parties) Law, 2014 (as amended) to enforce any term of this Subscription Agreement. Notwithstanding any other provision of this Subscription Agreement, including the foregoing, the consent of or notice to any person who is not a party to this Subscription Agreement shall not be required for any termination, rescission or agreement to any variation, waiver, assignment, novation, release or settlement under this Subscription Agreement at any time.
9.    The Subscriber acknowledges that it may be required to provide certain information as necessary for the Partnership, any Parallel Fund, any Alternative Investment Vehicle, Intermediate Entity, Portfolio Company or any affiliated entities of the foregoing to enter into, maintain, or otherwise comply with, any agreement contemplated by FATCA (as defined in the Partnership Agreement) or satisfy any requirements imposed by FATCA.  By becoming a Limited Partner, the Subscriber further acknowledges and agrees that the Subscriber shall promptly notify the General Partner if there is any change of circumstances that renders the information furnished in this Subscription Agreement in respect of FATCA incorrect.  The Subscriber agrees to provide to the General Partner or its agents, upon request, any documentation or other information regarding the Subscriber and its beneficial owners that the General Partner or its agents may require from time to time in connection with the Partnership’s obligations under, and compliance with, applicable laws and regulations including, but not limited to FATCA.  By executing this Subscription Agreement, the Subscriber waives any provision under the laws and regulations of any jurisdiction that would, in the absence of such waiver, prevent or inhibit the Partnership’s compliance with applicable law as described in this paragraph including, but not limited to preventing (i) the Subscriber from providing any requested information or documentation, or (ii) the 

disclosure by the General Partner or its agents of the provided information or documentation to applicable governmental or regulatory authorities. 
10.    Neither this Subscription Agreement nor any provisions hereof shall be waived, modified, discharged or terminated except by an instrument in writing signed by the party against whom any waiver, modification, discharge or termination is sought.
11.    This Subscription Agreement is not transferable or assignable by the Subscriber.  This Subscription Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.  If the Subscriber is more than one person, the obligation of the Subscriber shall be joint and several, and the agreements, representations, warranties and acknowledgments herein contained shall be deemed to be made by and be binding upon each such person and its successors and assigns.  
12.    This Subscription Agreement and the other agreements or documents referred to herein or in the Partnership Agreement (including any Side Letter) contain the entire agreement of the parties, and there are no representations, covenants or other agreements except as stated or referred to herein and in such other agreements or documents.  In the event of a conflict between the terms of this Subscription Agreement, on the one hand, and the terms of the Partnership Agreement or the Side Letter (if applicable), the terms of the Partnership Agreement or the Side Letter, as applicable, shall control.  The signature page to this Subscription Agreement may be executed in several counterparts with the same effect as if the parties executing the several counterparts had all executed one counterpart.
13.    This Subscription Agreement and all claims or causes of action that may be based upon, arise out of or related to this Subscription Agreement and the negotiation, execution or performance of this Subscription Agreement (including any claim or cause of action based upon or arising out of or related to any representation or warranty made in or in connection with this Subscription Agreement or as an inducement to enter into this Subscription Agreement) shall be governed by and construed and enforced in accordance with the laws of the Cayman Islands, without giving effect to any choice or conflict of law provision or rule (whether in the Cayman islands or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the Cayman Islands.  In furtherance of the foregoing, the law of the Cayman Islands will control even if under such jurisdiction’s choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily or necessarily apply.  To the fullest extent permitted by law, unless otherwise agreed by the General Partner in writing, in the event of any dispute arising out of or relating to this Subscription Agreement, or the negotiation, execution or performance of this Subscription Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Subscription Agreement or as an inducement to enter into this Subscription Agreement), the parties hereto consent and submit to the courts of the State of New York located in New York County or the United States District Court for the Southern District of New York, to the extent subject matter jurisdiction exists therefor, and the parties irrevocably submit to the exclusive jurisdiction of each of those courts in respect of any such action or proceeding.  The Subscriber hereby waives as a defense that any such action, suit or proceeding brought in such courts has been brought in an inconvenient forum or that the venue thereof may not be appropriate and, furthermore, agree that venue in the State of New York for any such action, suit or proceeding is appropriate.  UNLESS OTHERWISE AGREED BY THE GENERAL PARTNER IN WRITING, TO THE FULLEST EXTENT PERMITTED BY LAW, THE PARTIES HERETO WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS OR REMEDIES ARISING UNDER OR IN CONNECTION WITH THIS SUBSCRIPTION AGREEMENT.  Notwithstanding the foregoing, a 

Subscriber which is a Governmental Plan and which has provided the General Partner, prior to the date of its admission as a Subscriber, with a certificate of an officer of its plan administrator stating that such an irrevocable submission to jurisdiction or waiver, as the case may be, would constitute a violation of applicable law or regulation shall not be deemed to have made such an irrevocable submission or waiver, as the case may be.
14.    The Partnership, the General Partner and/or the Manager may provide the Subscriber (or its designated agents) (a) statements, reports and other communications relating to the Partnership and/or the Subscriber’s investment in the Partnership, annual and other updates of the Partnership’s consumer privacy policies and procedures and (b) all communications relating to the General Partner and the Manager (including the Manager’s Form ADV, Part 2, privacy policy and any other communication required under the Advisers Act or otherwise) (collectively, the “Partnership Information”) in electronic form, such as e-mail, in lieu of or in addition to sending such communications as hard copies via fax or mail.  E-mail messages are not secure and may contain computer viruses or other defects, may not be accurately replicated on other systems, or may be intercepted, deleted or interfered with without the knowledge of the sender or the intended recipient.  The Partnership, the General Partner and the Manager make no warranties in relation to these matters.  The General Partner and the Manager reserve the right to intercept, monitor and retain e-mail messages to and from its systems as permitted by applicable law.  If the Subscriber has any doubts about the authenticity of an email purportedly sent by the Partnership, the General Partner or the Manager, the Subscriber is required to contact the purported sender immediately.
15.    Any term or provision of this Subscription Agreement that is invalid or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms or provisions of this Subscription Agreement or affecting the validity or unenforceability of any of the terms or provisions of this Subscription Agreement in any other jurisdiction.
16.    The Subscriber hereby constitutes and appoints the General Partner as its true and lawful representative and attorney-in-fact, in its name, place and stead to make, execute, sign and file the Partnership Agreement, any amendments thereto required in order to effectuate any change in the membership of the Partnership or pursuant to the terms of the Partnership Agreement and all such other instruments, documents and certificates which may from time to time be required by the laws of the Cayman Islands, the United States of America, or any state, or any political subdivision or agency thereof, to effectuate, implement and continue the valid and subsisting existence of the Partnership or to dissolve the Partnership.  If at any time the power of attorney granted pursuant to this Section 16 or Section 11.2 of the Partnership Agreement is deemed to be invalid for any reason, the Subscriber agrees to execute and deliver to the General Partner, within ten (10) calendar days after receipt of a request therefor, any documents necessary to grant the General Partner the powers of attorney contemplated in this Section 16 or Section 11.2 of the Partnership Agreement. The power of attorney granted hereby is intended to secure an interest in property and, in addition, the obligation of the Subscriber hereunder, is irrevocable and shall (i) survive and not be affected by the subsequent dissolution, incapacity, disability, death, termination or bankruptcy of the Subscriber granting the same or the transfer of all or any portion of the Subscriber’s interest in the Partnership and (ii) extend to the Subscriber’s successors, assigns and legal representatives.
By executing the signature pages to this Subscription Agreement, the Subscriber agrees to be bound by the foregoing.

SIGNATURE PAGE TO THE SUBSCRIPTION AGREEMENT, PROSPECTIVE INVESTOR QUESTIONNAIRE AND ANTI-MONEY LAUNDERING SUPPLEMENT
This page constitutes the signature page for the Subscription Agreement, the Prospective Investor Questionnaire and the Anti-Money Laundering Supplement relating to the offering of Interests in the Partnership.  Execution of this signature page constitutes execution of the Subscription Agreement, the Prospective Investor Questionnaire and the Anti-Money Laundering Supplement.
IN WITNESS WHEREOF, the Subscriber has executed and unconditionally delivered this Subscription Agreement, Prospective Investor Questionnaire and Anti-Money Laundering Supplement as a deed this 3rd day of March, 2017.
	
					
	 
	 
	$10,000,000

	 
	 
	Capital Commitment Applied For

	 
	 
	 
	 
	 

	In the presence of:
	 
	Tudor Insurance Company

	 
	 
	Name of Prospective Investor (print or type)

	/s/ Gene Hammoud
	 
	 
	 
	 

	Signature of Witness
	 
	By:
	 

	 
	 
	(Signature, if individual)

	Name: Gene Hammoud
	 
	 
	 
	 

	 
	 
	By:
	/s/ Gerald Ayash

	Address: 300 Kimball Drive, Suite
	 
	 
	(Signature, if executing on behalf of entity)

	500, Parsippany, NJ 07054
	 
	Name:
	Gerald Ayash

	 
	 
	Title:
	Senior VP & CFO

By initialing in the space at the right, the Subscriber represents that it is a/an:
	
		
	Benefit Plan Investor (as defined in the Partnership Agreement)
	 

	 
	Initial here

	BHC Partner (as defined in the Partnership Agreement)
	 

	 
	Initial here

	CAI Limited Partner (as defined in the Partnership Agreement)
	 

	 
	Initial here

	ERISA Partner (as defined in the Partnership Agreement)
	 

	 
	Initial here

	FOIA Limited Partner (as defined in the Partnership Agreement)
	 

	 
	Initial here

	Governmental Plan (as defined in the Partnership Agreement)
	 

	 
	Initial here

	Regulated Plan Partner (as defined in the Partnership Agreement)
	 

	 
	Initial here

	Electing Partner (as defined in the Partnership Agreement)
	 

	 
	Initial hereacor-ex101_26.htm

EXHIBIT 10.1

 

COOPERATION AGREEMENT

This Cooperation Agreement (this “Agreement”) dated as of February 27, 2018 is by and between Scopia Capital Management LP (“Scopia”) and Acorda Therapeutics, Inc. (the “Company”). The Company and Scopia are each referred to herein as a “Party” and collectively, as the “Parties.”

WHEREAS, the Company and Scopia have engaged in discussions concerning the Company’s business;

WHEREAS, Scopia has informed the Company that it beneficially owns 8,474,728 shares of the common stock, par value $0.01 per share, of the Company (the “Common Stock”), which represents approximately 18.1% of the issued and outstanding shares of Common Stock; and

WHEREAS, the Company and Scopia have determined to come to an agreement regarding the appointment of the Scopia Directors (as defined below) to the board of directors of the Company (the “Board”) following the Company’s 2018 Annual Meeting of Stockholders (including any adjournment or postponement thereof or any special meeting held in lieu thereof, the “2018 Annual Meeting”) and upon designation by Scopia and certain other matters as set forth herein.

NOW, THEREFORE, in consideration of and reliance upon the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1.Nomination of Scopia Directors.

(a)The Company agrees that in accordance with the Company’s certificate of incorporation and by-laws and Delaware law and subject to Section 1(b), effective the later of (x) five business days following their designation by Scopia and (y) one week following the 2018 Annual Meeting, if designated by Scopia prior to such time (the “Board Effective Time”), in each case, so long as a Resignation Trigger (as defined below) has not occurred, the Board and each appropriate committee and subcommittee of the Board shall take all necessary actions to appoint one individual so designated by Scopia in writing to the Company to serve as a Class I director (the “Scopia Class I Director”) with a term expiring at the Company’s 2021 Annual Meeting of Stockholders and one individual so designated by Scopia to serve as Class III director with a term expiring at the 2020 Annual Meeting of Stockholders (the “Scopia Class III Director” and together with the Scopia Class I Director, the “Scopia Directors”).  Scopia shall designate, in its sole discretion, which Scopia Director shall be the Scopia Class I Director and which Scopia Director shall be the Scopia Class III Director.

(b)Each Scopia Director must (i) be reasonably acceptable to the  Nominations & Governance Committee of the Board (the “Nominations Committee”), (ii) subject to the terms and conditions of this Agreement, meet the Company’s governance policies and guidelines effective as of the date hereof (including the Company’s Corporate Governance Guidelines effective as of the date hereof and the charter of the Nominations Committee effective as of the date hereof) with respect to service on the Board (“Corporate Governance 

 

 

Guidelines”) and not have a material conflict of interest with the Company, each as reasonably determined by the Nominations Committee  and (iii) qualify as “independent” pursuant to Nasdaq Stock Market listing standards (or applicable requirements of such other national securities exchange designated as the primary market on which the Company’s Common Stock is listed for trading, other than any standards that take into account ownership of any Securities of the Company (as defined below) (clauses (i), (ii), and (iii) the “Director Criteria”) (it being understood that any member of senior management of Scopia shall be deemed to be reasonably acceptable to the Nominations Committee and to meet all of the Director Criteria).  The Nominations Committee shall make its determination and recommendation regarding whether a person designated by Scopia to be a Scopia Director meets the Director Criteria as promptly as practicable after such nominee has submitted to the Company the documentation required by Section 1(c).  In the event the Nominations Committee does not accept a person designated by Scopia as a Scopia Director as a result of such person not meeting the Director Criteria, Scopia shall have the right to recommend additional person(s) meeting the Director Criteria whose appointment shall be subject to the Nominations Committee recommending such person in accordance with the procedures described above. Upon the recommendation of the Scopia Director nominee by the Nominations Committee, the Board shall vote on the appointment of such Scopia Director to the Board as promptly as practicable after the Nominations Committee recommendation of such Scopia Director; provided, however, that if the Board does not elect such Scopia Director to the Board as a result of such person not meeting the Director Criteria, the Parties shall continue to follow the procedures of this Section 1(b) until a Scopia Director is elected to the Board.   

 

(c)As a condition to each Scopia Director’s appointment to the Board, Scopia shall (i) cause the Scopia Directors who are senior management of Scopia ( the “Scopia Management Directors”)to provide to the Company executed irrevocable resignations as director in the form attached hereto as Exhibit A (the “Scopia Irrevocable Resignation Letter”)and (ii) use its reasonable best efforts to cause the Scopia Directors who are not members of senior management of Scopia (the “Scopia Non-Management Directors”) to provide to the Company executed irrevocable resignations as director in the form attached hereto as Exhibit B (the “Scopia Non-Management Director Irrevocable Resignation Letter”  and together with the Scopia Irrevocable Resignation Letter, the “Irrevocable Resignation Letter), and as a condition to each Scopia Non-Management Director’s appointment to the Board, each such Scopia Non-Management Director shall have delivered the Scopia Non-Management Director Irrevocable Resignation Letter to the Company.  Scopia shall (i) cause the Scopia Management Directors and (ii) use its reasonable best efforts to cause the Scopia Non-Management Directors to, as promptly as practicable upon request of the Company, provide the Company (i) executed consents from any Scopia Directors to serve as a director if appointed pursuant to the terms hereof, (ii) any information required to be or reasonably and customarily disclosed for all applicable directors, candidates for directors, and their affiliates and representatives in a proxy statement or other filings under applicable law or stock exchange rules or listing standards, (iii) completed copies of the Company’s standard D&O Questionnaires in the form provided to Scopia by the Company and information in connection with assessing eligibility, independence and other criteria applicable to all applicable directors or satisfying compliance and legal obligations applicable to all independent directors, (iv) written acknowledgments by each Scopia Director that such Scopia Director agrees to comply with all lawful agreements, policies, codes, rules, standards 

2

 

 

and guidelines applicable to non-employee Board members effective as of the date hereof (the “Policies”) (including the Company’s Corporate Governance Guidelines and all relevant Board committee charter requirements and all confidentiality, conflicts of interest and trading and disclosure and other policies), subject to the terms and conditions of this Agreement, and (v) such other information as reasonably requested by the Company from time to time with respect to any such Scopia Director.  The Company acknowledges and agrees that, solely for the purposes of determining compliance with the Company’s Stock Ownership Guidelines, any shares of Common Stock of the Company beneficially owned by Scopia shall be counted toward the calculation of any Scopia Director’s ownership of the Company’s Common Stock.

(d)Should there be a vacancy, for any reason other than as described in Section 1(e) or (f), as a result of the removal or resignation of a Scopia Director or any other event resulting in a Scopia Director no longer being a director during such director’s term, then Scopia shall be entitled to designate a replacement director or directors; provided that such replacement director or nominee shall (A) meet the Director Criteria, as reasonably determined by the Nominations Committee, and (B) provide the items required to be provided by the Scopia Directors pursuant to Section 1(c), and thereafter the Company, the Board and the Nominations Committee shall take all necessary actions, subject to and in accordance with the terms and procedures of Section 1(b), such that such individual or individuals, as applicable, shall be promptly appointed to fill the remaining term of the Scopia Director or Scopia Directors , as the case may be, being replaced and shall be considered to be a “Scopia Director” or “Scopia Directors”, as the case may be, under this Agreement.

(e)Notwithstanding anything to the contrary in this Agreement, the Company’s and the Board’s obligations under this Section 1 (other than Section 1(i)) shall terminate immediately, and Scopia shall (i) cause the Scopia Directors then serving on the Board who are senior management of Scopia and (ii) use its reasonable best efforts to cause the Scopia Directors then serving on the Board who are not members of senior management of Scopia to promptly resign from the Board and any committee thereof (and promptly deliver their written resignations to the Board), and the Company shall have no further obligation with respect to the Scopia Directors under this Section 1 (other than Section 1(i)) upon the occurrence of any of the following events:

(i)Submission by Scopia to the Company of a notice of nomination for election to the Board in respect of directors not nominated by the Board during the Standstill Period (as defined below);

(ii)Scopia’s filing of a Proxy Statement on Schedule 14A with the Securities and Exchange Commission (“SEC”) in order to solicit proxies with respect to securities of the Company in opposition to any director nominated by the Board during the Standstill Period;

(iii)Prior to January 1, 2019, Scopia’s not voting in favor of the election of each director nominated by the Board or not voting against any shareholder nominations for the election of directors not approved or recommended by the Board (other than an Opposition Matter (as defined below));

3

 

 

(iv)Scopia (A) making or submitting a public proposal with respect to the Company during the Standstill Period or (B) forming, joining or being a member of a “group” (as such term is defined in Section 13(d)(3) of the Exchange Act) (provided Scopia publicly acknowledges its membership in such group) that makes or submits a public proposal with respect to the Company during the Standstill Period (for the avoidance of doubt, “public proposal” shall mean the issuance or filing of a press release or other filing with the SEC or making an announcement through broadcast media); and

(v)A final judicial decision of a material breach of the Agreement by Scopia.

A “Resignation Trigger” shall mean any of the foregoing events upon which a Scopia Director shall be obligated or caused to resign.

(f)The Company and the Board shall be relieved of their respective obligations set forth in this Section 1 (other than Section 1(i)) in the event that Scopia and the Scopia Affiliates (as defined below), collectively, cease to beneficially own an aggregate Net Long Position of at least 10% of the Company Stock then outstanding (other than as a result of any action by the Company that has a dilutive effect, including stock issuances).  The term “Net Long Position” shall mean such shares of Common Stock beneficially owned, directly or indirectly, that constitute such person’s net long position as defined in Rule 14e-4 promulgated by the SEC under the Exchange Act (as defined below) mutatis mutandis, but the “long position” of such person for this purpose shall not include any shares as to which such person does not have the right to vote or direct the vote or as to which such person has entered into a derivative or other agreement, arrangement or understanding that hedges or transfers, in whole or in part, directly or indirectly, any of the economic consequences of ownership of such shares.

(g)The Company agrees that in accordance with the Company’s certificate of incorporation and by-laws and Delaware law, the Board (and each applicable committee and subcommittee of the Board) shall take all necessary actions to:

(i)immediately prior to the appointment of the Scopia Directors to the Board, increase the size of the Board from nine (9) to eleven (11) directors or otherwise increase the Board by two (2) seats if the size of the Board is not nine (9);

(ii)not increase the size of the Board if doing so would result in the Board having a number of members in excess of nine (9) directors prior to the appointment of the Scopia Directors to the Board and eleven (11) directors following the appointment of the Scopia Directors to the Board, in each case, other than with Scopia’s prior written consent;

(iii)not change or seek to change the classes on which the Board members serve, other than with Scopia’s prior written consent or as necessary in connection with the nomination of directors at the Company’s 2019 Annual Meeting of Stockholders (provided that the Board will not move a Scopia Director from the class to which such Scopia director was appointed in accordance with Section 1(a) or reduce the number of Class II directors below four directors without Scopia’s prior written consent);

(iv)until the appointment of the initial Scopia Designees, not amend any existing, or create any new, Policies other than as necessary to comply with legal or 

4

 

 

corporate governance requirements (in the case of corporate governance requirements, as advised, recommended or used in a scoring system by ISS, Glass Lewis or other comparable proxy advisory firms);

(v)nominate four individuals for election as Class II directors at the Company’s 2019 Annual Meeting of Stockholders;

(vi)subject to the fiduciary duties of the Board under applicable law, hold its 2018 Annual Meeting of Stockholders no later than June 30, 2018; and

(vii)subject to the fiduciary duties of the Board under applicable law, hold its 2019 Annual Meeting of Stockholders no later than June 30, 2019.

(h)The Company agrees that Scopia and the Scopia Affiliates (other than any Scopia Director who is an employee of Scopia or a Scopia Affiliate, solely in his or her individual capacity as a director and subject to the terms and conditions of this Agreement) is not subject to any of the Policies, including any such provisions related to trading in Securities of the Company (as defined below).  The foregoing notwithstanding, and subject to the provisions of Section 7, Scopia agrees that during the Standstill Period it will not, and will cause the Scopia Affiliates not to, trade in any securities of the Company or any securities convertible or exchangeable into or exercisable for any such Securities of the Company (“Securities of the Company”) except during open “windows” during which the Scopia Directors are allowed to trade in Securities of the Company.

(i)The Company hereby acknowledges that the Scopia Directors may have certain rights to other indemnification, advancement of expenses and/or insurance from sources outside of the Company and its insurers (collectively, the “Other Indemnitors”).  The Company hereby agrees (A) that, solely with respect to actions of a Scopia Director in his or her capacity as a member of the Board (or in such other capacity pursuant to which such Scopia Director is entitled to indemnification under the Company’s certificate of incorporation, by-laws or any other written agreement between the Company and an Indemnitee (collectively, and as each may be amended or supplemented from time to time, the “Indemnification Agreements”)), it is the indemnitor of first resort (i.e., its obligations to the Scopia Directors (the “Indemnitees” and each, an “Indemnitee”) are primary and any obligation of the Other Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by such Indemnitee are secondary), (B) solely to the extent (1) legally permitted, and (2) required by the terms of the Indemnification Agreements, that it shall be required to advance the full amount of expenses incurred by an Indemnitee and shall be liable for the full amount of all losses, claims, damages, liabilities and expenses (including attorneys’ fees, judgments, fines, penalties and amounts paid in settlement), and (C) that it irrevocably waives, relinquishes and releases the Other Indemnitors from any and all claims against the Other Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof.  The Company further agrees that no advancement or payment by the Other Indemnitors on behalf of an Indemnitee with respect to any claim for which such Indemnitee has sought indemnification from the Company shall affect the foregoing and the Other Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of such 

5

 

 

Indemnitee against the Company.  The Company and each Indemnitee agree that the Other Indemnitors are express third party beneficiaries of the terms of this Section 1(i).

(j)If so requested by each Scopia Director (including, for the avoidance of doubt, any replacement Scopia Director), the Board shall appoint such Scopia Director then serving on the Board to any two committees of the Board of such Scopia Director’s choice, subject in each case to such Scopia Director’s satisfying the qualification requirements set forth in the applicable committee charter, stock exchange and SEC rules regarding committee membership of such committee. The Board and any applicable committees or subcommittees of the Board will not change the scope, powers, functions, responsibilities or size (other than to add the Scopia Directors) of any current committee of the Board without Scopia’s prior written consent other than to the extent necessary to comply with changes in NASDAQ and SEC rules and regulations or recommendations made by Institutional Shareholder Services Inc. (“ISS”) and Glass Lewis & Co., LLC (“Glass Lewis”). The Board and any committees or subcommittees of the Board will not remove any Scopia Director from a committee of the Board, except as required by law, with Scopia’s prior written consent or if such Scopia Director is not serving on the Board.  Further, the Board or any applicable committee or subcommittee of the Board shall not implement any policy restricting the ability of any member of the Board to attend meetings of the Board or meetings of its committees or subcommittees, except to the extent (i) required by law, or (ii) advised by legal counsel to avoid any potential conflict of interest or that is otherwise inconsistent with the Board’s fiduciary duties.

(k)During the Standstill Period, the Board will not create any “executive committee” of the Board, or delegate to any existing or new committee of the Board, responsibilities substantially similar to those of an executive committee.  The Board and each committee and subcommittee of the Board shall take all actions necessary to ensure that during the Standstill Period, each committee and subcommittee of the Board does not delegate to any existing or new committee of the Board, responsibilities substantially similar to those of any existing committee. 

2.Standstill.

(a)Scopia agrees that, during the Standstill Period, (unless specifically requested or consented to in writing by the Company, acting through a resolution of a majority of the Company’s directors not including the Scopia Directors or in cases as expressly permitted by this Agreement, including Section 3), it shall not, and shall cause each of its Affiliates or Associates under Scopia’s control (collectively (with Scopia) and individually, the “Scopia Affiliates”), not to, directly or indirectly, in any manner, alone or in concert with others:

(i)make, engage in, or in any way knowingly participate in, directly or indirectly, any “solicitation” of “proxies” (as such terms are used in the proxy rules of the SEC but without regard to the exclusion set forth in Rule 14a-1(l)(2)(iv) of the Exchange Act) or consents to vote or advise, knowingly encourage or instruct any person other than any Scopia Affiliate with respect to the voting of any Securities of the Company for the election of individuals to the Board or to approve stockholder proposals in opposition to the recommendation or proposal of the Board, or become a “participant” in any contested “solicitation” for the election of directors with respect to the Company (as such terms are 

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defined or used under the Exchange Act) in opposition to the recommendation or proposal of the Board, other than a “solicitation” or acting as a “participant” in support of all of the nominees of the Board at any stockholder meeting or voting its shares at any such meeting of the Company’s stockholders in its sole discretion (subject to compliance with this Agreement), or make or be the proponent of any stockholder proposal (pursuant to Rule 14a-8 under the Exchange Act or otherwise), except in all cases as expressly permitted by this Agreement;

(ii)form, join, knowingly encourage or in any way participate in any “group” (as such term is defined in Section 13(d)(3) of the Exchange Act) with any persons (excluding, for the avoidance of doubt, any group composed solely of Scopia and Scopia Affiliates or the group previously disclosed in the Schedule 13D originally filed with the SEC on August 7, 2017 (as amended through the date hereof, the “Scopia 13D”)) with respect to any Securities of the Company or otherwise in any manner agree, attempt, seek or propose to deposit any Securities of the Company in any voting trust or similar arrangement, or subject any Securities of the Company to any arrangement or agreement with respect to the voting thereof (including by granting any proxy, consent or other authority to vote) that would divest Scopia or the Scopia Affiliates of the ability to vote or cause to be voted any Securities of the Company owned as of the date of this Agreement or subsequently acquired in accordance with this Agreement, except as expressly set forth in this Agreement;

(iii)other than in Rule 144 open market broker sale transactions where the identity of the purchaser is not known and in underwritten widely dispersed public offerings, sell, offer or agree to sell directly or indirectly, through swap or hedging transactions or otherwise, the Securities of the Company or any rights decoupled from the underlying Securities of the Company held by Scopia or any Scopia Affiliate to any person or entity not a party to this Agreement (a “Third Party”) that, to Scopia’s or the Scopia Affiliate’s actual knowledge (it being understood that such actual knowledge shall be deemed to exist with respect to any publicly available information, including information in documents filed with the SEC), would result in such Third Party, together with its affiliates and associates, owning, controlling or otherwise having any beneficial or other ownership interest in the aggregate of more than 4.9% of the shares of Common Stock outstanding at such time or would increase the beneficial or other ownership interest of any Third Party who, together with its affiliates and associates, has a beneficial or other ownership interest in the aggregate of more than 4.9% of the shares of Common Stock outstanding at such time;

(iv)effect or seek to effect, offer or propose to effect, cause or knowingly participate in, or provide any information to any other person with respect to, any tender or exchange offer, merger, consolidation, acquisition, sale of all or substantially all assets, scheme of arrangement, plan of arrangement or other business combination, recapitalization, reorganization, sale or acquisition of material assets, liquidation or other extraordinary transaction involving the Company or any of its subsidiaries or joint ventures or any of their respective securities or a material amount of any of their respective assets or businesses (each, an “Extraordinary Transaction”), or knowingly encourage, initiate or support any other third party in any such activity;

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(v)engage in any short sale or any purchase, sale or grant of any option, warrant, convertible security, stock appreciation right, or other similar right (including, without limitation, any put or call option or “swap” transaction with respect to any security (other than a broad based market basket or index)) that includes, relates to or derives any significant part of its value from a decline in the market price or value of the Securities of the Company;

(vi)(A) call or request the calling of any meeting of stockholders, (B) seek representation on, or nominate any candidate to, the Board, except as set forth herein, (C) seek the removal of any member of the Board, (D) solicit consents from stockholders or otherwise act or seek to act by written consent, (E) conduct a referendum of stockholders, (F) present at any annual meeting or any special meeting of the Company’s stockholders, or (G) make a request for any stockholder list or other Company books and records, whether pursuant to Section 220 of the Delaware General Corporation Law (the “DGCL”) or otherwise;

(vii)except as set forth herein, (1) take any action in support of or make any proposal or request that constitutes: (A) any plans or proposals to change the number or term of directors or to fill any vacancies on the Board; (B) any material change in the capitalization, stock repurchase programs and practices, capital allocation programs and practices or dividend policy of the Company; (C) seeking to have the Company waive or make amendments or modifications to the Company’s certificate of incorporation or the by-laws, or other actions, that may impede or facilitate the acquisition of control of the Company by any person; (D) causing a class of Securities of the Company to be delisted from, or to cease to be authorized to be quoted on, any national securities exchange; or (E) causing a class of Securities of the Company to become eligible for termination of registration pursuant to Section 12(g)(4) of the Exchange Act or (2) publicly take any action in support of or publicly make any proposal or request with respect to any other material change in the Company’s management or corporate structure;

(viii)unless the Company is in material breach of this Agreement, request, directly or indirectly, any amendment or waiver of the foregoing (provided, that Scopia and the Scopia Affiliates may make confidential requests to the Board to amend, modify or waive any provision of Agreement, which the Board may accept or reject in its sole discretion, so long as any such request is not publicly disclosed by Scopia or the applicable the Scopia Affiliates and is made by Scopia or the applicable Scopia Affiliates in a manner that is not reasonably expected to require the public disclosure thereof by the Company, Scopia or the Scopia Affiliates); or

(ix)except as contemplated in Section 6, make any public disclosure, announcement or statement regarding any intent, purpose, plan or proposal inconsistent with the foregoing;

Notwithstanding anything to the contrary herein, the Standstill Period will terminate at such time following the Board Effective Time as the Scopia Directors (or their successors) appointed to the Board are no longer serving on the Board and, unless there has a occurred a Resignation Trigger 

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or the Board has accepted the Irrevocable Resignation Letter in respect of both Scopia Directors, Scopia has notified the Company in writing that it will not seek to fill any such vacancies.

(b)Subject to applicable law, each of the Parties agrees that, during the Standstill Period, it shall not, and shall cause each of its Affiliates and Associates under its control not to, directly or indirectly, in any manner, alone or in concert with others, make or cause to be made, or in any way knowingly encourage any other person to make or cause to be made, any public statement or announcement, including in any document or report filed with or furnished to the SEC or through the press, media, analysts or other persons, that constitutes or would be reasonably expected to constitute an ad hominem attack on, or otherwise disparages, defames or slanders the other Party, its Affiliates or their respective directors, officers, partners, employees or members or any of such other Party’s businesses, products or services; provided that each Party and its Affiliates and Associates under such Party’s control may correct any public statement made by or on behalf of the other Party or its Affiliates or Associates under such other Party’s control in violation of this Section 2(b).

(c)Notwithstanding anything to the contrary, nothing in this Agreement shall restrict any Scopia Director from taking any action, in his or her fiduciary capacity as a director of the Company, including (1) voting for or against any matter or making any statement at any meeting of the Board or of any committee thereof, or (2) making any private statement to the Chief Executive Officer or any other director of the Company in his capacity as a director, so long as such actions, statements or communications are not intended to, and would not reasonably be expected to, require any public disclosure of such action, statement or communication in a Schedule 13D or similar filing by Scopia or a Scopia Affiliate.  

(d)For purposes of this Agreement

(i)the terms “Affiliate” and “Associate” shall have the meaning given to such terms in Rule 12b-2 promulgated by the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”); provided that the term “Associates” in such definition shall be deemed to be preceded by the word “controlled”;

(ii)the terms “person” or “persons” shall mean any individual, corporation (including not-for-profit), general or limited partnership, limited liability or unlimited liability company, joint venture, estate, trust, association, organization or other entity of any kind or nature; and

(iii)the term “Standstill Period” shall mean the period commencing on the date hereof and ending on the earlier of (i) January 1, 2019 and (ii) the date that is 15 business days prior to the deadline for the submission of stockholder nominations of directors pursuant to the bylaws of the Company for the Company’s 2019 Annual Meeting of Stockholders. Notwithstanding anything to the contrary, the Standstill Period will terminate at such time following the Board Effective Time as the Scopia Directors (or their successors) appointed to the Board are no longer serving on the Board and, unless a Resignation Trigger has occurred or the Board has accepted the Irrevocable Resignation Letter in respect of both Scopia Directors, Scopia has notified the Company in writing that it will not seek to fill any such vacancies.

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3.Voting Agreement.  Until the earlier of (x) January 1, 2019 or (y) following the Board Effective Time, such time as the Scopia Directors (or their successors) appointed to the Board are no longer serving on the Board and, unless a Resignation Trigger has occurred or the Board has accepted the Irrevocable Resignation Letter in respect of both Scopia Directors, Scopia has notified the Company in writing that it will not seek to fill any such vacancies, Scopia shall cause all shares of Common Stock beneficially owned, directly or indirectly, by it, or by any controlled Scopia Affiliate, to be present for quorum purposes and to be voted, at any annual or special meeting of stockholders (and at any adjournments or postponements thereof), and further agrees that at such meetings it and they shall vote (i) in favor of each director nominated by the Board for election at such meetings and vote against any shareholder nominations for the election of directors not approved or recommended by the Board, (ii) in favor of the ratification of the appointment of Ernst & Young LLP as the Company’s independent registered public accounting firm and (iii) in accordance with the Board’s recommendations with respect to the Company’s “say-on-pay” proposal unless ISS and Glass Lewis recommend otherwise with respect to such “say-on-pay” proposal; provided, however, that, notwithstanding anything in the foregoing or in Section 2 to the contrary, Scopia and the Scopia Affiliates may vote their shares of Common Stock beneficially owned, directly or indirectly, against an Opposition Matter to the extent put to a vote at a stockholder meeting. An “Opposition Matter” shall mean any action in each case as approved by the Board but voted against by a Scopia Director. At the Company’s request, Scopia will represent to the Company how Scopia voted with respect to any of the foregoing matters at any stockholders meeting held on or after the date hereof through January 1, 2019.

4.Representations of the Company.  The Company represents and warrants to Scopia as follows: (a) the Company has the power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby; (b) this Agreement has been duly and validly authorized, executed and delivered by the Company, constitutes a valid and binding obligation and agreement of the Company and is enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles; (c) the execution, delivery and performance of this Agreement by the Company does not and will not (i) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to the Company, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, or any material agreement, contract, commitment, understanding or arrangement to which the Company is a party or by which it is bound (including any employment or benefit agreement or arrangement with any employee, officer or director, and any indebtedness for borrowed money).  Prior to entry into this Agreement, the Company has delivered a copy of the Company’s Policies effective as of the date hereof.  The Company has not taken any actions with respect to any matters related to this Agreement that require disclosure on a Form 8-K prior to the date of this Agreement that have not previously been disclosed.

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5.Representations of Scopia.  Scopia represents and warrants to the Company as follows: (a) Scopia is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization and has the requisite power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby; (b) this Agreement has been duly and validly authorized, executed and delivered by Scopia, constitutes a valid and binding obligation and agreement of Scopia and is enforceable against Scopia in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles; (c) as of the date of this Agreement, Scopia, together with the Scopia Affiliates, beneficially own, directly or indirectly, an aggregate of 8,474,728 shares of Common Stock and such shares of Common Stock constitute all of the Common Stock beneficially owned by Scopia and the Scopia Affiliates or in which Scopia or the Scopia Affiliates have any interest or right to acquire or vote, whether through derivative securities, voting agreements or otherwise; and (d) neither Scopia nor any Scopia Affiliate is party to any agreement, arrangement, understanding or relationship (including any repurchase or similar so-called “stock borrowing” agreement or arrangement) the purpose or effect of which is to mitigate loss to (i) reduce the economic risk (of ownership or otherwise) of any Securities of the Company (through “short” positions in shares of common stock, “long” puts, “short” calls, “short” forward, swap positions or otherwise), (ii) manage the risk of share price changes, or (iii) increase or decrease the voting power with respect to any Securities of the Company, or which provides, directly or indirectly, the opportunity to profit from any decrease in the price or value of any Securities of the Company (“Short Interests”).

6.Public Announcement.

(a)Promptly following the execution of this Agreement, the Company and Scopia shall announce this Agreement by means of a joint press release in the form attached hereto as Exhibit C (the “Press Release”) on February 28, 2018.

(b)The Company shall promptly prepare and file a Form 8-K (the “Form 8-K”) reporting entry into this Agreement and appending or incorporating by reference this Agreement and the Press Release as exhibits thereto; provided, however, the Company will, prior to its filing, provide Scopia with a reasonable opportunity to review and comment on such documents, and the Company will consider any comments from Scopia in good faith.

(c)Scopia shall promptly prepare and file an amendment (the “13D Amendment”) to the Scopia 13D reporting the entry into this Agreement and amending the applicable items to conform to the obligations hereunder.

(d)The Company shall have opportunity to review and approve (such approval not to be unreasonably withheld) any disclosure relating to this Agreement in a Schedule 13D (including the 13D Amendment) or similar filing.

(e)During the Standstill Period, no Party shall issue a press release or other public announcement in connection with this Agreement or the actions contemplated hereby other than the Press Release, Form 8-K and the 13D Amendment without providing the other 

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Party with a reasonable opportunity to review and comment on such documents and each party will consider any comments from the other Party in good faith.

7.Confidentiality.

(a)Scopia agrees to hold all Confidential Information in confidence and will not disclose or divulge any Confidential Information to any person other than as provided below or with the Company’s prior written consent.   For purposes of this Agreement, the term “Confidential Information” shall mean any and all information concerning or relating to the Company or any of its subsidiaries or Affiliates that is furnished (regardless of the manner in which it is furnished, including in written or electronic format or orally, gathered by visual inspection or otherwise) to a Scopia Director or counsel of a Scopia Director or Scopia by or on behalf of the Company or its agents, representatives, attorneys, advisors, directors, officers or employees (“Company Representatives”), together with all notes, analyses, reports, models, compilations, studies, interpretations, documents, records or extracts thereof containing, referring, relating to, based upon or derived from such information, in whole or in part. The term “Confidential Information” shall not include such information that (a) was provided to or made available to Scopia, a Scopia Director, any Scopia Representative (acting on behalf of Scopia) or a Scopia Affiliate on a non-confidential basis prior to it being furnished to a Scopia Director or counsel of a Scopia Director or Scopia by or on behalf of the Company or any Company Representative from a source not known, after reasonable inquiry, to bound by an agreement or obligation of confidentiality with respect to such information, (b) is or becomes generally available to the public other than as a result of a disclosure by the Scopia Director, Scopia, any of their respective Affiliates or any Scopia Representative in violation of this Agreement, or (c) has been or is independently developed by the Scopia Director, Scopia, any of their respective Affiliates or any Scopia Representative without the use of any Confidential Information.  Notwithstanding the foregoing, the Scopia Directors may provide Confidential Information to any Scopia officer, member, partner, employee or counsel (each, a “Scopia Representative”) for the purpose of advising Scopia on its investment in the Company or advising Scopia as to its rights and obligations under this Agreement, and may discuss such Confidential Information with such persons for such purposes, provided that any such Scopia Representative provided with any such information shall be directed to comply with the terms of this Section 7; and, in any event, Scopia shall be responsible for any non-compliance with such confidentiality requirements by any Scopia Representative who is provided with such information.  Scopia shall take all reasonable measures to restrain each Scopia Representative from prohibited or unauthorized disclosure of the Confidential Information. In furtherance, and not in limitation, of the foregoing, Scopia shall, and shall instruct each Scopia Representative to, use all reasonable and prudent efforts to protect and safeguard the Confidential Information from disclosure to at least the same extent such person does so with respect to Scopia’s confidential information and be directed to comply with the terms of this Section 7.  It is understood and agreed that the Scopia Director shall not disclose to Scopia or any Scopia Representative any Legal Advice (as defined below) that may be included in the Confidential Information with respect to which such disclosure may constitute waiver of the Company’s attorney-client privilege or attorney work-product privilege; provided that any such privileged communications or Legal Advice are plainly identified as such when disclosed to the Scopia Directors.  “Legal Advice” as used herein shall be solely and exclusively limited to the advice provided by legal counsel and shall not include 

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factual information or the formulation or analysis of business strategy that is not protected by the attorney-client or attorney work-product privilege.  

(b)In the event that Scopia, a Scopia Director or any Scopia Representative becomes legally compelled (including any request or demand of or by a regulatory authority having jurisdiction over Scopia, such Scopia Director or such Scopia Representative) to disclose any Confidential Information, Scopia, the Scopia Directors and the Scopia Representatives, as applicable, will promptly as practicable notify (except where such notice would be legally prohibited) the Company of the existence, terms and circumstances surrounding such a request, so that it may seek an appropriate protective order or other appropriate remedy and/or waive compliance with the provisions of this Section 7 and, Scopia, the Scopia Directors and the Scopia Representatives (as the case may be) will provide such cooperation as the Company shall reasonably request at the Company’s sole cost and expense. If, in the absence of a protective order or the receipt of a waiver hereunder, Scopia, such Scopia Director or such Scopia Representative is nonetheless, based on the advice of Scopia’s, such Scopia Director or Scopia’s Representatives’ legal counsel, required to disclose any such information, Scopia, such Scopia Director or such Scopia Representative, as the case may be, (i) may disclose, without liability hereunder, only that portion of the Confidential Information that Scopia, such Scopia Director or such Scopia Representative is legally required to disclose and (ii) shall, unless otherwise required by law or regulations, exercise its reasonable best efforts to obtain an order or other reliable assurance that confidential treatment will be accorded to such information to be disclosed. In no event will Scopia, any Scopia Director or any Scopia Representative oppose action by the Company to obtain a protective order or other remedy to prevent the disclosure of Confidential Information or to obtain reliable assurance that confidential treatment will be accorded the Confidential Information. For the avoidance of doubt, it is understood that there shall be no “legal requirement” requiring Scopia, any Scopia Director or any Scopia Representative to disclose any Confidential Information solely by virtue of the fact that, absent such disclosure, any of them or any of their respective Affiliates, would be prohibited from purchasing, selling or engaging in derivative or other voluntary transactions with respect to, the Securities of the Company or the securities of any other company or otherwise proposing or making an offer to do any of the foregoing, or any of them would be unable to file any proxy materials in compliance with Section 14(a) of the Exchange Act or the rules and regulations promulgated thereunder.

(c)Scopia acknowledges that (a) none of the Company or any of the Company Representatives makes any representation or warranty, express or implied, as to the accuracy or completeness of any Confidential Information, and (b) none of the Company or any of its representatives shall have any liability to Scopia, any Scopia Director, any Scopia client, any Scopia Representative or any of their respective Affiliates relating to or resulting from the use of the Confidential Information or any errors therein or omissions therefrom; provided, however, that the foregoing will not limit the Company’s liability to the extent such information was disclosed publicly by the Company.

(d)All Confidential Information shall remain the property of the Company. No other person shall by virtue of any disclosure of and/or use of any Confidential Information acquire any rights with respect thereto, all of which rights shall remain exclusively with the Company. At any time after the date on which this Agreement has been validly terminated pursuant to Section 13 hereof or following a Resignation Trigger, Scopia shall, and shall cause 

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the Scopia Directors to, promptly, upon written request by the Company, return to the Company or destroy all hard copies of the Confidential Information and use commercially reasonable efforts to permanently erase or delete all electronic copies of the Confidential Information in their or any of the Scopia Representatives’ possession or control (and, upon the request of the Company, shall certify to the Company in writing that such Confidential Information has been erased or deleted, as the case may be); provided, however, that Scopia and the Scopia Representatives shall  be entitled to retain copies of the Confidential Information to the extent required by applicable law or regulation or by its bona fide internal compliance policies; provided that such Confidential Information is not accessible in the ordinary course of business and is not accessed except as required for such back-up purposes (it being understood that the confidentiality and use provisions of this agreement shall survive for the period set forth in Section 13). Notwithstanding the return or erasure or deletion of Confidential Information, Scopia and the Scopia Representatives will continue to be bound by the obligations contained herein for the period set forth in Section 13.

(e)Scopia hereby acknowledges that it is aware that the United States securities laws may prohibit any person who has received from an issuer any material, non-public information from purchasing or selling securities of such issuer or from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities.

8.Miscellaneous.  The Parties agree that irreparable damage may occur in the event any of the provisions of this Agreement were not performed in accordance with the terms hereof and that such damage would not be adequately compensable in monetary damages. Accordingly, the parties hereto shall be entitled to an injunction or injunctions to prevent breaches of this Agreement, to enforce specifically the terms and provisions of this Agreement exclusively in the Court of Chancery of the State of Delaware or, if such court shall not have jurisdiction, any state or federal court sitting in the State of Delaware, and to require the resignation of the Scopia Directors from the Board following a Resignation Trigger or Scopia and the Scopia Affiliates, collectively, ceasing to beneficially own an aggregate Net Long Position of at least 10% of the Company Stock then outstanding (other than as a result of any action by the Company that has a dilutive effect, including stock issuances), in addition to any other remedies at law or in equity, and each party agrees it will not take any action, directly or indirectly, in opposition to another party seeking or obtaining such relief. Each of the Parties hereto agrees to waive any bonding requirement under any applicable law, in the case any other Party seeks to enforce the terms hereof by way of equitable relief.  Furthermore, each of the parties hereto (a) consents to submit itself to the personal jurisdiction of the Court of Chancery of the State of Delaware and the federal and other state courts sitting in the State of Delaware in the event any dispute arises out of this Agreement or the transactions contemplated by this Agreement, (b) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, (c) agrees that it shall not bring any action relating to this Agreement or the transactions contemplated by this Agreement in any court other than such federal or state courts of the State of Delaware, and each of the parties irrevocably waives the right to trial by jury, and (d) each of the parties irrevocably consents to service of process by a reputable overnight mail delivery service, signature requested, to the address set forth in Section 11 hereof or as otherwise provided by applicable law. THIS AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS, INCLUDING VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS 

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OF THE STATE OF DELAWARE APPLICABLE TO CONTRACTS EXECUTED AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE WITHOUT GIVING EFFECT TO ANY CONFLICT OR CHOICE OF LAW PRINCIPLES THAT MAY RESULT IN THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

9.Expenses.  All attorneys’ fees, costs and expenses incurred in connection with this Agreement and all matters related hereto will be paid by the party incurring such fees, costs or expenses; provided that the Company will reimburse Scopia for its reasonable, documented out-of-pocket legal costs incurred in connection with the Agreement, including in connection with the nomination and appointment of the Scopia Directors pursuant to Section 1, up to a maximum aggregate amount of $100,000.

10.Entire Agreement; Amendment.  This Agreement and all exhibits attached hereto contain the entire agreement and understanding of the parties with respect to the subject matter hereof and supersede any and all prior and contemporaneous agreements, memoranda, arrangements and understandings, both written and oral, between the parties, or any of them, with respect to the subject matter hereof. This Agreement may be amended only by an agreement in writing executed by the parties hereto, and no waiver of compliance with any provision or condition of this Agreement and no consent provided for in this Agreement shall be effective unless evidenced by a written instrument executed by the party against whom such waiver or consent is to be effective. No failure or delay by a party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power or privilege hereunder.

11.Notices.  All notices, consents, requests, instructions, approvals and other communications provided for herein and all legal process in regard hereto shall be in writing and shall be deemed validly given, made or served, when actually received during normal business hours at the address specified in this subsection:

	
 
	
if to the Company:
	
Acorda Therapeutics, Inc.

420 Saw Mill River Road
Ardsley, New York 10502
Attention:  Jane Wasman
Email:  jwasman@acorda.com

With a copy (which shall not constitute notice) to:

Simpson Thacher & Bartlett LLP
425 Lexington Avenue
New York, NY 10017
Attention:  Mario Ponce
Email:  mponce@stblaw.com

and

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Covington & Burling LLP
The New York Times Building
 620 Eighth Avenue
New York, NY 10018-1405
Attention:  Leonard Chazen
Email:  lchazen@cov.com

	
 
	
if to Scopia:
	
Scopia Capital Management LP

152 West 57th St., 33rd Floor
New York, NY 10019
Attention:  Jerome Lande
Email:  jlande@scopiacapital.com

With a copy (which shall not constitute notice) to:

Akin Gump Strauss Hauer & Feld LLP
One Bryant Park
New York, NY 10036
Attention:  Douglas Rappaport

E-mail:  drappaport@akingump.com

 

12.Severability.  If at any time subsequent to the date hereof, any provision of this Agreement shall be held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect, but the illegality or unenforceability of such provision shall have no effect upon the legality or enforceability of any other provision of this Agreement.

13.Termination.  This Agreement shall terminate January 1, 2019 (the “Termination Date”); provided that if a Scopia Director has been appointed prior to January 1, 2019, the Termination Date shall not occur until the date after the Board Effective Time on which no Scopia Director serves as a director of the Company Board and, unless a Resignation Trigger has occurred or the Board has accepted the Irrevocable Resignation Letters in respect of both Scopia Directors, Scopia has notified the Company in writing that it will not seek to fill any such vacancies. Notwithstanding the foregoing, Section 7 of this Agreement shall survive for a period of two years after the Termination Date and Section 1(i) and Sections 8 through Section 16 shall survive the termination of this Agreement.  

14.Counterparts.  This Agreement may be executed in two or more counterparts either manually or by electronic or digital signature (including by email transmission), each of which shall be deemed to be an original and all of which together shall constitute a single binding agreement on the parties, notwithstanding that not all parties are signatories to the same counterpart.

15.No Third Party Beneficiaries; Assignment.  Other than as provided in Section 1(i), this Agreement is solely for the benefit of the parties hereto and is not binding upon (other than successors to the parties hereto) or enforceable by any other persons. No party to this Agreement may assign its rights or delegate its obligations under this Agreement, whether by operation of 

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law or otherwise, and any assignment in contravention hereof shall be null and void. Nothing in this Agreement, whether express or implied, is intended to or shall confer any rights, benefits or remedies under or by reason of this Agreement on any persons other than the parties hereto, nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any third persons to any party.

16.Interpretation and Construction.  When a reference is made in this Agreement to a Section, such reference shall be to a Section of this Agreement, unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” and “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The words “hereof, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The word “will” shall be construed to have the same meaning as the word “shall.” The words “date hereof” will refer to the date of this Agreement. The word “or” is not exclusive. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms. Any agreement, instrument, law, rule or statute defined or referred to herein means, unless otherwise indicated, such agreement, instrument, law, rule or statute as from time to time amended, modified or supplemented. Each of the parties hereto acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this Agreement, and that it has executed the same with the advice of said independent counsel. Each party cooperated and participated in the drafting and preparation of this Agreement and the documents referred to herein, and any and all drafts relating thereto exchanged among the parties shall be deemed the work product of all of the parties and may not be construed against any party by reason of its drafting or preparation. Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against any party that drafted or prepared it is of no application and is hereby expressly waived by each of the parties hereto, and any controversy over interpretations of this Agreement shall be decided without regards to events of drafting or preparation.

[Signature Pages Follow]

 

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IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement, or caused the same to be executed by its duly authorized representative as of the date first above written.

 

ACORDA THERAPEUTICS, INC.

 

by

/s/ David Lawrence

Name: David Lawrence

Title:  Chief, Business Operations and Principal Accounting Officer

 

 

[Signature Page to Cooperation Agreement]

 

 

 

 

SCOPIA CAPITAL MANAGEMENT LP

 

by

/s/ Aaron Morse

Name:  Aaron Morse

Title:  Chief Operating Officer

 

 

[Signature Page to Cooperation Agreement]

 

EXHIBIT A

FORM OF IRREVOCABLE RESIGNATION
OF THE SCOPIA DIRECTORS

[●]

Attention:  Board of Directors
Acorda Therapeutics, Inc. 
420 Saw Mill River Road
Ardsley, New York 10502

Re:  Resignation

Ladies and Gentlemen:

This irrevocable resignation is delivered pursuant to Section 1(c) of the Cooperation Agreement, dated as of February 27, 2018 (the “Agreement”), by and between Acorda Therapeutics, Inc. and Scopia Capital Management LP. Capitalized terms used herein but not defined shall have the meaning set forth in the Agreement. Effective upon, and subject to, the occurrence of Scopia and the Scopia Affiliates, collectively, ceasing to beneficially own an aggregate Net Long Position (as defined in the Agreement) of at least 10% of the Common Stock then outstanding (and not as result of any action by the Company that has a dilutive effect, including stock issuances), I hereby resign from my position as a director of the Company and from any and all committees of the Board on which I serve.

[Signature Page Follows]

A-1

 

 

This resignation may not be withdrawn by me at any time during which it is effective.

Sincerely,

 

By:

Name:

 

[Signature Page to Irrevocable Resignation]

A-2

 

 

EXHIBIT B

FORM OF IRREVOCABLE RESIGNATION
OF SCOPIA NON-MANAGEMENT DIRECTOR

[●]

Attention:  Board of Directors
Acorda Therapeutics, Inc. 
420 Saw Mill River Road
Ardsley, New York 10502

Re:  Resignation

Ladies and Gentlemen:

This irrevocable resignation is delivered pursuant to Section 1(c) of the Cooperation Agreement, dated as of February 27, 2018 (the “Agreement”), by and between Acorda Therapeutics, Inc. and Scopia Capital Management LP. Capitalized terms used herein but not defined shall have the meaning set forth in the Agreement. Effective upon, and subject to, the occurrence of (i) a Resignation Trigger or (ii) Scopia and the Scopia Affiliates, collectively, ceasing to beneficially own an aggregate Net Long Position (as defined in the Agreement) of at least 10% of the Common Stock then outstanding (and not as result of any action by the Company that has a dilutive effect, including stock issuances), I hereby resign from my position as a director of the Company and from any and all committees of the Board on which I serve.

[Signature Page Follows]

B-1

 

 

This resignation may not be withdrawn by me at any time during which it is effective.

Sincerely,

 

By:

Name:

 

[Signature Page to Irrevocable Resignation]

B-2

 

 

EXHIBIT C

PRESS RELEASE

 

FOR IMMEDIATE RELEASE

 

Acorda Enters Into Cooperation Agreement with Scopia

 

ARDSLEY, NY, DATE – Acorda Therapeutics, Inc. (Nasdaq: ACOR) today announced that it has entered into a cooperation agreement with Scopia Capital Management LP. 

 

“We appreciate the constructive dialogue we have had with Scopia, and are pleased to have reached this agreement,” said Ron Cohen, M.D., Acorda's President and CEO. “We are focused on continuing to meet our responsibilities to all of our stakeholders, including the many patients with debilitating neurological disorders who are served by our innovative therapies, and our highly dedicated employees.” 

 

Under the terms and subject to the conditions of the agreement, following the 2018 Annual Meeting and until January 1, 2019, Scopia is entitled to appoint two directors to the Company’s Board of Directors. In addition and to the extent set forth in the agreement, Scopia will support the Acorda Board of Directors’ slate of nominees at the 2018 Annual Meeting and abide by customary standstill and other provisions through January 1, 2019. 

 

The complete agreement will be included as an exhibit to a Current Report on Form 8-K, which will be filed with the Securities and Exchange Commission.  

 

About Acorda Therapeutics

Founded in 1995, Acorda Therapeutics is a biopharmaceutical company focused on developing therapies that restore function and improve the lives of people with neurological disorders. Acorda has a pipeline of novel neurological therapies addressing a range of disorders, including Parkinson’s disease and multiple sclerosis. Acorda markets two FDA-approved therapies, including AMPYRA® (dalfampridine) Extended Release Tablets, 10 mg. 

 

Forward-Looking Statement

This press release includes forward-looking statements. All statements, other than statements of historical facts, regarding management's expectations, beliefs, goals, plans or prospects should be considered forward-looking. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including: the ability to realize the benefits anticipated from acquisitions, among other reasons because acquired development programs are generally subject to all the risks inherent in the drug development process and our knowledge of the risks specifically relevant to acquired programs generally improves over time; we may need to raise additional funds to finance our operations and may not be able to do so on acceptable terms; our ability to successfully market and sell Ampyra (dalfampridine) Extended Release Tablets, 10 mg in the U.S., which will likely be materially adversely affected by the March 2017 court decision in our litigation against filers of Abbreviated New Drug Applications to market generic versions of Ampyra in the U.S.; the risk of unfavorable results from future studies of Inbrija (levodopa inhalation powder) or from our other research and development programs, or any other acquired or in-licensed programs; we may not be able to complete development of, obtain regulatory approval for, or successfully market Inbrija or any other products under development; third party payers (including governmental agencies) may not reimburse for the use of Ampyra, Inbrija or our other products at acceptable 

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rates or at all and may impose restrictive prior authorization requirements that limit or block prescriptions; the occurrence of adverse safety events with our products; the outcome (by judgment or settlement) and costs of legal, administrative or regulatory proceedings, investigations or inspections, including, without limitation, collective, representative or class action litigation; competition; failure to protect our intellectual property, to defend against the intellectual property claims of others or to obtain third party intellectual property licenses needed for the commercialization of our products; and failure to comply with regulatory requirements could result in adverse action by regulatory agencies.

 

These and other risks are described in greater detail in our filings with the Securities and Exchange Commission. We may not actually achieve the goals or plans described in our forward-looking statements, and investors should not place undue reliance on these statements. Forward-looking statements made in this press release are made only as of the date hereof, and we disclaim any intent or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

 

###

 

Investor Contact 

Felicia Vonella 

Acorda Therapeutics, Inc. 

(914) 326-5146 

 

Media Contact

James Golden/Sharon Stern/Aaron Palash 

Joele Frank, Wilkinson Brimmer Katcher

(212) 355-4449

 

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