As
filed with the Securities and Exchange Commission on July 2, 2020
Registration
No. 333-
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
S-3
REGISTRATION
STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
MATINAS
BIOPHARMA HOLDINGS, INC.
(Exact
name of registrant as specified in its charter)
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Delaware
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46-3011414
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(State
or other jurisdiction
of
incorporation or organization)
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(I.R.S.
Employer
Identification
No.)
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1545
Route 206 South, Suite 302
Bedminster,
New Jersey 07921
(908)
443-1860
(Address,
including zip code, and telephone number, including area code, of registrant’s principal executive offices)
Jerome
D. Jabbour
Chief
Executive Officer
Matinas
BioPharma Holdings, Inc.
1545
Route 206 South, Suite 302
Bedminster,
New Jersey 07921
(212)
980-9155
(Name,
address, including zip code, and telephone number, including area code, of agent for service)
With
copies to:
Michael
J. Lerner, Esq.
Steven
M. Skolnick, Esq.
Lowenstein
Sandler LLP
1251
Avenue of the Americas
New
York, New York 10020
(212)
262-6400
APPROXIMATE
DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: From time to time after the effective date of this registration statement.
If
the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please
check the following box. [ ]
If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under
the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check
the following box. [X]
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please
check the following box and list the Securities Act registration statement number of the earlier effective registration statement
for the same offering. [ ]
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list
the Securities Act registration statement number of the earlier effective registration statement for the same offering.[ ]
If
this Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become
effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box. [ ]
If
this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register
additional securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following
box. [ ]
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
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Large
accelerated filer
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[ ]
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Accelerated
filer
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[X]
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Non-accelerated
filer
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[ ]
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Smaller
reporting company
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[X]
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Emerging
growth company
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[ ]
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If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.
[ ]
CALCULATION
OF REGISTRATION FEE
Title of Each Class of
Securities to be Registered
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Amount to be
Registered
(1)
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Proposed Maximum
Offering Price
Per Unit
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Proposed Maximum
Aggregate Offering
Price (2)
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Amount of
Registration
Fee (3)
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Common Stock, $0.0001 par value per share
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—
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—
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Preferred Stock, $0.0001 par value per share
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—
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—
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Warrants
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—
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—
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Debt Securities
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Subscription Rights
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Total
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N/A
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N/A
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$
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200,000,000
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$
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25,960
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(1)
An indeterminate amount of the securities of each identified class is being registered as may from time to time be offered hereunder
at indeterminate prices, along with an indeterminate number of securities that may be issued upon exercise, settlement, exchange
or conversion of securities offered or sold hereunder, which together shall have an aggregate initial offering price not to exceed
$200,000,000. Any securities registered hereunder may be sold separately or as units with other securities registered hereunder.
Includes consideration to be received by the registrant, if applicable, for registered securities that are issuable upon exercise,
conversion or exchange of other registered securities. In addition, pursuant to Rule 416 under the Securities Act of 1933, as
amended (the “Securities Act”), the shares being registered hereunder include such indeterminate number of shares
of common stock and preferred stock as may be issuable with respect to the shares being registered hereunder as a result of stock
splits, stock dividends, or similar transactions.
(2)
The proposed maximum offering price per unit will be determined from time to time by the Registrant in connection with, and at
the time of, the issuance of the securities and is not specified as to each class of security pursuant to General Instruction
II.D. of Form S-3 under the Securities Act.
(3)
Calculated pursuant to Rule 457(o) under the Securities Act based on the proposed maximum aggregate offering price of all securities
listed.
(4)
Each unit will represent an interest in two or more other securities, which may or may not be separable from one another.
The
registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until
the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become
effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective
on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
EXPLANATORY
NOTE
This
registration statement contains:
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a
base prospectus, which covers the offering, issuance and sales by us of up to $200,000,000 in the aggregate of the securities
identified above from time to time in one or more offerings; and
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a
sales agreement prospectus covering the offer, issuance and sale by us of up to a maximum aggregate offering price of up to
$50,000,000 of our common stock that may be issued and sold from time to time under a sales agreement with BTIG, LLC (the
“Sales Agreement”).
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The
base prospectus immediately follows this explanatory note. The specific terms of any securities to be offered pursuant to the
base prospectus will be specified in a prospectus supplement to the base prospectus. The Sales Agreement prospectus immediately
follows the base prospectus. The $50,000,000 of common stock that may be offered, issued and sold under the Sales Agreement prospectus
is included in the $200,000,000 of securities that may be offered, issued and sold by us under the base prospectus. Upon termination
of the Sales Agreement, any portion of the $50,000,000 included in the sales agreement prospectus that is not sold pursuant to
the Sales Agreement will be available for sale in other offerings pursuant to the base prospectus, and if no shares are sold under
the Sales Agreement, the full $50,000,000 of securities may be sold in other offerings pursuant to the base prospectus.
The
information in this prospectus is not complete and may be changed. We may not sell these securities under this prospectus until
the registration statement of which it is a part and filed with the Securities and Exchange Commission is effective. This prospectus
is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer
or sale is not permitted.
PRELIMINARY
PROSPECTUS
SUBJECT
TO COMPLETION, DATED JULY 2, 2020
$200,000,000
Common
Stock
Preferred
Stock
Warrants
Debt
Securities
Subscription
Rights
Units
We
may offer and sell, from time to time in one or more offerings, any combination of common stock, preferred stock, warrants, debt
securities, subscription rights or units having an aggregate initial offering price not exceeding $200,000,000. The preferred
stock, warrants, debt securities, subscription rights and units may be convertible or exercisable or exchangeable for common stock
or preferred stock or other securities of ours and have not been approved for listing on any market or exchange, and we have not
made any application for such listing.
Each
time we sell a particular class or series of securities, we will provide specific terms of the securities offered in a supplement
to this prospectus. The prospectus supplement may also add, update or change information in this prospectus. You should read this
prospectus and any prospectus supplement, as well as the documents incorporated by reference or deemed to be incorporated by reference
into this prospectus, carefully before you invest in any securities.
This
prospectus may not be used to offer or sell our securities unless accompanied by a prospectus supplement relating to the offered
securities.
Our
common stock is traded on the NYSE American LLC, or NYSE American, under the symbol “MTNB”. On June 30, 2020, the
last reported sales price of our common stock on NYSE American was $0.77 per share. Each prospectus supplement will indicate if
the securities offered thereby will be listed on any securities exchange.
These
securities may be sold directly by us, through dealers or agents designated from time to time, to or through underwriters or dealers
or through a combination of these methods on a continuous or delayed basis. See “Plan of Distribution” in this prospectus.
We may also describe the plan of distribution for any particular offering of our securities in a prospectus supplement. If any
agents, underwriters or dealers are involved in the sale of any securities in respect of which this prospectus is being delivered,
we will disclose their names and the nature of our arrangements with them in a prospectus supplement. The net proceeds we expect
to receive from any such sale will also be included in a prospectus supplement.
Investing
in our securities involves various risks. See “Risk Factors” beginning on page 2 of this prospectus and in the applicable
prospectus supplement, and in the risks discussed in the documents incorporated by reference in this prospectus and in the applicable
prospectus supplement, as they may be amended, updated or modified periodically in our reports filed with the Securities and Exchange
Commission. You should carefully read and consider these risk factors before you invest in our securities.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
This
prospectus is dated July 2, 2020
TABLE
OF CONTENTS
ABOUT
THIS PROSPECTUS
This
prospectus is part of a shelf registration statement that we filed with the Securities and Exchange Commission (the “SEC”)
using a “shelf” registration process. Under this shelf registration process, we may sell any combination of the securities
described in this prospectus in one or more offerings from time to time having an aggregate initial offering price of $200,000,000.
This prospectus provides you with a general description of the securities we may offer. Each time we offer securities, we will
provide you with a prospectus supplement that describes the specific amounts, prices and terms of the securities we offer. The
prospectus supplement also may add, update or change information contained in this prospectus. You should read carefully both
this prospectus and any prospectus supplement together with additional information described below under the caption “Where
You Can Find More Information.”
This
prospectus does not contain all the information provided in the registration statement we filed with the SEC. You should read
both this prospectus, including the section titled “Risk Factors,” and the accompanying prospectus supplement, together
with the additional information described under the heading “Where You Can Find More Information.”
You
should rely only on the information contained or incorporated by reference in this prospectus or a prospectus supplement. We have
not authorized any other person to provide you with different information. If anyone provides you with different or inconsistent
information, you should not rely on it. This prospectus is not an offer to sell securities, and it is not soliciting an offer
to buy securities in any jurisdiction where the offer or sale is not permitted. You should assume that the information appearing
in this prospectus or any prospectus supplement, as well as information we have previously filed with the SEC and incorporated
by reference, is accurate as of the date on the front of those documents only. Our business, financial condition, results of operations
and prospects may have changed since those dates.
OUR
BUSINESS
The
following summary of our business highlights some of the information contained elsewhere in or incorporated by reference into
this prospectus. Because this is only a summary, however, it does not contain all of the information that may be important to
you. You should carefully read this prospectus, including the documents incorporated by reference, which are described under “Incorporation
of Certain Information by Reference” and “Where You Can Find More Information” in this prospectus. You should
also carefully consider the matters discussed in the section titled “Risk Factors” in this prospectus and in other
periodic reports incorporated by reference herein.
Overview
We
are a clinical-stage biopharmaceutical company focused on creating value through (i) the development of our lead product candidate,
MAT9001 (omega-3 pentaenoic acids), a highly purified, prescription-only omega-3 free fatty acid formulation specifically designed
for the treatment of cardiovascular and metabolic conditions and (ii) the application of our lipid nano-crystal (LNC) platform
delivery technology to solve complex challenges relating to the delivery of a variety of molecules, exhibited by our lead LNC
platform drug candidate, MAT2203, an oral formulation of the well-known fungicidal drug amphotericin B. Based upon MAT9001’s
unique mixture of highly purified omega-3 pentaenoic free fatty acids and our observations of MAT9001’s enhanced bioavailability
and potency as compared to Amarin Corporation’s Vascepa® (icosapent ethyl) in our initial head-to-head pharmacokinetic
(PK) and pharmacodynamic (PD), or PK/PD, clinical study, we believe that the results of our forthcoming targeted clinical development
activities and related clinical investigations may yield an improved therapeutic profile compared to currently-existing therapies.
Corporate
Information
We
were incorporated in Delaware under the name Matinas BioPharma Holdings, Inc. in May 2013. We have two operating subsidiaries:
Matinas BioPharma, Inc., a Delaware corporation originally formed on August 12, 2011 as Nereus BioPharma LLC, and Matinas BioPharma
Nanotechnologies, Inc., a Delaware corporation originally formed on January 29, 2015 as Aquarius Biotechnologies, Inc.
Our
principal executive offices are located at 1545 Route 206 South, Suite 302, Bedminster, New Jersey 07921, and our telephone number
is (908) 443-1860. Our website address is www.matinasbiopharma.com. Our website and the information contained on, or that
can be accessed through, our website will not be deemed to be incorporated by reference in, and are not considered part of, this
prospectus. You should not rely on our website or any such information in making your decision whether to purchase our securities.
Risks
Associated with Our Business and this Offering
Our
business and our ability to implement our business strategy are subject to numerous risks, as more fully described in the section
of this prospectus entitled “Risk Factors.” You should read these risks before you invest in our securities. We may
be unable, for many reasons, including those that are beyond our control, to implement our business strategy. In particular, risks
associated with our business include:
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We
have incurred losses since our inception and anticipate that we will continue to incur significant losses for the foreseeable
future, and our future profitability is uncertain.
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Our
product candidates must undergo rigorous clinical testing. Such clinical testing may fail to demonstrate safety and efficacy
and any of our product candidates could cause undesirable side effects, which would substantially delay or prevent regulatory
approval or commercialization.
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We
are dependent on patents and proprietary technology. If we fail to adequately protect this intellectual property or if we
otherwise do not have exclusivity for the marketing of our products, our ability to commercialize products could suffer.
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If
our competitors are able to develop and market products that are more effective, safer or more affordable than ours are, or
obtain marketing approval before we do, our commercial opportunities may be limited.
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We
may not be able to manufacture, or otherwise secure the manufacture of, sufficient amounts of our product candidates for our
preclinical studies and clinical trials.
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We
may be unable to achieve and maintain effective internal control over financial reporting in accordance with Section 404 of
the Sarbanes-Oxley Act.
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If
you purchase our securities in this offering, you may incur dilution.
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We
will have broad discretion in the use of the net proceeds from this offering and may not use them effectively.
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Our
ability to advance our clinical development programs could be impacted by the COVID-19 pandemic.
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RISK
FACTORS
Investing
in our securities involves a high degree of risk. Prior to making a decision about investing in our securities, you should carefully
consider the specific risk factors discussed in the sections entitled “Risk Factors” contained in our annual report
on Form 10-K for the fiscal year ended December 31, 2019 under the heading “Item 1A. Risk Factors,” and as described
or may be described in any subsequent quarterly report on Form 10-Q under the heading “Item 1A. Risk Factors,” as
well as in any applicable prospectus supplement and contained or to be contained in our filings with the SEC and incorporated
by reference in this prospectus, together with all of the other information contained in this prospectus, or any applicable prospectus
supplement. For a description of these reports and documents, and information about where you can find them, see “Where
You Can Find More Information” and “Incorporation of Certain Information by Reference.” If any of the risks
or uncertainties described in our SEC filings or any prospectus supplement or any additional risks and uncertainties actually
occur, our business, financial condition and results of operations could be materially and adversely affected.
In
that case, the trading price of our securities could decline and you might lose all or part of the value of your investment.
DISCLOSURE
REGARDING FORWARD-LOOKING STATEMENTS
This
prospectus contains forward-looking statements. Such forward-looking statements include those that express plans, anticipation,
intent, contingency, goals, targets or future development and/or otherwise are not statements of historical fact. These forward-looking
statements are based on our current expectations and projections about future events and they are subject to risks and uncertainties
known and unknown that could cause actual results and developments to differ materially from those expressed or implied in such
statements.
In
some cases, you can identify forward-looking statements by terminology, such as “expects,” “anticipates,”
“intends,” “estimates,” “plans,” “believes,” “seeks,” “may,”
“should”, “could” or the negative of such terms or other similar expressions. Accordingly, these statements
involve estimates, assumptions and uncertainties that could cause actual results to differ materially from those expressed in
them. Any forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this prospectus.
You
should read this prospectus and any accompanying prospectus supplement and the documents that we reference herein and therein
and have filed as exhibits to the registration statement, of which this prospectus is part, completely and with the understanding
that our actual future results may be materially different from what we expect. You should assume that the information appearing
in this prospectus and any accompanying prospectus supplement is accurate as of the date on the front cover of this prospectus
or such prospectus supplement only. Because the risk factors referred to above, as well as the risk factors referred to on page
2 of this prospectus and incorporated herein by reference, could cause actual results or outcomes to differ materially from those
expressed in any forward-looking statements made by us or on our behalf, you should not place undue reliance on any forward-looking
statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation
to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to
reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for us to predict
which factors will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor,
or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
We qualify all of the information presented in this prospectus and any accompanying prospectus supplement, and particularly our
forward-looking statements, by these cautionary statements.
USE
OF PROCEEDS
Except
as otherwise provided in the applicable prospectus supplement, we intend to use the net proceeds from the sale of the securities
offered by this prospectus for working capital and general corporate purposes.
The
intended application of proceeds from the sale of any particular offering of securities using this prospectus will be described
in the accompanying prospectus supplement relating to such offering. The precise amount and timing of the application of these
proceeds will depend on our funding requirements and the availability and costs of other funds.
THE
SECURITIES WE MAY OFFER
The
descriptions of the securities contained in this prospectus, together with the applicable prospectus supplements, summarize all
the material terms and provisions of the various types of securities that we may offer. We will describe in the applicable prospectus
supplement relating to any securities the particular terms of the securities offered by that prospectus supplement. If we indicate
in the applicable prospectus supplement, the terms of the securities may differ from the terms we have summarized below. We will
also include in the prospectus supplement information, where applicable, about material United States federal income tax considerations
relating to the securities, and the securities exchange, if any, on which the securities will be listed.
We
may sell from time to time, in one or more offerings:
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common
stock;
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preferred
stock;
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debt
securities;
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warrants
to purchase shares of common stock, preferred stock or other securities;
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subscription
rights, and
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units
consisting of any combination of the securities listed above.
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In
this prospectus, we refer to the common stock, preferred stock, debt securities, warrants, subscription rights and units collectively
as “securities.” The total dollar amount of all securities that we may sell will not exceed $200,000,000.
If
we issue debt securities at a discount from their original stated principal amount, then, for purposes of calculating the total
dollar amount of all securities issued under this prospectus, we will treat the initial offering price of the debt securities
as the total original principal amount of the debt securities.
When
particular securities are offered, a supplement to this prospectus will be filed with the SEC, which will describe the terms of
the offering and sale of the offered securities.
DESCRIPTION
OF COMMON STOCK
The
following is a summary of all material characteristics of our common stock as set forth in our articles of incorporation and bylaws.
The summary does not purport to be complete and is qualified in its entirety by reference to our articles of incorporation and
bylaws, each as amended, and to the provisions of Chapters 78 and 92A of the Delaware General Corporation Law, as amended.
General
Our
authorized capital stock consists of:
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500,000,000
shares of common stock, par value $0.0001 per share; and
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10,000,000
shares of preferred stock, par value $0.0001 per share, of which as of the date of this prospectus 8,000 shares have been
designated as Series B Preferred Stock.
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As
of close of business on June 30, 2020, 198,873,477 shares of common stock were issued and outstanding and 4,552 shares of Series
B Preferred Stock were issued and outstanding.
The
additional shares of our authorized stock available for issuance might be issued at times and under circumstances so as to have
a dilutive effect on earnings per share and on the equity ownership of the holders of our common stock. The ability of our board
of directors to issue additional shares of stock could enhance the board’s ability to negotiate on behalf of the stockholders
in a takeover situation but could also be used by the board to make a change-in-control more difficult, thereby denying stockholders
the potential to sell their shares at a premium and entrenching current management. The following description is a summary of
the material provisions of our capital stock. You should refer to our amended and restated certificate of incorporation and by-laws,
both of which are on file with the SEC as exhibits to previous SEC filings, for additional information. The summary below is qualified
by provisions of applicable law.
Common
Stock
Voting.
The holders of our common stock are entitled to one vote for each share held of record on all matters on which the holders
are entitled to vote (or consent to).
Dividends.
The holders of our common stock are entitled to receive, ratably, dividends only if, when and as declared by our Board of
Directors out of funds legally available therefor and after provision is made for each class of capital stock having preference
over the common stock (including the common stock).
Liquidation
Rights. In the event of our liquidation, dissolution or winding-up, the holders of our common stock are entitled to share,
ratably, in all assets remaining available for distribution after payment of all liabilities and after provision is made for each
class of capital stock having preference over the common stock (including the common stock).
Conversion
Rights. The holders of our common stock have no conversion rights.
Preemptive
and Similar Rights. The holders of our common stock have no preemptive or similar rights.
Redemption/Put
Rights. There are no redemption or sinking fund provisions applicable to the common stock. All of the outstanding shares of
our common stock are fully-paid and nonassessable.
Transfer
Agent and Registrar
The
transfer agent and registrar for our common stock is VStock Transfer, LLC.
DESCRIPTION
OF PREFERRED STOCK
We
are authorized to issue up to 10,000,000 shares of preferred stock, par value $0.0001 per share, (of which 8,000 shares have been
designated as Series B Preferred Stock, 4,552 of which remain issued and outstanding) with such designations, rights, and preferences
as may be determined from time to time by our Board of Directors. Accordingly, our Board of Directors is empowered, without stockholder
approval, to issue preferred stock with dividend, liquidation, conversion, voting, or other rights that could adversely affect
the voting power or other rights of the holders of our common stock. The issuance of preferred stock could have the effect of
restricting dividends on our common stock, diluting the voting power of our common stock, impairing the liquidation rights of
our common stock, or delaying or preventing a change in control of our company, all without further action by our stockholders.
Our
board of directors has the authority, within the limitations and restrictions prescribed by law and without stockholder approval,
to provide by resolution for the issuance of shares of preferred stock, and to fix the rights, preferences, privileges and restrictions
thereof, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preference and the number
of shares constituting any series of the designation of such series, by delivering an appropriate certificate of amendment to
our amended and restated certificate of incorporation to the Delaware Secretary of State pursuant to the Delaware General Corporation
Law (the “DGCL”). The issuance of preferred stock could have the effect of decreasing the market price of the common
stock, impeding or delaying a possible takeover and adversely affecting the voting and other rights of the holders of our common
stock.
If
we offer a specific series of preferred stock under this prospectus, we will describe the terms of the preferred stock in the
prospectus supplement for such offering and will file a copy of the certificate establishing the terms of the preferred stock
with the SEC. To the extent required, this description will include:
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the
title and stated value;
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the
number of shares offered, the liquidation preference per share and the purchase price;
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the
dividend rate(s), period(s) and/or payment date(s), or method(s) of calculation for such dividends;
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whether
dividends will be cumulative or non-cumulative and, if cumulative, the date from which dividends will accumulate;
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the
procedures for any auction and remarketing, if any;
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the
provisions for a sinking fund, if any;
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the
provisions for redemption, if applicable;
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any
listing of the preferred stock on any securities exchange or market;
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whether
the preferred stock will be convertible into our common stock, and, if applicable, the conversion price (or how it will be
calculated) and conversion period;
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whether
the preferred stock will be exchangeable into debt securities, and, if applicable, the exchange price (or how it will be calculated)
and exchange period;
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voting
rights, if any, of the preferred stock;
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a
discussion of any material and/or special U.S. federal income tax considerations applicable to the preferred stock;
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the
relative ranking and preferences of the preferred stock as to dividend rights and rights upon liquidation, dissolution or
winding up of the affairs of Matinas; and
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any
material limitations on issuance of any class or series of preferred stock ranking senior to or on a parity with the series
of preferred stock as to dividend rights and rights upon liquidation, dissolution or winding up of Matinas.
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Transfer
Agent and Registrar for Preferred Stock
The
transfer agent and registrar for any series or class of preferred stock will be set forth in each applicable prospectus supplement.
Series
B Preferred Stock
In
connection with our public offering in June 2018, our board of directors created out of
the authorized and unissued shares of our preferred stock, a series of preferred stock comprised of 8,000 shares
of Series B Preferred Stock(the “Series B Preferred”). Each share of Series B Preferred have a stated value
of $1,000 per share.
Rank.
The Series B Preferred rank
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junior
to any class or series of our capital stock hereafter created specifically ranking by its terms senior to the Series B Preferred;
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senior
to all of our common stock;
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senior
to any class or series of our capital stock hereafter created specifically ranking by its terms junior to the Series B Preferred;
and
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on
a parity with any class or series of our capital stock hereafter created specifically ranking by its terms on a parity with
the Series B Preferred.
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in
each case, as to distributions of assets upon our liquidation, dissolution or winding up whether voluntarily or involuntarily.
Dividends.
Holders of the Series B Preferred are entitled to receive dividends (or received dividends) payable as follows: (i) a number
of shares of common stock equal to 10% of the shares of common stock underlying the Series B Preferred then held by such holder
on June 19, 2019, (ii) a number of shares of common stock equal to 15% of the shares of common stock underlying the Series B Preferred
then held by such holder on June 19, 2020 and (iii) a number of shares of common stock equal to 20% of the shares of common stock
underlying the Series B Preferred then held by such holder on June 19, 2021. In the event a g holder of the Series B Preferred
no longer holds Series B Preferred as of the respective dividend date, such holder will not be entitled to receive any dividends
on such date.
Optional
Conversion. Each share of Series B Preferred is convertible into shares of our common stock at any time at the option of the
holder at a conversion price $0.50 per share (subject to adjustment for reverse splits, stock combinations and similar changes
as provided in the certificate of designation). Holders of Series B Preferred are prohibited from converting Series B Preferred
into shares of our common stock if, as a result of such conversion, the holder, together with its affiliates, would beneficially
own more than 4.99% (or upon the election by a holder prior to the issuance of any shares of Series B Preferred, 9.99%) of the
total number of shares of our common stock then issued and outstanding. Dividends will not accrue and will not be paid following
optional conversion.
Automatic
Conversion. Each share of our Series B Preferred shall automatically convert into 2,000 shares of our common stock at a conversion
price of $0.50 per share upon the earlier of (i) the first FDA approval of one of our product candidates, (ii) June 19, 2021 or
(iii) the consent to conversion by holders of at least 50.1% of the outstanding shares of Series B Preferred. In the event the
Series B Preferred automatically converts into common stock prior to June 19, 2021, the holder on the date of such conversion
shall also be entitled to receive those dividends which would have been payable after the conversion date, as if the shares of
Series B Preferred had remained unconverted and outstanding through June 19, 2021. Such dividend amount shall be payable as set
forth above in shares of common stock upon such automatic conversion.
Liquidation
Preference. In the event of a liquidation, dissolution or winding-up of our company, whether voluntary or involuntary, the
proceeds and/or assets of our company remaining after giving effect to such transaction, and the payment of all of our debts and
liabilities will be distributed first to the holders of Series B Preferred and then to stockholders of common stock on a pro rata
basis.
Voting
Rights. Except as provided in the Certificate of Designation of the Series B Preferred or as otherwise required by law, the
holders of Series B Preferred will have no voting rights. However, we may not, without the consent of holders of a majority of
the outstanding shares of Series B Preferred, alter or change adversely the powers, preferences or rights given to the Series
B Preferred, increase the number of authorized shares of Series B Preferred, or enter into any agreement with respect to the foregoing.
Redemption.
We will be not obligated to redeem or repurchase any shares of Series B Preferred. Shares of Series B Preferred will not otherwise
be entitled to any redemption rights or mandatory sinking fund or analogous fund provisions.
Transfer
Agent, Registrar and Dividend Disbursing Agent. The transfer agent, registrar and dividend disbursing agent for our Series
B preferred stock is VStock Transfer, LLC.
Anti-takeover
Effects of Delaware Law and of our Amended and Restated Certificate of Incorporation
The
following paragraphs summarize certain provisions of the DGCL and our amended and restated certificate of incorporation that may
have the effect of discouraging an acquisition of Matinas. The summary does not purport to be complete and is subject to and qualified
in its entirety by reference to the DGCL and our amended and restated certificate of incorporation and by-laws, copies of which
are on file with the SEC. Please refer to “Additional Information” below for directions on obtaining these documents.
Section
203 of the Delaware General Corporation Law
We
are subject to Section 203 of the Delaware General Corporation Law, which prohibits a Delaware corporation from engaging in any
business combination with any interested stockholder for a period of three years after the date that such stockholder became an
interested stockholder, with the following exceptions:
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before
such date, the board of directors of the corporation approved either the business combination or the transaction that resulted
in the stockholder becoming an interested stockholder;
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upon
completion of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder
owned at least 85% of the voting stock of the corporation outstanding at the time the transaction began, excluding for purposes
of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those
shares owned (i) by persons who are directors and also officers and (ii) employee stock plans in which employee participants
do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or
exchange offer; or
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on
or after such date, the business combination is approved by the board of directors and authorized at an annual or special
meeting of the stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting
stock that is not owned by the interested stockholder.
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In
general, Section 203 defines business combination to include the following:
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any
merger or consolidation involving the corporation and the interested stockholder;
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any
sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder;
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subject
to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation
to the interested stockholder;
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any
transaction involving the corporation that has the effect of increasing the proportionate share of the stock or any class
or series of the corporation beneficially owned by the interested stockholder; or
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the
receipt by the interested stockholder of the benefit of any loss, advances, guarantees, pledges or other financial benefits
by or through the corporation.
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In
general, Section 203 defines an “interested stockholder” as an entity or person who, together with the person’s
affiliates and associates, beneficially owns, or within three years prior to the time of determination of interested stockholder
status did own, 15% or more of the outstanding voting stock of the corporation.
Certificate
of Incorporation and Bylaws
Our
certificate of incorporation and bylaws contain provisions that could have the effect of discouraging potential acquisition proposals
or tender offers or delaying or preventing a change of control of our company. These provisions are as follows:
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they
provide that special meetings of stockholders may be called only by the board of directors, President or our Chairman of the
Board of Directors, or at the request in writing by stockholders of record owning at least fifty (50%) percent of the issued
and outstanding voting shares of common stock;
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they
do not include a provision for cumulative voting in the election of directors. Under cumulative voting, a minority stockholder
holding a sufficient number of shares may be able to ensure the election of one or more directors. The absence of cumulative
voting may have the effect of limiting the ability of minority stockholders to effect changes in our board of directors; and
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they
allow us to issue “blank check” preferred stock, the terms of which may be established and shares of which may
be issued without stockholder approval.
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Potential
Effects of Authorized but Unissued Stock
We
have shares of common stock and preferred stock available for future issuance without stockholder approval. We may utilize these
additional shares for a variety of corporate purposes, including future public offerings to raise additional capital, to facilitate
corporate acquisitions or payment as a dividend on the capital stock.
The
existence of unissued and unreserved common stock and preferred stock may enable our board of directors to issue shares to persons
friendly to current management or to issue preferred stock with terms that could render more difficult or discourage a third-party
attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise, thereby protecting the continuity
of our management. In addition, the board of directors has the discretion to determine designations, rights, preferences, privileges
and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences
of each series of preferred stock, all to the fullest extent permissible under the DGCL and subject to any limitations set forth
in our amended and restated certificate of incorporation. The purpose of authorizing the board of directors to issue preferred
stock and to determine the rights and preferences applicable to such preferred stock is to eliminate delays associated with a
stockholder vote on specific issuances. The issuance of preferred stock, while providing desirable flexibility in connection with
possible financings, acquisitions and other corporate purposes, could have the effect of making it more difficult for a third-party
to acquire, or could discourage a third-party from acquiring, a majority of our outstanding voting stock.
DESCRIPTION
OF STOCK WARRANTS
We
summarize below some of the provisions that will apply to the warrants unless the applicable prospectus supplement provides otherwise.
This summary may not contain all information that is important to you. The complete terms of the warrants will be contained in
the applicable warrant certificate and warrant agreement. These documents have been or will be included or incorporated by reference
as exhibits to the registration statement of which this prospectus is a part. You should read the warrant certificate and the
warrant agreement. You should also read the prospectus supplement, which will contain additional information and which may update
or change some of the information below.
General
We
may issue, together with common or preferred stock as units or separately, warrants for the purchase of shares of our common stock,
shares of our preferred stock, debt securities or other securities. The terms of each warrant will be discussed in the applicable
prospectus supplement relating to the particular series of warrants. The form(s) of certificate representing the warrants and/or
the warrant agreement, will be, in each case, filed with the SEC as an exhibit to a document incorporated by reference in the
registration statement of which this prospectus is a part on or prior to the date of any prospectus supplement relating to an
offering of the particular warrant. The following summary of material provisions of the warrants and the warrant agreements are
subject to, and qualified in their entirety by reference to, all the provisions of the warrant agreement and warrant certificate
applicable to a particular series of warrants.
The
prospectus supplement relating to any series of warrants that are offered by this prospectus will describe, among other things,
the following terms to the extent they are applicable to that series of warrants:
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the
procedures and conditions relating to the exercise of the warrants;
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the
number of shares of our common or preferred stock, if any, issued with the warrants;
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the
date, if any, on and after which the warrants and any related shares of our common or preferred stock will be separately transferable;
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the
offering price of the warrants, if any;
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the
number of shares of our common or preferred stock, debt securities or other securities which may be purchased upon exercise
of the warrants and the price or prices at which such securities may be purchased upon exercise;
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the
date on which the right to exercise the warrants will begin and the date on which the right will expire;
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a
discussion of any material United States federal income tax considerations applicable to the exercise of the warrants;
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anti-dilution
provisions of the warrants, if any;
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call
provisions of the warrants, if any; and
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any
other material terms of the warrants.
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Each
warrant may entitle the holder to purchase for cash, or, in limited circumstances, by effecting a cashless exercise for, the number
of shares of our common or preferred stock at the exercise price that is described in the applicable prospectus supplement. Warrants
will be exercisable during the period of time described in the applicable prospectus supplement. After that period, unexercised
warrants will be void. Warrants may be exercised in the manner described in the applicable prospectus supplement.
A
holder of a warrant will not have any of the rights of a holder of our common or preferred stock before the stock is purchased
upon exercise of the warrant. Therefore, before a warrant is exercised, the holder of the warrant will not be entitled to receive
any dividend payments or exercise any voting or other rights associated with shares of our common or preferred stock which may
be purchased when the warrant is exercised.
Transfer
Agent and Registrar
The
transfer agent and registrar, if any, for any warrants will be set forth in the applicable prospectus supplement.
DESCRIPTION
OF DEBT SECURITIES
We
summarize below some of the provisions that will apply to the debt securities unless the applicable prospectus supplement provides
otherwise. This summary may not contain all information that is important to you. The debt securities may be issued pursuant to,
in the case of senior debt securities, a senior indenture, and in the case of subordinated debt securities, a subordinated indenture,
in each case in the forms filed as exhibits to this registration statement, which we refer to as the “indentures.”
The indentures will be entered into between us and a trustee to be named prior to the issuance of any debt securities, which we
refer to as the “trustee.” The indentures will not limit the amount of debt securities that can be issued thereunder
and will provide that the debt securities may be issued from time to time in one or more series pursuant to the terms of one or
more securities resolutions or supplemental indentures creating such series.
The
complete terms of the debt securities will be contained in the applicable indenture for the particular offering of debt securities
itself which will describe the terms and definitions of the offered debt securities and contain additional information about such
debt securities. You should also read the prospectus supplement, which will contain additional information and which may update
or change some of the information below.
General
When
we offer to sell a particular series of debt securities, we will describe the specific terms of the securities in a prospectus
supplement. The prospectus supplement will set forth the following terms, as applicable, of the debt securities offered thereby:
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the
designation, aggregate principal amount, currency or composite currency and denominations;
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the
price at which such debt securities will be issued and, if an index formula or other method is used, the method for determining
amounts of principal or interest;
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the
maturity date and other dates, if any, on which principal will be payable;
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whether
or not the debt securities will be secured or unsecured, and the terms of any secured debt;
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whether
the debt securities rank as senior debt, senior subordinated debt, subordinated debt or any combination thereof, and the terms
of any subordination;
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the
interest rate (which may be fixed or variable), if any;
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the
date or dates from which interest will accrue and on which interest will be payable, and the record dates for the payment
of interest;
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the
manner of paying principal and interest;
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the
place or places where principal and interest will be payable;
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the
terms of any mandatory or optional redemption by us or any third party including any sinking fund;
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the
terms of any conversion or exchange;
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the
terms of any redemption at the option of holders or put by the holders;
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any
tax indemnity provisions;
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if
the debt securities provide that payments of principal or interest may be made in a currency other than that in which debt
securities are denominated, the manner for determining such payments;
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the
portion of principal payable upon acceleration of a Discounted Debt Security (as defined below);
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whether
and upon what terms debt securities may be defeased;
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any
events of default or covenants in addition to or in lieu of those set forth in the indentures;
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provisions
for electronic issuance of debt securities or for debt securities in uncertificated form; and
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any
additional provisions or other special terms not inconsistent with the provisions of the indentures, including any terms that
may be required or advisable under United States or other applicable laws or regulations, or advisable in connection with
the marketing of the debt securities.
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Debt
securities of any series may be issued as registered debt securities or uncertificated debt securities, in such denominations
as specified in the terms of the series.
Securities
may be issued under the indentures as Discounted Debt Securities to be offered and sold at a substantial discount from the principal
amount thereof. Special United States federal income tax and other considerations applicable thereto will be described in the
prospectus supplement relating to such Discounted Debt Securities. “Discounted Debt Security” means a security
where the amount of principal due upon acceleration is less than the stated principal amount.
We
are not obligated to issue all debt securities of one series at the same time and, unless otherwise provided in the prospectus
supplement, we may reopen a series, without the consent of the holders of the debt securities of that series, for the issuance
of additional debt securities of that series. Additional debt securities of a particular series will have the same terms and conditions
as outstanding debt securities of such series, except for the date of original issuance and the offering price, and will be consolidated
with, and form a single series with, such outstanding debt securities.
Ranking
The
senior debt securities will rank equally with all of our other senior and unsubordinated debt. Our secured debt, if any, will
be effectively senior to the senior debt securities to the extent of the value of the assets securing such debt. The subordinated
debt securities will be subordinate and junior in right of payment to all of our present and future senior indebtedness to the
extent and in the manner described in the prospectus supplement and as set forth in the board resolution, officer’s certificate
or supplemental indenture relating to such offering.
We
have only a stockholder’s claim on the assets of our subsidiaries. This stockholder’s claim is junior to the claims
that creditors of our subsidiaries have against our subsidiaries. Holders of our debt securities will be our creditors and not
creditors of any of our subsidiaries. As a result, all the existing and future liabilities of our subsidiaries, including any
claims of their creditors, will effectively be senior to the debt securities with respect to the assets of our subsidiaries. In
addition, to the extent that we issue any secured debt, the debt securities will be effectively subordinated to such secured debt
to the extent of the value of the assets securing such secured debt.
The
debt securities will be obligations exclusively of Matinas BioPharma Holdings, Inc. To the extent that our ability to service
our debt, including the debt securities, may be dependent upon the earnings of our subsidiaries, our ability to do so will be
dependent on the ability of our subsidiaries to distribute those earnings to us as dividends, loans or other payments.
Certain
Covenants
Any
covenants that may apply to a particular series of debt securities will be described in the prospectus supplement relating thereto.
Successor
Obligor
The
indentures provide that, unless otherwise specified in the securities resolution or supplemental indenture establishing a series
of debt securities, we shall not consolidate with or merge into, or transfer all or substantially all of our assets to, any person
in any transaction in which we are not the survivor, unless:
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the
person is organized under the laws of the United States or a jurisdiction within the United States;
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the
person assumes by supplemental indenture all of our obligations under the relevant indenture, the debt securities and any
coupons;
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immediately
after the transaction no Default (as defined below) exists; and
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we
deliver to the trustee an officers’ certificate and opinion of counsel stating that the transaction complies with the
foregoing requirements.
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In
such event, the successor will be substituted for us, and thereafter all of our obligations under the relevant indenture, the
debt securities and any coupons will terminate.
Exchange
of Debt Securities
Registered
debt securities may be exchanged for an equal aggregate principal amount of registered debt securities of the same series and
date of maturity in such authorized denominations as may be requested upon surrender of the registered debt securities at an agency
of the Company maintained for such purpose and upon fulfillment of all other requirements of such agent.
Defaults
and Remedies
Unless
the securities resolution or supplemental indenture establishing the series otherwise provides (in which event the prospectus
supplement will so state), an “Event of Default” with respect to a series of debt securities will occur if:
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(1)
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we
default in any payment of interest on any debt securities of such series when the same becomes due and payable and the default
continues for a period of 30 days;
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(2)
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we
default in the payment of the principal and premium, if any, of any debt securities of such series when the same becomes due
and payable at maturity or upon redemption, acceleration or otherwise and such default shall continue for five or more days;
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(3)
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we
default in the performance of any of our other agreements applicable to the series and the default continues for 30 days after
the notice specified below;
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(4)
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a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law (as defined below) that:
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(A)
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is
for relief against us in an involuntary case,
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(B)
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appoints
a Custodian (as defined below) for us or for all or substantially all of our property, or
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(C)
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orders
the liquidation of us, and the order or decree remains unstayed and in effect for 90 days;
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(5)
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we
pursuant to or within the meaning of any Bankruptcy Law:
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(A)
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commence
a voluntary case,
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(B)
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consent
to the entry of an order for relief against us in an involuntary case,
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(C)
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consent
to the appointment of a Custodian for us or for all or substantially all of our property, or
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(D)
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make
a general assignment for the benefit of our creditors; or
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(6)
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there
occurs any other Event of Default provided for in such series.
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The
term “Bankruptcy Law” means Title 11 of the United States Code or any similar Federal or State law for the
relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator or a similar official
under any Bankruptcy Law.
“Default”
means any event which is, or after notice or passage of time would be, an Event of Default. A Default under subparagraph (3) above
is not an Event of Default until the trustee or the holders of at least 25% in principal amount of the series notify us of the
Default and we do not cure the Default within the time specified after receipt of the notice.
The
trustee may require indemnity satisfactory to it before it enforces the indentures or the debt securities of the series. Subject
to certain limitations, holders of a majority in principal amount of the debt securities of the series may direct the trustee
in its exercise of any trust or power with respect to such series. Except in the case of Default in payment on a series, the trustee
may withhold from securityholders of such series notice of any continuing Default if the trustee determines that withholding notice
is in the interest of such securityholders. We are required to furnish the trustee annually a brief certificate as to our compliance
with all conditions and covenants under the indentures.
The
indentures do not have cross-default provisions. Thus, a default by us on any other debt, including any other series of debt securities,
would not constitute an Event of Default.
Amendments
and Waivers
The
indentures and the debt securities or any coupons of the series may be amended, and any Default may be waived as follows:
Unless
the securities resolution or supplemental indenture otherwise provides (in which event the applicable prospectus supplement will
so state), the debt securities and the indentures may be amended with the consent of the holders of a majority in principal amount
of the debt securities of all series affected voting as one class. Unless the securities resolution or supplemental indenture
otherwise provides (in which event the applicable prospectus supplement will so state), a Default other than a Default in payment
on a particular series may be waived with the consent of the holders of a majority in principal amount of the debt securities
of the series. However, without the consent of each securityholder affected, no amendment or waiver may:
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change
the fixed maturity of or the time for payment of interest on any debt security;
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reduce
the principal, premium or interest payable with respect to any debt security;
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change
the place of payment of a debt security or the currency in which the principal or interest on a debt security is payable;
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change
the provisions for calculating any redemption or repurchase price with respect to any debt security;
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reduce
the amount of debt securities whose holders must consent to an amendment or waiver;
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make
any change that materially adversely affects the right to convert any debt security;
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waive
any Default in payment of principal of or interest on a debt security; or
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adversely
affect any holder’s rights with respect to redemption or repurchase of a debt security.
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Without
the consent of any securityholder, the indentures or the debt securities may be amended to:
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provide
for assumption of our obligations to securityholders in the event of a merger or consolidation requiring such assumption;
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to
cure any ambiguity, omission, defect or inconsistency;
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to
conform the terms of the debt securities to the description thereof in the prospectus and prospectus supplement offering such
debt securities;
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to
create a series and establish its terms;
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to
provide for assumption of our obligations to securityholders in the event of a merger or consolidation requiring such assumption;
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to
make any change that does not adversely affect the rights of any securityholder;
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to
add to our covenants; or
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to
make any other change to the indentures so long as no debt securities are outstanding.
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Conversion
Rights
Any
securities resolution or supplemental indenture establishing a series of debt securities may provide that the debt securities
of such series will be convertible at the option of the holders thereof into or for our common stock or other equity or debt instruments.
The securities resolution or supplemental indenture may establish, among other things, (1) the number or amount of shares of common
stock or other equity or debt instruments for which $1,000 aggregate principal amount of the debt securities of the series is
convertible, as may be adjusted pursuant to the terms of the relevant indenture and the securities resolution; and (2) provisions
for adjustments to the conversion rate and limitations upon exercise of the conversion right. The indentures provide that we will
not be required to make an adjustment in the conversion rate unless the adjustment would require a cumulative change of at least
1% in the conversion rate. However, we will carry forward any adjustments that are less than 1% of the conversion rate and take
them into account in any subsequent adjustment of the conversion rate.
Legal
Defeasance and Covenant Defeasance
Debt
securities of a series may be defeased in accordance with their terms and, unless the securities resolution or supplemental indenture
establishing the terms of the series otherwise provides, as set forth below. We at any time may terminate as to a series all of
our obligations (except for certain obligations, including obligations with respect to the defeasance trust and obligations to
register the transfer or exchange of a debt security, to replace destroyed, lost or stolen debt securities and coupons and to
maintain paying agencies in respect of the debt securities) with respect to the debt securities of the series and any related
coupons and the relevant indenture, which we refer to as legal defeasance. We at any time may terminate as to a series our obligations
with respect to any restrictive covenants which may be applicable to a particular series, which we refer to as covenant defeasance.
We
may exercise our legal defeasance option notwithstanding our prior exercise of our covenant defeasance option. If we exercise
our legal defeasance option, a series may not be accelerated because of an Event of Default. If we exercise our covenant defeasance
option, a series may not be accelerated by reference to any covenant which may be applicable to a series.
To
exercise either defeasance option as to a series, we must (1) irrevocably deposit in trust with the trustee (or another trustee)
money or U.S. Government Obligations (as defined below), deliver a certificate from a nationally recognized firm of independent
accountants expressing their opinion that the payments of principal and interest when due on the deposited U.S. Government Obligations,
without reinvestment, plus any deposited money without investment will provide cash at such times and in such amounts as will
be sufficient to pay the principal and interest when due on all debt securities of such series to maturity or redemption, as the
case may be; and (2) comply with certain other conditions. In particular, we must obtain an opinion of tax counsel that the defeasance
will not result in recognition of any gain or loss to holders for federal income tax purposes.
“U.S.
Government Obligations” means direct obligations of the United States or any agency or instrumentality of the United
States, the payment of which is unconditionally guaranteed by the United States, which, in either case, have the full faith and
credit of the United States pledged for payment and which are not callable at the issuer’s option, or certificates representing
an ownership interest in such obligations.
Regarding
the Trustee
Unless
otherwise indicated in a prospectus supplement, the trustee will also act as depository of funds, transfer agent, paying agent
and conversion agent, as applicable, with respect to the debt securities. We may remove the trustee as the trustee under a given
indenture with or without cause if we so notify the trustee three months in advance and if no Default occurs during the three-month
period. The indenture trustee may also provide additional unrelated services to us as a depository of funds, registrar, trustee
and similar services.
Governing
Law
The
indentures and the debt securities will be governed by New York law, except to the extent that the Trust Indenture Act of 1939
is applicable.
DESCRIPTION
OF SUBSCRIPTION RIGHTS
We
may issue subscription rights to purchase our common stock, preferred stock or debt securities. These subscription rights may
be offered independently or together with any other security offered hereby and may or may not be transferable by the stockholder
receiving the subscription rights in such offering. In connection with any offering of subscription rights, we may enter into
a standby arrangement with one or more underwriters or other purchasers pursuant to which the underwriters or other purchasers
may be required to purchase any securities remaining unsubscribed for after such offering.
The
prospectus supplement relating to any subscription rights we offer, if any, will, to the extent applicable, include specific terms
relating to the offering, including some or all of the following:
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the
price, if any, for the subscription rights;
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the
exercise price payable for our common stock, preferred stock or debt securities upon the exercise of the subscription rights;
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the
number of subscription rights to be issued to each stockholder;
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the
number and terms of our common stock, preferred stock or debt securities which may be purchased per each subscription right;
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the
extent to which the subscription rights are transferable;
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any
other terms of the subscription rights, including the terms, procedures and limitations relating to the exchange and exercise
of the subscription rights;
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the
date on which the right to exercise the subscription rights shall commence, and the date on which the subscription rights
shall expire;
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the
extent to which the subscription rights may include an over-subscription privilege with respect to unsubscribed securities
or an over-allotment privilege to the extent the securities are fully subscribed; and
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if
applicable, the material terms of any standby underwriting or purchase arrangement which may be entered into by Matinas in
connection with the offering of subscription rights.
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DESCRIPTION
OF UNITS
We
may issue units comprised of one or more of the other securities described in this prospectus in any combination. Each unit will
be issued so that the holder of the unit is also the holder of each security included in the unit. Thus, the holder of a unit
will have the rights and obligations of a holder of each included security (but, to the extent convertible securities are included
in the units, the holder of the units will be deemed the holder of the convertible securities and not the holder of the underlying
securities). The unit agreement under which a unit is issued may provide that the securities included in the unit may not be held
or transferred separately, at any time or at any time before a specified date. The applicable prospectus supplement may describe:
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the
designation and terms of the units and of the securities comprising the units, including whether and under what circumstances
those securities may be held or transferred separately;
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any
provisions for the issuance, payment, settlement, transfer or exchange of the units or of the securities comprising the units;
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the
terms of the unit agreement governing the units;
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United
States federal income tax considerations relevant to the units; and
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whether
the units will be issued in fully registered global form.
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This
summary of certain general terms of units and any summary description of units in the applicable prospectus supplement do not
purport to be complete and are qualified in their entirety by reference to all provisions of the applicable unit agreement and,
if applicable, collateral arrangements and depositary arrangements relating to such units. The forms of the unit agreements and
other documents relating to a particular issue of units will be filed with the SEC each time we issue units, and you should read
those documents for provisions that may be important to you.
FORMS
OF SECURITIES
Each
debt security and, to the extent applicable, warrant, subscription right and unit, will be represented either by a certificate
issued in definitive form to a particular investor or by one or more global securities representing the entire issuance of securities.
Certificated securities in definitive form and global securities will be issued in registered form. Definitive securities name
you or your nominee as the owner of the security, and in order to transfer or exchange these securities or to receive payments
other than interest or other interim payments, you or your nominee must physically deliver the securities to the trustee, registrar,
paying agent or other agent, as applicable. Global securities name a depositary or its nominee as the owner of the debt securities
or warrants represented by these global securities. The depositary maintains a computerized system that will reflect each investor’s
beneficial ownership of the securities through an account maintained by the investor with its broker/dealer, bank, trust company
or other representative, as we explain more fully below.
Global
Securities
Registered
Global Securities. We may issue the registered debt securities and, to the extent applicable, warrants, subscription rights
and units in the form of one or more fully registered global securities that will be deposited with a depositary or its nominee
identified in the applicable prospectus supplement and registered in the name of that depositary or nominee. In those cases, one
or more registered global securities will be issued in a denomination or aggregate denominations equal to the portion of the aggregate
principal or face amount of the securities to be represented by registered global securities. Unless and until it is exchanged
in whole for securities in definitive registered form, a registered global security may not be transferred except as a whole by
and among the depositary for the registered global security, the nominees of the depositary or any successors of the depositary
or those nominees.
If
not described below, any specific terms of the depositary arrangement with respect to any securities to be represented by a registered
global security will be described in the prospectus supplement relating to those securities. We anticipate that the following
provisions will apply to all depositary arrangements.
Ownership
of beneficial interests in a registered global security will be limited to persons, called participants, that have accounts with
the depositary or persons that may hold interests through participants. Upon the issuance of a registered global security, the
depositary will credit, on its book-entry registration and transfer system, the participants’ accounts with the respective
principal or face amounts of the securities beneficially owned by the participants. Any dealers, underwriters or agents participating
in the distribution of the securities will designate the accounts to be credited. Ownership of beneficial interests in a registered
global security will be shown on, and the transfer of ownership interests will be effected only through, records maintained by
the depositary, with respect to interests of participants, and on the records of participants, with respect to interests of persons
holding through participants. The laws of some states may require that some purchasers of securities take physical delivery of
these securities in definitive form. These laws may impair your ability to own, transfer or pledge beneficial interests in registered
global securities.
So
long as the depositary, or its nominee, is the registered owner of a registered global security, that depositary or its nominee,
as the case may be, will be considered the sole owner or holder of the securities represented by the registered global security
for all purposes under the applicable indenture or warrant agreement. Except as described below, owners of beneficial interests
in a registered global security will not be entitled to have the securities represented by the registered global security registered
in their names, will not receive or be entitled to receive physical delivery of the securities in definitive form and will not
be considered the owners or holders of the securities under the applicable indenture or warrant agreement. Accordingly, each person
owning a beneficial interest in a registered global security must rely on the procedures of the depositary for that registered
global security and, if that person is not a participant, on the procedures of the participant through which the person owns its
interest, to exercise any rights of a holder under the applicable indenture or warrant agreement. We understand that under existing
industry practices, if we request any action of holders or if an owner of a beneficial interest in a registered global security
desires to give or take any action that a holder is entitled to give or take under the applicable indenture or warrant agreement,
the depositary for the registered global security would authorize the participants holding the relevant beneficial interests to
give or take that action, and the participants would authorize beneficial owners owning through them to give or take that action
or would otherwise act upon the instructions of beneficial owners holding through them.
Principal,
premium, if any, and interest payments on debt securities and any payments to holders with respect to warrants represented by
a registered global security registered in the name of a depositary or its nominee will be made to the depositary or its nominee,
as the case may be, as the registered owner of the registered global security. None of Matinas, the trustees, the warrant agents
or any other agent of Matinas, agent of the trustees or agent of the warrant agents will have any responsibility or liability
for any aspect of the records relating to payments made on account of beneficial ownership interests in the registered global
security or for maintaining, supervising or reviewing any records relating to those beneficial ownership interests.
We
expect that the depositary for any of the securities represented by a registered global security, upon receipt of any payment
of principal, premium, interest or other distribution of underlying securities or other property to holders on that registered
global security, will immediately credit participants’ accounts in amounts proportionate to their respective beneficial
interests in that registered global security as shown on the records of the depositary. We also expect that payments by participants
to owners of beneficial interests in a registered global security held through participants will be governed by standing customer
instructions and customary practices, as is now the case with the securities held for the accounts of customers in bearer form
or registered in “street name,” and will be the responsibility of those participants.
If
the depositary for any of these securities represented by a registered global security is at any time unwilling or unable to continue
as depositary or ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and a successor depositary registered as a clearing agency under the Exchange Act is not appointed by us within
90 days, we will issue securities in definitive form in exchange for the registered global security that had been held by the
depositary. Any securities issued in definitive form in exchange for a registered global security will be registered in the name
or names that the depositary gives to the relevant trustee or warrant agent or other relevant agent of ours or theirs. It is expected
that the depositary’s instructions will be based upon directions received by the depositary from participants with respect
to ownership of beneficial interests in the registered global security that had been held by the depositary.
PLAN
OF DISTRIBUTION
We
may sell the securities being offered pursuant to this prospectus through underwriters or dealers, through agents, or directly
to one or more purchasers or through a combination of these methods. The applicable prospectus supplement will describe the terms
of the offering of the securities, including:
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name or names of any underwriters, if any, and if required, any dealers or agents;
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the
purchase price of the securities and the proceeds we will receive from the sale;
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any
underwriting discounts and other items constituting underwriters’ compensation;
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any
discounts or concessions allowed or reallowed or paid to dealers; and
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any
securities exchange or market on which the securities may be listed.
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may distribute the securities from time to time in one or more transactions at:
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a
fixed price or prices, which may be changed;
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market
prices prevailing at the time of sale;
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prices
related to such prevailing market prices; or
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negotiated
prices.
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Only
underwriters named in the prospectus supplement are underwriters of the securities offered by the prospectus supplement.
If
underwriters are used in an offering, we will execute an underwriting agreement with such underwriters and will specify the name
of each underwriter and the terms of the transaction (including any underwriting discounts and other terms constituting compensation
of the underwriters and any dealers) in a prospectus supplement. The securities may be offered to the public either through underwriting
syndicates represented by managing underwriters or directly by one or more investment banking firms or others, as designated.
If an underwriting syndicate is used, the managing underwriter(s) will be specified on the cover of the prospectus supplement.
If underwriters are used in the sale, the offered securities will be acquired by the underwriters for their own accounts and may
be resold from time to time in one or more transactions, including negotiated transactions, at a fixed public offering price or
at varying prices determined at the time of sale. Any public offering price and any discounts or concessions allowed or reallowed
or paid to dealers may be changed from time to time. Unless otherwise set forth in the prospectus supplement, the obligations
of the underwriters to purchase the offered securities will be subject to conditions precedent and the underwriters will be obligated
to purchase all of the offered securities if any are purchased.
We
may grant to the underwriters options to purchase additional securities to cover over-allotments, if any, at the public offering
price, with additional underwriting commissions or discounts, as may be set forth in a related prospectus supplement. The terms
of any over-allotment option will be set forth in the prospectus supplement for those securities.
If
we use a dealer in the sale of the securities being offered pursuant to this prospectus or any prospectus supplement, we will
sell the securities to the dealer, as principal. The dealer may then resell the securities to the public at varying prices to
be determined by the dealer at the time of resale. The names of the dealers and the terms of the transaction will be specified
in a prospectus supplement.
We
may sell the securities directly or through agents we designate from time to time. We will name any agent involved in the offering
and sale of securities and we will describe any commissions we will pay the agent in the prospectus supplement. Unless the prospectus
supplement states otherwise, any agent will act on a best-efforts basis for the period of its appointment.
We
may authorize agents or underwriters to solicit offers by institutional investors to purchase securities from us at the public
offering price set forth in the prospectus supplement pursuant to delayed delivery contracts providing for payment and delivery
on a specified date in the future. We will describe the conditions to these contracts and the commissions we must pay for solicitation
of these contracts in the prospectus supplement.
In
connection with the sale of the securities, underwriters, dealers or agents may receive compensation from us or from purchasers
of the securities for whom they act as agents in the form of discounts, concessions or commissions. Underwriters may sell the
securities to or through dealers, and those dealers may receive compensation in the form of discounts, concessions or commissions
from the underwriters or commissions from the purchasers for whom they may act as agents. Underwriters, dealers and agents that
participate in the distribution of the securities, and any institutional investors or others that purchase securities directly
and then resell the securities, may be deemed to be underwriters, and any discounts or commissions received by them from us and
any profit on the resale of the securities by them may be deemed to be underwriting discounts and commissions under the Securities
Act.
We
may provide agents and underwriters with indemnification against particular civil liabilities, including liabilities under the
Securities Act, or contribution with respect to payments that the agents or underwriters may make with respect to such liabilities.
Agents and underwriters may engage in transactions with, or perform services for, us in the ordinary course of business.
In
addition, we may enter into derivative transactions with third parties (including the writing of options), or sell securities
not covered by this prospectus to third parties in privately negotiated transactions. If the applicable prospectus supplement
indicates, in connection with such a transaction, the third parties may, pursuant to this prospectus and the applicable prospectus
supplement, sell securities covered by this prospectus and the applicable prospectus supplement. If so, the third party may use
securities borrowed from us or others to settle such sales and may use securities received from us to close out any related short
positions. We may also loan or pledge securities covered by this prospectus and the applicable prospectus supplement to third
parties, who may sell the loaned securities or, in an event of default in the case of a pledge, sell the pledged securities pursuant
to this prospectus and the applicable prospectus supplement. The third party in such sale transactions will be an underwriter
and will be identified in the applicable prospectus supplement or in a post-effective amendment.
To
facilitate an offering of a series of securities, persons participating in the offering may engage in transactions that stabilize,
maintain, or otherwise affect the market price of the securities. This may include over-allotments or short sales of the securities,
which involves the sale by persons participating in the offering of more securities than have been sold to them by us. In those
circumstances, such persons would cover such over-allotments or short positions by purchasing in the open market or by exercising
the over-allotment option granted to those persons. In addition, those persons may stabilize or maintain the price of the securities
by bidding for or purchasing securities in the open market or by imposing penalty bids, whereby selling concessions allowed to
underwriters or dealers participating in any such offering may be reclaimed if securities sold by them are repurchased in connection
with stabilization transactions. The effect of these transactions may be to stabilize or maintain the market price of the securities
at a level above that which might otherwise prevail in the open market. Such transactions, if commenced, may be discontinued at
any time. We make no representation or prediction as to the direction or magnitude of any effect that the transactions described
above, if implemented, may have on the price of our securities.
All
securities we may offer, other than common stock, will be new issues of securities with no established trading market. Any agents
or underwriters may make a market in these securities, but will not be obligated to do so and may discontinue any market making
at any time without notice. We cannot guarantee the liquidity of the trading markets for any securities. There is currently no
market for any of the offered securities, other than our common stock which is listed on the NYSE American. We have no current
plans for listing of the preferred stock, warrants, units or subscription rights on any securities exchange or quotation system;
any such listing with respect to any particular preferred stock, warrants, units or subscription rights will be described in the
applicable prospectus supplement or other offering materials, as the case may be. Any underwriters to whom securities are sold
by us for public offering and sale may make a market in the securities, but such underwriters will not be obligated to do so and
may discontinue any market making at any time without notice.
In
order to comply with the securities laws of some states, if applicable, the securities offered pursuant to this prospectus will
be sold in those states only through registered or licensed brokers or dealers. In addition, in some states securities may not
be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or
qualification requirement is available and complied with.
LEGAL
MATTERS
Unless
otherwise indicated in the applicable prospectus supplement, the validity of the securities offered hereby will be passed upon
for us by Lowenstein Sandler LLP, New York, New York. If the validity of the securities offered hereby in connection with offerings
made pursuant to this prospectus are passed upon by counsel for the underwriters, dealers or agents, if any, such counsel will
be named in the prospectus supplement relating to such offering.
EXPERTS
The consolidated balance
sheets of Matinas BioPharma Holdings, Inc. and Subsidiaries (the “Company”) as of December 31, 2019 and 2018, and
the related consolidated statements of operations and comprehensive loss, stockholders’ equity, and cash flows for each
of the years in the two-year period ended December 31, 2019, and the effectiveness of the Company’s internal control
over financial reporting have been audited by EisnerAmper LLP, an independent registered public accounting firm. Such financial
statements and the effectiveness of the Company’s internal control over financial reporting, have been incorporated
herein by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, and have been
so incorporated in reliance on the reports (which contain an adverse opinion on the effectiveness of the Company’s internal
control over financial reporting because of material weaknesses) of such firm given upon their authority as experts in accounting
and auditing.
WHERE
YOU CAN FIND MORE INFORMATION
This
prospectus constitutes a part of a registration statement on Form S-3 filed under the Securities Act. As permitted by the SEC’s
rules, this prospectus and any prospectus supplement, which form a part of the registration statement, do not contain all the
information that is included in the registration statement. You will find additional information about us in the registration
statement. Any statements made in this prospectus or any prospectus supplement concerning legal documents are not necessarily
complete and you should read the documents that are filed as exhibits to the registration statement or otherwise filed with the
SEC for a more complete understanding of the document or matter.
We
file annual, quarterly and current reports, proxy statements and other information with the SEC. You may read, without charge,
and copy the documents we file at the SEC’s public reference rooms in Washington, D.C. at 100 F Street, NE, Room 1580, Washington,
DC 20549. You can request copies of these documents by writing to the SEC and paying a fee for the copying cost. Please call the
SEC at 1-800-SEC-0330 for further information on the public reference rooms. Our SEC filings are also available to the public
at no cost from the SEC’s website at http://www.sec.gov.
INCORPORATION
OF DOCUMENTS BY REFERENCE
We
have filed a registration statement on Form S-3 with the Securities and Exchange Commission under the Securities Act. This prospectus
is part of the registration statement but the registration statement includes and incorporates by reference additional information
and exhibits. The Securities and Exchange Commission permits us to “incorporate by reference” the information contained
in documents we file with the Securities and Exchange Commission, which means that we can disclose important information to you
by referring you to those documents rather than by including them in this prospectus. Information that is incorporated by reference
is considered to be part of this prospectus and you should read it with the same care that you read this prospectus. Information
that we file later with the Securities and Exchange Commission will automatically update and supersede the information that is
either contained, or incorporated by reference, in this prospectus, and will be considered to be a part of this prospectus from
the date those documents are filed. We have filed with the Securities and Exchange Commission, and incorporate by reference in
this prospectus:
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Annual
Report on Form 10-K for the year ended December 31, 2019, filed on March 9, 2020;
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Quarterly
Report on Form 10-Q for the quarter ended March 31, 2020, filed on May 11, 2020;
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Definitive
Proxy Statement on Schedule 14A, filed on September 24, 2019;
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Current
Reports on Form 8-K, filed on January 10, 2020, February 20, 2020, March 9, 2020, May 11, 2020 and June 2, 2020 (other than
any portions thereof deemed furnished and not filed); and
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The
description of our common stock contained in our Form 8-A, filed on March 1, 2017.
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We
also incorporate by reference all additional documents that we file with the Securities and Exchange Commission under the terms
of Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as amended, that are made after the initial filing
date of the registration statement of which this prospectus is a part until the offering of the particular securities covered
by a prospectus supplement or term sheet has been completed. We are not, however, incorporating, in each case, any documents or
information that we are deemed to furnish and not file in accordance with Securities and Exchange Commission rules.
You
may request, and we will provide you with, a copy of these filings, at no cost, by contacting us at:
Investor
Relations Department
Matinas
BioPharma Holdings, Inc.
1545
Route 206 South
Suite
302
Bedminster,
NJ 07921
Telephone
number: 908-443-1860
The
information contained in this preliminary prospectus is not complete and may be changed. These securities may not be sold until
the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not
an offer to sell these securities and is not soliciting an offer to buy these securities in any jurisdiction where the offer or
sale is not permitted.
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PROSPECTUS
(Subject to Completion)
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Dated
July 2, 2020
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Up
to $50,000,000
Common
Stock
This
Sales Agreement prospectus and the accompanying base prospectus, which together we sometimes refer to as the prospectus, relate
to the offer and sale, from time to time, of shares of our common stock having an aggregate gross sales price of up to $50,000,000,
through BTIG, LLC, or BTIG, acting as our sales agent, in accordance with the terms of a sales agreement we have entered into
with BTIG.
Sales
of our common stock, if any, under this prospectus will be made by any method that is deemed to be an “at the market offering”
as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended, or the Securities Act. BTIG is not required to sell
any specific amount of securities, but will act as our sales agent using commercially reasonable efforts consistent with its normal
trading and sales practices, on mutually agreed terms between BTIG and us. There is no arrangement for funds to be received in
any escrow, trust or similar arrangement.
BTIG
will be entitled to compensation at a fixed commission rate of 3.0% of the gross proceeds from the sale of our common stock on
our behalf pursuant to the sales agreement. In connection with the sale of the common stock on our behalf, BTIG will be deemed
to be an “underwriter” within the meaning of the Securities Act, and the compensation of BTIG will be deemed to be
underwriting commissions or discounts. We have agreed to provide indemnification and contribution to BTIG against certain civil
liabilities, including liabilities under the Securities Act or the Securities Exchange Act of 1934, as amended, or the Exchange
Act.
Our
common stock is traded on the NYSE American LLC, or NYSE American, under the symbol “MTNB”. On June 30, 2020, the
last reported sales price of our common stock on NYSE American was $0.77 per share.
Investing
in our common stock involves risks. See “Risk Factors” beginning on page S-4 of this prospectus, and under
similar headings in the other documents that are incorporated by reference into this prospectus.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
BTIG
_______________,
2020
TABLE
OF CONTENTS
ABOUT
THIS PROSPECTUS SUPPLEMENT
This
prospectus supplement relates to the offering of our common stock. Before buying any of the common stock that we are offering,
we urge you to carefully read this prospectus, together with the accompanying base prospectus and the information incorporated
by reference as described under the headings “Where You Can Find More Information” and “Incorporation of Certain
Information by Reference” in this prospectus, and any free writing prospectus or prospectus supplement that we have authorized
for use in connection with this offering. These documents contain important information that you should consider when making your
investment decision.
This
prospectus supplement describes the terms of this offering of common stock and also adds to and updates information contained
in the documents incorporated by reference into this prospectus. To the extent there is a conflict between the information contained
in this prospectus supplement, on the one hand, and the information contained in any document incorporated by reference into this
prospectus that was filed with the Securities and Exchange Commission, or SEC, before the date of this prospectus supplement,
on the other hand, you should rely on the information in this prospectus. If any statement in one of these documents is inconsistent
with a statement in another document having a later date — for example, a document incorporated by reference into this prospectus
supplement — the statement in the document having the later date modifies or supersedes the earlier statement.
We
have not, and the sales agent has not, authorized anyone to provide you with information different than that contained or incorporated
by reference in this prospectus and any free writing prospectus or prospectus supplement that we have authorized for use in connection
with this offering. We take no responsibility for, and can provide no assurance as to the reliability of, any other information
that others may give you. You should assume that the information appearing in this prospectus, the documents incorporated by reference
herein, and in any free writing prospectus or prospectus supplement that we have authorized for use in connection with this offering
is accurate only as of the date of those respective documents. Our business, financial condition, results of operations and prospects
may have changed since those dates. You should read this prospectus, the documents incorporated by reference herein, and any free
writing prospectus or prospectus supplement that we have authorized for use in connection with this offering in their entirety
before making an investment decision.
We
are offering to sell, and are seeking offers to buy, the shares only in jurisdictions where such offers and sales are permitted.
The distribution of this prospectus supplement and the offering of the shares in certain jurisdictions or to certain persons within
such jurisdictions may be restricted by law. Persons outside the United States who come into possession of this prospectus must
inform themselves about and observe any restrictions relating to the offering of the shares and the distribution of this prospectus
outside the United States. This prospectus supplement does not constitute, and may not be used in connection with, an offer to
sell, or a solicitation of an offer to buy, any securities offered by this prospectus by any person in any jurisdiction in which
it is unlawful for such person to make such an offer or solicitation.
We
own or have rights to various trademarks, service marks and trade names that we use in connection with the operation of our business.
This prospectus supplement may also contain trademarks, service marks and trade names of third parties, which are the property
of their respective owners. Our use or display of third parties’ trademarks, service marks, trade names or products in this
prospectus is not intended to, and does not imply a relationship with, or endorsement or sponsorship by us. Solely for convenience,
the trademarks, service marks and trade names referred to in this prospectus may appear without the ®, TM
or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the
fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks, service marks and
trade names.
CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This
prospectus supplement, including the documents that we incorporate by reference, contain forward-looking statements within the
meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Such forward-looking statements include those
that express plans, anticipation, intent, contingency, goals, targets or future development and/or otherwise are not statements
of historical fact. These statements include, but are not limited to, statements regarding:
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our
expectations regarding clinical studies, the timing of clinical results, development timelines and regulatory filings and
submissions for our product candidates;
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risks
related to failure to obtain FDA clearances or approvals and noncompliance with FDA regulations;
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the
time, resources, and expense required to develop and conduct clinical trials and seek regulatory approvals for our product
candidates
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the
success of competing therapies and products that are or may become available;
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uncertainties
of government and third party payor reimbursement;
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the
performance of third parties, including contract research organizations and third-party manufacturers;
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the
cost of preparing, filing, prosecuting, defending, and enforcing patent claims and other patent related costs, including litigation
costs and the results of such litigation;
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our
liquidity and our expectations regarding our needs for and ability to raise additional capital;
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the
amount, and our expected uses, of the net proceeds of this offering; and
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the
impact the COVID-19 pandemic will have on our ability to advance our clinical development programs.
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These
forward-looking statements are based on our current expectations and projections about future events and they are subject to risks
and uncertainties known and unknown to us that could cause actual results and developments to differ materially from those expressed
or implied in such statements, including the risks described under “Risk Factors” in this prospectus and our Annual
Report on Form 10-K for the year ended December 31, 2019 as updated by our subsequent filings under the Exchange Act, each of
which is incorporated by reference in this prospectus in their entirety.
In
some cases, you can identify forward-looking statements by terminology, such as “expects,” “anticipates,”
“intends,” “estimates,” “plans,” “believes,” “seeks,” “may,”
“should”, “could” or the negative of such terms or other similar expressions. Accordingly, these statements
involve estimates, assumptions and uncertainties that could cause actual results to differ materially from those expressed in
them. Any forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this prospectus.
You
should read this prospectus and the documents that we reference herein and therein, completely and with the understanding that
our actual future results may be materially different from what we expect. You should assume that the information appearing in
this prospectus and the documents incorporated by reference is accurate as of their respective dates. Our business, financial
condition, results of operations and prospects may change. We may not update these forward-looking statements, even though our
situation may change in the future, unless required by law to update and disclose material developments related to previously
disclosed information. We qualify all of the information presented in this prospectus, and particularly our forward-looking statements,
by these cautionary statements.
PROSPECTUS
SUMMARY
The
following summary is qualified in its entirety by, and should be read together with, the more detailed information and financial
statements and related notes thereto appearing elsewhere or incorporated by reference in this prospectus. Before you decide to
invest in our securities, you should read the entire prospectus carefully, including the risk factors and the financial statements
and related notes included or incorporated by reference in this prospectus.
Unless
otherwise indicated or unless the context requires otherwise, this prospectus includes the accounts of Matinas Biopharma Holdings,
Inc., a Delaware corporation and its wholly-owned subsidiaries, collectively referred to as “we”, “us”,
“Matinas” or the “Company”.
Overview
We
are a clinical-stage biopharmaceutical company focused on creating value through (i) the development of our lead product candidate,
MAT9001 (omega-3 pentaenoic acids), a highly purified, prescription-only omega-3 free fatty acid formulation specifically designed
for the treatment of cardiovascular and metabolic conditions and (ii) the application of our lipid nano-crystal (LNC) platform
delivery technology to solve complex challenges relating to the delivery of a variety of molecules, exhibited by our lead LNC
platform drug candidate, MAT2203, an oral formulation of the well-known fungicidal drug amphotericin B. Based upon MAT9001’s
unique mixture of highly purified omega-3 pentaenoic free fatty acids and our observations of MAT9001’s enhanced bioavailability
and potency as compared to Amarin Corporation’s Vascepa® (icosapent ethyl) in our initial head-to-head pharmacokinetic
(PK) and pharmacodynamic (PD), or PK/PD, clinical study, we believe that the results of our forthcoming targeted clinical development
activities and related clinical investigations may yield an improved therapeutic profile compared to currently-existing therapies.
Corporate
Information
We
were incorporated in Delaware under the name Matinas BioPharma Holdings, Inc. in May 2013. We have two operating subsidiaries:
Matinas BioPharma, Inc., a Delaware corporation originally formed on August 12, 2011 as Nereus BioPharma LLC, and Matinas BioPharma
Nanotechnologies, Inc., a Delaware corporation originally formed on January 29, 2015 as Aquarius Biotechnologies, Inc.
Our
principal executive offices are located at 1545 Route 206 South, Suite 302, Bedminster, New Jersey 07921, and our telephone number
is (908) 443-1860. Our website address is www.matinasbiopharma.com. Our website and the information contained on, or that can
be accessed through, our website will not be deemed to be incorporated by reference in, and are not considered part of, this prospectus.
You should not rely on our website or any such information in making your decision whether to purchase our securities.
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The Offering
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Common
stock offered by us:
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Shares
of our common stock having an aggregate offering price of up to $50,000,000.
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Manner
of offering:
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“At
the market offering” that may be made from time to time through our sales agent, BTIG. See “Plan of Distribution”
on page S-9.
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Use
of proceeds:
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We
intend to use the net proceeds, if any, from this offering, for working capital and general corporate purposes. See “Use
of Proceeds” on page S-5.
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Risk
Factors:
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Investing
in our common stock involves significant risks. See “Risk Factors” beginning on page S-4 of this prospectus
supplement and other information included or incorporated by reference into this prospectus supplement for a discussion of
factors you should carefully consider before investing in our securities.
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NYSE
American symbol:
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“MTNB”
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RISK
FACTORS
Investing
in our common stock involves a high degree of risk. Prior to making a decision about investing in our common stock, you should
carefully consider the specific risk factors discussed in the sections entitled “Risk Factors” contained in our annual
report on Form 10-K for the fiscal year ended December 31, 2019 under the heading “Item 1A. Risk Factors,” and as
described or may be described in any subsequent quarterly report on Form 10-Q under the heading “Item 1A. Risk Factors,”
as well as in any applicable prospectus supplement and contained or to be contained in our filings with the SEC and incorporated
by reference in this prospectus, together with all of the other information contained in this prospectus, or any applicable prospectus
supplement. For a description of these reports and documents, and information about where you can find them, see “Where
You Can Find More Information” and “Incorporation of Certain Information by Reference.” If any of the risks
or uncertainties described in our SEC filings or any prospectus supplement or any additional risks and uncertainties actually
occur, our business, financial condition and results of operations could be materially and adversely affected.
Risks
Relating to this Offering
We
may allocate the net proceeds from this offering in ways that you or other stockholders may not approve.
We
currently intend to use the net proceeds of this offering, if any, for working capital and general corporate purposes, which may
include capital expenditures, research and development expenditures, regulatory affairs expenditures, clinical trial expenditures,
acquisitions of new technologies and investments, and the financing of possible acquisitions or business expansions. This expected
use of the net proceeds from this offering represents our intentions based upon our current plans and business conditions. The
amounts and timing of our actual expenditures may vary significantly depending on numerous factors, including the progress of
our development efforts, the status of and results from clinical trials, as well as any third party intellectual property or other
assets that we may opportunistically identify and seek to license or acquire or any collaborations that we may enter into with
third parties for our product candidates, and any unforeseen cash needs. Because the number and variability of factors that will
determine our use of the proceeds from this offering, their ultimate use may vary substantially from their currently intended
use. As a result, our management will retain broad discretion over the allocation of the net proceeds from this offering and could
spend the proceeds in ways that do not necessarily improve our operating results or enhance the value of our common stock. See
“Use of Proceeds.”
You
may experience immediate and substantial dilution in the net tangible book value per share of the common stock you purchase in
the offering. In addition, we may issue additional equity or convertible debt securities in the future, which may result in additional
dilution to you.
The
offering price per share in this offering may exceed the pro forma net tangible book value per share of our common stock outstanding
as of March 31, 2020. Assuming that we sell an aggregate of 64,935,065 shares of our common stock at a price of $0.77 per share,
the last reported sale price of our common stock on the NYSE American on June 30, 2020, for aggregate gross proceeds of approximately
$50,000,000, and after deducting commissions and estimated aggregate offering expenses payable by us, you will experience immediate
dilution of $0.31 per share, representing the difference between our pro forma as adjusted net tangible book value per share as
of March 31, 2020 after giving effect to this offering and the assumed offering price. See the section titled “Dilution”
below for a more detailed illustration of the dilution you would incur if you participate in this offering. In addition, to the
extent we need to raise additional capital in the future and we issue additional shares of common stock or securities convertible
or exchangeable for our common stock, our then existing stockholders may experience dilution and the new securities may have rights
senior to those of our common stock offered in this offering.
USE
OF PROCEEDS
We
currently intend to use the net proceeds from this offering, if any, for working capital and general corporate purposes.
The
timing and amount of our actual expenditures will be based on many factors, including cash flows from operations and the anticipated
growth of our business. As of the date of this prospectus, we cannot specify with certainty all of the particular uses for the
net proceeds to us from this offering. As a result, our management will have broad discretion regarding the timing and application
of the net proceeds from this offering. Pending their ultimate use, we intend to invest the net proceeds in short-term, investment-grade,
interest-bearing instruments.
MARKET
PRICE OF OUR COMMON STOCK
Our
common stock is presently listed on NYSE American under the symbol “MTNB”. On June 30, 2020, the last reported sale
price of our common stock was $0.77.
Holders
As
of June 30, 2020 we had 138 registered holders of record of our common stock. A substantially greater number of holders of our
common stock are “street name” or beneficial holders, whose shares of record are held through banks, brokers, other
financial institutions and registered clearing agencies.
DIVIDEND
POLICY
We
have never declared or paid cash dividends on our capital stock. We currently intend to retain our future earnings, if any, for
use in our business and therefore do not anticipate paying cash dividends in the foreseeable future. Payment of future dividends,
if any, will be at the discretion of our board of directors after taking into account various factors, including our financial
condition, operating results, current and anticipated cash needs and plans for expansion.
DILUTION
If
you purchase shares of our common stock in this offering, your interest will be diluted to the extent of the difference between
the public offering price per share and the net tangible book value per share of our common stock after this offering. We calculate
net tangible book value per share by dividing our net tangible assets (tangible assets less total liabilities) by the number of
shares of our common stock issued and outstanding as of March 31, 2020.
Our
historical net tangible book value at March 31, 2020 was approximately $73.2 million or $0.37 per share of our common stock. After
giving effect to the sale of our common stock in the aggregate amount of approximately $50,000,000 in this offering, at an assumed
offering price of $0.77 per share, the last reported sale price of our common stock on NYSE on June 30, 2020, and after deducting
estimated offering expenses and commissions payable by us, our adjusted net tangible book value as of March 31, 2020 would have
been approximately $121.5 million, or $0.46 per share of our common stock. This represents an immediate increase in the net tangible
book value of $0.09 per share of our common stock to our existing stockholders and an immediate dilution in net tangible book
value of $0.31 per share of our common stock to new investors. The following table illustrates per share dilution:
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Assumed public offering price per share
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$
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0.77
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Net tangible book value per share as of March 31, 2020
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$
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0.37
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Increase in net tangible book value per share attributable to this offering
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$
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0.09
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Adjusted net tangible book value per share as of March 31, 2020, after giving effect to this offering
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$
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0.46
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Dilution per share to new investors purchasing shares in this offering
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$
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0.31
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The
table above assumes for illustrative purposes that an aggregate of 64,935,065 shares of our common stock are sold at a price of
$0.77 per share, the last reported sale price of our common stock on the NYSE American on June 30, 2020, for aggregate gross proceeds
of approximately $50.0 million. The shares sold in this offering, if any, will be sold from time to time at various prices. An
increase of $0.10 per share in the price at which the shares are sold from the assumed offering price of $0.77 per share shown
in the table above, assuming all of our common stock in the aggregate amount of $50,000,000 is sold at that price, would increase
our adjusted net tangible book value per share after the offering to $0.48 per share and would decrease the dilution in net tangible
book value per share to new investors in this offering to $0.29 per share, after deducting estimated offering expenses and commissions
payable by us. A decrease of $0.10 per share in the price at which the shares are sold from the assumed offering price of $0.77
per share shown in the table above, assuming all of our common stock in the aggregate amount of $50,000,000 is sold at that price,
would decrease our adjusted net tangible book value per share after the offering to $0.45 per share and would increase the dilution
in net tangible book value per share to new investors in this offering to $0.32 per share, after deducting estimated offering
expenses and commissions payable by us. This information is supplied for illustrative purposes only.
The
information above is based on 197,202,938 shares of our common stock outstanding as of March 31, 2020, and excludes:
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22,316,997
shares of our common stock issuable upon the exercise of stock options outstanding at a weighted average exercise price of
$1.27 per share;
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9,104,000
shares issuable upon conversion of outstanding shares of Series B Preferred Stock;
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3,371,076
shares of our common stock issuable upon the exercise of warrants outstanding at a weighted average exercise price of $0.58
per share;
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3,000,000
shares issuable upon achievement of certain milestones pursuant to the terms of our merger agreement with Aquarius Biotechnologies,
Inc.; and
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5,887,493
additional shares of our common stock available for future issuance under our equity compensation plan.
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In
addition, since March 31, 2020, we granted options to purchase an additional 1,755,000 shares of common stock with a weighted
exercise price of $0.82 pursuant to our 2013 Equity Incentive Plan, 1,365,600 shares of commons stock were issued upon payment
of dividends on Series B preferred stock, 284,402 shares of common stock were issued upon the exercise of 970,176 warrants, an
additional 1,073,090 warrants expired and 20,537 shares of common stock were issued to a board member as payment for services
rendered during the second quarter.
To
the extent that outstanding options or warrants are exercised, or we issue other shares, investors purchasing shares in this offering
could experience further dilution. In addition, to the extent that we raise additional capital through the sale of equity or convertible
debt securities, the issuance of those securities could result in further dilution to our stockholders.
PLAN
OF DISTRIBUTION
We
have entered into the sales agreement with BTIG under which we may issue and sell shares of our common stock having an aggregate
offering price of up to $50,000,000 from time to time through BTIG, acting as our sales agent. The sales of our common stock,
if any, under this prospectus supplement will be made at market prices by any method deemed to be an “at the market offering”
as defined in Rule 415(a)(4) under the Securities Act, including sales made directly on the NYSE, on any other existing trading
market for our common stock, or to or through a market maker.
Each
time that we wish to issue and sell shares of our common stock under the sales agreement, we will provide BTIG with a placement
notice describing the amount of shares to be sold, the time period during which sales are requested to be made, any limitation
on the amount of shares of common stock that may be sold in any single day, any minimum price below which sales may not be made
or any minimum price requested for sales in a given time period and any other instructions relevant to such requested sales. Upon
receipt of a placement notice, BTIG, acting as our sales agent, will use commercially reasonable efforts, consistent with its
normal trading and sales practices and applicable state and federal laws, rules and regulations and the rules of the NYSE American,
to sell shares of our common stock under the terms and subject to the conditions of the placement notice and the sales agreement.
We or BTIG may suspend the offering of common stock pursuant to a placement notice upon notice and subject to other conditions.
BTIG, in its sole discretion, may decline to accept any placement notice.
BTIG
will provide written confirmation to us no later than the opening of the trading day on the NYSE American following the trading
day on which shares of our common stock are sold through BTIG as sales agent under the sales agreement. Each confirmation will
include the number of shares sold on the preceding day, the net proceeds to us and the commissions payable by us to BTIG in connection
with the sales.
Settlement
for sales of common stock under the sales agreement will occur on the second trading day following the date on which such sales
are made (or on such other date as is industry practice for regular-way trading), unless otherwise specified in the applicable
placement notice, in return for payment of the net proceeds to us. There are no arrangements to place any of the proceeds of this
offering in an escrow, trust or similar account. Sales of our common stock as contemplated in this prospectus supplement will
be settled through the facilities of The Depository Trust Company or by such other means as we and BTIG may agree upon.
We
will pay BTIG commissions for its services in acting as our sales agent in the sale of our common stock pursuant to the sales
agreement. BTIG will be entitled to compensation at a fixed commission rate of 3.0% of the gross proceeds from the sale of our
common stock on our behalf pursuant to the sales agreement. We also have agreed to reimburse BTIG for its reasonable out-of-pocket
expenses, including the fees and disbursements of BTIG’s counsel, incurred in connection with entering into the sales agreement,
in an amount not to exceed $65,000, and fees and disbursements of BTIG’s counsel on a quarterly basis not to exceed $7,500.
We
estimate that the total expenses for this offering, excluding compensation payable to BTIG and certain expenses reimbursable to
BTIG under the terms of the sales agreement, will be approximately $175,000. The remaining sales proceeds, after deducting
any expenses payable by us and any transaction fees imposed by any governmental, regulatory, or self-regulatory organization in
connection with the sales, will equal our net proceeds for the sale of such common stock.
Because
there are no minimum sale requirements as a condition to this offering, the actual total public offering price, commissions and
net proceeds to us, if any, are not determinable at this time. The actual dollar amount and number of shares of common stock we
sell through this prospectus supplement will be dependent, among other things, on market conditions and our capital raising requirements.
We
will report at least quarterly the number of shares of common stock sold through BTIG under the sales agreement, the net proceeds
to us and the compensation paid by us to BTIG in connection with the sales of common stock.
In
connection with the sale of the common stock on our behalf, BTIG will be deemed to be an “underwriter” within the
meaning of the Securities Act, and the compensation of BTIG will be deemed to be underwriting commissions or discounts. We have
agreed to provide indemnification and contribution to BTIG against certain civil liabilities, including liabilities under the
Securities Act or the Exchange Act.
BTIG
will not engage in any market making activities involving our common stock while the offering is ongoing under this prospectus
supplement if such activity would be prohibited under Regulation M or other anti-manipulation rules under the Securities Act.
As our sales agent, BTIG will not engage in any transactions that stabilizes our common stock.
The
offering pursuant to the sales agreement will terminate upon the earlier of (i) the sale of all shares of common stock subject
to the sales agreement and (ii) termination of the sales agreement as permitted therein. We may terminate the sales agreement
in our sole discretion at any time by giving 10 days’ prior notice to BTIG. BTIG may terminate the sales agreement under
the circumstances specified in the sales agreement and in its sole discretion at any time by giving 10 days’ prior notice
to us.
The
sales agreement has been filed as an exhibit to a current report on Form 8-K that we filed with the SEC in connection with this
offering and is incorporated into this prospectus supplement by reference.
BTIG
and/or its affiliates may in the future provide, various investment banking and other financial services for us, for which services
may in the future receive customary fees.
LEGAL
MATTERS
The validity of the shares
of common stock offered by this prospectus will be passed upon by Lowenstein Sandler LLP, New York, New York. Certain matters
will be passed upon for BTIG by Goodwin Procter LLP, New York, New York.
EXPERTS
The consolidated
balance sheets of Matinas BioPharma Holdings, Inc. and Subsidiaries (the “Company”) as of December 31, 2019 and 2018,
and the related consolidated statements of operations and comprehensive loss, stockholders’ equity, and cash flows for each
of the years in the two-year period ended December 31, 2019, and the effectiveness of the Company’s internal control over
financial reporting have been audited by EisnerAmper LLP, an independent registered public accounting firm. Such financial statements
and the effectiveness of the Company’s internal control over financial reporting, have been incorporated herein by reference
to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, and have been so incorporated in reliance
on the reports (which contain an adverse opinion on the effectiveness of the Company’s internal control over financial reporting
because of material weaknesses) of such firm given upon their authority as experts in accounting and auditing.
WHERE
YOU CAN FIND MORE INFORMATION
This
prospectus supplement is part of the registration statement on Form S-3 we filed with the Securities and Exchange Commission,
or SEC, under the Securities Act, and does not contain all the information set forth in the registration statement. Whenever a
reference is made in this prospectus supplement to any of our contracts, agreements or other documents, the reference may not
be complete, and you should refer to the exhibits that are a part of the registration statement or the exhibits to the reports
or other documents incorporated by reference into this prospectus for a copy of such contract, agreement or other document. You
may inspect a copy of the registration statement, including the exhibits and schedules, without charge, at the SEC’s public
reference room mentioned below, or obtain a copy from the SEC upon payment of the fees prescribed by the SEC.
We
file annual, quarterly and current reports, proxy statements and other information with the SEC. You may read, without charge,
and copy the documents we file at the SEC’s public reference rooms in Washington, D.C. at 100 F Street, NE, Room 1580, Washington,
DC 20549. You can request copies of these documents by writing to the SEC and paying a fee for the copying cost. Please call the
SEC at 1-800-SEC-0330 for further information on the public reference rooms. Our SEC filings are also available to the public
at no cost from the SEC’s website at http://www.sec.gov.
INCORPORATION
OF DOCUMENTS BY REFERENCE
We
incorporate by reference the filed documents listed below, except as superseded, supplemented or modified by this prospectus,
and any future filings we will make with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act (unless otherwise
noted, the SEC file number for each of the documents listed below is 001-36019):
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Annual
Report on Form 10-K for the year ended December 31, 2019, filed on March 9, 2020;
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Quarterly
Report on Form 10-Q for the quarter ended March 31, 2020, filed on May 11, 2020;
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Definitive
Proxy Statement on Schedule 14A, filed on September 24, 2019;
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Current
Reports on Form 8-K, filed on January 10, 2020, February 20, 2020, March 9, 2020, May 11, 2020 and June 2, 2020 (other than
any portions thereof deemed furnished and not filed); and
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The
description of our common stock contained in our Form 8-A, filed on March 1, 2017.
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We
also incorporate by reference into this prospectus additional documents (other than current reports furnished under Item 2.02
or Item 7.01 of Form 8-K and exhibits on such form that are related to such items) that we may file with the SEC under Sections
13(a), 13(c), 14 or 15(d) of the Exchange Act prior to the completion or termination of the offering, including all such documents
we may file with the SEC after the date of the initial registration statement and prior to the effectiveness of the registration
statement, but excluding any information deemed furnished and not filed with the SEC. Any statements contained in a previously
filed document incorporated by reference into this prospectus is deemed to be modified or superseded for purposes of this prospectus
to the extent that a statement contained in this prospectus, or in a subsequently filed document also incorporated by reference
herein, modifies or supersedes that statement.
This
prospectus may contain information that updates, modifies or is contrary to information in one or more of the documents incorporated
by reference in this prospectus. You should rely only on the information incorporated by reference or provided in this prospectus.
We have not authorized anyone else to provide you with different information. You should not assume that the information in this
prospectus is accurate as of any date other than the date of this prospectus, or the date of the documents incorporated by reference
in this prospectus.
We
will provide to each person, including any beneficial owner, to whom this prospectus is delivered, upon written or oral request,
at no cost to the requester, a copy of any and all of the information that is incorporated by reference in this prospectus.
You
may request, and we will provide you with, a copy of these filings, at no cost, by contacting us at:
Investor
Relations Department
Matinas
BioPharma Holdings, Inc.
1545
Route 206 South
Suite
302
Bedminster,
NJ 07921
Telephone
number: 908-443-1860
Up
to $50,000,000
Common
Stock
PROSPECTUS
BTIG
______________,
2020
PART
II
INFORMATION
NOT REQUIRED IN PROSPECTUS
ITEM
14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The
expenses in connection with the issuance and distribution of the securities being registered, other than underwriting discounts
and commissions, are estimated below:
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SEC registration fee
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$
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25,960
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FINRA filing fee
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30,500
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Legal fees and expenses
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*
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Accounting fees and expenses
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*
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Printing and engraving expenses
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*
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Miscellaneous expenses
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*
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Total
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$
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*
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*
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These fees are
calculated based on the number of issuances and the amount of securities offered and accordingly cannot be estimated at this
time.
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ITEM
15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Section
145 of the Delaware General Corporation Law, or DGCL, provides, in general, that a corporation incorporated under the laws of
the State of Delaware, as we are, may indemnify any person who was or is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding (other than a derivative action by or in the right of the corporation) by reason
of the fact that such person is or was a director, officer, employee or agent of the corporation, or is or was serving at the
request of the corporation as a director, officer, employee or agent of another enterprise, against expenses (including attorneys’
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such
action, suit or proceeding if such person acted in good faith and in a manner such person reasonably believed to be in or not
opposed to the best interests of the corporation and, with respect to any criminal action or proceeding, had no reasonable cause
to believe such person’s conduct was unlawful. In the case of a derivative action, a Delaware corporation may indemnify
any such person against expenses (including attorneys’ fees) actually and reasonably incurred by such person in connection
with the defense or settlement of such action or suit if such person acted in good faith and in a manner such person reasonably
believed to be in or not opposed to the best interests of the corporation, except that no indemnification will be made in respect
of any claim, issue or matter as to which such person will have been adjudged to be liable to the corporation unless and only
to the extent that the Court of Chancery of the State of Delaware or any other court in which such action was brought determines
such person is fairly and reasonably entitled to indemnity for such expenses.
Our
Certificate of Incorporation, as amended, and Bylaws provide that we will indemnify our directors, officers, employees and agents
to the extent and in the manner permitted by the provisions of the DGCL, as amended from time to time, subject to any permissible
expansion or limitation of such indemnification, as may be set forth in any amendment by stockholders or directors resolution.
Any
repeal or modification of these provisions approved by our stockholders will be prospective only and will not adversely affect
any limitation on the liability of any of our directors or officers existing as of the time of such repeal or modification.
We
have director and officer liability insurance to cover liabilities our directors and officers may incur in connection with their
services to us, including matters arising under the Securities Act.
We
have entered into indemnification agreements with all of our directors and named executive officers whereby we have agreed to
indemnify those directors and officers to the fullest extent permitted by law, including indemnification against expenses and
liabilities incurred in legal proceedings to which the director or officer was, or is threatened to be made, a party by reason
of the fact that such director or officer is or was our director, officer, employee or agent, provided that such director or officer
acted in good faith and in a manner that the director or officer reasonably believed to be in, or not opposed to, our best interests.
ITEM
16. EXHIBITS
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1.01
**
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Form
of Underwriting Agreement.
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1.02*
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Sales Agreement, dated July 2, 2020, by and between Matinas Biopharma Holdings, Inc. and BTIG.
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3.01
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Certificate of Incorporation (incorporated by reference to Exhibit 3.1 of the Company’s Registration Statement on Form S-1 (Reg. No. 333-193455), filed February 7, 2014 with the Securities and Exchange Commission).
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3.02
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Bylaws (incorporated by reference to Exhibit 3.2 of the Company’s Registration Statement on Form S-1 (Reg. No. 333-193455), filed February 7, 2014 with the Securities and Exchange Commission).
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3.03
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Certificate of Amendment, dated October 29, 2015 to Certificate of Incorporation. (incorporated herein by reference to the Company’s Current Report on Form 8-K filed with the SEC on November 5, 2015).
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3.04
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Certificate of Designation of Series B Preferred Stock (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed June 19, 2018 with the Securities and Exchange Commission).
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4.01
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Common Stock Specimen (incorporated by reference to Exhibit 4.1 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed March 31, 2017 with the Securities and Exchange Commission).
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4.02**
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Form
of Warrant Agreement, including form of Warrant.
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4.03**
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Form
of Unit Agreement.
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4.04**
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Specimen
Debt Security
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4.05*
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Form of Senior Debt Indenture and Matinas BioPharma Holdings, Inc. and the Trustee.
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4.06*
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Form of Subordinated Debt Indenture and Matinas BioPharma Holdings, Inc. and the Trustee.
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4.07*
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Form of Senior Note (included in Exhibit 4.5)*
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4.08*
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Form of Subordinated Note (included in Exhibit 4.6)*
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5.01
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Opinion of Lowenstein Sandler, LLP.
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23.01
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Consent of EisnerAmper LLP.
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23.02
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Consent of Lowenstein Sandler LLP (included in Exhibit 5.01).
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24.01
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Power of Attorney (contained on the signature pages to the registration statement).
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* Filed herewith.
**
To be filed by amendment or as an exhibit to a Current Report
on Form 8-K and incorporated herein by reference, if applicable.
ITEM
17. UNDERTAKINGS.
(a)
The undersigned registrant hereby undertakes:
(1)
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i)
To include any prospectus required by Section 10(a)(3) of the Securities Act;
(ii)
To reflect in the prospectus any facts or events arising after the effective date of this registration statement (or the most
recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information
set forth in this registration statement. Notwithstanding the foregoing, any increase or decrease in the volume of securities
offered (if the total dollar value of the securities offered would not exceed that which was registered) and any deviation from
the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission
pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement;
and
(iii)
To include any material information with respect to the plan of distribution not previously disclosed in this registration statement
or any material change to such information in this registration statement;
provided,
however, that the undertakings set forth in paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) above do not apply if the information
required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the
Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) that are incorporated by reference in this registration statement or is contained in a form of prospectus filed pursuant
to Rule 424(b) that is part of this registration statement;
(2)
That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
(3)
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold
at the termination of the offering.
(4)
That, for the purpose of determining liability under the Securities Act to any purchaser:
(i)
If the registrant is relying on Rule 430B;
(A)
Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of this registration statement as
of the date the filed prospectus was deemed part of and included in the registration statement; and
(B)
Each prospectus required to be filed pursuant to Rule 424 (b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance
on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii) or (x) for the purpose of providing the information
required by Section 10(a) of the Securities Act shall be deemed to be part of and included in the registration statement as of
the earlier of the date of the Securities Act prospectus is first used after effectiveness or the date of the first contract of
sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer
and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement
relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration
statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by
reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with
a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement
or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date;
or
(ii)
If the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating
to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A,
shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness.
Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement
or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part
of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify
any statement that was made in the registration statement or prospectus that was part of the registration statement or made in
any such document immediately prior to such date of first use.
(5)
That, for the purpose of determining liability of the registrant under the Securities Act to any purchaser in the initial distribution
of the securities:
The
undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration
statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or
sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser
and will be considered to offer or sell such securities to such purchaser:
(i)
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant
to Rule 424;
(ii)
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred
to by the undersigned registrant;
(iii)
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned
registrant or its securities provided by or on behalf of the undersigned registrant; and
(iv)
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
(b)
The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing
of the registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable,
each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated
by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(c)
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and
is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense
of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed
in the Securities Act and will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant to the requirements
of the Securities Act of 1933, as amended, the Registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing of the Registration Statement on Form S-3 and has duly caused this Form S-3 to be signed on its
behalf by the undersigned, thereunto duly authorized, in Bedminster, State of New Jersey, on the 2nd day of
July, 2020.
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|
MATINAS
BIOPHARMA HOLDINGS, INC.
|
|
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Date:
July 2, 2020
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By:
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/s/
Jerome D. Jabbour
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Jerome
D. Jabbour
|
|
|
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Chief
Executive Officer (Principal Executive Officer)
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|
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|
|
Date:
July 2, 2020
|
By:
|
/s/
Keith A. Kucinski
|
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|
|
Keith
A. Kucinski
|
|
|
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Chief
Financial Officer (Principal Accounting Officer)
|
POWER
OF ATTORNEY
KNOW
ALL PERSONS BY THESE PRESENTS:
That
the undersigned officers and directors of Matinas Biopharma Holdings, Inc., a Delaware corporation, do hereby constitute and appoint
Jerome Jabbour and Keith Kucinski and each of them his or her true and lawful attorney-in-fact and agent with full power and authority
to do any and all acts and things and to execute any and all instruments which said attorney and agent, determine may be necessary
or advisable or required to enable said corporation to comply with the Securities Act of 1933, as amended, and any rules or regulations
or requirements of the Securities and Exchange Commission in connection with this Registration Statement. Without limiting the
generality of the foregoing power and authority, the powers granted include the power and authority to sign the names of the undersigned
officers and directors in the capacities indicated below to this Registration Statement, and to any and all instruments or documents
filed as part of or in conjunction with this Registration Statement or amendments or supplements thereof, including post-effective
amendments, to this Registration Statement or any registration statement relating to this offering to be effective upon filing
pursuant to Rule 462(b) under the Securities Act of 1933, and each of the undersigned hereby ratifies and confirms that said attorney
and agent, shall do or cause to be done by virtue thereof. This Power of Attorney may be signed in several counterparts.
IN
WITNESS WHEREOF, each of the undersigned has executed this Power of Attorney. In accordance with the requirements of the Securities
Act of 1933, as amended, this registration statement was signed by the following persons in the capacities and on the dates stated:
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
/s/
Jerome D. Jabbour
|
|
Chief
Executive Officer (Principal Executive Officer) and Director
|
|
July
2, 2020
|
|
Jerome
D. Jabbour
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Keith A. Kucinski
|
|
Chief
Financial Officer (Principal Financial Officer and Principal Accounting Officer)
|
|
July
2, 2020
|
|
Keith
A. Kucinski
|
|
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|
|
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|
|
/s/
Herbert Conrad
|
|
Director
|
|
July
2, 2020
|
|
Herbert
Conrad
|
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|
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|
/s/
Patrick G. LePore
|
|
Director
|
|
July
2, 2020
|
|
Patrick
G. LePore
|
|
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|
/s/
Eric Ende
|
|
Director
|
|
July
2, 2020
|
|
Eric
Ende
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|
|
/s/
Matthew Wikler
|
|
Director
|
|
July
2, 2020
|
|
Matthew
Wikler
|
|
|
|
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|
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|
|
/s/
Adam K. Stern
|
|
Director
|
|
July
2, 2020
|
|
Adam
K. Stern
|
|
|
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|
|
/s/
James S. Scibetta
|
|
Director
|
|
July
2, 2020
|
|
James
S. Scibetta
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|
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|
Exhibit
1.02
MATINAS
BIOPHARMA HOLDINGS, INC.
UP
TO $50,000,000 OF COMMON STOCK
(par
value $0.0001 per share)
At-the-market
SALES AGREEMENT
July
2, 2020
BTIG,
LLC
600
Montgomery Street
San
Francisco, California 94111
Ladies
and Gentlemen:
Matinas
Biopharma Holdings, Inc., a Delaware corporation (the “Company”), confirms its agreement (this “Agreement”)
with BTIG, LLC (“BTIG” and, together with the Company, the “Parties”), as
follows:
1.
Issuance and Sale of Shares. The Company agrees that, from time to time during the term of this Agreement, on the terms
and subject to the conditions set forth herein, it may issue and sell to or through BTIG, as sales agent and/or principal, up
to that number of shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”),
having an aggregate offering price of $50,000,000 (the “Shares”); provided, however, that in
no event shall the Company issue or sell to or through BTIG such number of Shares that would (a) exceed the number or amount of
shares of Common Stock then available for offer and sale under the currently effective Registration Statement (as defined below)
pursuant to which the offering hereunder and under any Terms Agreement is being made or (b) exceed the number of authorized but
unissued shares of the Company’s Common Stock (the lesser of (a) and (b), the “Maximum Amount”).
Notwithstanding anything to the contrary contained herein, the Parties acknowledge and agree that compliance with the limitations
set forth in this Section 1 on the Maximum Amount of Shares that may be issued and sold under this Agreement and any Terms
Agreement (as defined below) shall be the sole responsibility of the Company, and that BTIG shall have no obligation in connection
with such compliance. The Company agrees that whenever it determines to sell Shares directly to BTIG, as principal, it will enter
into a separate agreement (each, a “Terms Agreement”) in substantially the form of Schedule 5
hereto relating to such sale in accordance with Section 2(b) of this Agreement (each such transaction being referred
to as a “Principal Transaction”). Each transaction pursuant to this Agreement in which the Company determines
to sell Shares through BTIG, as sales agent, is hereinafter referred to as an “Agency Transaction”.
The issuance and sale of Shares to or through BTIG will be effected pursuant to the Registration Statement (as defined below)
filed by the Company and which was declared effective under the Securities Act (as defined below) by the U.S. Securities and Exchange
Commission (the “Commission”).
The
Company has prepared and filed, in accordance with the provisions of the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder (collectively, the “Securities Act”), with the Commission, not earlier
than three years prior to the date hereof, a shelf registration statement on Form S-3, including a base prospectus, with respect
to offerings of certain securities of the Company, including the Shares, and which incorporates by reference documents that the
Company has filed or will file in accordance with the provisions of the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder (collectively, the “Exchange Act”). The Company has prepared
a prospectus supplement to the base prospectus included as part of such registration statement at the time it became effective
specifically relating to the offering of the Shares pursuant to this Agreement (the “Prospectus Supplement”).
The Company will furnish to BTIG, for use by BTIG, copies of the base prospectus included as part of such registration statement
at the time it became effective, as supplemented by the Prospectus Supplement. Except where the context otherwise requires, such
registration statement, as declared effective by the Commission, including the information, if any, deemed pursuant to Rule 430B
or 430C under the Securities Act, as applicable, to be part of the registration statement at the time of its effectiveness and
all documents filed as part thereof or incorporated by reference therein, and including any information contained in the Prospectus
(as defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the Securities Act, collectively, are
herein called the “Registration Statement,” and the base prospectus included in the registration statement
at the time it became effective, including all documents incorporated therein by reference to the extent such information has
not been superseded or modified in accordance with Rule 412 under the Securities Act (as qualified by Rule 430B(g) of the Securities
Act), as it may be supplemented by the Prospectus Supplement, in the form filed by the Company with the Commission pursuant to
Rule 424(b) under the Securities Act, together with any “issuer free writing prospectus”, as defined in Rule 433 under
the Securities Act (“Rule 433”), relating to the Shares that (i) is required to be filed with the Commission
by the Company or (ii) is exempt from filing pursuant to Rule 433(d)(5)(i), in each case, in the form filed or required to be
filed with the Commission or, if not required to be filed, in the form retained in the Company’s records pursuant to Rule
433(g), is herein called the “Prospectus.” If the Company has filed an abbreviated registration
statement to register additional securities of the Company pursuant to Rule 462(b) under the Securities Act, then any reference
to the Registration Statement in this Agreement shall also be deemed to include such abbreviated registration statement filed
by the Company pursuant to Rule 462(b) under the Securities Act. Any reference herein to the Registration Statement, the Prospectus
or any amendment or supplement thereto shall be deemed to refer to and include the documents incorporated by reference therein,
and any reference herein to the terms “amend,” “amendment” or “supplement” with respect to
the Registration Statement or the Prospectus shall be deemed to refer to and include the filing after the execution hereof of
any document with the Commission deemed to be incorporated by reference therein (such documents incorporated or deemed to be incorporated
by reference are herein called the “Incorporated Documents”). For purposes of this Agreement, all references
to the Registration Statement, the Prospectus or to any amendment or supplement thereto shall be deemed to include any copy filed
with the Commission pursuant to its Electronic Data Gathering Analysis and Retrieval system, or if applicable, the Interactive
Data Electronic Applications system when used by the Commission (collectively, “EDGAR”).
2.
Placements; Principal Transactions.
(a)
Each time that the Company wishes to issue and sell Shares hereunder in an Agency Transaction (each, a “Placement”
and Shares sold thereunder, “Placement Shares”), it will notify BTIG by email notice (or other method mutually
agreed to in writing by the Parties) of the amount of Shares requested to be sold or the gross proceeds to be raised in a given
time period, the time period during which sales are requested to be made, any limitation on the amount of Shares that may be sold
in any single day, any minimum price below which sales may not be made or any minimum price requested for sales in a given time
period and any other instructions relevant to such requested sales (a “Placement Notice”), the form
of which is attached hereto as Schedule 1. A Placement Notice shall originate from any of the individual representatives
of the Company set forth on Schedule 3, and shall be addressed to each of the individual representatives of BTIG
set forth on Schedule 3, as such Schedule 3 may be amended from time to time. Provided the Company
is otherwise in compliance with the terms of this Agreement, the Placement Notice shall be effective unless and until (i) BTIG,
in accordance with the notice requirements set forth in Section 4, declines to accept the terms contained therein for any
reason, in its sole discretion (which shall not be deemed a breach of BTIG’s agreement herein), (ii) the entire amount of
the Shares thereunder have been sold or the aggregate Shares sold under this Agreement and all Terms Agreements equals the Maximum
Amount, whichever occurs first, (iii) the Company, in accordance with the notice requirements set forth in Section 4, suspends
or terminates the Placement Notice or sales thereunder, (iv) BTIG, in accordance with the notice requirements set forth in Section
4, suspends sales under the Placement Notice, (v) the Company issues a subsequent Placement Notice with parameters superseding
those on the earlier dated Placement Notice or (vi) this Agreement has been terminated under the provisions of Section 12.
The amount of any commission to be paid by the Company to BTIG in connection with the sale of the Shares effected through BTIG,
as agent, in an Agency Transaction shall be calculated in accordance with the terms set forth in Schedule 2. It
is expressly acknowledged and agreed that neither the Company nor BTIG will have any obligation whatsoever with respect to a Placement
or any Shares unless and until the Company delivers a Placement Notice to BTIG and BTIG does not decline such Placement Notice
pursuant to the terms set forth above, and then only upon the terms specified therein and herein. In the event of a conflict between
the terms of this Agreement and the terms of a Placement Notice, the terms of the Placement Notice will control.
(b)
If the Company wishes to issue and sell Shares hereunder in a Principal Transaction, it will notify BTIG by email notice (or other
method mutually agreed to in writing by the Parties) of the proposed terms of the Principal Transaction. If BTIG, acting as principal,
wishes to accept such proposed terms (which it may decline to do for any reason in its sole discretion) or, following discussions
with the Company, wishes to accept amended terms, the Company and BTIG shall enter into a Terms Agreement setting forth the terms
of such Principal Transaction. Neither the Company nor BTIG shall have any obligation to enter into a Principal Transaction. The
terms set forth in a Terms Agreement shall not be binding on the Company or BTIG, unless and until the Company and BTIG have each
executed such Terms Agreement accepting all of the terms of such Terms Agreement. Any such Terms Agreement shall specify the number
or amount of Shares to be sold by the Company to and purchased by BTIG pursuant thereto, the per share purchase price to be paid
to the Company for such Shares (specifying and giving effect to all market price discounts applicable to such Principal Transaction),
all other compensation and/or other fees or expenses payable by the Company to or for the benefit of BTIG in connection with such
Principal Transaction, the Net Proceeds (as defined below) payable to the Company, the time, date and place of delivery of and
payment for such Shares (to the extent the settlement terms for sales of such Shares are intended to differ from those set forth
in Section 5 hereof), and the other terms upon which such sale is to occur. A Terms Agreement may also specify certain
provisions relating to the reoffering of such Shares by BTIG. Each of the Parties acknowledges and agrees that such Principal
Transaction shall be based on compensation that is mutually agreeable to both the Company and BTIG. In the event of a conflict
between the terms of this Agreement and the terms of a Terms Agreement, the terms of the Terms Agreement will control. The commitment
of BTIG to purchase the Shares as principal pursuant to any Terms Agreement shall be deemed to have been made on the basis of
the representations, warranties and agreements of the Company contained in any Terms Agreement and shall be subject to the terms
and conditions therein set forth. Each of the Parties acknowledges and agrees that, notwithstanding anything to the contrary contained
in this Agreement or any Terms Agreement, BTIG may engage in sales and other transactions in respect of a number of shares of
Common Stock equal to the number of Shares deliverable to BTIG pursuant to a Terms Agreement, whether or not BTIG has taken possession
of such Shares at the time of such sales or other transactions, and nothing contained in this Agreement or any Terms Agreement
shall limit or be deemed to limit BTIG’s ability to engage in such sales or other transactions.
3.
Sale of Shares by BTIG. On the basis of the representations and warranties herein contained and subject to the terms and
conditions herein set forth, upon the Company’s issuance of a Placement Notice in an Agency Transaction, and unless the
sale of the Shares described therein has been declined, suspended or otherwise terminated in accordance with the terms of this
Agreement, BTIG, as sales agent for the Company, will use its commercially reasonable efforts, consistent with its normal trading
and sales practices and applicable state and federal laws, rules and regulations and the rules of the NYSE American LLC (the “Exchange”),
for the period specified in the Placement Notice to sell such Shares up to the amount specified by the Company in, and otherwise
in accordance with the terms of, such Placement Notice. If acting as sales agent in an Agency Transaction, BTIG will provide written
confirmation to the Company no later than the opening of the Trading Day (as defined below) next following the Trading Day on
which it has made sales of Shares hereunder, setting forth the number of Shares sold on such day, the compensation payable by
the Company to BTIG with respect to such sales pursuant to Section 2 (it being hereby acknowledged and agreed that such
compensation shall not apply when BTIG acts as principal, in which case such compensation, discounts or other fees shall be set
forth in the applicable Terms Agreement), and the Net Proceeds (as defined below) payable to the Company, with an itemization
of the deductions made by BTIG (as set forth in Section 5(a)) from the gross proceeds for the Shares that it receives from
such sales. BTIG may sell Shares, as sales agent in an Agency Transaction, by any method permitted by law deemed to be an “at-the-market”
offering as defined in Rule 415 under the Securities Act, including, without limitation, sales made directly on the Exchange,
on any other existing trading market for the Common Stock or to or through a market maker or through an electronic communications
network. After consultation with the Company and subject to the terms of a Placement Notice, BTIG may also sell Shares, as sales
agent in an Agency Transaction, in privately negotiated transactions. During the term of this Agreement and notwithstanding anything
to the contrary herein, BTIG agrees that in no event will it or any of its affiliates engage in any market making, bidding, stabilization
or other trading activity with regard to the Common Stock if such activity would be prohibited under Regulation M or other anti-manipulation
rules under the Exchange Act. The Company acknowledges and agrees that (i) there can be no assurance that BTIG will be successful
in selling Shares in any Agency Transaction hereunder, (ii) BTIG will incur no liability or obligation to the Company or any other
person or entity if it does not sell Shares in any Agency Transaction for any reason other than a failure by BTIG to use its commercially
reasonable efforts consistent with its normal trading and sales practices to sell such Shares as required under this Section
3, and (iii) BTIG shall be under no obligation to purchase Shares on a principal basis pursuant to this Agreement, except
as may otherwise be specifically agreed by each of BTIG and the Company pursuant to a Terms Agreement, and then only to the extent
permitted by applicable law and the rules and regulations of the Exchange. For the purposes hereof, “Trading Day”
means any day on which Common Stock is purchased and sold on the principal market on which the Common Stock is listed or quoted.
4.
Suspension of Sales.
(a) The Company or BTIG may, upon notice to the other party in writing (including by email correspondence
to each of the individual representatives of the other party set forth on Schedule 3, if receipt of such correspondence
is actually acknowledged by any of the individuals to whom the notice is sent, other than via auto-reply) or by telephone (confirmed
immediately by verifiable facsimile transmission or email correspondence to each of the individual representatives of the other
party set forth on Schedule 3), suspend this offering and any sale of Shares in an Agency Transaction for a period
of time (a “Suspension Period”); provided, however, that such suspension shall not affect or
impair either party’s obligations with respect to any Shares sold hereunder prior to the receipt of such notice. Each of
the Parties agrees that no such notice under this Section 4 shall be effective against the other unless it is made to one
of the individuals named on Schedule 3 hereto, as such Schedule may be amended from time to time. During a Suspension
Period, the Company shall not issue any Placement Notices and BTIG shall not sell any Shares hereunder. The party that issued
a Suspension Notice shall notify the other party in writing of the Trading Day on which the Suspension Period shall expire not
later than twenty-four (24) hours prior to such Trading Day. While a Suspension is in effect any obligation under Sections 7(l),
7(m), 7(n) and 7(o) with respect to the delivery of certificates, opinions, or comfort letters to the Agent, shall be waived.
(b)
Notwithstanding any other provision of this Agreement or any Terms Agreement, the Company shall not offer or sell, or request
the offer or sale of, any Shares and, by notice to BTIG given by telephone (confirmed promptly by verifiable facsimile transmission
or email), shall cancel any instructions for the offer or sale of any Shares, and BTIG shall not be obligated to offer or sell
any Shares, (i) during any period in which the Company is, or may be deemed to be, in possession of material non-public information
or (ii) at any time from and including the date (each, an “Announcement Date”) on which the Company
shall issue a press release containing, or shall otherwise publicly announce, its earnings, revenues or other results of operations
(each, an “Earnings Announcement”) through and including the time that is 24 hours after the time that
the Company files (a “Filing Time”) a quarterly report on Form 10-Q or an annual report on Form 10-K
that includes consolidated financial statements as of and for the same period or periods, as the case may be, covered by such
Earnings Announcement.
(c)
If either BTIG or the Company believes that the exemptive provisions set forth in Rule 101(c)(1) of Regulation M under the Exchange
Act are not satisfied with respect to the Company or the Shares, such party shall promptly notify the other party thereof, and
sales of the Shares under this Agreement and any Placement Notice or Terms Agreement shall be suspended until such exemptive provisions
or such other applicable exemptive provisions have been satisfied in the judgment of each party.
5.
Settlement.
(a)
Settlement of Placement Shares. Unless otherwise specified in the applicable Placement Notice or Terms Agreement (as applicable),
settlement for sales of Placement Shares will occur on the second (2nd) Trading Day (or such earlier day as is industry
practice for regular-way trading) following the date on which such sales are made (each, a “Settlement Date”).
The amount of proceeds to be delivered to the Company on a Settlement Date against receipt of the Placement Shares sold (the “Net
Proceeds”) will be equal to the aggregate sales price received by BTIG for the Placement Shares, after deduction
for (i) BTIG’s commission for such sales payable by the Company pursuant to Section 2 hereof in an Agency Transaction,
or BTIG’s compensation, discounts or other fees pursuant to the terms of the applicable Terms Agreement in a Principal Transaction,
as applicable, (ii) any other amounts due and payable by the Company to BTIG hereunder and under any Terms Agreement, as applicable,
pursuant to Section 7(g) (Expenses) hereof and (iii) any transaction fees imposed by any governmental or self-regulatory
organization in respect of such sales.
(b)
Delivery of Placement Shares. On or before each Settlement Date, the Company will, or will cause its transfer agent to,
issue and electronically transfer the Placement Shares being sold by crediting BTIG’s or its designee’s (provided
BTIG shall have given the Company written notice of such designee prior to the Settlement Date) account at The Depository Trust
Company through its Deposit and Withdrawal at Custodian System or by such other means of delivery as may be mutually agreed upon
by the Parties, which Placement Shares in all cases shall be freely tradeable, transferable, registered shares in good deliverable
form. On each Settlement Date, BTIG will deliver the related Net Proceeds in same day funds to an account designated by the Company
prior to the Settlement Date. The Company agrees that if the Company, or its transfer agent, defaults in its obligation to deliver
Placement Shares on a Settlement Date pursuant to the terms of any Agency Transaction or Terms Agreement, in addition to and in
no way limiting the rights and obligations set forth in Section 10(a) (Indemnification by the Company), the Company will
(i) hold BTIG, its directors, officers, members, partners, employees and agents of BTIG and each person, if any, who (A) controls
BTIG within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act or (B) is controlled by or is under
common control with BTIG (other than the Company and its subsidiaries) (a “BTIG Affiliate”), harmless
against any loss, claim, damage, or expense (including reasonable legal fees and expenses), as incurred, arising out of or in
connection with such default by the Company or its transfer agent (if applicable) and (ii) pay to BTIG any commission or other
compensation (including the value of any market price discounts in any applicable Principal Transaction) to which it would otherwise
have been entitled absent such default.
(c)
Limitations on Offering Size. Under no circumstances shall the Company cause or request the offer or sale of any Placement
Shares pursuant to this Agreement or any Terms Agreement (i) if, after giving effect to the sale of such Placement Shares, the
aggregate number of Placement Shares sold pursuant to this Agreement and all Terms Agreements would exceed the lesser of (A) the
Maximum Amount and (B) the number or amount authorized from time to time to be issued and sold under this Agreement by the Company’s
board of directors, a duly authorized committee thereof or a duly authorized executive committee, and notified to BTIG in writing,
or (ii) at a price lower than the minimum price therefor authorized from time to time by the Company’s board of directors,
a duly authorized committee thereof or a duly authorized executive committee, and notified to BTIG in writing. Under no circumstances
shall the aggregate number of Placement Shares sold pursuant to this Agreement and all Terms Agreements exceed the Maximum Amount.
Notwithstanding anything to the contrary contained herein, the Parties acknowledge and agree that compliance with the limitations
set forth in this Section 5(c) on the number or amount of Placement Shares that may be issued and sold under this Agreement
and any Terms Agreement shall be the sole responsibility of the Company, and that BTIG shall have no obligation in connection
with such compliance.
6.
Representations and Warranties of the Company. The Company represents and warrants to, and agrees with, BTIG that as of
(i) the date of this Agreement, (ii) each Representation Date (as defined in Section 7(m)) on which a certificate is required
to be delivered pursuant to Section 7(m), (iii) the date on which any Placement Notice is delivered by the Company hereunder,
(iv) the date on which any Terms Agreement is executed by the Company and BTIG and (v) each time of sale of Shares pursuant to
this Agreement or any Terms Agreement (each such time of sale, an “Applicable Time”), as the case may
be:
(a)
Registration Statement and Prospectus. All of the conditions to the use of Form S-3 in connection with the offering and
sale of the Shares as contemplated hereby have been satisfied. The Registration Statement meets, and the offering and sale of
Shares as contemplated hereby comply with, the requirements of Rule 415(a)(1)(x) under the Securities Act. The Registration Statement
has been filed with the Commission and will be declared effective by the Commission under the Securities Act prior to the issuance
of any Placement Notices by the Company. The Company has not received from the Commission any notice pursuant to Rule 401(g)(1)
under the Securities Act objecting to the use of the shelf registration statement form. No stop order of the Commission preventing
or suspending the use of the base prospectus, the Prospectus Supplement or the Prospectus, or the effectiveness of the Registration
Statement, has been issued, and no proceedings for such purpose have been instituted or are pending or, to the Company’s
knowledge, are contemplated by the Commission. At the time of the initial filing of the Registration Statement, the Company paid
the required Commission filing fees relating to the Shares in accordance with Rules 456(a) and 457(o) under the Securities Act.
Copies of the Registration Statement, the Prospectus, and any such amendments or supplements and all documents incorporated by
reference therein that were filed with the Commission on or prior to the date of this Agreement have been delivered, or are available
through EDGAR, to BTIG and its counsel.
(b)
No Material Misstatement or Omission. At the respective times the Registration Statement and each amendment thereto became
or becomes effective, at each deemed effective date with respect to BTIG pursuant to Rule 430B(f)(2) under the Securities Act,
and at each Settlement Date, as the case may be, the Registration Statement complied, complies and will comply in all material
respects with the requirements of the Securities Act (including Rule 415(a)(1)(x) under the Act), and did not and will not contain
an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading. The Prospectus, when so filed with the Commission under Rule 424(b) under the Securities Act,
complied, complies and will comply in all material respects with the requirements of the Securities Act, and each Prospectus furnished
to BTIG for use in connection with the offering of the Shares was identical to the electronically transmitted copies thereof filed
with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T. Neither the Prospectus nor any amendments
or supplements thereto, at the time the Prospectus or any such amendment or supplement was issued, as of the date hereof, at each
Representation Date, and at each Applicable Time, as the case may be, included, includes or will include an untrue statement of
a material fact or omitted or will omit to state a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading. The representations and warranties in this subsection shall not
apply to statements in or omissions from the Registration Statement, the Prospectus or any amendments or supplements thereto made
in reliance upon and in conformity with written information furnished to the Company by BTIG expressly for use therein.
(c)
Incorporated Documents. Each Incorporated Document heretofore filed, when it was filed (or, if any amendment with respect
to any such document was filed, when such amendment was filed), conformed in all material respects with the requirements of the
Exchange Act, and any further Incorporated Documents so filed and incorporated after the date of this Agreement will, when they
are filed, conform in all material respects with the requirements of the Exchange Act; no such Incorporated Document when it was
filed (or, if an amendment with respect to any such document was filed, when such amendment was filed), contained an untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading; and no such Incorporated Document, when
it is filed, will contain an untrue statement of a material fact or will omit to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.
(d)
Free Writing Prospectuses. The Company has not distributed and will not distribute any “prospectus” (within
the meaning of the Securities Act) or offering material in connection with the offering or sale of the Shares other than the then
most recent Prospectus Supplement and any “issuer free writing prospectus” (as defined in Rule 433) reviewed and consented
to by BTIG, in each case accompanied by the then most recent base prospectus. Each issuer free writing prospectus (as defined
in Rule 433), as of its issue date and as of each Applicable Time, did not, does not and will not include any information that
conflicted, conflicts or will conflict with the information contained in the Registration Statement or the Prospectus, including
any Incorporated Document deemed to be a part thereof that has not been superseded or modified. The foregoing sentence does not
apply to any statements in or omissions from any issuer free writing prospectus made in reliance upon and in conformity with written
information furnished to the Company by BTIG expressly for use in such issuer free writing prospectus. The Company is not disqualified,
by reason of subsection (f) or (g) of Rule 164 under the Securities Act, from using, in connection with the offer and sale of
the Shares, issuer free writing prospectuses pursuant to Rules 164 and 433 under the Securities Act. The Company was not and is
not an “ineligible issuer” as defined in Rule 405 under the Securities Act at the times specified in Rules 164 and
433 under the Securities Act in connection with the offering of the Shares. Any issuer free writing prospectus that the Company
is required to file pursuant to Rule 433 has been, or will be, timely filed with the Commission in accordance with the requirements
of Rule 433. Each issuer free writing prospectus that the Company has filed, or is required to file, pursuant to Rule 433 or that
was prepared by or on behalf of or used by the Company complies or will comply in all material respects with the requirements
of the Securities Act.
(e)
Capitalization. The Company has an authorized and outstanding capitalization as set forth in the Registration Statement
and the Prospectus as of the dates referred to therein (subject, in each case, to the issuance of shares of Common Stock under
this Agreement or any Terms Agreement, the issuance of shares of Common Stock upon exercise of stock options and warrants disclosed
as outstanding in the Registration Statement and the Prospectus and the grant of options under existing stock option plans described
in the Registration Statement and the Prospectus). All of the issued and outstanding shares of capital stock, including the Common
Stock, of the Company have been duly authorized and validly issued and are fully paid and non-assessable, have been issued in
compliance, in all material respects, with all federal and state securities laws and were not issued in violation of any preemptive
right or similar right. Except as disclosed in the Registration Statement and the Prospectus, there are no outstanding (i) securities
or obligations of the Company or any of its Subsidiaries (as defined below) convertible into or exchangeable for any equity interests
of the Company or any such Subsidiary, (ii) warrants, rights or options to subscribe for or purchase from the Company or any such
Subsidiary any such equity interests or any such convertible or exchangeable securities or obligations or (iii) obligations of
the Company or any such Subsidiary to issue any equity interests, any such convertible or exchangeable securities or obligation,
or any such warrants, rights or options. The Company’s Common Stock has been registered pursuant to Section 12(b) of the
Exchange Act and is authorized for trading on the Exchange, and the Company has taken no action designed to, or likely to have
the effect of, terminating the registration of the Common Stock from the Exchange, nor has the Company received any notification
that the Commission or the Exchange is contemplating terminating such registration or listing. The Company is in material compliance
with the current listing standards of the Exchange. The Company has filed a Notification of Listing of Additional Shares with
the Exchange with respect to the Shares.
(f)
Organization of the Company. The Company has been duly incorporated and is validly existing as a corporation in good standing
under the laws of the State of Delaware, with the corporate power and authority to acquire, own, lease and operate its properties,
and to lease the same to others, and to conduct its business as described in the Registration Statement and the Prospectus, to
execute and deliver this Agreement and each Terms Agreement and to issue and sell the Shares as contemplated herein and therein;
and the Company is in compliance in all respects with the laws, orders, rules, regulations and directives issued or administered
by such jurisdictions, except where the failure to be in compliance would not, individually or in the aggregate, have a Material
Adverse Effect (as defined below).
(g)
Foreign Qualification of the Company. The Company is duly qualified to do business as a foreign corporation and is in good
standing in each jurisdiction where the ownership or leasing of its properties or the conduct of its business requires such qualification,
except where the failure to be so qualified and in good standing would not, individually or in the aggregate, either (i) have
or reasonably be expected to have a material adverse effect on the business, operations, properties, financial condition, results
of operations or prospects of the Company and its Subsidiaries, taken as a whole, or (ii) prevent, materially interfere with or
materially delay consummation of the transactions contemplated hereby or in any Terms Agreement (the effects described in the
foregoing clauses (i) and (ii) being herein referred to as a “Material Adverse Effect”).
(h)
Subsidiaries. Each subsidiary of the Company (each a “Subsidiary” and collectively, the “Subsidiaries”)
that is a significant subsidiary, as defined in Rule 1-02(w) of Regulation S-X of the Exchange Act (each a “Significant
Subsidiary” and collectively, the “Significant Subsidiaries”), has been duly incorporated
or organized and is validly existing as a corporation, limited liability company or limited partnership, as the case may be, in
good standing under the laws of the jurisdiction of its incorporation or organization, has corporate power and authority to own,
lease and operate its properties and conduct its business as described in the Prospectus and is duly qualified as a foreign corporation,
limited liability company or limited partnership, as the case may be, to transact business and is in good standing in each jurisdiction
in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business,
except where the failure to so qualify would not have a Material Adverse Effect. All of the issued and outstanding capital stock
of, or other ownership interests in, each such Significant Subsidiary has been duly authorized and validly issued, is fully paid
and non-assessable and, except for directors’ qualifying shares, is owned by the Company, directly or through subsidiaries,
free and clear of any security interest, mortgage, pledge, lien, encumbrance, claim or equity; and attached hereto as Schedule
4 is an accurate and complete list of the Significant Subsidiaries. At the date of filing with the Commission, the Company
did not have any Significant Subsidiary not listed on Exhibit 21 to the Company’s most recent Annual Report on Form 10-K
which was required to be so listed.
(i)
Validity of Shares. The Shares have been duly and validly authorized and, when issued and delivered against payment therefor
as provided herein, will be duly and validly issued, fully paid and non-assessable and free of preemptive rights and similar rights.
No further approval or authority of the stockholders or the Board of Directors of the Company are required for the issuance and
sale of the Shares.
(j)
Description of Shares. The capital stock of the Company, including the Shares, conforms in all material respects to the
description thereof contained in the Registration Statement and the Prospectus, and the certificates for the Shares are in due
and proper form and the holders of the Shares will not be subject to personal liability solely by reason of being such holders.
(k)
Authorization. This Agreement and each Terms Agreement has been duly authorized, executed and delivered by the Company
and constitutes a valid and legally binding obligation of the Company, enforceable against the Company in accordance with its
terms, except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
other similar laws relating to or affecting creditors’ rights generally and by general principles of equity. This Agreement
and each Terms Agreement conforms in all material respects to the descriptions thereof in the Registration Statement and the Prospectus.
(l)
Absence of Defaults and Conflicts. Neither the Company nor any Significant Subsidiary is (i) in breach or violation of
its certificate or articles of incorporation, charter, bylaws, limited liability company agreement, certificate or agreement of
limited or general partnership, memorandum and articles of association, or other similar organizational documents, as the case
may be, of such entity, (ii) in breach of or in default (or, with the giving of notice or lapse of time or both, would be in default)
(“Default”) under any indenture, mortgage, loan or credit agreement, deed of trust, note, contract,
franchise, lease or other agreement, obligation, condition, covenant or instrument to which the Company or any of its Significant
Subsidiaries is a party or by which it or any of them may be bound or to which any of the property or assets of the Company or
any of its Significant Subsidiaries is subject (each, an “Existing Instrument”), or (iii) in violation
of any statute, law, rule, regulation, judgment, order or decree of any court, regulatory body, administrative agency, governmental
body, arbitrator or other authority having jurisdiction over the Company or any of its Significant Subsidiaries or any of their
properties, as applicable, except, with respect to clauses (ii) and (iii) only, for such breaches, violations or Defaults that
would not, individually or in the aggregate, have a Material Adverse Effect. The Company’s execution, delivery and performance
of this Agreement and each Terms Agreement and consummation of the transactions contemplated hereby or thereby or by the Registration
Statement and the Prospectus (including the issuance and sale of the Shares and the use of the proceeds from the sale of the Shares
as described in the Prospectus under the caption “Use of Proceeds”) (i) have been duly authorized by all necessary
corporate action, and will not result in any breach or violation of the certificate or articles of incorporation, charter, bylaws,
limited liability company agreement, certificate or agreement of limited or general partnership, memorandum and articles of association,
or other similar organizational documents, as the case may be, of the Company or any of its Significant Subsidiaries, (ii) will
not conflict with or constitute a breach of, or Default or a Debt Repayment Triggering Event (as defined below) under, or result
in the creation or imposition of any lien, charge, claim or encumbrance upon any property or assets of the Company or any of its
Significant Subsidiaries pursuant to, or require the consent of any other party to, any Existing Instrument, and (iii) will not
result in any violation of any statute, law, rule, regulation, judgment, order or decree applicable to the Company or any of its
Significant Subsidiaries of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority
having jurisdiction over the Company or any of its Significant Subsidiaries or any of its or their properties, as applicable,
except, with respect to clauses (ii) and (iii) only, for such conflicts, breaches, Defaults, Debt Repayment Triggering Events
or violations that would not, individually or in the aggregate, have a Material Adverse Effect. As used herein, a “Debt
Repayment Triggering Event” means any event or condition which gives, or with the giving of notice or lapse of time
or both would give, the holder of any note, debenture or other evidence of indebtedness (or any person acting on such holder’s
behalf), issued by the Company, the right to require the repurchase, redemption or repayment of all or a portion of such indebtedness
by the Company or any of its Significant Subsidiaries.
(m)
Absence of Further Requirements. No consent, approval, license, permit, qualification, authorization or other order or
decree of, or registration or filing with, any court or other governmental or regulatory authority or agency is required for the
Company’s execution, delivery and performance of this Agreement and each Terms Agreement or consummation of the transactions
contemplated hereby or thereby or by the Registration Statement and the Prospectus (including the issuance and sale of the Shares
hereunder or under any Terms Agreement), except such as have been already obtained or made or as may be required under the Securities
Act, applicable state securities or Blue Sky laws, the rules of the Exchange, or the rules and regulations of the Financial Industry
Regulatory Authority, Inc. (“FINRA”).
(n)
No Preferential Rights; No Commissions. Except as set forth in the Registration Statement and the Prospectus, (i) no person
(as such term is defined in Rule 1-02 of Regulation S-X promulgated under the Securities Act) has the right, contractual or otherwise,
to cause the Company to issue or sell to such person any Common Stock or shares of any other capital stock or other securities
of the Company, (ii) no person (as such term is defined in Rule 1-02 of Regulation S-X promulgated under the Securities Act) has
any preemptive rights, resale rights, rights of first refusal, or any other rights (whether pursuant to a “poison pill”
provision or otherwise) to purchase any Common Stock or shares of any other capital stock or other securities of the Company,
(iii) no person (as such term is defined in Rule 1-02 of Regulation S-X promulgated under the Securities Act) has the right to
act as an underwriter or as a financial advisor to the Company in connection with the offer and sale of the Shares hereunder or
under any Terms Agreement, whether as a result of the filing or effectiveness of the Registration Statement or the sale of the
Shares as contemplated thereby or otherwise, and (iv) no person (as such term is defined in Rule 1-02 of Regulation S-X promulgated
under the Securities Act) has the right, contractual or otherwise, to cause the Company to register under the Securities Act any
shares of Common Stock or shares of any other capital stock or other securities of the Company, or to include any such shares
or other securities in the Registration Statement or the offering contemplated thereby. Neither the Company nor any of its Subsidiaries
is a party to any contract, agreement or understanding with any person (other than as contemplated by this Agreement or any Terms
Agreement) that would give rise to a valid claim against the Company or any of its Subsidiaries or BTIG for a brokerage commission,
finder’s fee or like payment in connection with the offering and sale of the Shares by BTIG under this Agreement or any
Terms Agreement.
(o)
Intellectual Property. Except as set forth in the Registration Statement and the Prospectus, the Company or its Significant
Subsidiaries own or possess a valid right to use all material patents, trademarks, service marks, trade names, copyrights, patentable
inventions, trade secrets, know-how and other intellectual property (collectively, the “Intellectual Property”)
used by the Company or its Significant Subsidiaries in, and material to, the conduct of the Company’s or its Significant
Subsidiaries’ business as now conducted or as proposed in the Registration Statement and the Prospectus to be conducted.
Except as set forth in the Registration Statement and the Prospectus, there is no material infringement by third parties of any
of the Intellectual Property and there are no legal or governmental actions, suits, proceedings or claims pending or, to the Company’s
knowledge, threatened, against the Company (i) challenging the Company’s rights in or to any Intellectual Property, (ii)
challenging the validity or scope of any Intellectual Property owned by the Company, or (iii) alleging that the operation of the
Company’s business as now conducted infringes or otherwise violates any patent, trademark, copyright, trade secret or other
proprietary rights of a third party, where any such action, suit, proceeding or claim would, individually or in the aggregate,
have a Material Adverse Effect.
(p)
Possession of Licenses and Permits. Each of the Company and its Significant Subsidiaries has all necessary licenses, authorizations,
consents and approvals and has made all necessary filings required under any federal, state, local or foreign law, regulation
or rule, and has obtained all necessary licenses, certificates, authorizations, orders, permits, consents and approvals from other
persons, in order to acquire and own, lease or sublease, lease to others and conduct its respective business as described in the
Registration Statement or Prospectus, except where the failure to have or obtain such licenses, permits, authorizations, consents
and approvals and to make such filings would not, individually or in the aggregate, have a Material Adverse Effect. All of such
license, permit, authorization, consent or approval are valid and in full force and effect, except where the invalidity of such
license, permit, authorization, consent or approval to be in full force and effect would not have a Material Adverse Effect. Neither
the Company nor any of its Significant Subsidiaries is in violation of, or in default under, or has received notice of any proceedings
relating to revocation or modification of, any such license, permit, authorization, consent or approval (or has any reason to
believe that any such license, permit, authorization, consent or approval will not be renewed in the ordinary course) or any federal,
state, local or foreign law, regulation or rule or any decree, order or judgment applicable to the Company or any of its Significant
Subsidiaries, except where such violation, default, revocation or modification would not, individually or in the aggregate, have
a Material Adverse Effect.
(q)
Contracts and Agreements. There are no contracts, agreements, instruments or other documents that are required to be described
in the Registration Statement or the Prospectus or any Incorporated Documents or to be filed as exhibits thereto which have not
been so described in all material respects and filed as required by Item 601(b) of Regulation S-K under the Securities Act. The
copies of all contracts, agreements, instruments and other documents (including governmental licenses, authorizations, permits,
consents and approvals and all amendments or waivers relating to any of the foregoing) that have been furnished to BTIG or its
counsel are complete and genuine and include all material collateral and supplemental agreements thereto. All contracts and agreements
between the Company and third parties expressly referenced in the Registration Statement or the Prospectus are legal, valid and
binding obligations of the Company, enforceable against the Company in accordance with their respective terms, except as enforceability
may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to
or affecting creditors’ rights generally and by general principles of equity.
(r)
Absence of Proceedings. Except as disclosed in the Registration Statement and Prospectus, there are no actions, suits,
claims, investigations or proceedings pending or, to the Company’s knowledge, threatened to which the Company or any of
the Subsidiaries is or would be a party, or of which any of the respective properties or assets of the Company and the Subsidiaries
is or would be subject, at law or in equity, before any court or arbitral body or by or before any federal, state, local or foreign
governmental or regulatory commission, board, body, authority or agency, which are required to be disclosed in the Registration
Statement or Prospectus, or which would reasonably be expected to result in a judgment, decree or order having, individually or
in the aggregate, a Material Adverse Effect, or which could materially and adversely affect the respective properties or assets
of the Company or any of its Subsidiaries. The aggregate of all pending legal or governmental proceedings to which the Company
or any Subsidiary is a party or of which any of their respective properties or assets is the subject which are not described in
the Registration Statement and Prospectus, including ordinary routine litigation incidental to the business of the Company, would
not, individually or in the aggregate, result in a Material Adverse Effect.
(s)
Independent Accountants. EisnerAmper LLP, whose report on the consolidated financial statements of the Company and the
Subsidiaries is incorporated by reference in the Registration Statement and the Prospectus, is an independent registered public
accounting firm with respect to the Company as required by the Securities Act, the Exchange Act and the Public Company Accounting
Oversight Board (United States) (the “PCAOB”). EisnerAmper LLP has not been engaged by the Company to
perform any “prohibited activities” (as defined in Section 10A of the Exchange Act).
(t)
Financial Statements. The financial statements included or incorporated by reference in the Registration Statement and
the Prospectus, together with the related notes and schedules, present fairly the consolidated financial position of the Company
and the Subsidiaries as of the dates indicated and the consolidated results of operations and cash flows of the Company and the
Subsidiaries for the periods specified and have been prepared in compliance with the requirements of the Securities Act and Exchange
Act and in conformity with United States generally accepted accounting principles (“GAAP”) applied on
a consistent basis during the periods involved. The selected financial data and the summary financial information included in
the Registration Statement and the Prospectus present fairly the information shown therein and have been compiled on a basis consistent
with that of the financial statements included or incorporated by reference in the Registration Statement and the Prospectus,
as of and at the dates indicated. Any pro forma financial statements or data included or incorporated by reference in the
Registration Statement and the Prospectus comply with the requirements of Regulation S-X of the Securities Act, including, without
limitation, Article 11 thereof, and the assumptions used in the preparation of such pro forma financial statements and
data are reasonable, the pro forma adjustments used therein are appropriate to give effect to the circumstances referred
to therein and the pro forma adjustments have been properly applied to the historical amounts in the compilation of those
statements and data. The other financial data set forth or incorporated by reference in the Registration Statement and the Prospectus
is accurately presented and prepared on a basis consistent with the financial statements and books and records of the Company.
The Company and the Subsidiaries do not have any material liabilities or obligations, direct or contingent (including any off-balance
sheet obligations or any “variable interest entities” as that term is used in Accounting Standards Codification Paragraph
810-10-25-20), not disclosed in the Registration Statement and the Prospectus. All disclosures contained in the Registration Statement
or the Prospectus, including the Incorporated Documents, that contain “non-GAAP financial measures” (as such term
is defined by the rules and regulations of the Commission) comply, in all material respects, with Regulation G under the Exchange
Act and Item 10 of Regulation S-K under the Securities Act, to the extent applicable.
(u)
No Material Adverse Change in Business. Subsequent to the respective dates as of which information is given in the Registration
Statement and the Prospectus, there has not been (i) any material adverse change in the business, operations, properties, financial
condition, results of operations or prospects of the Company and its Subsidiaries, taken as a whole, (ii) any transaction, other
than in the ordinary course, which is material to the Company and the Subsidiaries, taken as a whole, (iii) any obligation, direct
or contingent (including any off-balance sheet obligations), incurred by the Company or any Subsidiary, which is material to the
Company and the Subsidiaries, taken as a whole, (iv) any change in the authorized capital stock of the Company, or (v) any dividend
or distribution of any kind declared, paid or made on the capital stock of the Company.
(v)
Investment Company Act. The Company is not, and after receipt of payment for the Shares and the application of the proceeds
thereof as contemplated under the caption “Use of Proceeds” in the Registration Statement and the Prospectus will
not be, required to be registered as an “investment company” under the Investment Company Act of 1940, as amended,
and the rules and regulations promulgated thereunder (collectively, the “Investment Company Act”).
(w)
Property. Except as set forth in the Registration Statement and the Prospectus, the Company and each of its Significant
Subsidiaries have good and marketable title to all of the properties and assets reflected as owned in the financial statements
referred to in Section 6(t) above (or elsewhere in the Registration Statement and the Prospectus), in each case free and
clear of any security interests, mortgages, liens, encumbrances, equities, claims and other defects, except such as do not materially
and adversely affect the value of such property or assets and do not materially interfere with the use made or proposed to be
made of such property by the Company or any Significant Subsidiary. The material real property, improvements, equipment and personal
property held under lease by the Company or any of its Significant Subsidiaries are held under valid and enforceable leases, with
such exceptions as are not material and do not materially interfere with the use made or proposed to be made of such real property,
improvements, equipment or personal property by the Company or such Significant Subsidiary. The Company and each of its Subsidiaries
have such consents, easements, rights-of-way or licenses from any person (“rights-of-way”) as are necessary
to enable the Company and each of its Subsidiaries to conduct its business in the manner described in the Registration Statement
and the Prospectus, and except for such rights-of-way the lack of which would not have, individually or in the aggregate, a Material
Adverse Effect.
(x)
Environmental Laws. Except as otherwise disclosed in the Registration Statement and Prospectus, neither the Company nor
any of its Subsidiaries has been in material violation of, in connection with the ownership, use, maintenance or operation of
its properties and assets, any applicable federal, state, municipal, local or foreign laws, rules, regulations, decisions, orders,
policies, permits, licenses, certificates or approvals having force of law, domestic or foreign, relating to environmental, health,
or safety matters or hazardous or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental
Laws”). Without limiting the generality of the foregoing and except as otherwise described in the Registration Statement
and Prospectus: (i) the Company and each of its Subsidiaries has occupied its properties and has received, handled, used, stored,
treated, shipped and disposed of all pollutants, contaminants, hazardous or toxic materials, controlled or dangerous substances
or wastes in compliance with all applicable Environmental Laws to conduct their respective businesses; (ii) neither the Company
nor any of its Subsidiaries is aware of any unlawful spills, releases, discharges or disposal of any pollutants, contaminants,
hazardous or toxic materials, controlled or dangerous substances or wastes that have occurred or are presently occurring on or
from its properties as a result of any construction on or operation and use of its properties, (iii) there are no orders, rulings
or directives issued against the Company or any of its Subsidiaries, and there are no orders, rulings or directives pending or,
to the knowledge of the Company, threatened against the Company or any of its Subsidiaries under or pursuant to any Environmental
Laws requiring any work, repairs, construction or capital expenditures with respect to any properties or assets of the Company
or any of its Subsidiaries; and (iv) no notice with respect to any of the matters referred to in this Section 6(x), including
any alleged violations by the Company or any of the Subsidiaries with respect thereto has been received by the Company or any
of its Subsidiaries, and no writ, injunction, order or judgment is outstanding, and no legal proceeding under or pursuant to any
Environmental Laws or relating to the ownership, use, maintenance or operation of the properties and assets of the Company or
any of its Subsidiaries is in progress, pending or threatened, which could reasonably be expected to have a Material Adverse Effect,
and to the knowledge of the Company, there are no grounds or conditions which exist, on or under any property now or previously
owned, operated or leased by the Company or any of its Subsidiaries, on which any such legal proceeding might be commenced with
any reasonable likelihood of success or with the passage of time, or the giving of notice or both, would give rise thereto.
(y)
Insurance. The Company and its Subsidiaries carry or are entitled to the benefits of insurance in such amounts and covering
such risks as the Company reasonably deems adequate, and all such insurance is in full force and effect. The Company has no reason
to believe that it or any Subsidiary will not be able (i) to renew its existing insurance coverage as and when such policies expire
or (ii) to obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct its business as
now conducted and at a cost that would not result in a Material Adverse Effect. Neither the Company nor any Subsidiary has been
denied any material insurance coverage which it has sought or for which it has applied.
(z)
Accounting Controls and Disclosure Controls. The Company and each of its Subsidiaries maintain a system of internal accounting
controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s
general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in
conformity with GAAP and to maintain accountability for assets; (iii) receipts and expenditures are being made only in accordance
with management’s general or specific authorization; (iv) access to assets is permitted only in accordance with management’s
general or specific authorization; and (v) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. Except as described in the Registration Statement and
the Prospectus, since the end of the Company’s most recent audited fiscal year, there has been (A) no material weakness
in the Company’s internal control over financial reporting (whether or not remediated) and (B) no change in the Company’s
internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting. The Company and its Subsidiaries, considered as one enterprise, have established and
currently maintain disclosure controls and procedures that comply with Rule 13a-15 under the Exchange Act, and the Company has
determined that such disclosure controls and procedures are effective in compliance with Rule 13a-15 under the Exchange Act.
(aa)
Compliance with the Sarbanes-Oxley Act. There is and has been no failure on the part of the Company or any of the Company’s
directors or officers, in their capacities as such, to comply in all material respects with any applicable provision of the Sarbanes-Oxley
Act of 2002 and the rules and regulations promulgated in connection therewith (the “Sarbanes-Oxley Act”),
including Section 402 related to loans and Sections 302 and 906 related to certifications.
(bb)
Payment of Taxes. All tax returns of the Company and its Subsidiaries required by law to be filed have been filed and all
taxes shown by such returns or otherwise assessed, which are due and payable, have been paid, except assessments against which
appeals have been or will be promptly taken and as to which adequate reserves have been provided. The charges, accruals and reserves
on the books of the Company in respect of any income and corporation tax liability for any years not finally determined are adequate
to meet any assessments or re-assessments for additional income tax for any years not finally determined, except to the extent
of any inadequacy that would not result in a Material Adverse Effect.
(cc)
Stock Transfer Taxes. On each Settlement Date, all stock transfer or other taxes (other than income taxes) which are required
to be paid in connection with the sale and transfer of the Shares to be sold hereunder and under any Terms Agreement, as applicable,
will be, or will have been, fully paid or provided for by the Company and all laws imposing such taxes will be or will have been
fully complied with.
(dd)
Statistical and Market-Related Data. The statistical and market-related data included or incorporated by reference in the
Registration Statement and the Prospectus are based on or derived from sources that the Company believes to be reliable and accurate,
and the Company has obtained the written consent to the use of such data from such sources to the extent required.
(ee)
Foreign Corrupt Practices Act. None of the Company, any Subsidiary or, to the knowledge of the Company, any director, officer,
agent, employee, affiliate or other person acting on behalf of the Company or any of its Subsidiaries, is aware of or has taken
any action, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977,
as amended, and the rules and regulations thereunder (collectively, the “FCPA”), including, without
limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer,
payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization
of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign
political party or official thereof or any candidate for foreign political office, in contravention of the FCPA. The Company and
the Subsidiaries have conducted their respective businesses in compliance with the FCPA and have instituted and maintain policies
and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.
(ff)
Money Laundering Laws. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance
with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, the money laundering statutes of all jurisdictions, the rules and regulations thereunder and any related or similar
rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money
Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or
body or any arbitrator involving the Company or any of its Subsidiaries with respect to the Money Laundering Laws is pending or,
to the knowledge of the Company, threatened.
(gg)
OFAC. None of the Company, any Subsidiary or, to the knowledge of the Company, any director, officer, agent, employee,
affiliate or person acting on behalf of the Company or any of its Subsidiaries is currently subject to any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will
not directly or indirectly use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to
any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person currently
subject to any U.S. sanctions administered by OFAC.
(hh)
Related Party Transactions. No relationship, direct or indirect, exists between or among the Company or any of its Subsidiaries
on the one hand, and the directors, officers, trustees, managers, stockholders, partners, customers or suppliers of the Company
or any of the Subsidiaries on the other hand, which would be required by the Securities Act to be disclosed in the Registration
Statement and the Prospectus, which is not so disclosed.
(ii)
ERISA. (i) The Company and its Significant Subsidiaries and any “employee benefit plan” (as defined in Section
3(3) of the Employee Retirement Income Security Act of 1974, as amended, and the regulations and published interpretations thereunder
(collectively, “ERISA”)) established or maintained by the Company, its Significant Subsidiaries or their
ERISA Affiliates (as defined below) are in compliance in all material respects with ERISA and the Code; (ii) no “reportable
event” (as defined under ERISA), other than an event for which the reporting requirement has been waived under regulations
issued by the Pension Benefit Guaranty Corporation, has occurred with respect to any pension plan subject to Title IV of ERISA
that is established or maintained by the Company, its Significant Subsidiaries or any of their ERISA Affiliates (“Pension
Plan”); (iii) no Pension Plan’s benefit liabilities under Section 4001(a)(16) of ERISA exceed the current
value of that Pension Plan’s assets, all as determined as of the most recent valuation date for the Pension Plan in accordance
with the assumptions used for funding the Pension Plan pursuant to Section 412 of ERISA; (iv) none of the Company, its Significant
Subsidiaries or any of their ERISA Affiliates has incurred or reasonably expects to incur any liability under (A) Title IV of
ERISA with respect to termination of, or withdrawal from, any “employee benefit plan,” (B) Sections 4971 or 4975 of
the Code, (C) Section 412 of the Code as a result of a failure to satisfy the minimum funding standard, or (D) Section 4980B of
the Code with respect to the excise tax imposed thereunder; and (v) each “employee benefit plan” established or maintained
by the Company, its Significant Subsidiaries or any of their ERISA Affiliates that is intended to be qualified under Section 401(a)
of the Code has received a favorable determination letter from the Internal Revenue Service and nothing has occurred, whether
by action or failure to act, which is reasonably likely to cause disqualification of any such employee benefit plan under Section
401(a) of the Code, except in the case of each of clauses (i) through (v), which would not have a Material Adverse Effect. “ERISA
Affiliate” means, with respect to the Company or a Significant Subsidiary, any member of any group of organizations
described in Section 414(b), (c), (m) or (o) of the Code, of which the Company or such Significant Subsidiary is a member.
(jj)
Clinical Studies. The clinical, pre-clinical and other studies and tests conducted by or, to the knowledge of the Company,
on behalf of the Company were, and, if still pending, are being, conducted in accordance in all material respects with all statutes,
laws, rules and regulations, as applicable (including, without limitation, the U.S. Federal and Drug Administration’s (the
“FDA”) Good Laboratory Practices and Good Clinical Practices as well as all other applicable rules,
regulations, or requirements of the FDA or any foreign, federal, state or local governmental or regulatory authority performing
functions similar to those performed by the FDA). Except as set forth in the Registration Statement and Prospectus, the Company
has not received any written notices or other written correspondence from the FDA or any other foreign, federal, state or local
governmental or regulatory authority performing functions similar to those performed by the FDA requiring the Company to terminate
or suspend any ongoing clinical or pre-clinical studies or tests. Except as set forth in the Registration Statement and Prospectus,
the Company has not received any 483 or other adverse finding from the FDA or any other regulator with respect to any clinical
site, clinical trial protocol, or clinical investigator.
(kk)
Labor Disputes. No labor disturbance by or dispute with employees of the Company or any of its Subsidiaries exists or,
to the knowledge of the Company, is threatened which would reasonably be expected to result in a Material Adverse Effect. None
of the employees of the Company or any of its Subsidiaries is represented by a union and, to the knowledge of the Company, no
union organizing activities are taking place. Neither the Company nor any of its Subsidiaries has violated any federal, state
or local law or foreign law relating to the discrimination in hiring, promotion or pay of employees, nor any applicable wage or
hour laws, or the rules and regulations thereunder, or analogous foreign laws and regulations, which might, individually or in
the aggregate, result in a Material Adverse Effect.
(ll)
No Material Defaults. Neither the Company nor any of the Subsidiaries has defaulted on any installment on indebtedness
for borrowed money or on any rental on one or more long-term leases, which defaults, individually or in the aggregate, could reasonably
be expected to have a Material Adverse Effect. The Company has not filed a report pursuant to Section 13(a) or 15(d) of the Exchange
Act since the filing of its last Annual Report on Form 10-K, indicating that it (i) has failed to pay any dividend or sinking
fund installment on preferred stock or (ii) has defaulted on any installment on indebtedness for borrowed money or on any rental
on one or more long-term leases, which defaults, individually or in the aggregate, could reasonably be expected to have a Material
Adverse Effect.
(mm)
Absence of Manipulation. Neither the Company, nor any of its Subsidiaries, nor any of its or their respective directors,
officers or, to the knowledge of the Company, controlling persons has taken, directly or indirectly, any action designed to stabilize
or manipulate, or which has constituted or might reasonably be expected to cause or result in, the stabilization or manipulation
of, the price of any security of the Company to facilitate the sale or resale of the Shares.
(nn)
Broker-Dealer Status; FINRA Matters. The Company is not required to register as a “broker” or “dealer”
in accordance with the provisions of the Exchange Act and does not, directly or indirectly through one or more intermediaries,
control or have any other association with (within the meaning of Article I of the By-laws of FINRA) any member firm of FINRA.
No relationship, direct or indirect, exists between or among the Company, on the one hand, and the directors, officers or stockholders
of the Company, on the other hand, which is required by the rules of FINRA to be described in the Registration Statement and the
Prospectus, which is not so described. All of the information (including, but not limited to, information regarding affiliations,
security ownership and trading activity) provided to BTIG or its counsel by the Company, its officers and directors and the holders
of any securities (debt or equity) or warrants, options or rights to acquire any securities of the Company in connection with
the filing to be made and other supplemental information to be provided to FINRA pursuant to FINRA Rule 5110 in connection with
the transactions contemplated by this Agreement or any Terms Agreement is true, complete and correct in all material respects.
(oo)
Margin Rules. Neither the issuance, sale and delivery of the Shares nor the application of the proceeds thereof by the
Company as described in the Registration Statement and the Prospectus will violate Regulation T, U or X of the Board of Governors
of the Federal Reserve System or any other regulation of such Board of Governors.
(pp)
Underwriter Agreements. The Company is not a party to any agreement with an agent or underwriter for any other “at-the-market”
or continuous equity transaction or any “equity line” transaction.
(qq)
No Reliance. The Company has not relied upon BTIG or its legal counsel for any legal, tax or accounting advice in connection
with the offering and sale of the Shares.
(rr)
No Integration. Neither the Company nor, to the Company’s knowledge, any of its affiliates (within the meaning of
Securities Act Rule 144) has, prior to the date hereof, made any offer or sale of any securities which could be “integrated”
(within the meaning of the Securities Act) with the offer and sale of the Shares.
Any
certificate signed by an officer of the Company and delivered to BTIG or to counsel for BTIG pursuant to or in connection with
this Agreement or any Terms Agreement shall be deemed to be a representation and warranty by the Company to BTIG as to the matters
set forth therein as of the date or dates indicated therein.
7.
Covenants of the Company. The Company covenants and agrees with BTIG that:
(a)
Registration Statement Amendments. After the date of this Agreement and during any period in which a Prospectus relating
to any Shares is required to be delivered by BTIG under the Securities Act (without regard to the effects of Rules 153, 172 and
173 under the Securities Act) (the “Prospectus Delivery Period”), (i) the Company will notify BTIG promptly
of the time when any subsequent amendment to the Registration Statement, other than the Incorporated Documents, has been filed
with the Commission and/or has become effective or any subsequent supplement to the Prospectus has been filed and of any request
by the Commission for any amendment or supplement to the Registration Statement or Prospectus or for additional information, (ii)
the Company will prepare and file with the Commission, promptly upon BTIG’s request, any amendments or supplements to the
Registration Statement or Prospectus that, in BTIG’s reasonable judgment, may be necessary or advisable in connection with
the distribution of the Shares by BTIG (provided, however, that the failure of BTIG to make such request shall not relieve
the Company of any obligation or liability hereunder and under any Terms Agreement, as applicable, or affect BTIG’s right
to rely on the representations and warranties made by the Company in this Agreement and provided, further, that
the only remedy the Sales Agent shall have with respect to the failure to make such filing shall be to cease making sales under
this Agreement until such amendment or supplement is filed); (iii) the Company will not file any amendment or supplement to the
Registration Statement or Prospectus relating to the Shares (except for the Incorporated Documents) unless a copy thereof has
been submitted to BTIG a reasonable period of time before the filing and BTIG has not reasonably objected thereto (provided,
however, (A) that the failure of BTIG to make such objection shall not relieve the Company of any obligation or liability
hereunder and under any Terms Agreement, as applicable, or affect BTIG’s right to rely on the representations and warranties
made by the Company in this Agreement, (B) that, if BTIG objects thereto, BTIG may cease making sales of Placement Shares pursuant
to this Agreement and/or may terminate any Terms Agreement and (C) that the Company has no obligation to provide BTIG any advance
copy of such filing or to provide BTIG an opportunity to object to such filing if such filing does not name BTIG or does not relate
to the transactions contemplated hereunder or under any Terms Agreement); (iv) the Company will furnish to BTIG at the time of
filing thereof a copy of any document that upon filing is deemed to be incorporated by reference into the Registration Statement
or Prospectus, except for those documents available via EDGAR; and (v) the Company will cause each amendment or supplement to
the Prospectus to be filed with the Commission as required pursuant to the applicable paragraph of Rule 424(b) of the Securities
Act (without reliance on Rule 424(b)(8) of the Securities Act) or, in the case of any Incorporated Document, to be filed with
the Commission as required pursuant to the Exchange Act, within the time period prescribed (the determination to file or not file
any amendment or supplement with the Commission under this Section 7(a), based on the Company’s reasonable opinion
or reasonable objections, shall be made exclusively by the Company).
(b)
Notice of Commission Stop Orders. During the Prospectus Delivery Period, the Company will advise BTIG, promptly after it
receives notice or obtains knowledge thereof, of the issuance by the Commission of any stop order suspending the effectiveness
of the Registration Statement or any notice objecting to, or other order preventing or suspending the use of, the Prospectus,
of the suspension of the qualification of the Shares for offering or sale in any jurisdiction, or of the initiation of any proceeding
for any such purpose or any examination pursuant to Section 8(e) of the Securities Act, or if the Company becomes the subject
of a proceeding under Section 8A of the Securities Act in connection with the offering of the Shares; and it will promptly use
its commercially reasonable efforts to prevent the issuance of any stop order or to obtain its withdrawal if such a stop order
should be issued. Until such time as any stop order is lifted, BTIG may cease making offers and sales under this Agreement or
any Terms Agreement.
(c)
Delivery of Prospectus; Subsequent Changes. During the Prospectus Delivery Period, the Company will comply in all material
respects with all requirements imposed upon it by the Securities Act, as from time to time in force, and to file on or before
their respective due dates all reports and any definitive proxy or information statements required to be filed by the Company
with the Commission pursuant to Sections 13(a), 13(c), 14, 15(d) or any other provision of or under the Exchange Act. If the Company
has omitted any information from the Registration Statement pursuant to Rule 430A under the Securities Act, it will use its best
efforts to comply with the provisions of and make all requisite filings with the Commission pursuant to said Rule 430A and to
notify BTIG promptly of all such filings. If during the Prospectus Delivery Period any event occurs as a result of which the Prospectus
as then amended or supplemented would include an untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein, in the light of the circumstances then existing, not misleading, or if during such period it is
necessary to amend or supplement the Registration Statement or Prospectus to comply with the Securities Act, the Company will
promptly notify BTIG to suspend the offering of Placement Shares during such period, and the Company will promptly amend or supplement
the Registration Statement or Prospectus (at the expense of the Company) so as to correct such statement or omission or effect
such compliance provided, however, that the Company may delay any such amendment or supplement if, in the reasonable
judgment of the Company, it is in the best interests of the Company to do so.
(d)
Listing of Placement Shares. During the Prospectus Delivery Period, the Company will use its commercially reasonable efforts
to cause the Placement Shares to be listed on the Exchange. The Company will timely file with the Exchange all material documents
and notices required by the Exchange of companies that have or will issue securities that are traded on the Exchange.
(e)
Delivery of Registration Statement and Prospectus. The Company will furnish to BTIG and its counsel (at the expense of
the Company) copies of the Registration Statement, the Prospectus (including all Incorporated Documents) and all amendments and
supplements to the Registration Statement or Prospectus that are filed with the Commission during the Prospectus Delivery Period,
including all documents filed with the Commission during such period that are deemed to be incorporated by reference therein,
in each case, as soon as reasonably practicable via e-mail in “.pdf” format to an e-mail account designated by BTIG
and, at BTIG’s request, will also furnish copies of the Prospectus to each exchange or market on which sales of the Placement
Shares may be made; provided, however, that the Company shall not be required to furnish any document (other than the Prospectus)
to BTIG to the extent such document is available on EDGAR.
(f)
Earnings Statement. The Company will make generally available to its security holders as soon as practicable, but in any
event not later than 16 months after the effective date of the Registration Statement (as defined in Rule 158(c) under the Securities
Act), an earnings statement of the Company and its subsidiaries (which need not be audited) complying with Section 11(a) and Rule
158 of the Securities Act. The terms “earnings statement” and “make generally available to its security holders”
shall have the meanings set forth in Rule 158 under the Securities Act.
(g)
Expenses. The Company, whether or not the transactions contemplated hereunder or under any Terms Agreement are consummated
or this Agreement or any Terms Agreement is terminated in accordance with the provisions of Section 12 hereunder, will
pay the following expenses incident to the performance of its obligations hereunder and under each Terms Agreement, including,
but not limited to, expenses relating to: (i) the preparation, printing, filing and delivery to BTIG of the Registration Statement
and each amendment and supplement thereto, of each Prospectus and of each amendment and supplement thereto, and of this Agreement
and such other documents as may be required in connection with the offering, purchase, sale, issuance or delivery of the Shares;
(ii) the preparation, issuance and delivery of the Placement Shares, including any stock or other transfer taxes and any stamp
or other duties payable upon the sale, issuance or delivery of the Shares to BTIG; (iii) the fees and disbursements of the counsel,
accountants and other advisors to the Company in connection with the transactions contemplated by this Agreement and any Terms
Agreement; (iv) the reimbursement for reasonable out-of-pocket expenses incurred by BTIG, including the fees and disbursements
of counsel to BTIG, in connection with the transactions contemplated by this Agreement, in an amount not to exceed $65,000; (v)
the quarterly reimbursement for reasonable out-of-pocket expenses incurred by BTIG, to cover the fees and disbursements of counsel
to BTIG, in connection with the transactions contemplated by this Agreement, in an amount not to exceed $7,500 (vi) the qualification
of the Placement Shares under securities laws in accordance with the provisions of Section 7(x), including filing fees,
if any, but excluding fees and disbursements of BTIG’s counsel in connection therewith; (vii) the fees and expenses incurred
in connection with the listing or qualification of the Placement Shares for trading on the Exchange; (viii) the fees and expenses
of the transfer agent or registrar for the Common Stock; and (ix) filing fees and expenses, if any, of the Commission and FINRA.
(h)
Use of Proceeds. The Company will use the Net Proceeds as described in the Prospectus in the section entitled “Use
of Proceeds.”
(i)
Other Sales. Without the prior written consent of BTIG, the Company will not, directly or indirectly, offer to sell, sell,
contract to sell, grant any option to sell or otherwise dispose of any Common Stock (other than the Shares offered pursuant to
this Agreement) or securities convertible into or exchangeable for Common Stock, warrants or any rights to purchase or acquire,
Common Stock during the period beginning on the Trading Day on which any Placement Notice is delivered to BTIG hereunder and ending
on the third (3rd) Trading Day immediately following the final Settlement Date with respect to Shares sold pursuant
to such Placement Notice (or, if the Placement Notice has been terminated or suspended prior to the sale of all Shares covered
by a Placement Notice, the date of such suspension or termination); and will not directly or indirectly in any other “at-the-market”
or continuous equity transaction offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common
Stock (other than the Shares offered pursuant to this Agreement) or securities convertible into or exchangeable for Common Stock,
warrants or any rights to purchase or acquire, Common Stock prior to the later of the termination of this Agreement and the twentieth
(20th) day immediately following the final Settlement Date with respect to Shares sold pursuant to such Placement Notice;
provided, however, that such restrictions will not be required in connection with the Company’s issuance or sale
of (i) Common Stock, options to purchase Common Stock, other equity awards to acquire Common Stock, or Common Stock issuable upon
the exercise or vesting of options or other equity awards, pursuant to any employee or director equity awards or benefits plan,
stock ownership plan or dividend reinvestment plan (but not Common Stock subject to a waiver to exceed plan limits in its dividend
reinvestment plan) of the Company whether now in effect or hereafter implemented, (ii) Common Stock issuable upon exchange, conversion
or redemption of securities or the exercise or vesting of warrants, options or other rights in effect or outstanding, and disclosed
in filings by the Company available on EDGAR or otherwise in writing to BTIG and (iii) Common Stock or securities convertible
into or exchangeable for shares of Common Stock as consideration for mergers, acquisitions, other business combinations or strategic
alliances, or offered and sold in a privately negotiated transaction to vendors, customers, lenders, investors, strategic partners
or potential strategic partners, occurring after the date of this Agreement which are not issued primarily for capital raising
purposes.
(j)
Change of Circumstances. The Company will, at any time during the term of this Agreement, advise BTIG promptly after it
shall have received notice or obtained knowledge of any information or fact that would alter or affect in any material respect
any opinion, certificate, letter or other document required to be provided to BTIG pursuant to this Agreement.
(k)
Due Diligence Cooperation. The Company will cooperate with any reasonable due diligence review conducted by BTIG or its
agents in connection with the transactions contemplated hereby or any Terms Agreement, including, without limitation, providing
information and making available documents and senior corporate officers, during regular business hours and at the Company’s
principal offices, as BTIG may reasonably request.
(l)
Required Filings Relating to Placement of Placement Shares. The Company agrees that (i) as promptly as practicable after
the close of each of the Company’s fiscal quarters, or on such other dates as required under the Securities Act or under
interpretations by the Commission thereof, the Company shall prepare a prospectus supplement, which will set forth the number
of Placement Shares sold through BTIG during such quarterly period (or other relevant period), the Net Proceeds to the Company
and the compensation paid or payable by the Company to BTIG with respect to such sales of Placement Shares and shall file such
prospectus supplement pursuant to Rule 424(b) under the Securities Act (and within the time periods required by Rule 424(b) and
Rule 430B or 430C under the Securities Act, as applicable) and shall file any issuer free writing prospectus that is required
to be filed with the Commission within the applicable time period prescribed for such filing by Rule 433 of the Securities Act
or (ii) if such prospectus supplement is not so filed with respect to a particular fiscal quarter, the Company shall disclose
the information referred to in clause (i) above in its annual report on Form 10-K or its quarterly report on Form 10-Q, as applicable,
in respect of such quarterly period and shall file such report with the Commission within the applicable time period prescribed
for such report under the Exchange Act.
(m)
Representation Dates; Certificate. On or prior to the date the first Placement Notice is given pursuant to this Agreement
and each time the Company (i) files the Prospectus relating to the Shares or amends or supplements the Registration Statement
or the Prospectus relating to the Shares (other than (A) a prospectus supplement filed in accordance with Section 7(l)
or (B) a supplement or amendment that relates to an offering of securities other than the Shares) by means of a post-effective
amendment, sticker, or supplement, but not by means of incorporation of document(s) by reference in the Registration Statement
or the Prospectus relating to the Shares; (ii) files an annual report on Form 10-K under the Exchange Act (including any Form
10-K/A containing amended financial information or a material amendment to the previously filed Form 10-K); (iii) files a quarterly
report on Form 10-Q under the Exchange Act; or (iv) files a report on Form 8-K containing amended financial information (other
than information “furnished” pursuant to Items 2.02 or 7.01 of Form 8-K or to provide disclosure pursuant to Item
8.01 of Form 8-K relating to the reclassifications of certain properties as discontinued operations in accordance with Statement
of Financial Accounting Standards No. 144) under the Exchange Act (each date of filing of one or more of the documents referred
to in clauses (i) through (iv) shall be a “Representation Date”); the Company shall furnish BTIG within
three (3) Trading Days after each Representation Date (but in the case of clause (iv) above only if BTIG reasonably determines
that the information contained in such Form 8-K is material) with a certificate, in the form attached hereto as Exhibit 7(m).
The requirement to provide a certificate under this Section 7(m) shall be automatically waived for any Representation Date
occurring at a time at which no Placement Notice or Terms Agreement is pending, which waiver shall continue until the earlier
to occur of the date the Company delivers a Placement Notice hereunder (which for such calendar quarter shall be considered a
Representation Date), Shares are delivered to BTIG as principal on a Settlement Date with respect to a Principal Transaction and
the next occurring Representation Date; provided, however, that such waiver shall not apply for any Representation Date
on which the Company files its annual report on Form 10-K. Notwithstanding the foregoing, if the Company subsequently decides
to sell Shares following a Representation Date when the Company relied on such waiver and did not provide BTIG with a certificate
under this Section 7(m), then before the Company delivers the Placement Notice or BTIG sells any Shares in an Agency Transaction,
or on the applicable Settlement Date with respect to a Principal Transaction, the Company shall provide BTIG with a certificate,
in the form attached hereto as Exhibit 7(m), dated the date of the Placement Notice for such Agency Transaction or the
Settlement Date of such Principal Transaction, as applicable.
(n)
Legal Opinions. On or prior to the earlier of (i) the date the first Placement Notice is given pursuant to this Agreement
and (ii) Shares are delivered to BTIG as principal on a Settlement Date with respect to the first Principal Transaction pursuant
to the first Terms Agreement and this Agreement, the Company shall cause to be furnished to BTIG, (i) the written opinions and
negative assurance of Lowenstein Sandler LLP, as issuer’s counsel to the Company, or other counsel reasonably satisfactory
to BTIG (“Company Counsel”), and (ii) the written opinions of MH2 Technology Law Group LLP and Arent
Fox LLP, counsel for the Company with respect to intellectual property matters (“IP Counsel”) substantially
in the form previously agreed between the Parties. Thereafter within three (3) Trading Days after each Representation Date with
respect to which the Company is obligated to deliver a certificate in the form attached hereto as Exhibit 7(m) for which
no waiver is applicable pursuant to Section 7(m), and not more than once per calendar quarter, the Company shall cause
to be furnished to BTIG the written opinions and negative assurance of Company Counsel and the written opinions of IP Counsel
substantially in the form previously agreed between the Parties, modified, as necessary, to relate to the Registration Statement
and the Prospectus as then amended or supplemented; provided, however, that if Company Counsel and/or IP Counsel
has previously furnished to BTIG such written opinions and negative assurance substantially in the form previously agreed between
the Parties, Company Counsel and/or IP Counsel may, in respect of any future Representation Date, furnish BTIG with a letter (a
“Reliance Letter”) in lieu of such opinions and negative assurance to the effect that BTIG may rely
on the prior opinions and negative assurance of Company Counsel and/or IP Counsel, as the case may be, delivered pursuant to this
Section 7(n) to the same extent as if it were dated the date of such Reliance Letter (except that statements in such prior
opinion shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented to the date of such
Reliance Letter).
(o)
Comfort Letter. On or prior to the date the first Placement Notice is given pursuant to this Agreement, and within three
(3) Trading Days after each Representation Date with respect to which the Company is obligated to deliver a certificate in the
form attached hereto as Exhibit 7(m) for which no waiver is applicable pursuant to Section 7(m), the Company shall
cause its independent accountants to furnish BTIG a letter, dated as of such date (the “Comfort Letter”),
in form and substance satisfactory to BTIG, (i) confirming that they are an independent registered public accounting firm within
the meaning of the Securities Act, the Exchange Act and the rules and regulations of the PCAOB and are in compliance with the
applicable requirements relating to the qualification of accountants under Rule 2-01 of Regulation S-X of the Commission, (ii)
stating, as of such date, the conclusions and findings of such firm with respect to the financial information and other matters
ordinarily covered by accountants’ “comfort letters” to underwriters in connection with registered public offerings
(the first such letter, the “Initial Comfort Letter”) and (iii) updating the Initial Comfort Letter
with any information that would have been included in the Initial Comfort Letter had it been given on such date and modified as
necessary to relate to the Registration Statement and the Prospectus, as amended and supplemented to the date of such letter.
(p)
Market Activities. The Company shall not, and shall cause its Subsidiaries and its and their respective directors, officers
and controlling persons not to, directly or indirectly, (i) take any action designed to stabilize or manipulate, or which constitutes
or might reasonably be expected to cause or result in, the stabilization or manipulation of, the price of any security of the
Company to facilitate the sale or resale of the Shares or (ii) sell, bid for, or purchase the Shares to be issued and sold pursuant
to this Agreement, or pay anyone any compensation for soliciting the purchases of the Shares, other than BTIG.
(q)
Insurance. The Company and its Subsidiaries shall maintain, or cause to be maintained, insurance in such amounts and covering
such risks the Company reasonably deems adequate.
(r)
Compliance with Laws. The Company and each of its Subsidiaries shall maintain, or cause to be maintained, all material
permits, licenses and other authorizations required by federal, state and local law in order to conduct their businesses as described
in the Prospectus, and the Company and each of its Subsidiaries shall conduct their businesses, or cause their businesses to be
conducted, in substantial compliance with such permits, licenses and authorizations and with applicable laws, except where the
failure to maintain or be in compliance with such permits, licenses and authorizations could not reasonably be expected to have
a Material Adverse Effect.
(s)
Securities Act and Exchange Act. The Company will use its reasonable best efforts to comply with all requirements imposed
upon it by the Securities Act and the Exchange Act as from time to time in force, so far as necessary to permit the continuance
of sales of, or dealings in, the Shares as contemplated by the provisions hereof and any Terms Agreement and the Prospectus. Without
limiting the generality of the foregoing, during the Prospectus Delivery Period, the Company will file all documents required
to be filed with the Commission pursuant to the Exchange Act within the time periods required by the Exchange Act (giving effect
to permissible extensions in accordance with Rule 12b-25 under the Exchange Act).
(t)
Sarbanes-Oxley Act. The Company, and each of the Significant Subsidiaries, will use its reasonable best efforts to maintain
a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance
with management’s general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted accounting principles and to maintain accountability for assets; (iii)
access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded
book value for assets is compared with the fair market value of such assets (computed in accordance with generally accepted accounting
principles) at reasonable intervals and appropriate action is taken with respect to any differences. The Company will comply with
all requirements imposed upon it by the Sarbanes-Oxley Act and the rules and regulations of the Commission and the Exchange promulgated
thereunder.
(u)
No Offer To Sell. Other than a free writing prospectus (as defined in Rule 405 under the Securities Act) approved in advance
in writing by the Company and BTIG in its capacity as agent hereunder or as principal hereunder and under any Terms Agreement,
neither BTIG nor the Company (including its agents and representatives other than BTIG in its capacity as such) will, directly
or indirectly, make, use, prepare, authorize, approve or refer to any free writing prospectus relating to the Shares to be sold
by BTIG as agent hereunder or as principal hereunder and under any Terms Agreement.
(v)
Investment Company Act. The Company shall conduct its affairs in such a manner so as to reasonably ensure that neither
it nor any of its Subsidiaries will be or become, at any time prior to the termination of this Agreement, an “investment
company,” as such term is defined in the Investment Company Act.
(w)
Transfer Agent. The Company shall maintain, at its sole expense, a registrar and transfer agent for the Common Stock.
(x)
Blue Sky and Other Qualifications. The Company will use its commercially reasonable efforts, in cooperation with
BTIG, to qualify the Placement Shares for offering and sale, or to obtain an exemption for the Placement Shares to be offered
and sold, under the applicable securities laws of such states and other jurisdictions (domestic or foreign) as BTIG may designate
and to maintain such qualifications and exemptions in effect for so long as required for the distribution of the Placement Shares
(but in no event for less than one year from the date of this Agreement); provided, however, that the Company shall not
be obligated to file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities
in any jurisdiction in which it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction
in which it is not otherwise so subject. In each jurisdiction in which the Placement Shares have been so qualified or exempt,
the Company will file such statements and reports as may be required by the laws of such jurisdiction to continue such qualification
or exemption, as the case may be, in effect for so long as required for the distribution of the Placement Shares (but in no event
for less than one year from the date of this Agreement).
(y)
Consent to BTIG Purchases. The Company acknowledges and agrees that BTIG may, to the extent permitted under the Securities
Act and the Exchange Act (including, without limitation, Regulation M promulgated thereunder), purchase and sell shares of Common
Stock for its own account and for the account of its clients while this Agreement is in effect, including, without limitation,
at the same time any Placement Notice is in effect or any sales of Shares occur pursuant to this Agreement or any Terms Agreement;
provided that BTIG acknowledges and agrees that, except pursuant to a Terms Agreement, any such transactions are not being, and
shall not be deemed to have been, undertaken at the request or direction of, or for the account of, the Company, and that the
Company has and shall have no control over any decision by BTIG and its affiliates to enter into any such transactions.
8.
Representations and Covenants of BTIG. BTIG represents and warrants that it is duly registered as a broker-dealer under
FINRA, the Exchange Act and the applicable statutes and regulations of each state in which the Placement Shares will be offered
and sold, except such states in which BTIG is exempt from registration or such registration is not otherwise required. BTIG shall
continue, for the term of this Agreement, to be duly registered as a broker-dealer under FINRA, the Exchange Act and the applicable
statutes and regulations of each state in which the Placement Shares will be offered and sold, except in such states in which
BTIG is exempt from registration or such registration is not otherwise required, during the terms of this Agreement. BTIG will
comply with all applicable laws and regulations in connection with the sale of Placement Shares pursuant to this Agreement and
any Terms Agreement, including, but not limited to, Regulation M under the Exchange Act.
9.
Conditions to BTIG’s Obligations. The obligations of BTIG hereunder with respect to a Placement in any Agency Transaction,
and the obligations of BTIG with respect to a Principal Transaction pursuant to any Terms Agreement and this Agreement, will in
each case be subject to the continuing accuracy and completeness of the representations and warranties made by the Company herein,
to the due performance by the Company of its obligations hereunder and under any Terms Agreement, as applicable, to the completion
by BTIG of a due diligence review satisfactory to BTIG in its reasonable judgment, and to the continuing satisfaction (or waiver
by BTIG in its sole discretion) of the following additional conditions:
(a)
Registration Statement Effective. The Registration Statement shall be effective and shall be available for the offer and
sale of all Placement Shares that have been issued or are contemplated to be issued pursuant to all Placement Notices that have
been delivered to BTIG by the Company and all Terms Agreements that have been executed by the Parties.
(b)
Prospectus Supplement. The Company shall have filed with the Commission the Prospectus Supplement pursuant to Rule 424(b)
under the Securities Act not later than the Commission’s close of business on the second Business Day following the date
of this Agreement.
(c)
No Material Notices. None of the following events shall have occurred and be continuing: (i) receipt by the Company of
any request for additional information from the Commission or any other federal or state governmental authority during the period
of effectiveness of the Registration Statement, the response to which would require any post-effective amendments or supplements
to the Registration Statement or the Prospectus; (ii) the issuance by the Commission or any other federal or state governmental
authority of any stop order suspending the effectiveness of the Registration Statement or other order preventing or suspending
the use of the Prospectus or the initiation of any proceedings for that purpose; (iii) receipt by the Company of any notification
with respect to the suspension of the qualification or exemption from qualification of any of the Placement Shares for sale in
any jurisdiction or the initiation or threatening of any proceeding for such purpose; or (iv) the occurrence of any event that
makes any material statement made in the Registration Statement or the Prospectus or any material document incorporated or deemed
to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in the Registration
Statement, related Prospectus or documents so that, in the case of the Registration Statement, it will not contain any materially
untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the
statements therein not misleading and, that in the case of the Prospectus, it will not contain any materially untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading.
(d)
No Misstatement or Material Omission. BTIG shall not have advised the Company that the Registration Statement or Prospectus,
or any amendment or supplement thereto, contains an untrue statement of fact that in BTIG’s reasonable opinion is material,
or omits to state a fact that in BTIG’s opinion is material and is required to be stated therein or is necessary to make
the statements therein not misleading.
(e)
Material Changes. Except as contemplated in the Prospectus, or disclosed in the Company’s reports filed with the
Commission, there shall not have been any material adverse change, on a consolidated basis, in the authorized capital stock of
the Company or any Material Adverse Effect, or any development that could reasonably be expected to cause a Material Adverse Effect,
or a downgrading in or withdrawal of the rating assigned to any of the Company’s securities by any rating organization or
a public announcement by any rating organization that it has under surveillance or review its rating of any of the Company’s
securities, the effect of which, in the case of any such action by a rating organization described above, in the reasonable judgment
of BTIG (without relieving the Company of any obligation or liability it may otherwise have), is so material as to make it impracticable
or inadvisable to proceed with the offering of the Shares on the terms and in the manner contemplated by this Agreement or any
Terms Agreement, as the case may be, and the Prospectus.
(f)
Legal Opinion. BTIG shall have received the opinions and negative assurances required to be delivered pursuant to Section
7(n) on or before the date on which such delivery of such opinions are required pursuant to Section 7(n).
(g)
Comfort Letter. BTIG shall have received the Comfort Letter required to be delivered pursuant to Section 7(o) on
or before the date on which such delivery of such Comfort Letter is required pursuant to Section 7(o).
(h)
Representation Certificate. BTIG shall have received the certificate required to be delivered pursuant to Section 7(m)
on or before the date on which delivery of such certificate is required pursuant to Section 7(m).
(i)
No Suspension. Trading in the Common Stock shall not have been suspended on the Exchange and the Common Stock shall not
have been delisted from the Exchange.
(j)
Other Materials. On each date on which the Company is required to deliver a certificate pursuant to Section 7(m),
the Company shall have furnished to BTIG such appropriate further information, certificates and documents as BTIG may have reasonably
requested. All such opinions, certificates, letters and other documents will be in compliance with the provisions hereof. The
Company shall have furnished BTIG with such conformed copies of such opinions, certificates, letters and other documents as BTIG
shall have reasonably requested.
(k)
Securities Act Filings Made. All filings with the Commission required by Rule 424(b) and Rule 433 under the Securities
Act to have been filed prior to the issuance of any Placement Notice hereunder or the Settlement Date with respect to any Principal
Transaction under any Terms Agreement, as applicable shall have been made within the applicable time period prescribed for such
filing by Rule 424(b) (without reliance on Rule 424(b)(8) of the Securities Act) and Rule 433.
(l)
Approval for Listing. The Placement Shares shall have been approved for listing on the Exchange, subject only to notice
of issuance.
(m)
No Termination Event. There shall not have occurred any event that would permit BTIG to terminate this Agreement pursuant
to Section 12(a).
(n)
FINRA. BTIG shall have received a letter from the Corporate Financing Department of FINRA confirming that such department
has determined to raise no objection with respect to the fairness or reasonableness of the terms and arrangements related to the
sale of the Shares pursuant to this Agreement and any Terms Agreement, as applicable.
10.
Indemnification and Contribution.
(a)
Indemnification by the Company. The Company agrees to indemnify and hold harmless BTIG, its directors, officers, members,
partners, employees and agents and each BTIG Affiliate, if any, as follows:
(i)
against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or
alleged untrue statement of a material fact contained in the Registration Statement (or any amendment thereto), or the omission
or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not
misleading, or arising out of any untrue statement or alleged untrue statement of a material fact included in any “issuer
free writing prospectus” (as defined in Rule 433 under the Securities Act) or the Prospectus (or any amendment or supplement
thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading;
(ii)
against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount
paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened,
or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission;
provided that any such settlement is effected with the written consent of the Company, which consent shall not unreasonably be
delayed or withheld; and
(iii)
against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by BTIG),
reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission,
or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above;
provided,
however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising
out of any untrue statement or omission, or alleged untrue statement or omission, made in reliance upon and in conformity with
information relating to BTIG that has been furnished in writing to the Company by BTIG expressly for inclusion in any document
described in clause (i) of this Section 10(a). This indemnity agreement will be in addition to any liability that the Company
might otherwise have.
(b)
Indemnification by BTIG. BTIG agrees to indemnify and hold harmless the Company and its directors and each officer of the
Company who signed the Registration Statement, and each person, if any, who (i) controls the Company within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act or (ii) is controlled by or is under common control with the Company
against any and all losses, liabilities, claims, damages and expenses described in the indemnity contained in Section 10(a),
as and when incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made
in the Registration Statement (or any amendment thereto), any “issuer free writing prospectus” (as defined in Rule
433 under the Securities Act) or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with
written information relating to BTIG that has been furnished to the Company by BTIG expressly for inclusion in any document as
described in clause (i) of Section 10(a).
(c)
Procedure. Any indemnified party that proposes to assert the right to be indemnified under this Section 10 will,
promptly after receipt of notice of commencement of any action against such party in respect of which a claim is to be made against
an indemnifying party or parties under this Section 10, notify each such indemnifying party of the commencement of such
action, enclosing a copy of all papers served, but the omission so to notify such indemnifying party will not relieve the indemnifying
party from (i) any liability that it might have to any indemnified party otherwise than under this Section 10 and (ii)
any liability that it may have to any indemnified party under the foregoing provision of this Section 10 unless, and only
to the extent that, such omission results in the forfeiture of substantive rights or defenses by the indemnifying party. If any
such action is brought against any indemnified party and it notifies the indemnifying party of its commencement, the indemnifying
party will be entitled to participate in and, to the extent that it elects by delivering written notice to the indemnified party
promptly after receiving notice of the commencement of the action from the indemnified party, jointly with any other indemnifying
party similarly notified, to assume the defense of the action, with counsel reasonably satisfactory to the indemnified party,
and after notice from the indemnifying party to the indemnified party of its election to assume the defense, the indemnifying
party will not be liable to the indemnified party for any legal or other expenses except as provided below and except for the
reasonable costs of investigation subsequently incurred by the indemnified party in connection with the defense. The indemnified
party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel
will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized
in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel to the indemnified
party) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to
those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified
party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right
to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed
counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action,
in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying
party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate
firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements
and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not,
in any event, be liable for any settlement of any action or claim effected without its written consent. No indemnifying party
shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment
in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 10 (whether
or not any indemnified party is a party thereto), unless such settlement, compromise or consent (1) includes an unconditional
release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding and (2)
does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified
party.
(d)
Contribution. In order to provide for just and equitable contribution in circumstances in which the indemnification provided
for in the foregoing paragraphs of this Section 10 is applicable in accordance with its terms but for any reason is held
to be unavailable from the Company or BTIG, the Company and BTIG will contribute to the total losses, claims, liabilities, expenses
and damages (including any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid
in settlement of, any action, suit or proceeding or any claim asserted) to which the Company and BTIG may be subject in such proportion
as shall be appropriate to reflect the relative benefits received by the Company on the one hand and BTIG on the other. The relative
benefits received by the Company on the one hand and BTIG on the other hand shall be deemed to be in the same proportion as the
total net proceeds from the sale of the Shares (net of commissions to BTIG but before deducting expenses) received by the Company
bear to the total compensation received by BTIG from the sale of Shares on behalf of the Company. If, but only if, the allocation
provided by the foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion
as is appropriate to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault
of the Company, on the one hand, and BTIG, on the other, with respect to the statements or omission that resulted in such loss,
claim, liability, expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with
respect to such offering. Such relative fault shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by
the Company or BTIG, the intent of the parties and their relative knowledge, access to information and opportunity to correct
or prevent such statement or omission. The Company and BTIG agree that it would not be just and equitable if contributions pursuant
to this Section 10(d) were to be determined by pro rata allocation or by any other method of allocation that does not take
into account the equitable considerations referred to herein. The amount paid or payable by an indemnified party as a result of
the loss, claim, liability, expense, or damage, or action in respect thereof, referred to above in this Section 10(d) shall
be deemed to include, for the purpose of this Section 10(d), any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or claim to the extent consistent with Section 10(c)
hereof. Notwithstanding the foregoing provisions of this Section 10(d), BTIG shall not be required to contribute any amount
in excess of the commissions received by it under this Agreement and no person found guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section 10(d), any person who controls a party to this Agreement within
the meaning of the Securities Act, and any officers, directors, members, partners, employees or agents of BTIG, will have the
same rights to contribution as that party, and each officer of the Company who signed the Registration Statement will have the
same rights to contribution as the Company, subject in each case to the provisions hereof. Any party entitled to contribution,
promptly after receipt of notice of commencement of any action against such party in respect of which a claim for contribution
may be made under this Section 10(d), will notify any such party or parties from whom contribution may be sought, but the
omission to so notify will not relieve that party or parties from whom contribution may be sought from any other obligation it
or they may have under this Section 10(d) except to the extent that the failure to so notify such other party materially
prejudiced the substantive rights or defenses of the party from whom contribution is sought. Except for a settlement entered into
pursuant to the last sentence of Section 10(c) hereof, no party will be liable for contribution with respect to any action
or claim settled without its written consent if such consent is required pursuant to Section 10(c) hereof.
11.
Representations and Agreements to Survive Delivery. The indemnity and contribution agreements contained in Section
10 of this Agreement and all representations and warranties of the Company herein or in certificates delivered pursuant hereto
shall survive, as of their respective dates, regardless of (i) any investigation made by or on behalf of BTIG, any controlling
persons, or the Company (or any of their respective officers, directors or controlling persons), (ii) delivery and acceptance
of the Placement Shares and payment therefor or (iii) any termination of this Agreement.
12.
Termination.
(a)
BTIG shall have the right, by giving notice as hereinafter specified in Section 13, at any time to terminate this Agreement
and/or any Terms Agreement (including at any time at or prior to the Settlement Date with respect to the Shares to be sold under
such Terms Agreement) if: (i) any Material Adverse Effect, or any development that has actually occurred and that would reasonably
be expected to result in a Material Adverse Effect, has occurred that, in the reasonable judgment of BTIG, may materially impair
the ability of BTIG to sell the Shares hereunder or as contemplated in any Terms Agreement or the Prospectus; (ii) there has occurred
any (A) material adverse change in the financial markets in the United States or the international financial markets, (B) outbreak
of hostilities or escalation thereof or other calamity or crisis or (C) change or development involving a prospective change in
national or international political, financial or economic conditions, in each case the effect of which, in the reasonable judgment
of BTIG, may materially impair the ability of BTIG to sell the Shares hereunder or as contemplated in any Terms Agreement or the
Prospectus; (iii) trading in the Common Stock has been suspended or limited by the Commission or the Exchange, or if trading generally
on the Exchange has been suspended or limited (including automatic halt in trading pursuant to market-decline triggers other than
those in which solely program trading is temporarily halted), or minimum prices for trading have been fixed on the Exchange; (iv)
any suspension of trading of any securities of the Company on any exchange or in the over-the-counter market shall have occurred
and be continuing; (v) a major disruption of securities settlements or clearance services in the United States shall have occurred
and be continuing; or (vi) a banking moratorium has been declared by either U.S. Federal or New York authorities. The Company
may not terminate any Terms Agreement without the prior written consent of BTIG. Any such termination pursuant to this Section
12(a) shall be without liability of any party to any other party, except that the provisions of Section 7(g) (Expenses),
Section 10 (Indemnification), Section 11 (Survival of Representations), Section 12(f), Section 17
(Applicable Law; Consent to Jurisdiction) and Section 18 (Waiver of Jury Trial) hereof shall remain in full force and effect
notwithstanding such termination.
(b)
The Company shall have the right, by giving five (5) days notice as hereinafter specified in Section 13, to terminate this
Agreement in its sole discretion at any time after the date of this Agreement. Any such termination shall be without liability
of any party to any other party, except that the provisions of Section 7(g), Section 10, Section 11, Section
12(f), Section 17 and Section 18 hereof shall remain in full force and effect notwithstanding such termination.
(c)
BTIG shall have the right, by giving five (5) days notice as hereinafter specified in Section 13, to terminate this Agreement
in its sole discretion at any time after the date of this Agreement. Any such termination shall be without liability of any party
to any other party except that the provisions of Section 7(g), Section 10, Section 11, Section 12(f),
Section 17 and Section 18 hereof shall remain in full force and effect notwithstanding such termination.
(d)
Unless earlier terminated pursuant to this Section 12, this Agreement shall automatically terminate upon the issuance and
sale of all of the Shares to or through BTIG on the terms and subject to the conditions set forth herein and any Terms Agreement;
provided that the provisions of Section 7(g), Section 10, Section 11, Section 12(f), Section
17 and Section 18 hereof shall remain in full force and effect notwithstanding such termination.
(e)
This Agreement shall remain in full force and effect unless terminated pursuant to Sections 12(a), (b), (c),
or (d) above or otherwise by mutual agreement of the Parties; provided, however, that any such termination by mutual
agreement shall in all cases be deemed to provide that Section 7(g), Section 10, Section 11, Section 12(f),
Section 17 and Section 18 shall remain in full force and effect.
(f)
Any termination of this Agreement or any Terms Agreement shall be effective on the date specified in such notice of termination;
provided, however, that such termination shall not be effective until the close of business on the date of receipt
of such notice by BTIG or the Company, as the case may be. If such termination, other than a termination of any Terms Agreement
pursuant to Section 12(a) above, shall occur prior to the Settlement Date for any sale of Shares, such termination shall
not become effective until the close of business on such Settlement Date and such Shares shall settle in accordance with the provisions
of this Agreement (it being hereby acknowledged and agreed that a termination of any Terms Agreement pursuant to Section 12(a)
above shall become effective in accordance with the first sentence of this Section 12(f) and shall relieve the Parties
of their respective obligations under such Terms Agreement, including, without limitation, with respect to the settlement of the
Shares subject to such Terms Agreement).
13.
Notices.
All
notices or other communications required or permitted to be given by any party to any other party pursuant to the terms of this
Agreement or any Terms Agreement shall be in writing, unless otherwise specified, and if sent to BTIG, shall be delivered to
BTIG,
LLC
600
Montgomery Street
San
Francisco, California 94111
Attention:
Equity Capital Markets
Email:
BTIGUSATMTrading@btig.com
with
copies (which shall not constitute notice) to:
BTIG,
LLC
600
Montgomery Street, 6th Floor
San
Francisco, CA 94111
Attention:
General Counsel and Chief Compliance Officer
Email:
BTIGcompliance@btig.com
legal@btig.com
and:
Goodwin
Procter, LLP
622
Eighth Avenue
New
York, NY
Attention:
Michael Maline
and
if to the Company, shall be delivered to:
Matinas
Biopharma Holdings, Inc.
1545
Route 206 South
Suite
302
Bedminster,
NJ 07921
Attention:
Jerome Jabbour
and:
Matinas
Biopharma Holdings, Inc.
1545
Route 206 South
Suite
302
Bedminster,
NJ 07921
Attention:
Keith Kucinski
with
a copy (which shall not constitute notice) to:
Lowenstein
Sandler LLP
One
Lowenstein Drive
Roseland,
NJ 07068
Attention:
Steven Skolnick
Each
party may change such address for notices by sending to the other party to this Agreement written notice of a new address for
such purpose. Each such notice or other communication shall be deemed given (i) when delivered personally or by verifiable facsimile
transmission (with an original to follow) on or before 4:30 p.m., New York City time, on a Business Day or, if such day is not
a Business Day, on the next succeeding Business Day, (ii) on the next Business Day after timely delivery to a nationally-recognized
overnight courier and (iii) on the Business Day actually received if deposited in the U.S. mail (certified or registered mail,
return receipt requested, postage prepaid). For purposes of this Agreement, “Business Day” shall mean
any day on which the Exchange and commercial banks in the City of New York are open for business.
An
electronic communication (“Electronic Notice”) shall be deemed written notice for purposes of this Section
13 if sent to the electronic mail address specified by the receiving party under separate cover. Electronic Notice shall be
deemed received at the time the party sending Electronic Notice receives confirmation of receipt by the receiving party (other
than pursuant to auto-reply). Any party receiving Electronic Notice may request and shall be entitled to receive the notice on
paper, in a nonelectronic form (“Nonelectronic Notice”) which shall be sent to the requesting party
within ten (10) days of receipt of the written request for Nonelectronic Notice.
14.
Successors and Assigns. This Agreement
and any Terms Agreement shall inure to the benefit of and be binding upon the Company and BTIG and their respective successors
and permitted assigns and, as to Sections 5(b) and 10, the other indemnified parties specified therein. References
to any of the Parties contained in this Agreement shall be deemed to include the successors and permitted assigns of such party.
Nothing in this Agreement or any Terms Agreement, express or implied, is intended to confer upon any other person any rights,
remedies, obligations or liabilities under or by reason of this Agreement or any Terms Agreement, except as expressly provided
in this Agreement or any Terms Agreement. Neither party may assign its rights or obligations under this Agreement or any Terms
Agreement without the prior written consent of the other party; provided, however, that BTIG may assign its rights and
obligations hereunder or under any Terms Agreement to an affiliate of BTIG without obtaining the Company’s consent.
15.
Adjustments for Stock Splits. The Parties
acknowledge and agree that all share-related numbers contained in this Agreement and any Terms Agreement shall be adjusted to
take into account any stock split, stock dividend or similar event effected with respect to the Common Stock.
16.
Entire Agreement; Amendment; Severability. This
Agreement (including all schedules and exhibits attached hereto and Placement Notices and Terms Agreements issued pursuant hereto)
constitutes the entire agreement and supersedes all other prior and contemporaneous agreements and undertakings, both written
and oral, among the Parties with regard to the subject matter hereof. Neither this Agreement nor any term hereof or any Terms
Agreement may be amended except pursuant to a written instrument executed by the Company and BTIG. In the event that any one or
more of the terms or provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or
unenforceable as written by a court of competent jurisdiction, then such provision shall be given full force and effect to the
fullest possible extent that it is valid, legal and enforceable, and the remainder of the terms and provisions herein shall be
construed as if such invalid, illegal or unenforceable term or provision was not contained herein, but only to the extent that
giving effect to such term or provision and the remainder of the terms and provisions hereof shall be in accordance with the intent
of the Parties as reflected in this Agreement.
17.
GOVERNING LAW AND TIME; WAIVER OF JURY TRIAL. THIS AGREEMENT AND ANY TERMS AGREEMENT SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS. SPECIFIED
TIMES OF DAY REFER TO NEW YORK CITY TIME. THE COMPANY AND BTIG EACH HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
ANY TERMS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
18. CONSENT
TO JURISDICTION. EACH PARTY
HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK,
BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR ANY TERMS AGREEMENT OR IN CONNECTION WITH ANY
TRANSACTION CONTEMPLATED HEREBY OR THEREBY, AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR
PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR
PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY
HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR
PROCEEDING BY MAILING A COPY THEREOF (CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED) TO SUCH PARTY AT THE ADDRESS IN
EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND ANY TERMS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND
SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO
SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.
19.
Absence of Fiduciary Relationship. The Company acknowledges and agrees that:
(a)
BTIG is acting solely as agent in connection with the sale of the Placement Shares in an Agency Transaction contemplated by this
Agreement and the process leading to such transactions, and no fiduciary or advisory relationship between the Company or any of
its respective affiliates, stockholders (or other equity holders), creditors or employees or any other party, on the one hand,
and BTIG, on the other hand, has been or will be created in respect of any of the transactions contemplated by this Agreement
or any Terms Agreement, irrespective of whether BTIG has advised or is advising the Company on other matters, and BTIG has no
obligation to the Company with respect to the transactions contemplated by this Agreement or any Terms Agreement, except the obligations
expressly set forth in this Agreement and any Terms Agreement;
(b)
the Company is capable of evaluating and understanding, and understands and accepts, the terms, risks and conditions of the transactions
contemplated by this Agreement;
(c)
BTIG has not provided any legal, accounting, regulatory or tax advice with respect to the transactions contemplated by this Agreement
or any Terms Agreement, and the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent it
has deemed appropriate;
(d)
the Company is aware that BTIG and its affiliates are engaged in a broad range of transactions which may involve interests that
differ from those of the Company, and BTIG has no obligation to disclose such interests and transactions to the Company by virtue
of any fiduciary, advisory or agency relationship or otherwise; and
(e)
the Company waives, to the fullest extent permitted by law, any claims it may have against BTIG for breach of fiduciary duty or
alleged breach of fiduciary duty and agrees that BTIG shall have no liability (whether direct or indirect, in contract, tort or
otherwise) to the Company in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf
of or in right of the Company, including stockholders, partners, employees or creditors of the Company.
20.
Effect of Headings; Knowledge of the Company. The section and Exhibit headings herein are for convenience only and
shall not affect the construction hereof. All references in this Agreement and any Terms Agreement to the “knowledge of
the Company” or the “Company’s knowledge” or similar qualifiers shall mean the actual knowledge of the
directors and officers of the Company, after due inquiry.
21.
Counterparts. This Agreement and any Terms Agreement may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery of an executed Agreement
or Terms Agreement by one party to the other may be made by facsimile or electronic transmission.
[Signature
Page Follows]
If
the foregoing correctly sets forth the understanding between the Company and BTIG, please so indicate in the space provided below
for that purpose, whereupon this letter shall constitute a binding agreement between the Company and BTIG.
|
|
Very
truly yours,
|
|
|
|
|
|
MATINAS
BIOPHARMA HOLDINGS, INC.
|
|
|
|
|
|
By:
|
/s/
Jerome D. Jabbour
|
|
|
Name:
|
Jerome
D. Jabbour
|
|
|
Title:
|
Chief
Executive Officer
|
|
|
|
|
|
|
ACCEPTED
as of the date first-above written:
|
|
|
|
|
|
BTIG,
LLC
|
|
|
|
|
|
By:
|
/s/
K.C. Stone
|
|
|
Name:
|
K.C.
Stone
|
|
|
Title:
|
Managing Director
|
SCHEDULE
1
FORM
OF PLACEMENT NOTICE
|
From:
|
|
[ ]
|
|
Cc:
|
|
[ ]
|
|
To:
|
|
[ ]
|
|
Subject:
|
|
Placement
Notice
|
Gentlemen:
Pursuant
to the terms and subject to the conditions contained in the Sales Agreement between Matinas Biopharma Holdings, Inc. (the “Company”),
and BTIG, LLC (“BTIG”) dated [_______________], 2020 (the “Agreement”), I
hereby request on behalf of the Company that BTIG sell up to [[___] shares] [$[___] worth of shares] of the Company’s common
stock, par value $0.[__] per share, subject to the Maximum Amount (the “Shares”), at market prices not
lower than $[____] per share, during the time period beginning [month, day, time] and ending [month, day, time].
[The
company may include such other sales parameters as it deems appropriate, subject to the terms and conditions of the Agreement.]
Terms
used herein and not defined herein have the meanings ascribed to them in the Agreement.
SCHEDULE
2
COMPENSATION
BTIG
shall be paid compensation equal to [up to] [___] percent ([___]%) of the gross proceeds from the sales of Shares pursuant to
the terms of this Agreement.
SCHEDULE
3
BTIG,
LLC
Austin
Hamilton (ahamilton@btig.com)
BTIGcompliance@btig.com
Carrie
Taylor (ctaylor@btig.com)
legal@btig.com
COMPANY
Jerome
D. Jabbour (jjabbour@matinasbiopharma.com)
Keith
A. Kucinski (kkucinski@matinasbiopharma.com)
SCHEDULE
4
SIGNIFICANT
SUBSIDIARIES
Matinas
Biopharma, Inc.
Matinas
BioPharma Nanotechnologies, Inc.
Exhibit
7(m)
OFFICER’S
CERTIFICATE
The
undersigned, the duly qualified and appointed _____________________ of Matinas Biopharma Holdings, Inc., a Delaware corporation
(the “Company”), does hereby certify in such capacity and on behalf of the Company, pursuant to Section
7(m) of the Sales Agreement, dated [_________________], 201__ (the “Sales Agreement”), between the Company
and BTIG, that:
|
|
(i)
|
the
representations and warranties of the Company in Section 6 of the Sales Agreement (A) to the extent such representations and
warranties are subject to qualifications and exceptions contained therein relating to materiality or Material Adverse Effect,
such representations and warranties are true and correct on and as of the date hereof, except for those representations and
warranties that speak solely as of a specific date and which were true and correct as of such date, with the same force and
effect as if expressly made on and as of the date hereof, and (B) to the extent such representations and warranties are not
subject to any qualifications or exceptions, such representations and warranties are true and correct in all material respects
as of the date hereof as if made on and as of the date hereof, except for those representations and warranties that speak
solely as of a specific date and which were true and correct as of such date, with the same force and effect as if expressly
made on and as of the date hereof;
|
|
|
|
|
|
|
(ii)
|
the
Company has complied with all agreements and satisfied all conditions on its part to be performed or satisfied pursuant to
the Sales Agreement at or prior to the date hereof;
|
|
|
|
|
|
|
(iii)
|
as
of the date hereof, (i) the Registration Statement does not contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary in order to make the statements therein not misleading, (ii) the
Prospectus does not contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not
misleading and (iii) no event has occurred as a result of which it is necessary to amend or supplement the Registration Statement
or the Prospectus in order to make the statements therein not untrue or misleading for clauses (i) and (ii) above, respectively,
to be true and correct;
|
|
|
|
|
|
|
(iv)
|
there
has been no material adverse change since the date as of which information is given in the Prospectus, as amended or supplemented;
|
|
|
|
|
|
|
(v)
|
the
Company does not possess any material non-public information; and
|
|
|
|
|
|
|
(vi)
|
the
aggregate offering price of the Shares that may be issued and sold pursuant to the Sales Agreement and the maximum number
or amount of Shares that may be sold pursuant to the Sales Agreement have been duly authorized by the Company’s board
of directors or a duly authorized committee thereof.
|
Terms
used herein and not defined herein have the meanings ascribed to them in the Sales Agreement.
Exhibit
4.5
|
MATINAS
BIOPHARMA HOLDINGS, INC., as Issuer
and
●
, as Trustee
INDENTURE
Dated
as of ●
Senior
Debt Securities
|
CROSS
REFERENCE SHEET1
Between
Provisions
of the Trust Indenture Act of 1939 and the Indenture to be dated as of _________, 20___ between MATINAS BIOPHARMA HOLDINGS, INC.
and ___________________, as Trustee:
|
Section
of the Act
|
|
Section
of Indenture
|
|
310(a)(1)
and (2)
|
|
5.08
|
|
310(a)(3)
and (4)
|
|
Inapplicable
|
|
310(b)
|
|
5.09(a),
(b) and (d)
|
|
310(c)
|
|
Inapplicable
|
|
311(a)
|
|
Inapplicable
|
|
311(b)
|
|
Inapplicable
|
|
311(c)
|
|
Inapplicable
|
|
312(a)
|
|
3.05
|
|
312(b)
|
|
3.05
|
|
312(c)
|
|
4.02(c)
|
|
313(a)
|
|
5.12
|
|
313(b)(1)
|
|
5.12
|
|
313(b)(2)
|
|
5.12
|
|
313(c)
|
|
5.12
|
|
313(d)
|
|
5.12
|
|
314(a)
|
|
3.06
|
|
314(b)
|
|
Inapplicable
|
|
314(c)(1)
and (2)
|
|
10.05
|
|
314(c)(3)
|
|
Inapplicable
|
|
314(d)
|
|
Inapplicable
|
|
314(e)
|
|
10.05
|
|
314(f)
|
|
Inapplicable
|
|
315(a),
(c) and (d)
|
|
5.01
|
|
315(b)
|
|
4.11
|
|
315(e)
|
|
4.12
|
|
316(a)(1)
|
|
4.09
|
|
316(a)(2)
|
|
Not
required
|
|
316(a)
(last sentence)
|
|
6.04
|
|
316(b)
|
|
4.07
|
|
317(a)
|
|
4.02
|
|
317(b)
|
|
3.03(a)
and (b)
|
|
318(a)
|
|
10.07
|
|
1
|
This
Cross Reference Sheet is not part of the Indenture.
|
TABLE
OF CONTENTS
|
|
|
Page
|
|
|
|
|
|
Article
1
|
DEFINITIONS
|
1
|
|
|
|
|
|
Section
1.01
|
Certain
Terms Defined
|
1
|
|
|
|
|
|
Article
2
|
SECURITIES
|
6
|
|
|
|
|
|
Section
2.01
|
Forms
Generally
|
6
|
|
Section
2.02
|
Form
of Trustee’s Certification of Authentication
|
6
|
|
Section
2.03
|
Amount
Unlimited; Issuable in Series
|
7
|
|
Section
2.04
|
Authentication
and Delivery of Securities
|
8
|
|
Section
2.05
|
Execution
of Securities
|
8
|
|
Section
2.06
|
Certificate
of Authentication
|
9
|
|
Section
2.07
|
Denomination
and Date of Securities; Payments of Interest
|
9
|
|
Section
2.08
|
Registration,
Transfer and Exchange
|
9
|
|
Section
2.09
|
Mutilated,
Defaced, Destroyed, Lost and Stolen Securities
|
11
|
|
Section
2.10
|
Cancellation
of Securities; Destruction Thereof
|
12
|
|
Section
2.11
|
Temporary
Securities
|
12
|
|
Section
2.12
|
Computation
of Interest
|
12
|
|
Section
2.13
|
CUSIP
Numbers
|
12
|
|
|
|
|
|
Article
3
|
COVENANTS
OF THE ISSUER AND THE TRUSTEE
|
12
|
|
|
|
|
|
Section
3.01
|
Payment
of Principal and Interest
|
12
|
|
Section
3.02
|
Offices
for Payments, etc
|
13
|
|
Section
3.03
|
Paying
Agents
|
13
|
|
Section
3.04
|
Certificate
of the Issuer
|
14
|
|
Section
3.05
|
List
of Securityholders
|
14
|
|
Section
3.06
|
Reports
by the Issuer
|
14
|
|
Section
3.07
|
Corporate
Existence
|
14
|
|
Section
3.08
|
Restrictions
on Mergers, Sales and Consolidations
|
15
|
|
Section
3.09
|
Further
Assurances
|
15
|
|
|
|
|
|
Article
4
|
REMEDIES
OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
|
15
|
|
|
|
|
|
Section
4.01
|
Event
of Default Defined; Acceleration of Maturity; Waiver of Default
|
15
|
|
Section
4.02
|
Collection
of Indebtedness by Trustee; Trustee May Prove Debt
|
16
|
|
Section
4.03
|
Application
of Proceeds
|
18
|
|
Section
4.04
|
Suits
for Enforcement
|
18
|
|
Section
4.05
|
Restoration
of Rights on Abandonment of Proceedings
|
18
|
|
Section
4.06
|
Limitations
on Suits by Securityholder
|
19
|
|
Section
4.07
|
Unconditional
Right of Securityholders to Institute Certain Suits
|
19
|
|
Section
4.08
|
Powers
and Remedies Cumulative; Delay or Omission Not Waiver of Default
|
19
|
|
Section
4.09
|
Control
by Securityholders
|
19
|
|
Section
4.10
|
Waiver
of Past Defaults
|
19
|
|
Section
4.11
|
Trustee
to Give Notice of Default, But May Withhold in Certain Circumstances
|
20
|
|
Section
4.12
|
Right
of Court to Require Filing of Undertaking to Pay Costs
|
20
|
|
Article
5
|
CONCERNING
THE TRUSTEE
|
20
|
|
|
|
|
|
Section
5.01
|
Duties
and Responsibilities of the Trustee
|
20
|
|
Section
5.02
|
Certain
Rights of the Trustee
|
21
|
|
Section
5.03
|
Trustee
Not Responsible for Recitals, Disposition of Securities or Application of Proceeds Thereof
|
22
|
|
Section
5.04
|
Trustee
and Agents May Hold Securities; Collections, etc
|
22
|
|
Section
5.05
|
Monies
Held by Trustee
|
22
|
|
Section
5.06
|
Compensation
and Indemnification of Trustee and Its Prior Claim
|
22
|
|
Section
5.07
|
Right
of Trustee to Rely on Officers’ Certificate, etc
|
23
|
|
Section
5.08
|
Persons
Eligible for Appointment as Trustee
|
23
|
|
Section
5.09
|
Resignation
and Removal; Appointment of Successor Trustee
|
23
|
|
Section
5.10
|
Acceptance
of Appointment by Successor
|
24
|
|
Section
5.11
|
Merger,
Conversion, Consolidation or Succession to Business of Trustee
|
24
|
|
Section
5.12
|
Reports
to the Trustee
|
25
|
|
|
|
|
|
Article
6
|
CONCERNING
THE SECURITYHOLDERS
|
25
|
|
|
|
|
|
Section
6.01
|
Evidence
of Action Taken by Securityholders
|
25
|
|
Section
6.02
|
Proof
of Execution of Instruments and of Holding of Securities; Record Date
|
25
|
|
Section
6.03
|
Holders
to be Treated as Owners
|
25
|
|
Section
6.04
|
Securities
Owned by Issuer Deemed Not Outstanding
|
26
|
|
Section
6.05
|
Right
of Revocation of Action Taken
|
26
|
|
|
|
|
|
Article
7
|
SUPPLEMENTAL
INDENTURES
|
26
|
|
|
|
|
|
Section
7.01
|
Supplemental
Indentures Without Consent of Securityholders
|
26
|
|
Section
7.02
|
Supplemental
Indentures With Consent of Securityholders
|
27
|
|
Section
7.03
|
Effect
of Supplemental Indenture
|
28
|
|
Section
7.04
|
Documents
to Be Given to Trustee
|
28
|
|
Section
7.05
|
Notation
on Securities in Respect of Supplemental Indentures
|
29
|
|
|
|
|
|
Article
8
|
CONSOLIDATION,
MERGER, SALE OR CONVEYANCE
|
29
|
|
|
|
|
|
Section
8.01
|
Issuer
May Consolidate, etc., on Certain Terms
|
29
|
|
Section
8.02
|
Successor
Corporation Substituted
|
29
|
|
|
|
|
|
Article
9
|
DISCHARGE
OF INDENTURE
|
29
|
|
|
|
|
|
Section
9.01
|
Defeasance
Within One Year of Payment
|
29
|
|
Section
9.02
|
Defeasance
|
30
|
|
Section
9.03
|
Covenant
Defeasance
|
31
|
|
Section
9.04
|
Application
of Trust Money
|
31
|
|
Section
9.05
|
Repayment
to Issuer
|
32
|
|
|
|
|
|
Article
10
|
MISCELLANEOUS
PROVISIONS
|
32
|
|
|
|
|
|
Section
10.01
|
Incorporators,
Stockholders, Officers and Directors Exempt from Individual Liability
|
32
|
|
Section
10.02
|
Provisions
of Indenture for the Sole Benefit of Parties and Securityholders
|
32
|
|
Section
10.03
|
Successors
and Assigns of Issuer Bound by Indenture
|
32
|
|
Section
10.04
|
Notices
and Demands on Issuer, Trustee and Securityholders
|
32
|
|
Section
10.05
|
Officers’
Certificates and Opinions of Counsel; Statements to be Contained Therein
|
33
|
|
Section
10.06
|
Payments
Due on Saturdays, Sundays and Holidays
|
33
|
|
Section
10.07
|
Conflict
of Any Provision of Indenture with Trust Indenture Act of 1939
|
33
|
|
Section
10.08
|
New
York Law to Govern
|
33
|
|
Section
10.09
|
Counterparts
|
33
|
|
Section
10.10
|
Effect
of Headings
|
33
|
|
|
|
|
|
Article
11
|
REDEMPTION
OF SECURITIES
|
34
|
|
|
|
|
|
Section
11.01
|
Applicability
of Article
|
34
|
|
Section
11.02
|
Notice
of Redemption; Partial Redemptions
|
34
|
|
Section
11.03
|
Payment
of Securities Called for Redemption
|
35
|
|
Section
11.04
|
Exclusion
of Certain Securities from Eligibility for Selection for Redemption
|
35
|
|
Section
11.05
|
Conversion
Arrangement On Call For Redemption
|
35
|
|
|
|
|
|
Article
12
|
CONVERSION
OF SECURITIES
|
36
|
|
|
|
|
|
Section
12.01
|
Applicability
of Article
|
36
|
|
Section
12.02
|
Right
of Securityholders to Convert Securities
|
36
|
|
Section
12.03
|
Issuance
of Shares of Capital Stock on Conversion
|
36
|
|
Section
12.04
|
No
Payment or Adjustment for Interest or Dividends
|
37
|
|
Section
12.05
|
Adjustment
of Conversion Rate
|
37
|
|
Section
12.06
|
No
Fractional Shares to Be Issued
|
39
|
|
Section
12.07
|
Preservation
of Conversion Rights Upon Consolidation, Merger, Sale or Conveyance
|
40
|
|
Section
12.08
|
Notice
to Security Holders of a Series Prior to Taking Certain Types of Action
|
40
|
|
Section
12.09
|
Covenant
to Reserve Shares for Issuance on Conversion of Securities
|
41
|
|
Section
12.10
|
Compliance
with Governmental Requirements
|
41
|
|
Section
12.11
|
Payment
of Taxes Upon Certificates for Shares Issued Upon Conversion
|
41
|
|
Section
12.12
|
Trustee’s
Duties with Respect to Conversion Provisions
|
41
|
THIS
INDENTURE, dated as of , between MATINAS BIOPHARMA HOLDINGS, INC., a Delaware corporation (the “Issuer”) and
●, a ● corporation, as trustee (the “Trustee”).
W
I T N E S S E T H:
WHEREAS,
the Issuer has duly authorized the issue from time to time of its senior debentures, notes or other evidences of indebtedness
to be issued in one or more series (the “Securities”) up to such principal amount or amounts as may from time to time
be authorized in accordance with the terms of this Indenture and to provide, among other things, for the authentication, delivery
and administration thereof, the Issuer has duly authorized the execution and delivery of this Indenture; and
WHEREAS,
all things necessary to make this Indenture a valid indenture and agreement according to its terms have been done;
NOW,
THEREFORE:
In
consideration of the premises and the purchases of the Securities by the Holders thereof, the Issuer and the Trustee mutually
covenant and agree for the equal and proportionate benefit of the respective Holders from time to time of the Securities as follows:
ARTICLE
1
DEFINITIONS
Section
1.01 Certain Terms Defined. The following terms (except as otherwise expressly provided or unless the context otherwise
clearly requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings
specified in this Section. All other terms used in this Indenture that are defined in the Trust Indenture Act of 1939 or the definitions
of which in the Securities Act of 1933 are referred to in the Trust Indenture Act of 1939, as amended, including terms defined
therein by reference to the Securities Act of 1933, as amended, (except as herein otherwise expressly provided or unless the context
otherwise clearly requires), shall have the meanings assigned to such terms in said Trust Indenture Act and in said Securities
Act as in force at the date of this Indenture. All accounting terms used herein and not expressly defined shall have the meanings
assigned to such terms in accordance with GAAP. The words “herein”, “hereof” and “hereunder”
and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.
The terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular.
“Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For the purposes of this definition, “control” when used with respect to
any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.
“Authorized
Newspaper” means a newspaper in the English language or in an official language of the country of publication, customarily
printed on each Business Day, whether or not published on Saturdays, Sundays or holidays, and of general circulation in the place
in connection with which the term is used or in the financial community of such place. If, because of temporary suspension of
publication or general circulation of any newspaper or for any other reason, it is impossible or impracticable to make any publication
of any notice required by this Indenture in the manner herein provided, such publication or other notice in lieu thereof which
is made at the written direction of the Issuer by the Trustee shall constitute a sufficient publication of such notice.
“Board
of Directors” means either the Board of Directors of the Issuer or any committee of such Board duly authorized to act
hereunder.
“Business
Day” means, with respect to any Security, a day that in the city (or in all of the cities, if more than one) in which
amounts are payable, as specified in the form of such Security, is not a day on which banking institutions are authorized by law
or regulation to close.
“Capitalized
Lease” means, as applied to any Person, any lease of any property (whether real, personal, or mixed) of which the discounted
present value of the rental obligations of such Person as lessee, in conformity with GAAP, is required to be capitalized on the
balance sheet of such Person; and “Capitalized Lease Obligation” is defined to mean the rental obligations,
as aforesaid, under such lease.
“Capital
Stock” means any and all shares, interests, participations or other equivalents (however designated, whether voting
or non-voting) of the Issuer’s capital stock or other ownership interests, whether now outstanding or issued after the date
of this Indenture, including, without limitation, all Common Stock and Preferred Stock.
“Closing
Price” on any day when used with respect to any class of Capital Stock means the closing sale price per share (or if
no closing sale price is reported, the average of the bid and ask prices or, if more than one in either case, the average of the
average bid and the average ask prices) on that date as reported by The Nasdaq Global Select Market or, if such Capital Stock
is not listed on The Nasdaq Global Select Market, then on the principal U.S. national or regional securities exchange on which
such Capital Stock is then listed. If such Capital Stock is not listed on either The Nasdaq Global Select Market or on any U.S.
national or regional securities exchange on the relevant date, the Closing Price will be the last quoted bid price for the Company’s
Common Stock in the over-the-counter market on the relevant date as reported by the OTC Markets Group Inc. or similar organization.
In the event that no such quotation is available for any day, the Board of Directors shall be entitled to determine in good faith
the current market price on the basis of such quotations as it considers appropriate.
“Commission”
means the Securities and Exchange Commission, as from time to time constituted, created under the Securities Exchange Act of 1934,
or if at any time after the execution and delivery of this Indenture such Commission is not existing and performing the duties
now assigned to it under the Trust Indenture Act, then the body performing such duties on such date.
“Common
Stock” means any and all shares, interests, participations or other equivalents (however designated, whether voting
or non-voting) of the Issuer’s common stock, par value $0.001 per share, whether now outstanding or issued after the date
of the Indenture, including, without limitation, all series and classes of such common stock.
“Corporate
Trust Office” means the office of the Trustee at which the corporate trust business of the Trustee shall, at any particular
time, be principally administered, which office is, at the date as of which this Indenture is dated, located at ●.
“Currency
Agreement” means any foreign exchange contract, currency swap agreement, or other similar agreement or arrangement designed
to protect against the fluctuation in currency values.
“Default”
means any Event of Default as defined in Section 4.01 and any event that is, or after notice or passage of time or both would
be, an Event of Default.
“Depositary”
means, with respect to the Securities of any series issuable or issued in the form of one or more Registered Global Securities,
the Person designated as Depositary by the Issuer pursuant to Section 2.03 until a successor Depositary shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter “Depositary” shall mean or include each Person
who is then a Depositary hereunder, and if at any time there is more than one such Person, “Depositary” as used with
respect to the Securities of any such series shall mean the Depositary with respect to the Registered Global Securities of that
series.
“Determination
Date” has the meaning specified in Section 12.05.
“Event
of Default” has the meaning specified in Section 4.01.
“GAAP”
means generally accepted accounting principles in the United States of America as in effect as of the date of determination, including,
without limitation, those set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute
of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as approved by a significant segment of the accounting profession. All ratios and computations
contained in this Indenture shall be computed in conformity with GAAP applied on a consistent basis.
“Guarantee”
means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness or other obligation
of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise,
of such Person:
(i)
to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation of such other
Person (whether arising by virtue of partnership arrangements, or by agreement to keep-well, to purchase assets, goods, securities,
or services, to take-or-pay, or to maintain financial statement conditions or otherwise); or
(ii)
entered into for purposes of assuring in any other manner the obligee of such Indebtedness or other obligation of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or in part);
provided,
that the term “Guarantee” shall not include endorsements for collection or deposit in the ordinary course of
business. The term “Guarantee” used as a verb has a corresponding meaning.
“Holder”,
“Securityholder” or other similar terms mean the registered holder of any Security.
“Indebtedness”
means, with respect to any Person at any date of determination (without duplication):
(i)
all indebtedness of such Person for borrowed money;
(ii)
all obligations of such Person evidenced by bonds, debentures, notes, or other similar instruments, in each case, for value received
or settlement of claims;
(iii)
all obligations of such Person in respect of letters of credit or other similar instruments (including reimbursement obligations
with respect thereto);
(iv)
all obligations of such Person to pay the deferred and unpaid purchase price of property or services (but excluding trade accounts
payable or accrued liabilities arising in the ordinary course of business);
(v)
all obligations of such Person as lessee under Capitalized Leases;
(vi)
all Indebtedness of other Persons secured by a Lien on any asset of such Person, whether or not such Indebtedness is assumed by
such Person; provided that the amount of such Indebtedness shall be the lesser of:
(1)
the fair market value of such asset at such date of determination; and
(2)
the amount of such Indebtedness;
(vii)
all Indebtedness of other Persons to the extent Guaranteed by such Person; and
(viii)
to the extent not otherwise included in this definition, obligations under Currency Agreements and Interest Rate Agreements.
Notwithstanding
the foregoing, in no event shall the term “Indebtedness” be deemed to include letters of credit or bonds that secure
performance or surety bonds or similar instruments that are issued in the ordinary course of business.
The
amount of Indebtedness of any Person at any date shall be the outstanding balance at such date of all unconditional obligations
as described above and, with respect to contingent obligations, the maximum liability upon the occurrence of the contingency giving
rise to the obligation; provided that:
(x)
the amount outstanding at any time of any Indebtedness issued with original issue discount is the face amount of such Indebtedness
less the remaining unamortized portion of the original issue discount of such Indebtedness at such time as determined in conformity
with GAAP; and
(y)
Indebtedness shall not include any liability for federal, state, local, or other taxes.
“Indenture”
means this instrument as originally executed and delivered or, if amended or supplemented as herein provided, as so amended or
supplemented or both, and shall include the forms and terms of particular series of Securities established as contemplated hereunder.
“Interest”
means, when used with respect to non-interest bearing Securities, interest payable after maturity. “Interest Rate Agreement”
means any obligation of any Person pursuant to any interest rate swap, cap, collar or similar arrangement providing protection
against fluctuations in interest rates. For purposes of the Indenture, the amount of such obligation shall be the amount determined
in respect thereof as of the end of the then most recently ended fiscal quarter of such Person, based on the assumption that such
obligation had terminated at the end of such fiscal quarter, and in making such determination, if any agreement relating to such
obligation provides for the netting of amounts payable by and to such Person thereunder or if any such agreement provides for
the simultaneous payment of amounts by and to such Person, then in each such case, the amount of such obligation shall be the
net amount so determined, plus any premium due upon default by such Person.
“Issuer”
means the Person identified as “Issuer” in the first paragraph hereof and, subject to Article 8, its successors and
assigns.
“Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind, or any other
type of preferential arrangement that has the practical effect of creating a security interest, in respect of such asset. For
the purposes of this Indenture, the Issuer shall be deemed to own subject to a Lien any asset that it has acquired or holds subject
to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement relating
to such asset.
“Officers’
Certificate” means a certificate signed by the chairman of the Issuer’s Board of Directors, its president or any
vice president, and by its treasurer, any assistant treasurer, its secretary or any assistant secretary of the Issuer, and delivered
to the Trustee. Each such certificate shall comply with Section 314 of the Trust Indenture Act of 1939 and include the statements
provided for in Section 10.05.
“Opinion
of Counsel” means an opinion in writing signed by legal counsel who may be an employee of or counsel to the Issuer and
who shall be satisfactory to the Trustee. Each such opinion shall comply with Section 314 of the Trust Indenture Act of 1939 and
include the statements provided for in Section 10.05, if and to the extent required hereby.
“Original
Issue Date” of any Security (or portion thereof) means the earlier of (i) the date of such Security or (ii) the date
of any Security (or portion thereof) for which such Security was issued (directly or indirectly) on registration of transfer,
exchange or substitution.
“Original
Issue Discount Security” means any Security that provides for an amount less than the Principal amount thereof to be
due and payable upon a declaration of acceleration of the maturity thereof pursuant to Section 4.01.
“Outstanding”,
when used with reference to Securities, shall, subject to the provisions of Section 6.04, mean, as of any particular time, all
Securities authenticated and delivered by the Trustee under this Indenture, except:
(i)
Securities theretofore canceled by the Trustee or delivered to the Trustee for cancellation;
(ii)
Securities, or portions thereof, for the payment or redemption of which monies in the necessary amount shall have been deposited
in trust with the Trustee or with any paying agent (other than the Issuer) or shall have been set aside, segregated and held in
trust by the Issuer for the Holders of such Securities (if the Issuer shall act as its own paying agent), provided that if such
Securities, or portions thereof, are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given
as herein provided, or provision satisfactory to the Trustee shall have been made for giving such notice; and
(iii)
Securities in substitution for which other Securities shall have been authenticated and delivered, or which shall have been paid,
pursuant to the terms of Section 2.09 (except with respect to any such Security as to which proof satisfactory to the Trustee
is presented that such Security is held by a person in whose hands such Security is a legal, valid and binding obligation of the
Issuer).
In
determining whether the Holders of the requisite Principal amount of Outstanding Securities of any or all series have given any
request, demand, authorization, direction, notice, consent or waiver hereunder, the Principal amount of an Original Issue Discount
Security that shall be deemed to be Outstanding for such purposes shall be the amount of the Principal thereof that would be due
and payable as of the date of such determination upon a declaration of acceleration of the maturity thereof pursuant to Section
4.01.
“Person”
means any individual, corporation, partnership, limited liability company, joint venture, association, joint stock company, trust,
unincorporated organization or government or any agency or political subdivision thereof or any other entity.
“Preferred
Stock” means any and all shares, interests, participations or other equivalents (however designated, whether voting
or non-voting) of the Issuer’s preferred stock, par value $0.001 per share, whether now outstanding or issued after the
date of the Indenture, including, without limitation, all series and classes of such preferred stock.
“Principal”
means, with respect to the Securities or any Security or any portion thereof, the principal amount of such Securities, Security
or portion thereof, and shall be deemed to include “and premium, if any”.
“record
date” as used with respect to any interest payment date (except a date for payment of defaulted interest), has the meaning
specified in Section 2.07.
“Registered
Global Security” means a Security evidencing all or a part of a series of Registered Securities, issued to the Depositary
for such series in accordance with Section 2.04, and bearing the legend prescribed in Section 2.04.
“Registered
Security” means any Security registered on the register maintained by the Issuer pursuant to Section 2.08.
“Responsible
Officer” when used with respect to the Trustee means any officer within the corporate trust department of the Trustee,
including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer
of the Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be such officers,
respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with
the particular subject and who shall have direct responsibility for the administration of this Indenture.
“Security”
or “Securities” has the meaning stated in the first recital of this Indenture, or, as the case may be, Securities
that have been authenticated and delivered under this Indenture.
“Subsidiary”
means, with respect to any Person, any corporation, association or other business entity of which more than 50% of all votes represented
by all classes of outstanding Voting Stock is owned, directly or indirectly, by such Person and one or more other Subsidiaries
of such Person.
“Trustee”
means the Person identified as “Trustee” in the first paragraph hereof and, subject to the provisions of Article
5, shall also include any successor trustee.
“Trust
Indenture Act of 1939” (except as otherwise provided in Section 7.01 and 7.02) means the Trust Indenture Act of 1939
as in force at the date as of which this Indenture was originally executed.
“UCC”
means the Uniform Commercial Code, as in effect in each applicable jurisdiction.
“Unregistered
Security” means any Security other than a Registered Security.
“U.S.
Government Obligations” means securities that are (i) direct obligations of the United States of America for the payment
of which its full faith and credit is pledged or (ii) obligations of an agency of instrumentality of the United States of America
the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, and
shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government
Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for
the account of the holder of a depository receipt; provided that (except as required by law) such custodian is not authorized
to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian
in respect of the U.S. Government Obligation or the specific payment of interest on or principal of the U.S. Government Obligation
evidenced by such depository receipt.
“Voting
Stock” means, with respect to any Person, capital stock of any class or kind ordinarily having the power to vote for
the election of directors, managers or other voting members of the governing body of such Person.
“vice
president” when used with respect to the Issuer or the Trustee, means any vice president, whether or not designated
by a number or a word or words added before or after the title of “vice president”.
“Wholly-Owned”
is defined to mean, with respect to any Subsidiary of any Person, such Subsidiary if all of the outstanding common stock or other
similar equity ownership interests (but not including preferred stock) in such Subsidiary (other than any director’s qualifying
shares or investments by foreign nationals mandated by applicable law) is owned directly or indirectly by such Person.
“Yield
to Maturity” means the yield to maturity on a series of securities, calculated at the time of issuance of such series,
or, if applicable, at the most recent redetermination of interest on such series, and calculated in accordance with accepted financial
practice.
ARTICLE
2
SECURITIES
Section
2.01 Forms Generally. The Securities of each series shall be substantially in such form (not inconsistent with this
Indenture) as shall be established by or pursuant to a resolution of the Board of Directors or in one or more indentures supplemental
hereto, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted
by this Indenture and may have imprinted or otherwise reproduced thereon such legend or legends, not inconsistent with the provisions
of this Indenture, as may be required to comply with any law or with any rules or regulations pursuant thereto, or with any rules
of any securities exchange or to conform to general usage, all as may be determined by the officers executing such Securities,
as evidenced by their execution of the Securities. The Issuer shall furnish any such legends to the Trustee in writing.
The
definitive Securities shall be printed, lithographed or engraved on steel engraved borders or may be produced in any other manner,
all as determined by the officers executing such Securities, as evidenced by their execution of such Securities.
Section
2.02 Form of Trustee’s Certification of Authentication. The Trustee’s certificate of authentication on
all Securities shall be in substantially the following form:
This
is one of the Securities of the series designated herein and referred to in the within-mentioned Indenture.
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●,
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as
Trustee
|
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By:
|
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Authorized
Signatory:
|
Section
2.03 Amount Unlimited; Issuable in Series. The aggregate Principal amount of Securities which may be authenticated and
delivered under this Indenture is unlimited.
The
Securities may be issued in one or more series. There shall be established in or pursuant to a resolution of the Board of Directors
and set forth in an Officers’ Certificate, or established in one or more indentures supplemental hereto, prior to the issuance
of Securities of any series:
(a)
the title of the Securities of the series (which shall distinguish the Securities of the series from all other Securities);
(b)
any limit upon the aggregate Principal amount of the Securities of the series that may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Securities of the series pursuant to Section 2.08, 2.09, 2.11 or Section 12.03);
(c)
the date or dates on which the Principal of the Securities of the series is payable;
(d)
the rate or rates at which the Securities of the series shall bear interest, if any, or the method by which such rate shall be
determined, the date or dates from which such interest shall accrue, the interest payment dates on which such interest shall be
payable and the record dates for the determination of Holders to whom interest is payable;
(e)
the place or places where the Principal of and any interest on Securities of the series shall be payable (if other than as provided
in Section 3.02);
(f)
the price or prices at which, the period or periods within which and the terms and conditions upon which Securities of the series
may be redeemed, in whole or in part, at the option of the Issuer;
(g)
the obligation, if any, of the Issuer to redeem, purchase or repay Securities of the series at the option of a Holder thereof
and the price or prices at which, the period or periods within which and the terms and conditions upon which Securities of the
series shall be redeemed, purchased or repaid, in whole or in part, pursuant to such obligation;
(h)
the obligation, if any, of the Issuer to permit the conversion of the Securities of such series into Capital Stock, and the terms
and conditions upon which such conversion shall be effected (including, without limitation, the initial conversion price or rate,
the conversion period and any other provision in addition to or in lieu of those set forth in this Indenture relative to such
obligation);
(i)
if other than denominations of $1,000 and any multiple thereof, the denominations in which Securities of the series shall be issuable;
(j)
if other than the Principal amount thereof, the portion of the Principal amount of Securities of the series which shall be payable
upon declaration of acceleration of the maturity thereof pursuant to Section 4.01 or provable in bankruptcy pursuant to Section
4.02;
(k)
if the Securities of the series are issuable in whole or in part as one or more Registered Global Securities, the identity of
the Depositary for such Registered Global Security or Securities;
(l)
any other terms of the series (which terms shall not be inconsistent with the provisions of this Indenture); and
(m)
any trustees, authenticating or paying agents, transfer agents or registrar or any other agents with respect to the Securities
of such series.
All
Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided
in or pursuant to such resolution of the Board of Directors or in any such indenture supplemental hereto.
Section
2.04 Authentication and Delivery of Securities. At any time and from time to time after the execution and delivery of
this Indenture, the Issuer may deliver Securities of any series executed by the Issuer to the Trustee for authentication, and
the Trustee shall thereupon authenticate and deliver such Securities to or upon the written order of the Issuer, such order
to be signed by both (a) the chairman of its Board of Directors, its president or any vice president and by its treasurer,
any assistant treasurer, its secretary or any assistant secretary, without any further action by the Issuer. In
authenticating such Securities and accepting the additional responsibilities under this Indenture in relation to such
Securities the Trustee shall receive, and (subject to Section 5.01) shall be fully protected in relying upon:
(a)
a certified copy of any resolution or resolutions of the Board of Directors authorizing the action taken pursuant to the resolution
or resolutions delivered under clause (b) below;
(b)
a copy of any resolution or resolutions of the Board of Directors relating to such series, in each case certified by the secretary
or an assistant secretary of the Issuer;
(c)
an executed supplemental indenture, if any, and the documentation required to be delivered pursuant to Section 7.04;
(d)
an Officers’ Certificate setting forth the form and terms of the Securities as required pursuant to Section 2.01 and 2.03,
respectively and prepared in accordance with Section 10.05;
(e)
an Opinion of Counsel, prepared in accordance with Section 10.05, to the effect:
(i)
that the form or forms and terms of such Securities have been established by or pursuant to a resolution of the Board of Directors
or by a supplemental indenture as permitted by Section 2.01 and 2.03 in conformity with the provisions of this Indenture; and
(ii)
that such Securities, when authenticated and delivered by the Trustee and issued by the Issuer in the manner and subject to any
conditions specified in such Opinion of Counsel, will constitute valid and binding obligations of the Issuer enforceable against
the Issuer in accordance with their terms, except to the extent that enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or similar laws now or hereafter in effect relating to creditors’ rights
generally, and general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at
law).
The
Trustee shall have the right to decline to authenticate and deliver any Securities under this section if the Trustee, being advised
by counsel, determines that such action may not lawfully be taken by the Issuer or if the Trustee in good faith by its board of
directors or board of trustees, executive committee, or a trust committee of directors or trustees or Responsible Officers shall
determine that such action would expose the Trustee to personal liability.
If
the Issuer shall establish pursuant to Section 2.03 that the Securities of a series or a portion thereof are to be issued in the
form of one or more Registered Global Securities, then the Issuer shall execute (in accordance with Section 2.05) and the Trustee
shall authenticate and make available for delivery one or more Registered Global Securities that (i) shall represent and shall
be denominated in an amount equal to the aggregate Principal amount of all of the Securities of such series issued in such form
and not yet canceled, (ii) shall be registered in the name of the Depositary for such Registered Global Security or Securities
or the nominee of such Depositary, (iii) shall be delivered by the Trustee to such Depositary or its custodian or pursuant to
such Depositary’s instructions and (iv) shall bear a legend substantially to the following effect: “Unless and until
it is exchanged in whole or in part for Securities in definitive registered form, this Security may not be transferred except
as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee
of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary.”
Section
2.05 Execution of Securities. The Securities shall be signed on behalf of the Issuer by the chairman of its Board of
Directors, its president, any vice president, its treasurer or any assistant treasurer, under its corporate seal and attested
by its secretary or any assistant secretary. Such signatures may be the manual or facsimile signatures of the present or any
future such officers. The seal of the Issuer may be in the form of a facsimile thereof and may be impressed, affixed,
imprinted or otherwise reproduced on the Securities. Typographical and other minor errors or defects in any such reproduction
of the seal or any such signature shall not affect the validity or enforceability of any Security that has been duly
authenticated and delivered by the Trustee.
In
case any officer of the Issuer who shall have signed any of the Securities shall cease to be such officer before the Security
so signed shall be authenticated and delivered by the Trustee or disposed of by the Issuer, such Security nevertheless may be
authenticated and delivered or disposed of as though the person who signed such Security had not ceased to be such officer of
the Issuer; and any Security may be signed on behalf of the Issuer by such persons as, at the actual date of the execution of
such Security, shall be the proper officers of the Issuer, although at the date of the execution and delivery of this Indenture
any such person was not such an officer.
Section
2.06 Certificate of Authentication. Only such Securities as shall bear thereon a certificate of authentication
substantially in the form hereinbefore recited, executed by the Trustee by the manual signature of one of its authorized
signatories, shall be entitled to the benefits of this Indenture or be valid or obligatory for any purpose. Such certificate
by the Trustee upon any Security executed by the Issuer shall be conclusive evidence that the Security so authenticated has
been duly authenticated and delivered hereunder and that the Holder is entitled to the benefits of this Indenture.
Section
2.07 Denomination and Date of Securities; Payments of Interest. The Securities shall be issuable as registered
securities without coupons and in denominations as shall be specified as contemplated by Section 2.03. In the absence of any
such specification with respect to the Securities of any series, the Securities of such series shall be issuable in
denominations of $1,000 and any multiple thereof. The Securities shall be numbered, lettered, or otherwise distinguished in
such manner or in accordance with such plan as the officers of the Issuer executing the same may determine as evidenced by
the execution and authentication thereof.
Each
Security shall be dated the date of its authentication, shall bear interest, if any, from the date and shall be payable on the
dates, in each case, which shall be specified as contemplated by Section 2.03.
The
person in whose name any Security of any series is registered at the close of business on any record date applicable to a particular
series with respect to any interest payment date for such series shall be entitled to receive the interest, if any, payable on
such interest payment date notwithstanding any transfer or exchange of such Security subsequent to the record date and prior to
such interest payment date, except if and to the extent the Issuer shall default in the payment of the interest due on such interest
payment date for such series, in which case such defaulted interest shall be paid to the persons in whose names Outstanding Securities
for such series are registered at the close of business on a subsequent record date (which shall be not less than five Business
Days prior to the date of payment of such defaulted interest) established by notice given by mail by or on behalf of the Issuer
to the Holders of Securities not less than 15 days preceding such subsequent record date. The term “record date”
as used with respect to any interest payment date (except a date for payment of defaulted interest) shall mean the date specified
as such in the terms of the Securities of any particular series, or, if no such date is so specified, if such interest payment
date is the first day of a calendar month, the fifteenth day of the next preceding calendar month or, if such interest payment
date is the fifteenth day of a calendar month, the first day of such calendar month, whether or not such record date is a Business
Day.
Section
2.08 Registration, Transfer and Exchange. The Issuer will keep or cause to be kept at each office or agency to be
maintained for the purpose as provided in Section 3.02 a register or registers in which, subject to such reasonable
regulations as it may prescribe, it will register, and will register the transfer of, Securities as in this Article provided.
Such register shall be in written form in the English language or in any other form capable of being converted into such form
within a reasonable time. At all reasonable times such register or registers shall be open for inspection by the
Trustee.
At
the option of the Holder thereof, Registered Securities of any series (other than a Registered Global Security, except as set
forth below) may be exchanged for a Registered Security or Registered Securities of such series and tenor having authorized denominations
and an equal aggregate Principal amount, upon surrender of such Registered Securities to be exchanged at the agency of the Issuer
that shall be maintained for such purpose in accordance with Section 3.02 and upon payment, if the Issuer shall so require, of
the charges hereinafter provided. If the Securities of any series are issued in both registered and unregistered form, except
as otherwise established pursuant to Section 2.03, at the option of the Holder thereof, Unregistered Securities of any series
may be exchanged for Registered Securities of such series and tenor having authorized denominations and an equal aggregate Principal
amount, upon surrender of such Unregistered Securities to be exchanged at the agency of the Issuer that shall be maintained for
such purpose in accordance with Section 3.02 and upon payment, if the Issuer shall so require, of the charges hereinafter provided.
At the option of the Holder thereof, if Unregistered Securities of any series, maturity date, interest rate and Original Issue
Date are issued in more than one authorized denomination, except as otherwise established pursuant to Section 2.03, such Unregistered
Securities may be exchanged for Unregistered Securities of such series and tenor having authorized denominations and an equal
aggregate Principal amount, upon surrender of such Unregistered Securities to be exchanged at the agency of the Issuer that shall
be maintained for such purpose in accordance with Section 3.02 and upon payment, if the Issuer shall so require, of the charges
hereinafter provided. Registered Securities of any series may not be exchanged for Unregistered Securities of such series. Whenever
any Securities are so surrendered for exchange, the Issuer shall execute, and the Trustee shall authenticate and make available
for delivery, the Securities which the Holder making the exchange is entitled to receive.
All
Registered Securities presented for registration of transfer, exchange, redemption, conversion or payment shall be duly endorsed
by, or be accompanied by a written instrument or instruments of transfer in form satisfactory to the Issuer and the Trustee duly
executed by, the Holder or his attorney duly authorized in writing.
The
Issuer may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection
with any exchange or registration of transfer of Securities. No service charge shall be made for any such transaction.
Notwithstanding
any other provision of this Section 2.08, unless and until it is exchanged in whole or in part for Securities in definitive registered
form, a Registered Global Security representing all or a portion of the Securities of a series may not be transferred except as
a whole by the Depositary for such series to a nominee of such Depositary or by a nominee of such Depositary to such Depositary
or another nominee of such Depositary or by such Depositary or any such nominee to a successor Depositary for such series or a
nominee of such successor Depositary.
If
at any time the Depositary for any Registered Global Securities of any series notifies the Issuer that it is unwilling or unable
to continue as Depositary for such Registered Global Securities or if at any time the Depositary for such Registered Global Securities
shall no longer be eligible under applicable law, the Issuer shall appoint a successor Depositary eligible under applicable law
with respect to such Registered Global Securities. If a successor Depositary eligible under applicable law for such Registered
Global Securities is not appointed by the Issuer within 90 days after the Issuer receives such notice or becomes aware of such
ineligibility, the Issuer will execute, and the Trustee, upon receipt of the Issuer’s order for the authentication and delivery
of definitive Registered Securities of such series and tenor, will authenticate and make available for delivery Registered Securities
of such series and tenor, in any authorized denominations, in an aggregate Principal amount equal to the Principal amount of such
Registered Global Securities, in exchange for such Registered Global Securities.
The
Issuer may at any time and in its sole discretion determine that any Registered Global Securities of any series shall no longer
be maintained in global form. In such event, or in the event that there shall have occurred and be continuing an Event of Default
with respect to a series of Securities, the Issuer will, upon the request of any Holder, execute, and the Trustee, upon receipt
of the Issuer’s order for the authentication and delivery of definitive Registered Securities of such series and tenor,
will authenticate and make available for delivery, Registered Securities of such series and tenor in any authorized denominations,
in an aggregate Principal amount equal to the Principal amount of such Registered Global Securities, in exchange for such Registered
Global Securities.
Any
time the Registered Securities of any series are not in the form of Registered Global Securities pursuant to the preceding two
paragraphs, the Issuer agrees to supply the Trustee with a reasonable supply of certificated Registered Securities without the
legend required by Section 2.04 and the Trustee agrees to hold such Registered Securities in safekeeping until authenticated and
delivered pursuant to the terms of this Indenture.
If
established by the Issuer pursuant to Section 2.03 with respect to any Registered Global Security, the Depositary for such Registered
Global Security may surrender such Registered Global Security in exchange in whole or in part for Registered Securities of the
same series and tenor in definitive registered form on such terms as are acceptable to the Issuer and such Depositary. Thereupon,
the Issuer shall execute, and the Trustee shall authenticate and make available for delivery, without service charge,
(i)
to the Person specified by such Depositary new Registered Securities of the same series and tenor, of any authorized denominations
as requested by such Person, in an aggregate Principal amount equal to and in exchange for such Person’s beneficial interest
in the Registered Global Security; and
(ii)
to such Depositary a new Registered Global Security in a denomination equal to the difference, if any, between the Principal amount
of the surrendered Registered Global Security and the aggregate Principal amount of Registered Securities authenticated and delivered
pursuant to clause (i) above.
Registered
Securities issued in exchange for a Registered Global Security pursuant to this Section 2.08 shall be registered in such names
and in such authorized denominations as the Depositary for such Registered Global Security, pursuant to instructions from its
direct or indirect participants or otherwise, shall instruct the Trustee or an agent of the Issuer or the Trustee. The Trustee
or such agent shall deliver such Securities to or as directed by the Persons in whose names such Securities are so registered.
All
Securities issued upon any transfer or exchange of Securities shall be valid obligations of the Issuer, evidencing the same debt,
and entitled to the same benefits under this Indenture, as the Securities surrendered upon such transfer or exchange.
Notwithstanding
anything herein or in the forms or terms of any Securities to the contrary, none of the Issuer, the Trustee or any agent of the
Issuer or the Trustee shall be required to exchange any Unregistered Security for a Registered Security if such exchange would
result in adverse Federal income tax consequences to the Issuer (such as, for example, the inability of the Issuer to deduct from
its income, as computed for Federal income tax purposes, the interest payable on the Unregistered Securities) under then applicable
United States Federal income tax laws. The Trustee and any such agent shall be entitled to rely on an Officers’ Certificate
or an Opinion of Counsel in determining such result.
Neither
the Registrar nor the Issuer shall be required (i) to issue, authenticate, register the transfer of or exchange Securities of
any series for a period of 15 days before the mailing of a notice of redemption of such Securities to be redeemed or (ii) to register
the transfer of or exchange any Security selected for redemption in whole or in part.
Section
2.09 Mutilated, Defaced, Destroyed, Lost and Stolen Securities. In case any temporary or definitive Security shall
become mutilated or defaced and shall be surrendered to the Trustee, the Issuer shall execute, and the Trustee shall
authenticate and deliver, a new Security of the same series, bearing a number not contemporaneously outstanding, in exchange
and substitution for the mutilated or defaced Security. If the Holder of any Security claims that the Security has been lost,
destroyed or wrongfully taken, the Issuer shall execute, and the Trustee shall authenticate and deliver, a new Security of
the same series, bearing a number not contemporaneously outstanding, in exchange and substitution for the lost, destroyed or
wrongfully taken Security, if the applicant so requests before the Issuer has notice that the Security has been acquired by a
protected purchaser, and the applicant furnishes to the Issuer and to the Trustee and any agent of the Issuer or the Trustee
such security or indemnity as may be required by them to indemnify and defend and to save each of them harmless and the
applicant satisfies other reasonable requirements imposed by the Issuer.
Upon
the issuance of any substitute Security, the Issuer may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee and its
counsel) connected therewith. In case any Security which has matured or is about to mature or has been called for redemption in
full shall become mutilated or defaced or be destroyed, lost or stolen, the Issuer may instead of issuing a substitute Security,
pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated or defaced Security), if
the applicant for such payment shall furnish to the Issuer and to the Trustee and any agent of the Issuer or the Trustee such
security or taking, the applicant shall also furnish to the Issuer and the Trustee and any agent of the Issuer or the Trustee
evidence to their satisfaction of the destruction, loss or wrongful taking of such Security and of the ownership thereof.
Every
substitute Security of any series issued pursuant to the provisions of this section by virtue of the fact that any such Security
is destroyed, lost or stolen shall constitute an additional contractual obligation of the Issuer, whether or not the destroyed,
lost or wrongfully taken Security shall be at any time enforceable by anyone and shall be entitled to all the benefits of (but
shall be subject to all the limitations of rights set forth in) this Indenture equally and proportionately with any and all other
Securities of such series duly authenticated and delivered hereunder. All Securities shall be held and owned upon the express
condition that, to the extent permitted by law, the foregoing provisions are exclusive with respect to the replacement or payment
of mutilated, defaced or destroyed, lost or wrongfully taken Securities and shall preclude any and all other rights or remedies.
Section
2.10 Cancellation of Securities; Destruction Thereof. All Securities surrendered for payment, redemption, repurchase,
conversion, registration of transfer or exchange, if surrendered to the Issuer or any agent of the Issuer or the Trustee,
shall be delivered to the Trustee for cancellation or, if surrendered to the Trustee, shall be canceled by it; and no
Securities shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture. The
Trustee shall dispose of canceled Securities held by it in accordance with the record retention policies of the Trustee in
effect from time to time and, if such canceled certificates are destroyed, shall deliver a certificate of destruction to the
Issuer. If the Issuer shall acquire any of the Securities, such acquisition shall not operate as a redemption or satisfaction
of the indebtedness represented by such Securities unless and until the same are delivered to the Trustee for
cancellation.
Section
2.11 Temporary Securities. Pending the preparation of definitive Securities for any series, the Issuer may execute and
the Trustee shall authenticate and deliver temporary Securities for such series (printed, lithographed, typewritten or
otherwise reproduced, in each case in form satisfactory to the Trustee). Temporary Securities of any series shall be issuable
as registered Securities without coupons, of any authorized denomination, and substantially in the form of the definitive
Securities of such series but with such omissions, insertions and variations as may be appropriate for temporary Securities,
all as may be determined by the Issuer with the concurrence of the Trustee. Temporary Securities may contain such reference
to any provisions of this Indenture as may be appropriate. Every temporary Security shall be executed by the Issuer and be
authenticated by the Trustee upon the same conditions and in substantially the same manner, and with like effect, as the
definitive Securities. Without unreasonable delay the Issuer shall execute and shall furnish definitive Securities of such
series and thereupon temporary Securities of such series may be surrendered in exchange therefor without charge at each
office or agency to be maintained by the Issuer for that purpose pursuant to Section 3.02, and the Trustee shall authenticate
and deliver in exchange for such temporary Securities of such series a like aggregate Principal amount of definitive
Securities of the same series of authorized denominations. Until so exchanged, the temporary Securities of any series shall
be entitled to the same benefits under this Indenture as definitive Securities of such series.
Section
2.12 Computation of Interest. Except as otherwise specified in the Securities of a series, interest shall be computed
on the basis of a 360-day year of twelve 30-day months.
Section
2.13 CUSIP Numbers. The Issuer in issuing the Securities may use “CUSIP” numbers (if then generally in
use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided
that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities
or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed
on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Issuer will
notify the Trustee of any change in the “CUSIP” numbers.
ARTICLE
3
COVENANTS
OF THE ISSUER AND THE TRUSTEE
Section
3.01 Payment of Principal and Interest. The Issuer covenants and agrees for the benefit of each series of Securities
that it will duly and punctually pay or cause to be paid the Principal of, and interest on, each of the Securities of such series
at the place or places, at the respective times and in the manner provided in such Securities. Each installment of interest on
the Securities of any series may be paid by mailing checks for such interest payable to or upon the written order of the Holders
of Securities entitled thereto as they shall appear on the registry books of the Issuer.
Notwithstanding
any provisions of this Indenture and the Securities of any series to the contrary, if the Issuer and a Holder of any Registered
Security so agree or if expressly provided pursuant to Section 2.03, payments of interest on, and any portion of the Principal
of, such Holder’s Registered Security shall be made by the paying agent, upon receipt from the Issuer of immediately available
funds by 11:00 a.m., New York City time (or such other time as may be agreed to between the Issuer and the paying agent) or the
Issuer, directly to the Holder of such Security (by wire transfer of Federal funds or immediately available funds or otherwise)
if the Holder has delivered written instructions to the Trustee 15 days prior to such payment date requesting that such payment
will be so made and designating the bank account to which such payments shall be so made and, in the case of payments of Principal,
surrenders the same to the Trustee. The Trustee shall be entitled to rely on the last instruction delivered by the Holder pursuant
to this Section 3.01 unless a new instruction is delivered 15 days prior to a payment date. The Issuer will indemnify and hold
each of the Trustee and any paying agent harmless against any loss, liability or expense (including attorneys’ fees and
expenses) resulting from any act or omission to act on the part of the Issuer or any such Holder in connection with any such agreement
or from making any payment in accordance with any such agreement.
Section
3.02 Offices for Payments, etc. So long as any of the Securities remain outstanding, the Issuer will maintain in the
Borough of Manhattan, The City of New York an office or agency (n) where the Securities may be presented for payment, (o) where
the Securities may be presented for registration of transfer and for exchange as in this Indenture provided, (p) where notices
and demands to or upon the Issuer in respect of the Securities or of this Indenture may be served and (q) for Securities of each
series that is convertible, where such Securities may be presented for conversion. The Issuer will give to the Trustee written
notice of the location of any such office or agency and of any change of location thereof. Unless otherwise specified in accordance
with Section 2.03, the Issuer hereby initially designates the Corporate Trust Office of Trustee as the office to be maintained
by it for each such purpose. In case the Issuer shall fail to so designate or maintain any such office or agency or shall fail
to give such notice of the location or of any change in the location thereof, presentations and demands may be made and notices
may be served at the Corporate Trust Office.
Section
3.03 Paying Agents. Whenever the Issuer shall appoint a paying agent other than the Trustee with respect to the Securities
of any series, it will cause such paying agent to execute and deliver to the Trustee an instrument in which such agent shall agree
with the Trustee, subject to the provisions of this Section:
(a)
that it will hold all sums received by it as such agent for the payment of the Principal of or interest on the Securities of such
series (whether such sums have been paid to it by the Issuer or by any other obligor on the Securities of such series) in trust
for the benefit of the Holders of the Securities of such series or of the Trustee;
(b)
that it will give the Trustee notice of any failure by the Issuer (or by any other obligor on the Securities of such series) to
make any payment of the Principal of or interest on the Securities of such series when the same shall be due and payable; and
during the continuance of the failure referred to in clause Section 3.03(b) above.
The
Issuer will, on or prior to each due date of the Principal of or interest on the Securities of such series, deposit with the paying
agent a sum sufficient to pay such Principal or interest so becoming due, and (unless such paying agent is the Trustee) the Issuer
will promptly notify the Trustee of any failure to take such action.
If
the Issuer shall act as its own paying agent with respect to the Securities of any Series, it will, on or before each due date
of the Principal of or interest on the Securities of such series, set aside, segregate and hold in trust for the benefit of the
Holders of the Securities of such series a sum sufficient to pay such Principal or interest so becoming due. The Issuer will promptly
notify the Trustee of any failure to take such action.
Whenever
the Issuer shall have one or more paying agents for any series of Securities, it will, on or before each due date of the Principal
of or interest on any Securities of such series, deposit with the paying agent or agents for the Securities of such series a sum,
by 11:00 a.m. New York City time in immediately available funds on the payment date, sufficient to pay the Principal or interest
so becoming due with respect to the Securities of such series, and (unless such paying agent is the Trustee) the Issuer will promptly
notify the Trustee in writing of any failure so to act.
Anything
in this section to the contrary notwithstanding, the Issuer may at any time, for the purpose of obtaining a satisfaction and discharge
with respect to one or more or all series of Securities hereunder, or for any other reason, pay or cause to be paid to the Trustee
all sums held in trust for any such series by the Issuer or any paying agent hereunder, as required by this Section, such sums
to be held by the Trustee upon the trusts herein contained.
Anything
in this Section 3.03 to the contrary notwithstanding, the agreement to hold sums in trust as provided in this Section 3.03 is
subject to the provisions of Section 9.05.
Section
3.04 Certificate of the Issuer. Within 120 days after the close of the fiscal year ended ●, and within 120 days
after the close of each fiscal year thereafter, the Issuer will furnish to the Trustee a brief certificate (which need not comply
with Section 10.05) from the principal executive, financial or accounting officer of the Issuer as to his or her knowledge of
the Issuer’s compliance with all conditions and covenants under the Indenture (such compliance to be determined without
regard to any period of grace or requirement of notice provided under the Indenture).
At
the time such certificate is filed, the Issuer will also file with the Trustee a letter or statement of the independent accountants
who shall have certified the financial statements of the Issuer for its preceding fiscal year to the effect that, in making the
examination necessary for certification of such financial statements, they have obtained no knowledge of any default by the Issuer
in the performance or fulfillment of any covenant, agreement or condition contained in this Indenture, which default remains uncured
at the date of such letter or statement, or, if they shall have obtained knowledge of any such uncured default, specifying in
such letter or statement such default or defaults and the nature and status thereof, it being understood that such accountants
shall not be liable directly or indirectly for failure to obtain knowledge of any such default or defaults, and that nothing contained
in this Section 3.04 shall be construed to require such accountants to make any investigation beyond the scope required in connection
with such examination.
Section
3.05 List of Securityholders. If and so long as the Trustee shall not be the Security registrar for the Securities
of any series, the Issuer will furnish or cause to be furnished to the Trustee a list in such form as the Trustee may reasonably
require of the names and addresses of the Holders of the Securities of such series pursuant to Section 312 of the Trust Indenture
Act of 1939 (a) semi-annually not more than 10 days after each record date for the payment of interest on such Securities, as
hereinabove specified, as of such record date and on dates to be determined pursuant to Section 2.03 for non-interest bearing
Securities in each year and (b) at such other times as the Trustee may request in writing, within 30 days after receipt by the
Issuer of any such request as of a date not more than 10 days prior to the time such information is furnished.
Section
3.06 Reports by the Issuer. The Issuer covenants to:
(a)
file, whether or not required to do so under applicable law, with the Trustee, within 15 days after the Issuer files the same
with the Commission:
(i)
copies of the annual reports and of the information, documents, and other reports which the Issuer files with the Commission pursuant
to Section 13 or Section 15(d) of the Securities Exchange Act of 1934; and
(ii)
such additional information, documents and reports with respect to compliance by the Issuer with the conditions and covenants
provided for in this Indenture as the Issuer may from time to time file with the Commission; and
(b)
transmit to the Securityholders, in the manner and to the extent provided in Section 10.04, such summaries of any information,
documents and reports required to be filed with the Trustee pursuant to the provisions of subdivision (a) of this Section 3.06
as may be required by the rules and regulations of the Commission.
Delivery
of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of
such shall not constitute constructive notice of any information contained therein or determinable from information contained
therein, including the Issuer’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officers’ Certificates).
Section
3.07 Corporate Existence. So long as any of the Securities remain unpaid, the Issuer will at all times (except as
otherwise provided or permitted elsewhere in this Indenture) do or cause to be done all things necessary to preserve and keep
in full force and effect its corporate existence.
Section
3.08 Restrictions on Mergers, Sales and Consolidations. So long as any of the Securities remain unpaid, the Issuer
will not consolidate or merge with or sell, convey or lease all or substantially all of its property to any other corporation
except as permitted in Article 8 hereof.
Section
3.09 Further Assurances. From time to time whenever requested by the Trustee, the Issuer will execute and deliver
such further instruments and assurances and do such further acts as may be reasonably necessary or proper to carry out more effectually
the purposes of this Indenture or to secure the rights and remedies hereunder of the Holders of the Securities of any series.
ARTICLE
4
REMEDIES
OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
Section
4.01 Event of Default Defined; Acceleration of Maturity; Waiver of Default. “Event of Default”
with respect to Securities of any series wherever used herein, means any one of the following events which shall have occurred
and be continuing (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative
or governmental body):
(a)
default by the Issuer in the payment of any installment of interest upon any of the Securities of such series as and when the
same shall become due and payable, and continuance of such default for a period of 30 days;
(b)
default by the Issuer in the payment of all or any part of the Principal on any of the Securities of such series as and when the
same shall become due and payable either at maturity, upon redemption, by declaration or otherwise, and continuance of such default
for a period of five days;
(c)
default by the Issuer in the performance, or breach by the Issuer, of any of its covenants or agreements in respect of the Securities
of such series (other than a covenant or agreement in respect of the Securities of such series a default in whose performance
or whose breach is elsewhere in this section specifically dealt with), and continuance of such default or breach for a period
of 30 consecutive days after there has been given, by registered or certified mail, to the Issuer by the Trustee or to the Issuer
and the Trustee by the Holders of at least 25% in Principal amount of the Outstanding Securities of all series affected thereby,
a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a notice of
default hereunder;
(d)
the entry by a court having jurisdiction in the premises of a decree or order for relief in respect of the Issuer in an involuntary
case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or the appointment of a receiver,
liquidator, assignee, custodian, trustee or sequestrator (or similar official) of the Issuer or for any substantial part of the
Issuer’s property and assets or the ordering of the winding up or liquidation of the Issuer’s affairs, and the continuance
of any such decree or order unstayed and in effect for a period of 90 consecutive days;
(e)
the commencement by the Issuer of a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter
in effect, or the consent by the Issuer to the entry of an order for relief in an involuntary case under any such law, or the
consent by the Issuer to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee or sequestrator
(or similar official) of the Issuer or for any substantial part of the Issuer’s property, or the making of any general assignment
by the Issuer for the benefit of creditors; or
(f)
any other Event of Default provided in the supplemental indenture or resolution of the Board of Directors under which such series
of Securities is issued or in the form of Security for such series.
If
an Event of Default described in clauses 4.01(a), 4.01(b), 4.01(c) or 4.01(f) occurs and is continuing, then, and in each and
every such case, unless the Principal of all of the Securities of such series shall have already become due and payable, either
the Trustee or the Holders of not less than 25% in aggregate Principal amount of the Securities of any affected series then Outstanding
hereunder (each such series voting as a separate class) by notice in writing to the Issuer (and to the Trustee if given by Securityholders),
may declare the entire Principal (or, if the Securities of such series are Original Issue Discount Securities, such portion of
the Principal amount as may be specified in the terms of such series) of all Securities of such series and the interest accrued
thereon, if any, to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable.
If an Event of Default described in clauses Section 4.01(d) or Section 4.01(e) occurs and is continuing, then the Principal amount
of all the Securities then Outstanding and interest accrued thereon, if any, shall be and become immediately due and payable,
without any notice or other action by any Holder or the Trustee, to the full extent permitted by applicable law.
The
foregoing provisions, however, are subject to the condition that if, at any time after the Principal (or, if the Securities are
Original Issue Discount Securities, such portion of the Principal as may be specified in the terms thereof) of the Securities
of any series (or of all the Securities, as the case may be) shall have been so declared due and payable, and before any judgment
or decree for the payment of the monies due shall have been obtained or entered as hereinafter provided, the Issuer shall pay
or shall deposit with the Trustee a sum sufficient to pay all matured installments of interest upon all the Securities of such
series (or of all the Securities, as the case may be) and the Principal of any and all Securities of such series (or of all the
Securities, as the case may be) which shall have become due otherwise than by acceleration (with interest upon such Principal
and, to the extent that payment of such interest is enforceable under applicable law, on overdue installments of interest, at
the same rate as the rate of interest or Yield to Maturity (in the case of Original Issue Discount Securities) specified in the
Securities of such series (or at the respective rates of interest or Yields to Maturity of all the Securities, as the case may
be) to the date of such payment or deposit) and such amount as shall be sufficient to cover reasonable compensation to the Trustee,
its agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the Trustee except
as a result of negligence or bad faith, and if any and all Events of Default under the Indenture, other than the non-payment of
the Principal of Securities which shall have become due by acceleration, shall have been cured, waived or otherwise remedied as
provided herein, then and in every such case the Holders of a majority in aggregate Principal amount of all the then Outstanding
Securities of all such series that have been accelerated, each such series voting as a separate class, by written notice to the
Issuer and to the Trustee, may waive all defaults with respect to such series (or with respect to all the Securities, as the case
may be) and rescind and annul such declaration and its consequences, but no such waiver or rescission and annulment shall extend
to or shall affect any subsequent default or shall impair any right consequent thereon.
For
all purposes under this Indenture, if a portion of the Principal of any Original Issue Discount Securities shall have been accelerated
and declared due and payable pursuant to the provisions hereof, then, from and after such declaration, unless such declaration
has been rescinded and annulled, the Principal amount of such Original Issue Discount Securities shall be deemed, for all purposes
hereunder, to be such Portion of the Principal thereof as shall be due and payable as a result of such acceleration, and payment
of such portion of the Principal thereof as shall be due and payable as a result of such acceleration, together with interest,
if any, thereon and all other amounts owing thereunder, shall constitute payment in full of such Original Issue Discount Securities.
Section
4.02 Collection of Indebtedness by Trustee; Trustee May Prove Debt. The Issuer covenants that (h) in case default
shall be made in the payment of any installment of interest on any of the Securities of any series when such interest shall have
become due and payable, and such default shall have continued for a period of 30 days or (i) in case default shall be made in
the payment of all or any part of the Principal of any of the Securities of any series when the same shall have become due and
payable, whether upon maturity of the Securities of such series or upon any redemption or by declaration or otherwise, then in
each case upon demand of the Trustee, the Issuer will pay to the Trustee for the benefit of the Holders of the Securities of such
series (x) the whole amount that then shall have become due and payable on all Securities of such series for Principal or interest,
as the case may be (with interest to the date of such payment upon the overdue Principal and, to the extent that payment of such
interest is enforceable under applicable law, on overdue installments of interest at the same rate as the rate of interest or
Yield to Maturity (in the case of Original Issue Discount Securities) specified in the Securities of such series) and (y) in addition
thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including reasonable compensation
to the Trustee and each predecessor Trustee, their respective agents and counsel, and any expenses and liabilities incurred, and
all advances made, by the Trustee and each predecessor Trustee except as a result of its negligence or bad faith.
Until
such demand is made by the Trustee, the Issuer may pay the Principal of and interest on the Securities of any series to the registered
Holders, whether or not the Principal of and interest on the Securities of such series be overdue.
In
case the Issuer shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express
trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums
so due and unpaid, and may prosecute any such action or proceedings to judgment or final decree, and may enforce any such judgment
or final decree against the Issuer or other obligor upon such Securities and collect in the manner provided by law out of the
property of the Issuer or other obligor upon such Securities, wherever situated, the monies adjudged or decreed to be payable.
In
case there shall be pending proceedings relative to the Issuer or any other obligor upon the Securities under Title 11 of the
United States Code or any other applicable Federal or state bankruptcy, insolvency or other similar law, or in case a receiver,
assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for
or taken possession of the Issuer or its property or such other obligor, or in case of any other comparable judicial proceedings
relative to the Issuer or other obligor upon the Securities of any series, or to the creditors or property of the Issuer or such
other obligor, the Trustee, irrespective of whether the Principal of any Securities shall then be due and payable as therein expressed
or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand pursuant to the provisions of
this Section, shall be entitled and empowered, by intervention in such proceedings or otherwise:
(a)
to file and prove a claim or claims for the whole amount of Principal and interest (or, if the Securities of any series are Original
Issue Discount Securities, such portion of the Principal amount as may be specified in the terms of such series) owing and unpaid
in respect of the Securities of any series, and to file such other papers or documents as may be necessary or advisable in order
to have the claims of the Trustee (including any claim for reasonable compensation to the Trustee and each predecessor Trustee,
and their respective agents, attorneys and counsel, and for reimbursement of all expenses and liabilities incurred, and all advances
made, by the Trustee and each predecessor Trustee, except as a result of negligence or bad faith) and of the Securityholders allowed
in any judicial proceedings relative to the Issuer or other obligor upon the Securities of any series, or to the creditors or
property of the Issuer or such other obligor;
(b)
unless prohibited by applicable law and regulations, to vote on behalf of the Holders of the Securities of any series in any election
of a trustee or a standby trustee in arrangement, reorganization, liquidation or other bankruptcy or insolvency proceedings or
person performing similar functions in comparable proceedings; and
(c)
to collect and receive any monies or other property payable or deliverable on any such claims, and to distribute all amounts received
with respect to the claims of the Securityholders and of the Trustee on their behalf; and any trustee, receiver, or liquidator,
custodian or other similar official is hereby authorized by each of the Securityholders to make payments to the Trustee, and,
in the event that the Trustee shall consent to the making of payments directly to the Securityholders, to pay to the Trustee such
amounts as shall be sufficient to cover reasonable compensation to the Trustee, each predecessor Trustee and their respective
agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the Trustee and each
predecessor Trustee except as a result of negligence or bad faith and all other amounts due to the Trustee or any predecessor
Trustee pursuant to Section 5.06.
Nothing
herein contained shall be deemed to authorize the Trustee to authorize or consent to or vote for or accept or adopt on behalf
of any Securityholder any plan of reorganization, arrangement, adjustment or composition affecting the Securities of any series
or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Securityholder in any
such proceeding except, as aforesaid, to vote for the election of a trustee in bankruptcy or similar person.
All
rights of action and of asserting claims under this Indenture, or under any of the Securities, may be enforced by the Trustee
without the possession of any of the Securities or the production thereof on any trial or other proceedings relative thereto,
and any such action or proceedings instituted by the Trustee shall be brought in its own name as trustee of an express trust,
and any recovery of judgment, subject to the payment of the expenses, disbursements and compensation of the Trustee, each predecessor
Trustee and their respective agents and attorneys, shall be for the ratable benefit of the Holders of the Securities in respect
of which such action was taken.
In
any proceedings brought by the Trustee (and also any proceedings involving the interpretation of any provision of this Indenture
to which the Trustee shall be a party) the Trustee shall be held to represent all the Holders of the Securities in respect to
which such action was taken, and it shall not be necessary to make any Holders of such Securities parties to any such proceedings.
Section
4.03 Application of Proceeds. Any monies collected by the Trustee pursuant to this Article in respect of any series
shall be applied in the following order at the date or dates fixed by the Trustee and, in case of the distribution of such monies
on account of Principal or interest, upon presentation of the several Securities in respect of which monies have been collected
and stamping (or otherwise noting) thereon the payment, or issuing Securities of such series in reduced Principal amounts in exchange
for the presented Securities of like series if only partially paid, or upon surrender thereof if fully paid:
FIRST:
To the payment of costs and expenses applicable to such series in respect of which monies have been collected, including reasonable
compensation to the Trustee and each predecessor Trustee and their respective agents and attorneys and of all expenses and liabilities
incurred, and all advances made, by the Trustee and each predecessor Trustee except as a result of negligence or bad faith, and
all other amounts due to the Trustee or any predecessor Trustee pursuant to Section 5.06;
SECOND:
In case the Principal of the Securities of such series in respect of which monies have been collected shall not have become and
be then due and payable, to the payment of interest on the Securities of such series in default in the order of the maturity of
the installments of such interest, with interest (to the extent that such interest has been collected by the Trustee) upon the
overdue installments of interest at the same rate as the rate of interest or Yield to Maturity (in the case of Original Issue
Discount Securities) specified in such Securities, such payments to be made ratably to the persons entitled thereto, without discrimination
or preference;
THIRD:
In case the Principal of the Securities of such series in respect of which monies have been collected shall have become and shall
be then due and payable, to the payment of the whole amount then owing and unpaid upon all the Securities of such series for Principal
and interest, with interest upon the overdue Principal, and (to the extent that such interest has been collected by the Trustee)
upon overdue installments of interest at the same rate as the rate of interest or Yield to Maturity (in the case of Original Issue
Discount Securities) specified in the Securities of such series; and in case such monies shall be insufficient to pay in full
the whole amount so due and unpaid upon the Securities of such series, then to the payment of such Principal and interest or yield
to maturity, without preference or priority of Principal over interest or yield to maturity, or of interest or yield to maturity
over Principal, or of any installment of interest over any other installment of interest, or of any Security of such series over
any other Security of such series, ratably to the aggregate of such Principal and accrued and unpaid interest or yield to maturity;
and
FOURTH:
To the payment of the remainder, if any, to the Issuer or any other person lawfully entitled thereto.
Section
4.04 Suits for Enforcement. In case an Event of Default has occurred, has not been waived and is continuing, the
Trustee may proceed to protect and enforce the rights vested in it by this Indenture, either at law or in equity or in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in
aid of the exercise of any power granted in this Indenture or to enforce any other legal or equitable right vested in the
Trustee by this Indenture or by law.
Section
4.05 Restoration of Rights on Abandonment of Proceedings. In case the Trustee shall have proceeded to enforce any
right under this Indenture and such proceedings shall have been discontinued or abandoned for any reason, or shall have been
determined adversely to the Trustee, then and in every such case the Issuer and the Trustee shall be restored respectively to
their former positions and rights hereunder, and all rights, remedies and powers of the Issuer, the Trustee and the
Securityholders shall continue as though no such proceedings had been taken.
Section
4.06 Limitations on Suits by Securityholder. No Holder of any Security of any series shall have any right by virtue
or by availing of any provision of this Indenture to institute any action or proceeding at law or in equity or in bankruptcy or
otherwise upon or under or with respect to this Indenture, or for the appointment of a trustee, receiver, liquidator, custodian
or other similar official or for any other remedy hereunder, unless such Holder previously shall have given to the Trustee written
notice of an Event of Default and of the continuance thereof, as hereinbefore provided, and unless also the Holders of not less
than 25% in aggregate Principal amount of the Securities of such series then outstanding shall have made written request upon
the Trustee to institute such action or proceedings in respect of such Event of Default in its own name as trustee hereunder and
shall have offered to the Trustee indemnity satisfactory to the Trustee against the costs, expenses and liabilities to be incurred
therein or thereby and the Trustee for 60 days after its receipt of such notice, request and offer of indemnity shall have failed
to institute any such action or proceeding and no direction inconsistent with such written request shall have been given to the
Trustee pursuant to Section 4.09; it being understood and intended, and being expressly covenanted by the Holder of every Security
with every other Holder and the Trustee, that no one or more Holders of Securities of any series shall have any right in any manner
whatever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of any other such
Holder of Securities, or to obtain or seek to obtain priority over or preference to any other such Holder or to enforce any right
under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all Holders of Securities
of the applicable series. For the protection and enforcement of the provisions of this Section, each and every Securityholder
and the Trustee shall be entitled to such relief as can be given either at law or in equity.
Section
4.07 Unconditional Right of Securityholders to Institute Certain Suits. Notwithstanding any other provision in this
Indenture and any provision of any Security, the right of any Holder of any Security to receive payment of the Principal of
or interest on such Security on or after the respective due dates expressed in such Security, or to institute suit for the
enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of
such Holder.
Section
4.08 Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default. Except as provided in Section 4.06, no
right or remedy herein conferred upon or reserved to the Trustee or to the Securityholders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.
No
delay or omission of the Trustee or of any Securityholder to exercise any right or power accruing upon any Event of Default occurring
and continuing as aforesaid shall impair any such right or power or shall be construed to be a waiver of any such Event of Default
or an acquiescence therein; and, subject to Section 4.06, every power and remedy given by this Indenture or by law to the Trustee
or to the Securityholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by
the Securityholders.
Section
4.09 Control by Securityholders. The Holders of a majority in aggregate Principal amount of the Securities of each
series affected (with each series voting as a separate class) at the time outstanding shall have the right to direct the
time, method, and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred on the Trustee with respect to the Securities of such series by this Indenture; provided that such direction
shall not be otherwise than in accordance with law and the provisions of this Indenture and provided further that (subject to
the provisions of Section 5.01) the Trustee shall have the right to decline to follow any such direction if the Trustee,
being advised by counsel, shall determine that the action or proceeding so directed may not lawfully be taken or if the
Trustee in good faith by its board of directors, the executive committee, or a trust committee of directors or Responsible
Officers of the Trustee shall determine that the action or proceedings so directed would subject the Trustee to personal
liability or if the Trustee in good faith shall so determine that the actions or forbearances specified in or pursuant to
such direction would be unduly prejudicial to the interests of Holders of the Securities of all series so affected not
joining in the giving of said direction.
Nothing
in this Indenture shall impair the right of the Trustee to take any action which is not inconsistent with such direction or directions
by Securityholders.
Section
4.10 Waiver of Past Defaults. Prior to a declaration of the acceleration of the maturity of the Securities of any
series as provided in Section 4.01, the Holders of a majority in aggregate Principal amount of the Securities of such series
at the time Outstanding (each such series voting as a separate class) may on behalf of the Holders of all the Securities of
such series waive an existing default or Event of Default, except a default in the payment of Principal of or interest on any
Security as specified in clauses (a) or (b) of Section 4.01 or in respect of a covenant or provision hereof which cannot be
modified or amended without the consent of each Holder affected as provided in Section 7.02. In the case of any such waiver,
the Issuer, the Trustee and the Holders of the Securities of each series affected shall be restored to their former positions
and rights hereunder, respectively.
Upon
any such waiver, such default shall cease to exist and be deemed to have been cured and not to have occurred, and any Event of
Default arising therefrom shall be deemed to have been cured, and not to have occurred for every purpose of this Indenture; but
no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon.
Section
4.11 Trustee to Give Notice of Default, But May Withhold in Certain Circumstances. The Trustee shall give to the
Securityholders of any series, as the names and addresses of such Holders appear on the registry books, notice by mail of all
defaults known to Responsible Officers of the Trustee which have occurred with respect to such series, such notice to be
transmitted within 90 days after the occurrence thereof, unless such defaults shall have been cured before the giving of such
notice (the term “default” or “defaults” for the purposes of this section being hereby defined to
mean any event or condition which is, or with notice or lapse of time or both would become, an Event of
Default); provided that, except in the case of default in the payment of the Principal of or interest on any
of the Securities of such series, the Trustee shall be protected in withholding such notice if and so long as the board of
directors, the executive committee, or a trust committee of directors or trustees and/or Responsible Officers of the Trustee
in good faith determines that the withholding of such notice is in the interests of the Securityholders of such
series.
Section
4.12 Right of Court to Require Filing of Undertaking to Pay Costs. All parties to this Indenture agree, and each
Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for
any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to
pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable
attorneys’ fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith
of the claims or defenses made by such party litigant; provided that the provisions of this Section 4.12 shall not apply to
(i) any suit instituted by the Trustee, (ii) any suit instituted by any Securityholder or group of Securityholders of any
series holding in the aggregate more than 10% in aggregate Principal amount of the Securities of such series or (iii) any
suit instituted by a Holder pursuant to Section 4.07.
ARTICLE
5
CONCERNING
THE TRUSTEE
Section
5.01 Duties and Responsibilities of the Trustee. With respect to the Holders of any series of Securities issued
hereunder, the Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a particular series
and after the curing or waiving of all Events of Default which may have occurred with respect to such series, undertakes to
perform such duties and only such duties as are specifically set forth in this Indenture. In case an Event of Default with
respect to the Securities of a series has occurred (which has not been cured or waived) the Trustee shall exercise such of
the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a
prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.
(a)
Prior to the occurrence of an Event of Default with respect to the Securities of any series and after the curing or waiving of
all such Events of Default with respect to such series which may have occurred:
(i)
the duties and obligations of the Trustee with respect to the Securities of any Series shall be determined solely by the express
provisions of this Indenture, and the Trustee shall not be liable except for the performance of such duties and obligations as
are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against
the Trustee; and
(ii)
in the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and
the correctness of the opinions expressed therein, upon any statements, certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture; but in the case of any such statements, certificates or opinions which by any
provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same
to determine whether or not they conform to the requirements of this Indenture.
(b)
No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own
negligent failure to act or its own willful misconduct, except that:
(i)
this subsection (b) shall not be construed to limit the effect of subsection (a) of this Section 5.01;
(ii)
the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Responsible Officers
of the Trustee, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; and
(iii)
the Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it in good faith in accordance
with the direction of the Holders relating to the time, method and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture.
None
of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal
financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if there shall
be reasonable ground for believing that the repayment of such funds or adequate indemnity against such liability is not reasonably
assured to it.
The
provisions of this Section 5.01 are in furtherance of and subject to Sections 315 and 316 of the Trust Indenture Act of 1939.
Whether
or not therein expressly provided, every provision of this Indenture relating to the conduct of, affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this Section 5.01.
Section
5.02 Certain Rights of the Trustee. In furtherance of and subject to the Trust Indenture Act of 1939, and subject
to Section 5.01:
(a)
In the absence of bad faith on its part, the Trustee may conclusively rely and shall be protected in acting or refraining from
acting upon any resolution, Officers’ Certificate or any other certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, coupon, security or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties;
(b)
any request, direction, order or demand of the Issuer mentioned herein shall be sufficiently evidenced by an Officers’ Certificate
(unless other evidence in respect thereof be herein specifically prescribed); and any resolution of the Board of Directors may
be evidenced to the Trustee by a copy thereof certified by the secretary or an assistant secretary of the Issuer;
(c)
the Trustee may consult with counsel of its selection and any advice or Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted to be taken by it hereunder in good faith and in accordance
with such advice or Opinion of Counsel;
(d)
the Trustee shall be under no obligation to exercise any of the trusts or powers vested in it by this Indenture at the request,
order or direction of any of the Securityholders pursuant to the provisions of this Indenture, unless such Securityholders shall
have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which might be incurred
by it in connection with such request, order or direction;
(e)
the Trustee shall not be liable for any action taken or omitted by it in good faith and believed by it to be authorized or within
the discretion, rights or powers conferred upon it by this Indenture;
(f)
prior to the occurrence of an Event of Default hereunder and after the curing or waiving of all Events of Default, the Trustee
shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, appraisal, bond, debenture, note, coupon, security, or other paper
or document unless requested in writing so to do by the Holders of not less than a majority in aggregate Principal amount of the
Securities of all series affected then outstanding; provided that, if the payment within a reasonable time to the Trustee of the
costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee,
not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require indemnity
satisfactory to it against such expenses or liabilities as a condition to proceeding, and the reasonable expenses of every such
investigation shall be paid by the Issuer or, if paid by the Trustee or any predecessor trustee, shall be repaid by the Issuer
upon demand;
(g)
the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through
agents or attorneys not regularly in its employ and the Trustee shall not be responsible for any misconduct or negligence on the
part of any such agent or attorney appointed with due care by it hereunder;
(h)
the Trustee shall not be liable for any action taken, suffered or omitted in good faith and believed by it to be authorized or
within the discretion, rights or powers conferred upon it by this Indenture;
(i)
the Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee
has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee
at the Corporate Trust Office of the Trustee, and such notice references the Securities and this Indenture;
(j)
the rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to
be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent,
custodian and other Person employed to act hereunder; and
(k)
the Trustee may request that the Issuer deliver an Officers’ Certificate setting forth the names of individuals and/or titles
of officers authorized at such time to take specified actions pursuant to this Indenture, which Officers’ Certificate may
be signed by any person authorized to sign an Officers’ Certificate, including any person specified as so authorized in
any such certificate previously delivered and not superseded.
Section
5.03 Trustee Not Responsible for Recitals, Disposition of Securities or Application of Proceeds Thereof. The recitals contained
herein and in the Securities, except the Trustee’s certificates of authentication, shall be taken as the statements of the
Issuer, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no representation as to the
validity or sufficiency of this Indenture or the Securities. The Trustee shall not be accountable for the use or application by
the Issuer of any of the Securities or of the proceeds thereof.
Section
5.04 Trustee and Agents May Hold Securities; Collections, etc. The Trustee or any agent of the Issuer or the Trustee, in
its individual or any other capacity, may become the owner or pledgee of Securities with the same rights it would have if it were
not the Trustee or such agent and may otherwise deal with the Issuer and receive, collect, hold and retain collections from the
Issuer with the same rights it would have if it were not the Trustee or such agent.
Section
5.05 Monies Held by Trustee. All monies received by the Trustee in trust hereunder need not be segregated from other funds
except to the extent required by mandatory provisions of law. Neither the Trustee nor any agent of the Issuer or the Trustee shall
be under any liability for interest on any monies received by it hereunder.
Section
5.06 Compensation and Indemnification of Trustee and Its Prior Claim. The Issuer covenants and agrees to pay to the Trustee
from time to time, and the Trustee shall be entitled to, such compensation as shall be agreed in writing from time to time by
the Issuer and the Trustee (which shall not be limited by any provision of law in regard to the compensation of a trustee of an
express trust) and the Issuer covenants and agrees to pay or reimburse the Trustee and each predecessor Trustee upon its request
for all reasonable expenses, disbursements and advances incurred or made by or on behalf of it in accordance with any of the provisions
of this Indenture (including the reasonable compensation and the expenses and disbursements of its counsel and of all agents and
other persons not regularly in its employ) except to the extent any such expense, disbursement or advance may arise from its negligence
or bad faith. The Issuer also covenants and agrees to indemnify the Trustee and each predecessor Trustee for, and to hold it harmless
against, any loss, liability or expense arising out of or in connection with the acceptance or administration of this Indenture
or the trusts hereunder and the performance of its duties hereunder, including the costs and expenses of defending itself against
or investigating any claim of liability (whether asserted by the Issuer, a Holder or any other Person) in the premises, except
to the extent such loss, liability or expense is due to the negligence or bad faith of the Trustee or such predecessor Trustee.
The obligations of the Issuer under this section to compensate and indemnify the Trustee and each predecessor Trustee and to pay
or reimburse the Trustee and each predecessor Trustee for expenses, disbursements and advances shall constitute additional indebtedness
hereunder and shall survive the satisfaction and discharge of this Indenture or the resignation or removal of the Trustee. Such
additional indebtedness shall be a senior claim and lien to that of the Securities upon all property and funds held or collected
by the Trustee as such, except funds held in trust for the benefit of the Holders of particular Securities, and the Securities
are hereby subordinated to such senior claim. The parties agree that if the Trustee renders services following an Event of Default
under Section 4.01(d) or 4.01(e), compensation for such services is intended to constitute administrative expense under any bankruptcy
law.
Section
5.07 Right of Trustee to Rely on Officers’ Certificate, etc. Subject to Section 5.01 and 5.02, whenever in the administration
of the trusts of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior
to taking or suffering or omitting any action hereunder, such matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and
established by an Officers’ Certificate delivered to the Trustee, and such certificate, in the absence of negligence or
bad faith on the part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted by it under
the provisions of this Indenture upon the faith thereof.
Section
5.08 Persons Eligible for Appointment as Trustee. The Trustee for each series of Securities hereunder shall at all times
be a corporation which is eligible in accordance with the provisions of Section 310(a) of the Trust Indenture Act of 1939 and
which has (or which is a Wholly-Owned Subsidiary, directly or indirectly, of a bank holding company which has) a combined capital
and surplus of $50,000,000. If such corporation or holding company publishes reports of condition at least annually, pursuant
to law or to the requirements of a Federal, State or District of Columbia supervising or examining authority, then for the purposes
of this Section, the combined capital and surplus of such corporation or holding company shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published.
Section
5.09 Resignation and Removal; Appointment of Successor Trustee. (a) The Trustee, or any trustee or trustees hereafter appointed,
may at any time resign with respect to one or more or all series of Securities by giving written notice of resignation to the
Issuer. Upon receiving such notice of resignation, the Issuer shall promptly appoint a successor trustee or trustees with respect
to the applicable series by written instrument in duplicate, executed by authority of the Board of Directors, one copy of which
instrument shall be delivered to the resigning Trustee and one copy to the successor trustee or trustees. If no successor Trustee
shall have been so appointed with respect to any series and have accepted appointment within 30 days after the mailing of such
notice of resignation, the resigning Trustee may petition, at the expense of the Issuer, any court of competent jurisdiction for
the appointment of a successor Trustee, or any Securityholder who has been a bona fide Holder of a Security or Securities of the
applicable series for at least six months may, subject to the provisions of Section 4.12, on behalf of himself and all others
similarly situated, petition any such court for the appointment of a successor Trustee. Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, appoint a successor Trustee.
(b)
In case at any time any of the following shall occur:
(i)
the Trustee shall fail to comply with the provisions of Section 310(b) of the Trust Indenture Act of 1939 with respect to any
series of Securities after written request therefor by the Issuer or by any Securityholder who has been a bona fide Holder of
a Security or Securities of such series for at least six months;
(ii)
the Trustee shall cease to be eligible in accordance with the provisions of Section 310(a) of the Trust Indenture Act of 1939
and shall fail to resign after written request therefor by the Issuer or by any Securityholder; or
(iii)
the Trustee shall become incapable of acting with respect to any series of Securities, or shall be adjudged a bankrupt or insolvent,
or a receiver or liquidator of the Trustee or of its property shall be appointed, or any public officer shall take charge or control
of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation; then, in any such
case, the Issuer may remove the Trustee with respect to the applicable series of Securities and appoint a successor trustee for
such series by written instrument, in duplicate, executed by order of the Board of Directors of the Issuer, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the successor Trustee, or, subject to Section 315(e) of
the Trust Indenture Act of 1939, any Securityholder who has been a bona fide Holder of a Security or Securities of such series
for at least six months may on behalf of himself and all others similarly situated, petition any court of competent jurisdiction
for the removal of the Trustee and the appointment of a successor trustee with respect to such series. Such court may thereupon,
after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.
(c)
The Holders of a majority in aggregate Principal amount of the Securities of each series at the time outstanding may at any time
remove the Trustee with respect to Securities of such series and appoint a successor Trustee with respect to the Securities of
such series by delivering to the Trustee so removed, to the successor Trustee so appointed and to the Issuer the evidence provided
in Section 6.01 of the action in that regard taken by the Securityholders.
(d)
Any resignation or removal of the Trustee with respect to any series and any appointment of a successor trustee with respect to
such series pursuant to any of the provisions of this Section 5.09 shall become effective upon acceptance of appointment by the
successor trustee as provided in Section 5.10.
Section
5.10 Acceptance of Appointment by Successor. Any successor Trustee appointed as provided in Section 5.09 shall execute
and deliver to the Issuer and to its predecessor Trustee an instrument accepting such appointment hereunder, and thereupon the
resignation or removal of the predecessor Trustee with respect to all or any applicable series shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become vested with all rights, powers, duties and obligations
with respect to such series of its predecessor hereunder, with like effect as if originally named as Trustee for such series hereunder.
On the written request of the Issuer or of the successor Trustee, upon payment of its charges then unpaid, the Trustee ceasing
to act shall, subject to Section 5.06, pay over to the successor Trustee all monies at the time held by it hereunder and shall
execute and deliver an instrument transferring to such successor Trustee all such rights, powers, duties and obligations. Upon
request of any such successor Trustee, the Issuer shall execute any and all instruments in writing for more fully and certainly
vesting in and confirming to such successor Trustee all such rights and powers. Any Trustee ceasing to act shall, nevertheless,
retain a prior claim upon all property or funds held or collected by such Trustee to secure any amounts then due it pursuant to
the provisions of Section 5.06.
If
a successor Trustee is appointed with respect to the Securities of one or more (but not all) series, the Issuer, the predecessor
Trustee and each successor Trustee with respect to the Securities of any applicable series shall execute and deliver an indenture
supplemental hereto which shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights,
powers, trusts and duties of the predecessor Trustee with respect to the Securities of any series as to which the predecessor
Trustee is not retiring shall continue to be vested in the predecessor Trustee, and shall add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one
Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees
of the same trust and that each such Trustee shall be Trustee of a trust or trusts under separate indentures.
Upon
acceptance of appointment by any successor Trustee as provided in this Section 5.10, the Issuer shall mail notice thereof by first-class
mail to the Holders of Securities of any series for which such successor Trustee is acting as Trustee at their last addresses
as they shall appear in the Security register. If the acceptance of appointment is substantially contemporaneous with the resignation,
then the notice called for by the preceding sentence may be combined with the notice called for by Section 5.09. If the Issuer
fails to mail such notice within 10 days after acceptance of appointment by the successor Trustee, the successor Trustee shall
cause such notice to be mailed at the expense of the Issuer.
Section
5.11 Merger, Conversion, Consolidation or Succession to Business of Trustee. Any corporation into which the Trustee may
be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation
to which the Trustee shall be a party, or any corporation succeeding to all or substantially all the corporate trust business
of the Trustee, shall be the successor of the Trustee hereunder, provided that such corporation shall be eligible under the provisions
of Section 5.08, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding.
In
case at the time such successor to the Trustee shall succeed to the trusts created by this Indenture any of the Securities of
any series shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication
of any predecessor Trustee and deliver such Securities so authenticated; and, in case at that time any of the Securities of any
series shall not have been authenticated, any successor to the Trustee may authenticate such Securities either in the name of
any predecessor hereunder or in the name of the successor Trustee; and in all such cases such certificate shall have the full
force which it is anywhere in the Securities of such series or in this Indenture provided that the certificate of the Trustee
shall have; provided, that the right to adopt the certificate of authentication of any predecessor Trustee or to authenticate
Securities of any series in the name of any predecessor Trustee shall apply only to its successor or successors by merger, conversion
or consolidation.
Section
5.12 Reports to the Trustee. The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant thereto.
If required by Section 313(a) of the Trust Indenture Act, the Trustee shall, within sixty days after each May 15 following the
date of the initial issuance of Securities under this Indenture deliver to Holders a brief report, dated as of such May 15, which
complies with the provisions of such Section 313(a).
A
copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange,
if any, upon which the Securities are listed, with the Commission and with the Issuer. The Issuer will promptly notify the Trustee
when the Securities are listed on any stock exchange and of any delisting thereof.
ARTICLE
6
CONCERNING
THE SECURITYHOLDERS
Section
6.01 Evidence of Action Taken by Securityholders. Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by a specified percentage in Principal amount of the Securityholders
of any or all series may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such
specified percentage of Securityholders in person or by agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments are delivered to the Trustee. Proof of execution
of any instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject
to Section 5.01 and 5.02) conclusive in favor of the Trustee and the Issuer, if made in the manner provided in this Article.
Section
6.02 Proof of Execution of Instruments and of Holding of Securities; Record Date. Subject to Section 5.01 and 5.02, the
execution of any instrument by a Securityholder or his agent or proxy may be proved by the certificate of any notary public or
other officer authorized to take acknowledgment of deeds, that the Person executing such instrument acknowledged to such notary
public or other such officer the execution thereof, or by an affidavit of a witness to such execution sworn to before any such
notary public or other officer. Where such execution is by an officer of a corporation or association or a member of a partnership
on behalf of such corporation, association or partnership, as the case may be, or by any other Person acting in a representative
capacity, such certificate or affidavit shall also constitute sufficient proof of such Person’s authority. The holding of
Securities shall be proved by the Security register or by a certificate of the registrar thereof. The Issuer may set a record
date for purposes of determining the identity of Holders of Securities of any series entitled to vote or consent to any action
referred to in Section 6.01, which record date may be set at any time or from time to time by notice to the Trustee, for any date
or dates (in the case of any adjournment or reconsideration) not more than 60 days nor less than five days prior to the proposed
date of such vote or consent, and thereafter, notwithstanding any other provisions hereof, only Holders of Securities of such
series of record on such record date shall be entitled to so vote or give such consent or revoke such vote or consent.
Section
6.03 Holders to be Treated as Owners. Prior to due presentment of a Security for registration of transfer, the Issuer,
the Trustee and any agent of the Issuer or the Trustee may deem and treat the person in whose name any Security shall be registered
upon the Security register for such series as the absolute owner of such Security (whether or not such Security shall be overdue
and notwithstanding any notation of ownership or other writing thereon) for the purpose of receiving payment of or on account
of the Principal of and, subject to the provisions of this Indenture, interest on such Security and for all other purposes, and
neither the Issuer nor the Trustee nor any agent of the Issuer or the Trustee shall be affected by any notice to the contrary.
All such payments so made to any such person, or upon his order, shall be valid, and, to the extent of the sum or sums so paid,
effectual to satisfy and discharge the liability for monies payable upon any such Security.
Section
6.04 Securities Owned by Issuer Deemed Not Outstanding. In determining whether the Holders of the requisite aggregate Principal
amount of Outstanding Securities of any or all series have concurred in any direction, consent or waiver under this Indenture,
Securities which are owned by the Issuer or any other obligor on the Securities with respect to which such determination is being
made or by any person directly or indirectly controlling or controlled by or under direct or indirect common control with the
Issuer or any other obligor on the Securities with respect to which such determination is being made shall be disregarded and
deemed not to be Outstanding for the purpose of any such determination, except that for the purpose of determining whether the
Trustee shall be protected in relying on any such direction, consent or waiver only Securities as to which the Trustee has received
written notice are so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded
as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect
to such Securities and that the pledgee is not the Issuer or any other obligor upon the Securities or any person directly or indirectly
controlling or controlled by or under direct or indirect common control with the Issuer or any other obligor on the Securities.
In case of a dispute as to such right, the advice of counsel shall be full protection in respect of any decision made by the Trustee
in accordance with such advice. Upon request of the Trustee, the Issuer shall furnish to the Trustee promptly an Officers’
Certificate listing and identifying all Securities, if any, known by the Issuer to be owned or held by or for the account of any
of the above-described persons; and, subject to Section 5.01 and 5.02, the Trustee shall be entitled to accept such Officers’
Certificate as conclusive evidence of the facts therein set forth and of the fact that all Securities not listed therein are Outstanding
for the purpose of any such determination.
Section
6.05 Right of Revocation of Action Taken. At any time prior to (but not after) the evidencing to the Trustee, as provided
in Section 6.01, of the taking of any action by the Holders of the percentage in aggregate Principal amount of the Securities
of any or all series, as the case may be, specified in this Indenture in connection with such action, any Holder of a Security
the serial number of which is shown by the evidence to be included among the serial numbers of the Securities the Holders of which
have consented to such action may, by filing written notice at the Corporate Trust Office and upon proof of holding as provided
in this Article, revoke such action so far as concerns such Security. Except as aforesaid any such action taken by the Holder
of any Security shall be conclusive and binding upon such Holder and upon all future Holders and owners of such Security and of
any Securities issued in exchange or substitution therefor, irrespective of whether or not any notation in regard thereto is made
upon any such Security. Any action taken by the Holders of the percentage in aggregate Principal amount of the Securities of any
or all series, as the case may be, specified in this Indenture in connection with such action shall be conclusively binding upon
the Issuer, the Trustee and the Holders of all the Securities affected by such action.
ARTICLE
7
SUPPLEMENTAL
INDENTURES
Section
7.01 Supplemental Indentures Without Consent of Securityholders. The Issuer, when authorized by a resolution of its Board
of Directors certified to the Trustee, and the Trustee may from time to time and at any time enter into an indenture or indentures
supplemental hereto for one or more of the following purposes:
(a)
to evidence the succession of another corporation to the Issuer, or successive successions, and the assumption by the successor
corporation of the covenants, agreements and obligations of the Issuer pursuant to Article 8;
(b)
(i) to cure any ambiguity or to correct or supplement any provision contained herein or in any supplemental indenture which may
be defective or inconsistent with any other provision contained herein or in any supplemental indenture, (ii) to conform the terms
of Securities to the description thereof in the prospectus and prospectus supplement (or similar offering document) offering such
Securities or (iii) to make such other provisions in regard to matters or questions arising under this Indenture or under any
supplemental indenture as the Board of Directors may deem necessary or desirable and which shall not adversely affect the interests
of the Holders of the Securities in any material respect;
(c)
to establish the form or terms of Securities of any series as permitted by Section 2.01 and 2.03;
(d)
to evidence and provide for the acceptance of appointment hereunder by a successor trustee with respect to the Securities of one
or more series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one trustee, pursuant to the requirements of Section 5.10;
(e)
to comply with any requirements of the Commission in connection with the qualification of this Indenture under the Trust Indenture
Act of 1939;
(f)
to provide for uncertificated or Unregistered Securities and to make all appropriate changes for such purpose;
(g)
to make any change that would not reasonably be expected to adversely affect the rights of any Holder in any material respect;
(h)
to add to the covenants of the Issuer such new covenants, restrictions, conditions or provisions as its Board of Directors shall
consider to be for the protection of the Holders of Securities, and with respect to which the Trustee has received an Opinion
of Counsel to a similar effect, and to make the occurrence, or the occurrence and continuance, of a default in any such additional
covenants, restrictions, conditions or provisions an Event of Default; provided, that in respect of any such additional covenant,
restriction, condition or provision such supplemental indenture may provide for a particular period of grace after default (which
period may be shorter or longer than that allowed in the case of other defaults) or may provide for an immediate enforcement upon
such an Event of Default or may limit the remedies available to the Trustee upon such an Event of Default or may limit the right
of the Holders of a majority in aggregate Principal amount of the Securities of such series to waive such an Event of Default;
or
(i)
to make any change so long as no Securities are Outstanding.
The
Trustee is hereby authorized to join with the Issuer in the execution of any such supplemental indenture, to make any further
appropriate agreements and stipulations which may be therein contained and to accept the conveyance, transfer, assignment, mortgage
or pledge of any property thereunder, but the Trustee shall not be obligated to enter into any such supplemental indenture which
affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.
Any
supplemental indenture authorized by the provisions of this section may be executed without the consent of the Holders of any
of the Securities at the time outstanding, notwithstanding any of the provisions of Section 7.02.
Section
7.02 Supplemental Indentures With Consent of Securityholders. With the consent (evidenced as provided in Article 6) of
the Holders of not less than a majority in aggregate Principal amount of the Securities at the time Outstanding of all series
affected by such supplemental indenture (voting as one class), the Issuer, when authorized by a resolution of its Board of Directors,
and the Trustee may, from time to time and at any time, enter into an indenture or indentures supplemental hereto for the purpose
of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental
indenture or of modifying in any manner the rights of the Holders of the Securities of each such series; provided, that no such
supplemental indenture shall without the consent of each Holder affected thereby:
(a)
change the stated maturity of the Principal of, or the time of payment of any installment of interest on, such Holder’s
Security;
(b)
reduce the Principal thereof or the rate of interest thereon, or any premium payable with respect thereto;
(c)
change any place of payment where, or the currency in which, any Security or any premium or the interest thereon is payable;
(d)
change the provisions for calculating any redemption or repurchase price, including the definitions relating thereto;
(e)
make any change to Section 4.07 or Section 4.10 (except to include other provisions subject to Section 4.10);
(f)
reduce the percentage in Principal amount of outstanding Securities of the relevant series the consent of whose Holders is required
for any such supplemental indenture, for any waiver of compliance with any provisions of this Indenture or any defaults and their
consequences provided for in this Indenture;
(g)
alter or impair the right to convert any Security at the rate and upon the terms provided in Article 12;
(h)
waive a default in the payment of Principal of or interest on any Security of such Holder (except pursuant to a rescission of
acceleration pursuant to Section 4.01);
(i)
adversely affect the rights of such Holder under any mandatory redemption or repurchase provision or any right of redemption or
repurchase at the option of such Holder;
(j)
modify any of the provisions of this Section 7.02, except to increase any such percentage or to provide that certain other provisions
of this Indenture cannot be modified or waived without the consent of the Holder of each outstanding Security affected thereby;
or
(k)
change or waive any provision that, pursuant to a board resolution or indenture supplemental hereto establishing the terms of
one or more series of Securities, is prohibited to be so changed or waived.
Upon
the written request of the Issuer, accompanied by a copy of a resolution of the Board of Directors certified by the secretary
or an assistant secretary of the Issuer authorizing the execution of any such supplemental indenture, and upon the filing with
the Trustee of evidence of the consent of Securityholders as aforesaid and other documents, if any, required by Section 6.01,
the Trustee shall join with the Issuer in the execution of such supplemental indenture unless such supplemental indenture affects
the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion,
but shall not be obligated to, enter into such supplemental indenture.
It
shall not be necessary for the consent of the Securityholders under this section to approve the particular form of any proposed
supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof.
Promptly
after the execution by the Issuer and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the
Issuer shall mail a notice thereof by first class mail to the Holders of Securities of each series affected thereby at their addresses
as they shall appear on the registry books of the Issuer, setting forth in general terms the substance of such supplemental indenture.
Any failure of the Issuer to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity
of any such supplemental indenture.
Section
7.03 Effect of Supplemental Indenture. Upon the execution of any supplemental indenture pursuant to the provisions hereof,
this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations
of rights, obligations, duties and immunities under this Indenture of the Trustee, the Issuer and the Holders of Securities of
each series affected thereby shall thereafter be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be
part of the terms and conditions of this Indenture for any and all purposes.
Section
7.04 Documents to Be Given to Trustee. The Trustee, subject to the provisions of Section 5.01 and 5.02, may receive an
Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant
to this Article 7 complies with the applicable provisions of this Indenture.
Section
7.05 Notation on Securities in Respect of Supplemental Indentures. Securities of any series authenticated and delivered
after the execution of any supplemental indenture pursuant to the provisions of this Article may bear a notation in form approved
by the Trustee for such series as to any matter provided for by such supplemental indenture or as to any action taken at any such
meeting. If the Issuer or the Trustee shall so determine, new Securities of any series so modified as to conform, in the opinion
of the Trustee and the Board of Directors, to any modification of this Indenture contained in any such supplemental indenture
may be prepared by the Issuer, authenticated by the Trustee and delivered in exchange for the Securities of such series then outstanding.
ARTICLE
8
CONSOLIDATION,
MERGER, SALE OR CONVEYANCE
Section
8.01 Issuer May Consolidate, etc., on Certain Terms. The Issuer covenants that it will not merge or consolidate with any
other Person or sell, convey, transfer, lease or otherwise dispose of all or substantially all of its property and assets to any
Person (other than a consolidation with or merger with or into or a sale, conveyance, transfer, lease or other disposition to
a Wholly-Owned Subsidiary with a positive net worth; provided that, in connection with any such merger of the Issuer with
a Wholly-Owned Subsidiary, no consideration (other than common stock) in the surviving person or the Issuer shall be issued or
distributed to the stockholders of the Issuer), unless (xiv) either (x) the Issuer shall be the continuing corporation, or the
successor corporation or (y) the Person formed by such consolidation or into which the Issuer is merged or that acquires by sale
or conveyance substantially all the assets of the Issuer (if other than the Issuer) shall be a corporation or limited liability
company organized and validly existing under the laws of the United States of America or any jurisdiction thereof and shall expressly
assume the due and punctual payment of the Principal of and interest on all the Securities, according to their tenor, and the
due and punctual performance and observance of all of the covenants and conditions of this Indenture to be performed or observed
by the Issuer, by supplemental indenture satisfactory to the Trustee, executed and delivered to the Trustee by such Person, (xv)
immediately after giving effect to such transaction, no default or Event of Default shall have occurred and be continuing and
(xvi) the Issuer delivers to the Trustee an Officers’ Certificate and Opinion of Counsel, in each case stating that such
consolidation, merger or transfer and such supplemental indenture complies with this Section 8.01 and that all conditions precedent
provided for herein relating to such transaction have been complied with; provided, however, that the foregoing
limitations shall not apply if, in the good faith determination of the Board of Directors, whose determination shall be evidenced
by a board resolution certified to the Trustee, the principal purpose of such transaction is to change the state of incorporation
of the Issuer; and provided further that any such transaction shall not have as one of its purposes the evasion of the
foregoing limitations.
Section
8.02 Successor Corporation Substituted. In case of any such consolidation, merger, sale, conveyance, transfer, lease or
other disposition, and following such an assumption by the successor Person, such successor Person shall succeed to and be substituted
for the Issuer, with the same effect as if it had been named herein. Such successor Person may cause to be signed, and may issue
either in its own name or in the name of the Issuer prior to such succession any or all of the Securities issuable hereunder which
theretofore shall not have been signed by the Issuer and delivered to the Trustee; and, upon the order of such successor Person
instead of the Issuer and subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee, pursuant
to the terms hereof, shall authenticate and shall deliver any Securities which previously shall have been signed and delivered
by the officers of the Issuer to the Trustee for authentication, and any Securities which such successor Person thereafter shall
cause to be signed and delivered to the Trustee for that purpose. All of the Securities so issued shall in all respects have the
same legal rank and benefit under this Indenture as the Securities theretofore or thereafter issued in accordance with the terms
of this Indenture as though all of such Securities had been issued at the date of the execution hereof.
In
case of any such consolidation, merger, sale, conveyance, transfer, lease or other disposition, such changes in phraseology and
form (but not in substance) may be made in the Securities thereafter to be issued as may be appropriate.
Upon
the assumption by the successor Person in the manner described in this Article, the Issuer shall be discharged from all obligations
and covenants under this Indenture and the Securities.
ARTICLE
9
DISCHARGE
OF INDENTURE
Section
9.01 Defeasance Within One Year of Payment. Except as otherwise provided in this Section 9.01, the Issuer may terminate
its obligations under the Securities of any series and this Indenture with respect to Securities of such series if:
(a)
all Securities of such series previously authenticated and delivered (other than destroyed, lost or wrongfully taken Securities
of such series that have been replaced or Securities of such series for whose payment money or securities have theretofore been
held in trust and thereafter repaid to the Issuer, as provided in Section 9.05) have been delivered to the Trustee for cancellation
and the Issuer has paid all sums payable by it hereunder; or
(b)
(xviii) (A) the Securities of such series mature within one year or all of them are to be called for redemption within one year
under arrangements satisfactory to the Trustee for giving the notice of redemption, (B) the Issuer irrevocably deposits in trust
with the Trustee, as trust funds solely for the benefit of the Holders of such Securities for that purpose, money or U.S. Government
Obligations or a combination thereof sufficient (unless such funds consist solely of money, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification thereof delivered to the Trustee), without consideration
of any reinvestment and after payment of all Federal, state and local taxes or other charges and assessments in respect thereof
payable by the Trustee, to pay Principal of and interest on the Securities of such series to maturity or redemption, as the case
may be, and to pay all other sums payable by it hereunder and (C) the Issuer delivers to the Trustee an Officers’ Certificate
and an Opinion of Counsel, in each case stating that all conditions precedent provided for herein relating to the satisfaction
and discharge of this Indenture with respect to the Securities of such series have been complied with.
With
respect to the foregoing clause (i), only the Issuer’s obligations under Sections 5.06 and 9.05 in respect of the Securities
of such series shall survive. With respect to the foregoing clause (ii), only the Issuer’s obligations in Section 2.03 through
2.11, 3.02, 5.06, 5.09 and 9.05 in respect of the Securities of such series shall survive until such Securities of such series
are no longer outstanding. Thereafter, only the Issuer’s obligations in Section 5.06 and 9.05 in respect of the Securities
of such series shall survive. After any such irrevocable deposit, the Trustee shall acknowledge in writing the discharge of the
Issuer’s obligations under the Securities of such series and this Indenture with respect to the Securities of such series
except for those surviving obligations specified above.
Section
9.02 Defeasance. Except as provided below, the Issuer will be deemed to have paid and will be discharged from any and all
obligations in respect of the Securities of any series and the provisions of this Indenture will no longer be in effect with respect
to the Securities of such series (and the Trustee, at the expense of the Issuer, shall execute instruments in form and substance
satisfactory to the Issuer and the Trustee acknowledging the same) if the following conditions shall have been satisfied:
(a)
the Issuer has irrevocably deposited in trust with the Trustee as trust funds specifically pledged as security for, and dedicated
solely to, Holders of the Securities of such series, for payment of the Principal of and interest on the Securities of such series,
money or U.S. Government Obligations or a combination thereof sufficient (unless such funds consist solely of money, in the opinion
of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the
Trustee) without consideration of any reinvestment and after payment of all federal, state and local taxes or other charges and
assessments in respect thereof payable by the Trustee, to pay and discharge the Principal of and accrued interest on the outstanding
Securities of such series to maturity or earlier redemption (irrevocably provided for under arrangements satisfactory to the Trustee),
as the case may be;
(b)
such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other material
agreement or instrument to which the Issuer is a party or by which it is bound;
(c)
no default or Event of Default with respect to the Securities of such series shall have occurred and be continuing on the date
of such deposit;
(d)
the Issuer shall have delivered to the Trustee (1) either (x) a ruling directed to the Trustee received from the Internal Revenue
Service to the effect that the Holders of the Securities of such series will not recognize income, gain or loss for Federal income
tax purposes as a result of the Issuer’s exercise of its option under this Section 9.02 and will be subject to federal income
tax on the same amount and in the same manner and at the same times as would have been the case if such deposit and defeasance
had not occurred or (y) an Opinion of Counsel to the same effect as the ruling described in clause (x) above and based upon a
change in law and (2) an Opinion of Counsel to the effect that the Holders of the Securities of such series have a valid security
interest in the trust funds subject to no prior liens under the UCC; and
(e)
the Issuer has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, in each case stating that all
conditions precedent provided for herein relating to the defeasance contemplated by this Section 9.02 of the Securities of such
series have been complied with.
The
Issuer’s obligations in Section 2.03 through 2.11, 3.02, 5.06, 5.09 and 9.05 with respect to the Securities of such series
shall survive until such Securities are no longer outstanding. Thereafter, only the Issuer’s obligations in Section 5.06
and 9.05 shall survive.
Section
9.03 Covenant Defeasance. The Issuer may omit to comply with any term, provision or condition set forth in Section 3.04,
3.06 or 3.08 (or any other specific covenant relating to the Securities of any series provided for in a Board Resolution or supplemental
indenture pursuant to Section 2.03 which may by its terms be defeased pursuant to this Section 9.03), and such omission shall
be deemed not to be an Event of Default under clause (c) of Section 4.01, with respect to the outstanding Securities of such series
if:
(a)
the Issuer has irrevocably deposited in trust with the Trustee as trust funds solely for the benefit of the Holders of the Securities
of such series, for payment of the Principal of and interest, if any, on the Securities of such series, money or U.S. Government
Obligations or a combination thereof in an amount sufficient (unless such funds consist solely of money, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee) without
consideration of any reinvestment and after payment of all Federal, state and local taxes or other charges and assessments in
respect thereof payable by the Trustee, to pay and discharge the Principal of and interest on the outstanding Securities of such
series to maturity or earlier redemption (irrevocably provided for under arrangements satisfactory to the Trustee), as the case
may be;
(b)
such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other material
agreement or instrument to which the Issuer is a party or by which it is bound;
(c)
no default or Event of Default with respect to the Securities of such series shall have occurred and be continuing on the date
of such deposit;
(d)
the Issuer has delivered to the Trustee an Opinion of Counsel to the effect that (A) the Holders of the Securities of such series
have a valid security interest in the trust funds subject to no prior liens under the UCC and (B) such Holders will not recognize
income, gain or loss for Federal income tax purposes as a result of such deposit and covenant defeasance and will be subject to
federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit
and defeasance had not occurred; and
(e)
the Issuer has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, in each case stating that all
conditions precedent provided for herein relating to the covenant defeasance contemplated by this Section 9.03 of the Securities
of such series have been complied with.
Section
9.04 Application of Trust Money. Subject to Section 9.05, the Trustee or Paying Agent shall hold in trust money or U.S.
Government Obligations deposited with it pursuant to 9.01, 9.02, or 9.03, as the case may be, in respect of the Securities of
any series and shall apply the deposited money and the proceeds from deposited U.S. Government Obligations in accordance with
the Securities of such series and this Indenture to the payment of Principal of and interest on the Securities of such series;
provided that such money need not be segregated from other funds except to the extent required by law. The Issuer shall pay and
indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Government Obligations deposited
pursuant to 9.01, 9.02, or 9.03, as the case may be, or the Principal and interest received in respect thereof, other than any
such tax, fee or other charge that by law is for the account of the Holders.
Section
9.05 Repayment to Issuer. Subject to Section 5.06, 9.01, the Trustee and the Paying Agent shall promptly pay to the Issuer
upon request set forth in an Officers’ Certificate any money held by them at any time and not required to make payments
hereunder and thereupon shall be relieved from all liability with respect to such money. Subject to applicable escheat or abandoned
property laws, the Trustee and the Paying Agent shall pay to the Issuer upon written request any money held by them and required
to make payments hereunder under this Indenture that remains unclaimed for two years; provided that the Trustee or such
Paying Agent before being required to make any payment shall cause to be published at the expense of the Issuer once in an Authorized
Newspaper or mail to each Holder entitled to such money at such Holder’s address (as set forth in the register) notice that
such money remains unclaimed and that after a date specified therein (which shall be at least 30 days from the date of such publication
or mailing) any unclaimed balance of such money then remaining will be repaid to the Issuer. After payment to the Issuer, Holders
entitled to such money must look to the Issuer for payment as general creditors unless an abandoned property law designates another
Person, and all liability of the Trustee and such Paying Agent with respect to such money shall cease.
ARTICLE
10
MISCELLANEOUS
PROVISIONS
Section
10.01 Incorporators, Stockholders, Officers and Directors Exempt from Individual Liability. No recourse under or upon any
obligation, covenant or agreement contained in this Indenture or in any Security, or because of any indebtedness evidenced thereby,
shall be had against any incorporator, as such, or against any past, present or future stockholder, officer, director or employee,
as such, of the Issuer or of any successor Person thereof, either directly or through the Issuer or any successor Person thereof,
under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable
proceeding or otherwise, all such liability being expressly waived and released by the acceptance of the Securities by the Holders
thereof and as part of the consideration for the issue of the Securities.
Section
10.02 Provisions of Indenture for the Sole Benefit of Parties and Securityholders. Nothing in this Indenture or in the
Securities, expressed or implied, shall give or be construed to give to any person, firm or corporation, other than the parties
hereto and their successors and the Holders of the Securities, any legal or equitable right, remedy or claim under this Indenture
or under any covenant or provision herein contained, all such covenants and provisions being for the sole benefit of the parties
hereto and their successors and of the Holders of the Securities.
Section
10.03 Successors and Assigns of Issuer Bound by Indenture. All the covenants, stipulations, promises and agreements contained
in this Indenture by or on behalf of the Issuer shall bind its successors and assigns, whether so expressed or not.
Section
10.04 Notices and Demands on Issuer, Trustee and Securityholders. Any notice or demand which by any provision of this Indenture
is required or permitted to be given or served by the Trustee or by the Holders of Securities to or on the Issuer may be given
or served by being deposited postage prepaid, first-class mail (except as otherwise specifically provided herein) addressed (until
another address of the Issuer is filed by the Issuer with the Trustee) to Matinas Biopharma Holdings, Inc. at 1545 Route 206 South,
Suite 302, Bedminster, New Jersey 07921, Attention: Chief Financial Officer. Any notice, direction, request or demand by the Issuer
or any Securityholder to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given
or made at the Corporate Trust Office.
Where
this Indenture provides for notice to Holders, such notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder entitled thereto, at such Holder’s last address as
it appears in the Security register. In any case where notice to Holders is given by mail, neither the failure to mail such notice,
nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other
Holders. Where this Indenture provides for notice in any manner, such notice may be waived in writing by the person entitled to
receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice
by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken
in reliance upon such waiver.
In
case, by reason of the suspension of or irregularities in regular mail service, it shall be impracticable to mail notice to the
Issuer and Securityholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner
of giving such notice as shall be satisfactory to the Trustee shall be deemed to be a sufficient giving of such notice.
Section
10.05 Officers’ Certificates and Opinions of Counsel; Statements to be Contained Therein. Upon any application or
demand by the Issuer to the Trustee to take any action under any of the provisions of this Indenture, the Issuer shall furnish
to the Trustee an Officers’ Certificate stating that all conditions precedent provided for in this Indenture relating to
the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions
precedent have been complied with, except that in the case of any such application or demand as to which the furnishing of such
documents is specifically required by any provision of this Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.
Each
certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition
or covenant provided for in this Indenture shall include (a) a statement that the person making such certificate or opinion has
read such covenant or condition, (b) a brief statement as to the nature and scope of the examination or investigation upon which
the statements or opinions contained in such certificate or opinion are based, (c) a statement that, in the opinion of such person,
he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been complied with and (d) a statement as to whether or not, in the opinion of such person, such
condition or covenant has been complied with.
Any
certificate, statement or opinion of an officer of the Issuer may be based, insofar as it relates to legal matters, upon a certificate
or opinion of or representations by counsel, unless such officer knows that the certificate or opinion or representations with
respect to the matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise
of reasonable care should know that the same are erroneous. Any certificate, statement or opinion of counsel may be based, insofar
as it relates to factual matters, information with respect to which is in the possession of the Issuer, upon the certificate,
statement or opinion of or representations by an officer or officers of the Issuer, unless such counsel knows that the certificate,
statement or opinion or representations with respect to the matters upon which his certificate, statement or opinion may be based
as aforesaid are erroneous, or in the exercise of reasonable care should know that the same are erroneous.
Any
certificate, statement or opinion of an officer of the Issuer or of counsel may be based, insofar as it relates to accounting
matters, upon a certificate or opinion of or representations by an accountant or firm of accountants in the employ of the Issuer,
unless such officer or counsel, as the case may be, knows that the certificate or opinion or representations with respect to the
accounting matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise
of reasonable care should know that the same are erroneous.
Any
certificate or opinion of any independent firm of public accountants filed with the Trustee shall contain a statement that such
firm is independent.
Section
10.06 Payments Due on Saturdays, Sundays and Holidays. If the date of maturity of interest on or Principal of the Securities
of any series or the date fixed for redemption or repayment of any such Security shall not be a Business Day, then payment of
interest or Principal need not be made on such date, but may be made on the next succeeding Business Day with the same force and
effect as if made on the date of maturity or the date fixed for redemption, and no interest shall accrue for the period after
such date.
Section
10.07 Conflict of Any Provision of Indenture with Trust Indenture Act of 1939. If and to the extent that any provision
of this Indenture limits, qualifies or conflicts with another provision incorporated in this Indenture by operation of Sections
310 to 317, inclusive, of the Trust Indenture Act of 1939, such incorporated provision shall control.
Section
10.08 New York Law to Govern. This Indenture and each Security shall be deemed to be a contract under the laws of the State
of New York, and for all purposes shall be construed in accordance with the laws of such State.
Section
10.09 Counterparts. This Indenture may be executed in any number of counterparts, each of which shall be an original; but
such counterparts shall together constitute but one and the same instrument.
Section
10.10 Effect of Headings. The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.
ARTICLE
11
REDEMPTION
OF SECURITIES
Section
11.01 Applicability of Article. The provisions of this Article shall be applicable to the Securities of any series which
are redeemable before their maturity except as otherwise specified as contemplated by Section 2.03 for Securities of such series.
Section
11.02 Notice of Redemption; Partial Redemptions. Notice of redemption to the Holders of Securities of any series to be
redeemed as a whole or in part at the option of the Issuer shall be given by mailing notice of such redemption by first class
mail, postage prepaid, at least 30 days and not more than 60 days prior to the date fixed for redemption to such Holders of Securities
of such series at their last addresses as they shall appear upon the registry books. Any notice which is mailed in the manner
herein provided shall be conclusively presumed to have been duly given, whether or not the Holder receives the notice. Failure
to give notice by mail, or any defect in the notice to the Holder of any Security of a series designated for redemption as a whole
or in part shall not affect the validity of the proceedings for the redemption of any other Security of such series.
The
notice of redemption to each such Holder shall specify the CUSIP numbers of such Securities to be redeemed, the Principal amount
of each Security of such series held by such Holder to be redeemed, the date fixed for redemption, the redemption price, the place
or places of payment, that payment will be made upon presentation and surrender of such Securities, that interest accrued to the
date fixed for redemption will be paid as specified in such notice and that on and after said date interest thereon or on the
portions thereof to be redeemed will cease to accrue. In case any Security of a series is to be redeemed in part only the notice
of redemption shall state the portion of the Principal amount thereof to be redeemed, the method the Trustee shall use to determine
such Securities to be redeemed as specified in the last paragraph of this Section 11.02, if applicable, and shall state that on
and after the date fixed for redemption, upon surrender of such Security, a new Security or Securities of such series in Principal
amount equal to the unredeemed portion thereof will be issued.
The
notice of redemption of Securities of any series to be redeemed at the option of the Issuer shall be given by the Issuer or, at
the Issuer’s written request, by the Trustee in the name and at the expense of the Issuer.
By
11:00 a.m. (New York City time) on the redemption date specified in the notice of redemption given as provided in this Section,
the Issuer will deposit with the Trustee or with one or more paying agents (or, if the Issuer is acting as its own paying agent,
set aside, segregate and hold in trust as provided in Section 3.03) an amount of money sufficient to redeem on the redemption
date all the Securities of such series so called for redemption at the appropriate redemption price, together with accrued interest
to the date fixed for redemption. If less than all the outstanding Securities of a series are to be redeemed, the Issuer will
deliver to the Trustee at least 70 days (unless a shorter period shall be satisfactory to the Trustee) prior to the date fixed
for redemption an Officers’ Certificate stating the aggregate Principal amount of Securities to be redeemed.
In
the case of the redemption of all of the Securities of a series outstanding, the Issuer shall notify the Trustee in writing of
the redemption date 45 days (unless a shorter period shall be satisfactory to the Trustee) prior to the redemption date.
If
less than all the Securities of a series are to be redeemed, the Trustee shall select, pro rata or by lot or in such manner as
it shall deem appropriate and fair, Securities of such series to be redeemed in whole or in part. Securities of a series may be
redeemed in part in multiples equal to the minimum authorized denomination for Securities of such series or any multiple thereof.
The Trustee shall promptly notify the Issuer in writing of the Securities of such series selected for redemption and, in the case
of any Securities of such series selected for partial redemption, the Principal amount thereof to be redeemed. For all purposes
of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities of any series
shall relate, in the case of any Security redeemed or to be redeemed only in part, to the portion of the Principal amount of such
Security which has been or is to be redeemed.
Section
11.03 Payment of Securities Called for Redemption. If notice of redemption has been given as above provided, the Securities
or portions of Securities specified in such notice shall become due and payable on the date and at the place stated in such notice
at the applicable redemption price, together with interest accrued to the date fixed for redemption, and on and after said date
(unless the Issuer shall default in the payment of such Securities at the redemption price, together with interest accrued to
said date) interest on the Securities or portions of Securities so called for redemption shall cease to accrue and, except as
provided in Section 5.05 and 9.04, such Securities shall cease from and after the date fixed for redemption to be entitled to
any benefit or security under this Indenture, and the Holders thereof shall have no right in respect of such Securities except
the right to receive the redemption price thereof and unpaid interest to the date fixed for redemption. On presentation and surrender
of such Securities at a place of payment specified in said notice, said Securities or the specified portions thereof shall be
paid and redeemed by the Issuer at the applicable redemption price, together with interest accrued thereon to the date fixed for
redemption; provided that any semiannual payment of interest becoming due on the date fixed for redemption shall be payable to
the Holders of such Securities registered as such on the relevant record date subject to the terms and provisions of Section 2.07
hereof.
If
any Security called for redemption shall not be so paid upon surrender thereof for redemption, the Principal shall, until paid
or duly provided for, bear interest from the date fixed for redemption at the rate of interest or Yield to Maturity (in the case
of an Original Issue Discount Security) borne by the Security.
Upon
presentation of any Security redeemed in part only, the Issuer shall execute and the Trustee shall authenticate and deliver to
or on the order of the Holder thereof, at the expense of the Issuer, a new Security or Securities of such series, of authorized
denominations, in Principal amount equal to the unredeemed portion of the Security so presented, pursuant to Section 2.04, 2.05
and 2.06.
Section
11.04 Exclusion of Certain Securities from Eligibility for Selection for Redemption. Securities shall be excluded from
eligibility for selection for redemption if they are identified by registration and certificate number in a written statement
signed by an authorized officer of the Issuer and delivered to the Trustee at least 40 days prior to the last date on which notice
of redemption may be given as being owned of record and beneficially by, and not pledged or hypothecated by either (a) the Issuer
or (b) an entity specifically identified in such written statement directly or indirectly controlling or controlled by or under
direct or indirect common control with the Issuer.
Section
11.05 Conversion Arrangement On Call For Redemption. In connection with any redemption of Securities, the Issuer shall
deposit the amount due in connection with such redemption as required by Section 11.02 or it may arrange for the purchase and
conversion of any Securities called for redemption by an agreement with one or more investment bankers or other purchasers to
purchase such Securities and to make the deposit required of it by Section 11.02 on its behalf by paying to the Trustee or the
Paying Agent in trust for the Securityholders, on or before 10:00 a.m. New York time on the redemption date, an amount no less
than the redemption price, together with interest, if any, accrued to the redemption date of such Securities, in immediately available
funds. Notwithstanding anytime to the contrary contained in this Article 11, the obligation of the Issuer to pay the redemption
price of such Securities, including all accrued interest, if any, shall be deemed to be satisfied and discharged to the extent
such amount is so paid by such purchasers. If such an agreement is entered into, any Securities not duly surrendered for conversion
by the Holders thereof may, at the option of the Issuer, be deemed, to the fullest extent permitted by law, acquired by such purchasers
from such Holders and (notwithstanding anything to the contrary contained in Article 12) surrendered by such purchasers for conversion,
all as of immediately prior to the close of business on the last day on which Securities of such series called for redemption
may be converted in accordance with this Indenture and the terms of such Securities, subject to payment of the above amount aforesaid.
The Trustee or the Paying Agent shall hold and pay to the Securityholders whose Securities are selected for redemption any such
amount paid to it in the same manner as it would monies deposited with it by the Issuer for the redemption of Securities. Without
the Trustee’s and the Paying Agent’s prior written consent, no arrangement between the Issuer and such purchasers
for the purchase and conversion of any Securities shall increase or otherwise affect any of the powers, duties, responsibilities
or obligations of the Trustee as set forth in this Indenture, and the Issuer agrees to indemnify the Trustee from, and hold it
harmless against, any loss, liability or expense arising out of or in connection with any such arrangement for the purchase and
conversion of any Securities between the Issuer and such purchasers, including the costs and expenses incurred by the Trustee
and the Paying Agent in the defense of any claim or liability arising out of or in connection with the exercise or performance
of any of its powers, duties, responsibilities or obligations under this Indenture.
ARTICLE
12
CONVERSION
OF SECURITIES
Section
12.01 Applicability of Article. Securities of any series which are convertible into Capital Stock at the option of the
Securityholder shall be convertible in accordance with their terms and (unless otherwise specified as contemplated by Section
2.03 for Securities of any series) in accordance with this Article. Each reference in this Article 12 to “a Security”
or “the Securities” refers to the Securities of the particular series that is convertible into Capital Stock. Each
reference in this Article to “Capital Stock” into which Securities of any series are convertible refers to the class
of Capital Stock into which the Securities of such series are convertible in accordance with their terms (as specified as contemplated
by Section 2.03). If more than one series of Securities with conversion privileges are outstanding at any time, the provisions
of this Article 12 shall be applied separately to each such series.
Section
12.02 Right of Securityholders to Convert Securities. Subject to and upon compliance with the terms of the Securities and
the provisions of Section 11.05 and this Article 12, at the option of the Holder thereof, any Security of any series of any authorized
denomination, or any portion of the Principal amount thereof which is $1,000 or any integral multiple of $1,000, may, at any time
during the period specified in the Securities of such series, or in case such Security or portion thereof shall have been called
for redemption, then in respect of such Security or portion thereof until and including, but not after (unless the Issuer shall
default in payment due upon the redemption thereof) the close of business on the Business Day prior to the date fixed for redemption
except that in the case of redemption at the option of the Securityholder, if specified in the terms of such Securities, such
right shall terminate upon receipt of written notice of the exercise of such option, be converted into duly authorized, validly
issued, fully paid and nonassessable shares of Capital Stock, as specified in such Security, at the conversion rate for each $1,000
Principal amount of Securities (such initial conversion rate reflecting an initial conversion price specified in such Security)
in effect on the conversion date, or, in case an adjustment in the conversion rate has taken place pursuant to the provisions
of Section 12.05, then at the applicable conversion rate as so adjusted, upon surrender of the Security or Securities, the Principal
amount of which is so to be converted, to the Issuer at any time during usual business hours at the office or agency to be maintained
by it in accordance with the provisions of Section 3.02, accompanied by a written notice of election to convert as provided in
Section 12.03 and, if so required by the Issuer and the Trustee, by a written instrument or instruments of transfer in form satisfactory
to the Issuer and the Trustee duly executed by the registered Holder or his attorney duly authorized in writing. All Securities
surrendered for conversion shall, if surrendered to the Issuer or any conversion agent, be delivered to the Trustee for cancellation
and cancelled by it, or shall, if surrendered to the Trustee, be cancelled by it, as provided in Section 2.10.
The
initial conversion price or conversion rate in respect of a series of Securities shall be as specified in the Securities of such
series. The conversion price or conversion rate will be subject to adjustment on the terms set forth in Section 12.05 or such
other or different terms, if any, as may be specified by Section 2.03 for Securities of such series. Provisions of this Indenture
that apply to conversion of all of a Security also apply to conversion of a portion of it.
Section
12.03 Issuance of Shares of Capital Stock on Conversion. As promptly as practicable after the surrender, as herein provided,
of any Security or Securities for conversion, the Issuer shall deliver or cause to be delivered at its said office or agency to
or upon the written order of the Holder of the Security or Securities so surrendered a certificate or certificates representing
the number of duly authorized, validly issued, fully paid and nonassessable shares of Capital Stock into which such Security or
Securities may be converted in accordance with the terms thereof and the provisions of this Article 12. Prior to delivery of such
certificate or certificates, the Issuer shall require a written notice at its said office or agency from the Holder of the Security
or Securities so surrendered stating that the Holder irrevocably elects to convert such Security or Securities, or, if less than
the entire Principal amount thereof is to be converted, stating the portion thereof to be converted. Such notice shall also state
the name or names (with address and social security or other taxpayer identification number) in which said certificate or certificates
are to be issued. Such conversion shall be deemed to have been made at the time that such Security or Securities shall have been
surrendered for conversion and such notice shall have been received by the Issuer or the Trustee, the rights of the Holder of
such Security or Securities as a Securityholder shall cease at such time, the person or persons entitled to receive the shares
of Capital Stock upon conversion of such Security or Securities shall be treated for all purposes as having become the record
holder or holders of such shares of Capital Stock at such time and such conversion shall be at the conversion rate in effect at
such time. In the case of any Security of any series which is converted in part only, upon such conversion, the Issuer shall execute
and the Trustee shall authenticate and deliver to the Holder thereof, as requested by such Holder, a new Security or Securities
of such series of authorized denominations in aggregate Principal amount equal to the unconverted portion of such Security.
If
the last day on which a Security may be converted is not a Business Day in a place where a conversion agent is located, the Security
may be surrendered to that conversion agent on the next succeeding day that is a Business Day.
The
Issuer will not be required to deliver certificates for shares of Capital Stock upon conversion while its stock transfer books
are closed for a meeting of shareholders or for the payment of dividends or for any other purpose, but certificates for shares
of Capital Stock shall be delivered as soon as the stock transfer books shall again be opened.
Section
12.04 No Payment or Adjustment for Interest or Dividends. Unless otherwise specified as contemplated by Section 2.03 for
Securities of such series, Securities surrendered for conversion during the period from the close of business on any regular record
date (or special record date for payment of defaulted interest) next preceding any interest payment date to the opening of business
on such interest payment date (except Securities called for redemption on a redemption date within such period) when surrendered
for conversion must be accompanied by payment of an amount equal to the interest thereon which the registered Holder is to receive
on such interest payment date. Payment of interest shall be made, as of such interest payment date or such date, as the case may
be, to the Holder of record of the Securities as of such regular, or special record date, as applicable. Except where Securities
surrendered for conversion must be accompanied by payment as described above, no interest on converted Securities will be payable
by the Issuer on any interest payment date subsequent to the date of conversion. No other payment or adjustment for interest or
dividends is to be made upon conversion. Notwithstanding the foregoing, upon conversion of any Original Issue Discount Security,
the fixed number of shares of Capital Stock into which such Security is convertible delivered by the Issuer to the Holder thereof
shall be applied, first, to pay the accrued original issue discount attributable to the period from the date of issuance to the
date of conversion of such Security, and, second, to pay the balance of the Principal amount of such Security.
Section
12.05 Adjustment of Conversion Rate. Unless otherwise specified as contemplated by Section 2.03 for Securities of such
series, the conversion rate for Securities in effect at any time shall be subject to adjustment as follows:
(a)
In case the Issuer shall (i) declare a dividend or make a distribution on the class of Capital Stock into which Securities of
such series are convertible in shares of its Capital Stock, (ii) subdivide the outstanding shares of the class of Capital Stock
into which Securities of such series are convertible into a greater number of shares, (iii) combine the outstanding shares of
the class of Capital Stock into which Securities of such series are convertible into a smaller number of shares or (iv) issue
by reclassification of the shares of the class of Capital Stock into which Securities of such series are convertible (including
any such reclassification in connection with a consolidation or merger in which the Issuer is the continuing corporation) any
shares, the conversion rate for the Securities of such series in effect at the time of the record subdivision, combination or
reclassification, shall be proportionately adjusted so that the Holder of any Security of such series surrendered for conversion
after such time shall be entitled to receive the number and kind of shares which he would have owned or have been entitled to
receive had such Security been converted immediately prior to such time. Similar adjustments shall be made whenever any event
listed above shall occur.
(b)
In case the Issuer shall fix a record date for the issuance of rights or warrants to all holders of the class of Capital Stock
into which Securities of such series are convertible entitling them (for a period expiring within 45 days after such record date)
to subscribe for or purchase shares of such class of Capital Stock (or securities convertible into shares of such class of Capital
Stock) at a price per share (or, in the case of a right or warrant to purchase securities convertible into such class of Capital
Stock, having a conversion price per share, after adding thereto the exercise price, computed on the basis of the maximum number
of shares of such class of Capital Stock issuable upon conversion of such convertible securities, per share of such class of Capital
Stock, so issuable) less than the current market price per share of such class of Capital Stock (as defined in subsection (e)
below) on the date on which such issuance was declared or otherwise announced by the Issuer (the “Determination Date”),
the number of shares of such class of Capital Stock into which each $1,000 Principal amount of Securities shall be convertible
after such record date shall be determined by multiplying the number of shares of such class of Capital Stock into which such
Principal amount of Securities was convertible immediately prior to such record date by a fraction, of which the numerator shall
be the number of shares of such class of Capital Stock outstanding on the Determination Date plus the number of additional shares
of such class of Capital Stock offered for subscription or purchase (or in the case of a right or warrant to purchase securities
convertible into such class of Capital Stock, the aggregate number of additional shares of such class of Capital Stock into which
the convertible securities so offered are initially convertible), and of which the denominator shall be the number of shares of
such class of Capital Stock outstanding on the Determination Date plus the number of shares of such class of Capital Stock obtained
by dividing the aggregate offering price of the total number of shares so offered (or, in the case of a right or warrant to purchase
securities convertible into such class of Capital Stock, the aggregate initial conversion price of the convertible securities
so offered, after adding thereto the aggregate exercise price of such rights or warrants computed on the basis of the maximum
number of shares of such class of Capital Stock issuable upon conversion of such convertible securities) by such current market
price. Shares of such class of Capital Stock of the Issuer owned by or held for the account of the Issuer shall not be deemed
outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is
fixed; and to the extent that shares of such class of Capital Stock are not delivered (or securities convertible into shares of
such class of Capital Stock are not delivered) after the expiration of such rights or warrants (or, in the case of rights or warrants
to purchase securities convertible into such class of Capital Stock once exercised, the expiration of the conversion right of
such securities) the conversion rate shall be readjusted to the conversion rate which would then be in effect had the adjustments
made upon the issuance of such rights or warrants (or securities convertible into shares) been made upon the basis of delivery
of only the number of shares actually delivered. In the event that such rights or warrants are not so issued, the conversion rate
shall again be adjusted to be the conversion rate which would then be in effect if such record date had not been fixed.
(c)
In case the Issuer shall fix a record date for the making of a distribution to all holders of the class of Capital Stock into
which Securities of such series are convertible (including any such distribution made in connection with a consolidation or merger
in which the Issuer is the continuing corporation) of evidences of its indebtedness or assets (excluding any cash dividends paid
from retained earnings and dividends payable in Capital Stock for which adjustment is made pursuant to subsection (a) above or
(d) below) or subscription rights or warrants (excluding subscription rights or warrants to purchase the class of Capital Stock
into which Securities of such series are convertible), the number of shares of such class of Capital Stock into which each $1,000
Principal amount of Securities of such series shall be convertible after such record date shall be determined by multiplying the
number of shares of such class of Capital Stock into which such Principal amount of Securities was convertible immediately prior
to such record date by a fraction, of which the numerator shall be the fair market value of the assets of the Issuer, after deducting
therefrom all liabilities of the Issuer and all preferences (including accrued but unpaid dividends) in respect of classes of
Capital Stock having a preference with respect to the assets of the Issuer over such class of Capital Stock (all as determined
by the Board of Directors, whose determination shall be conclusive, and described in a certificate signed by chairman of the Issuer’s
Board of Directors, its president, any vice president, its treasurer, any assistant treasurer, its secretary or any assistant
secretary, filed with the Trustee and each conversion agent) on such record date, and of which the denominator shall be such fair
market value after deducting therefrom such liabilities and preferences, less the fair market value (as determined by the Board
of Directors, whose determination shall be conclusive, and described in a statement filed with the Trustee and each conversion
agent) of the assets or evidences of indebtedness, so distributed or of such subscription rights or warrants applicable, so distributed.
Such adjustment shall be made successively whenever such a record date is fixed; and in the event that such distribution is not
so made, the conversion rate shall again be adjusted to the conversion rate which would then be in effect if such record date
had not been fixed.
(d)
In case the Issuer shall, by dividend or otherwise, distribute to all holders of its Capital Stock cash (excluding any dividend
or distribution in connection with the liquidation, dissolution or winding up of the Issuer, whether voluntary or involuntary),
then, in such case, unless the Issuer elects to reserve such cash for distribution to the Holders of the Securities upon the conversion
of the Securities so that any such Holder converting Securities will receive upon such conversion, in addition to the shares of
Capital Stock to which such Holder is entitled, the amount of cash which such Holder would have received if such Holder had, immediately
prior to the record date for such distribution of cash, converted its Securities into Capital Stock, the conversion rate shall
be adjusted so that the same shall equal the rate determined by multiplying the conversion rate in effect immediately prior to
the record date by a fraction of which the denominator shall be the current market price of the Capital Stock (determined as provided
in Section 12.05(e) on the record date less the amount of cash so distributed (and not excluded as provided above) applicable
to one share of Capital Stock and the numerator shall be such current market price of the Capital Stock (determined as provided
in Section 12.05(e)), such adjustment to be effective immediately prior to the opening of business on the day following the record
date; provided, however, that in the event the portion of the cash so distributed applicable to one share of Capital Stock is
equal to or greater than the current market price of the Capital Stock (determined as provided in Section 12.05(e)) on the record
date, in lieu of the foregoing adjustment, adequate provision shall be made so that each Securityholder shall have the right to
receive upon conversion the amount of cash such Holder would have received had such Holder converted each Security on the record
date. If such dividend or distribution is not so paid or made, the conversion rate shall again be adjusted to be the conversion
rate which would then be in effect if such dividend or distribution had not been declared.
(e)
For the purpose of any computation under subsections (b) and (d) above and Section 12.06, the current market price per share of
the Capital Stock on any date as of which such price is to be computed shall mean the average of the Closing Prices for the 30
consecutive Business Days commencing 45 Business Days before such date.
(f)
No adjustment in the conversion rate shall be required unless such adjustment would require a cumulative increase or decrease
of at least 1% in such rate; provided, however, that any adjustments which by reason of this subsection (f) are
not required to be made shall be carried forward and taken into account in any subsequent adjustment; and provided further,
that adjustments shall be required and made in accordance with the provisions of this Article 12 (other than this subsection (f))
not later than such time as may be required in order to preserve the tax-free nature of a States income tax purposes to the Holders
of Securities or the class of Capital Stock into which such Securities are convertible. All calculations under this Article 12
shall be made to the nearest cent or to the nearest one-thousandth of a share, as the case may be. Anything in this Section 12.05
to the contrary notwithstanding, the Issuer shall be entitled to make such adjustments in the conversion rate, in addition to
those required by this Section 12.05, as it in its discretion shall determine to be advisable in order that any stock dividend,
subdivision of shares, distribution of rights to purchase stock or securities, or distribution of securities convertible into
or exchangeable for stock hereafter made by the Issuer to its shareholders shall not be taxable for United States income tax purposes.
(g)
Whenever the conversion rate is adjusted, as herein provided, the Issuer shall promptly file with the Trustee and with the office
or agency maintained by the Issuer for the conversion of Securities of such series pursuant to Section 3.02, a certificate of
a firm of independent public accountants of recognized national standing selected by the Board of Directors (who may be the regular
accountants employed by the Issuer) setting forth the conversion rate after such adjustment and setting forth a brief statement
of the facts requiring such adjustment and a computation thereof. Such certificate shall be conclusive evidence of the correctness
of such adjustment. Neither the Trustee nor any conversion agent shall be under any duty or responsibility with respect to any
such certificate or any facts or computations set forth therein, except to exhibit said certificate from time to time to any Securityholder
of such series desiring to inspect the same. The Issuer shall promptly cause a notice setting forth the adjusted conversion rate
to be mailed to the Holders of Securities of such series, as their names and addresses appear upon the register of the Issuer.
(h)
In the event that at any time, as a result of shares of any other class of Capital Stock becoming issuable in exchange or substitution
for or in lieu of shares of the class of Capital Stock into which such Securities are convertible or as a result of an adjustment
made pursuant to subsection (a) above, the Holder of any Security of such series thereafter surrendered for conversion shall become
entitled to receive any shares of the Issuer other than shares of the class of Capital Stock into which the Issuer of such series
are convertible, thereafter the number of such other shares so receivable upon conversion of any Security shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the
class of Capital Stock into which the Securities of such series are convertible contained in subsections (a) to (f), inclusive,
above, and the provisions of this Article 12 with respect to the class of Capital Stock into which the Securities of such series
are convertible shall apply on like terms to any such other shares.
(i)
The conversion rate with respect to any Original Issue Discount Security, the terms of which provide for convertibility, shall
not be adjusted during the term of such Original Issue Discount Security for accrued original issue discount.
(j)
In the event that the Securities of any series are convertible into more than one class of Capital Stock, the provisions of this
Section 12.05 shall apply separately to events affecting each such class.
Section
12.06 No Fractional Shares to Be Issued. No fractional shares of Capital Stock shall be issued upon conversions of Securities.
If more than one Security of any series shall be surrendered for conversion at one time by the same Holder, the number of full
shares which shall be issuable upon conversion thereof shall be computed on the basis of the aggregate Principal amount of the
Securities of such series (or specified portions thereof to the extent permitted hereby) so surrendered. Instead of a fraction
of a share of Capital Stock which would otherwise be issuable upon conversion of any Security or Securities (or specified portions
thereof), the Issuer shall pay a cash adjustment in respect of such fraction of a share in an amount equal to the same fractional
interest of the current market price (as defined in Section 12.05) per share of Capital Stock on the Business Day next preceding
the day of conversion.
Section
12.07 Preservation of Conversion Rights Upon Consolidation, Merger, Sale or Conveyance. In case of any consolidation of
the Issuer with, or merger of the Issuer into, any other corporation (other than a consolidation or merger in which the Issuer
is the continuing corporation), or in the case of any sale or transfer of all or substantially all of the assets of the Issuer,
the corporation formed by such consolidation or the corporation into which the Issuer shall have been merged or the corporation
which shall have acquired such assets, as the case may be, shall execute and deliver to the Trustee, a supplemental indenture,
subject to the provisions of Article 7 and 8 as they relate to supplemental indentures, providing that the Holder of each Security
then Outstanding of a series which was convertible into Capital Stock shall have the right thereafter to convert such Security
into the kind and amount of shares of stock and other securities and property, including cash, receivable upon such consolidation,
merger, sale or transfer by a holder of the number of shares of Capital Stock of the Issuer into which such Securities might have
been converted immediately prior to such consolidation, merger, sale or transfer. Such supplemental indenture shall conform to
the provisions of the Trust Indenture Act of 1939 as then in effect and shall provide for adjustments which shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Article 12. Neither the Trustee nor any conversion agent
shall be under any responsibility to determine the correctness of any provision contained in any such supplemental indenture relating
either to the kind or amount of shares of stock or other securities or property receivable by Securityholders upon the conversion
of their Securities after any such consolidation, merger, sale or transfer, or to any adjustment to be made with respect there
to and, subject to the provisions of Article 5, may accept as conclusive evidence of the correctness of any such provisions, and
shall be protected in relying upon, an Opinion of Counsel with respect thereto. If in the case of any such consolidation, merger,
sale or transfer, the stock or other securities and property receivable by a Holder of the Securities includes stock or other
securities and property of a corporation other than the successor or purchasing corporation, then such supplemental indenture
shall also be executed by such other corporation and shall contain such additional provisions to protect the interests of the
Holders of the Securities as the Board of Directors shall reasonably consider necessary. The above provisions of this Section
12.07 shall similarly apply to successive consolidations, mergers, sales or transfers.
Section
12.08 Notice to Security Holders of a Series Prior to Taking Certain Types of Action. With respect to the Securities of
any series, in case:
(a)
the Issuer shall authorize the issuance to all holders of the class of Capital Stock into which Securities of such series are
convertible of rights or warrants to subscribe for or purchase shares of its Capital Stock or of any other right;
(b)
the Issuer shall authorize the distribution to all holders of the class of Capital Stock into which Securities of such series
are convertible of evidences of its indebtedness or assets (except for the exclusions with respect to certain dividends set forth
in Section 12.05(c));
(c)
of any subdivision, combination or reclassification of the class of Capital Stock into which Securities of such series are convertible
or of any consolidation or merger to which the Issuer is a party and for which approval by the shareholders of the Issuer is required,
or of the sale or transfer of all or substantially all of the assets of the Issuer; or
(d)
of the voluntary or involuntary dissolution, liquidation or winding up of the Issuer;
then
the Issuer shall cause to be filed with the Trustee and at the office or agency maintained for the purpose of conversion of Securities
of such series pursuant to Section 3.02, and shall cause to be mailed to the Holders of Securities of such series, at their last
addresses as they shall appear upon the register of the Issuer, at least 10 days prior to the applicable record date hereinafter
specified, a notice stating (i) the date as of which the holders of such class of Capital Stock to be entitled to receive any
such rights, warrants or distribution are to be determined, or (ii) the date on which any such subdivision, combination, reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation, winding up or other action is expected to become effective, and
the date as of which it is expected that holders of record of such class of Capital Stock shall be entitled to exchange their
Capital Stock of such class for securities or other property, if any, deliverable upon such subdivision, combination, reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation, winding up or other action. The failure to give the notice required
by this Section 12.08 or any defect therein shall not affect the legality or validity of any distribution, right, warrant, subdivision,
combination, reclassification, consolidation, merger, sale, transfer, dissolution, liquidation, winding up or other action, or
the vote upon any of the foregoing. Such notice shall also be published by and at the expense of the Issuer not later than the
aforesaid filing date at least once in an Authorized Newspaper.
Section
12.09 Covenant to Reserve Shares for Issuance on Conversion of Securities. The Issuer covenants that at all times it will
reserve and keep available out of each class of its authorized Capital Stock, free from preemptive rights, solely for the purpose
of issue upon conversion of Securities of any series as herein provided, such number of shares of Capital Stock of such class
as shall then be issuable upon the conversion of all Outstanding Securities of such series. The Issuer covenants that an shares
of Capital Stock which shall be so issuable shall, when issued or delivered, be duly and validly issued shares of the class of
authorized Capital Stock into which Securities of such series are convertible, and shall be fully paid and nonassessable, free
of all liens and charges and not subject to preemptive rights and that, upon conversion, the appropriate capital stock accounts
of the Issuer will be duly credited.
Section
12.10 Compliance with Governmental Requirements. The Issuer covenants that if any shares of Capital Stock required to be
reserved for purposes of conversion of Securities hereunder require registration or listing with or approval of any governmental
authority under any Federal or State law, pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of
1934, as amended, or any national or regional securities exchange on which such Capital Stock is listed at the time of delivery
of any shares of such Capital Stock, before such shares may be issued upon conversion, the Issuer will use reasonable efforts
to cause such shares to be duly registered, listed or approved, as the case may be.
Section
12.11 Payment of Taxes Upon Certificates for Shares Issued Upon Conversion. The issuance of certificates for shares of
Capital Stock upon the conversion of Securities shall be made without charge to the converting Securityholders for any tax (including,
without limitation, all documentary and stamp taxes) in respect of the issuance and delivery of such certificates, and such certificates
shall be issued in the respective names of, or in such names as may be directed by, the Holders of the Securities converted; provided,
however, that the Issuer shall not be required to pay any tax which may be payable in respect of any transfer involved in the
issuance and delivery of any such certificate in a name other than that of the Holder of the Security converted, and the Issuer
shall not be required to issue or deliver such certificates unless or until the person or persons requesting the issuance thereof
shall have paid to the Issuer the amount of such tax or shall have established to the satisfaction of the Issuer that such tax
has been paid.
Section
12.12 Trustee’s Duties with Respect to Conversion Provisions. The Trustee and any conversion agent shall not at any
time be under any duty or responsibility to any Securityholder to determine whether any facts exist which may require any adjustment
of the conversion rate or conversion price, or with respect to the nature or extent of any such adjustment when made, or with
respect to the method employed, or herein or in any supplemental indenture provided to be employed, in making the same. Neither
the Trustee nor any conversion agent shall be accountable with respect to the registration under securities laws, listing, validity
or value (or the kind or amount) of any shares of Capital Stock, or of any other securities or property, which may at any time
be issued or delivered upon the conversion of any Security; and neither the Trustee nor any conversion agent makes any representation
with respect thereto. Neither the Trustee nor any conversion agent shall be responsible for any failure of the Issuer to make
any cash payment or to issue, transfer or deliver any shares of stock or stock certificates or other securities or property upon
the surrender of any Security for the purpose of conversion; and the Trustee, subject to the provisions of Article 5, and any
conversion agent shall not be responsible for any failure of the Issuer to comply with any of the covenants of the Issuer contained
in this Article 12.
IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, as of the first date written above.
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MATINAS BIOPHARMA HOLDINGS, INC.,
as Issuer
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By:
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Name:
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Title:
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●, as Trustee
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By:
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Name:
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Title:
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FORM
OF NOTE
UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE REGISTERED FORM, THIS SECURITY MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.
UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
MATINAS
BIOPHARMA HOLDINGS, INC.
●
% Senior Note Due ●
No.
● CUSIP No.: ●
$
●
MATINAS
BIOPHARMA HOLDINGS, INC., a Delaware corporation (“Issuer”, which term includes any successor corporation),
for value received promises to pay to CEDE & CO. or its registered assigns, the principal sum of ● on ●.
Interest
Payment Dates: ● and ● (each, an “Interest Payment Date”), commencing on ●. Interest Record
Dates: ● and ● (each, an “Interest Record Date”).
Reference
is made to the further provisions of this Security contained herein, which will for all purposes have the same effect as if set
forth at this place.
IN
WITNESS WHEREOF, the Issuer has caused this Security to be signed manually or by facsimile by its duly authorized officer.
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MATINAS BIOPHARMA HOLDINGS, INC.
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By:
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Name:
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Title:
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This
is one of the series designated herein and referred to in the within-mentioned Indenture.
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●, as Trustee
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By:
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Authorized Signatory
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(REVERSE
OF SECURITY)
MATINAS
BIOPHARMA HOLDINGS, INC.
●%
Senior Note Due ●
1.
Interest.
MATINAS
BIOPHARMA HOLDINGS, INC., a Delaware corporation (the “Issuer”), promises to pay interest on the Principal amount
of this Security at the rate per annum shown above. Cash interest on the Securities will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from ●. The Issuer will pay interest semi-annually in arrears on
each Interest Payment Date, commencing ●. Interest will be computed on the basis of a 360-day year of twelve 30-day months.
The
Issuer shall pay interest on overdue Principal from time to time on demand at the rate borne by the Securities and on overdue
installments of interest (without regard to any applicable grace periods) to the extent lawful.
2.
Method of Payment.
The
Issuer shall pay interest on the Securities (except defaulted interest) to the persons who are the registered Holders at the close
of business on the Interest Record Date immediately preceding the Interest Payment Date notwithstanding any transfer or exchange
of such Security subsequent to such Interest Record Date and prior to such Interest Payment Date. Holders must surrender Securities
to the Trustee to collect Principal payments. The Issuer shall pay Principal and interest in money of the United States that at
the time of payment is legal tender for payment of public and private debts (“U.S. Legal Tender”). However,
the payments of interest, and any portion of the Principal (other than interest payable at maturity or on any redemption or repayment
date or the final payment of Principal) shall be made by the Paying Agent, upon receipt from the Issuer of immediately available
funds by 11:00 a.m., New York City time (or such other time as may be agreed to between the Issuer and the Paying Agent or the
Issuer), directly to a Holder (by Federal funds wire transfer or otherwise) if the Holder has delivered written instructions to
the Trustee 15 days prior to such payment date requesting that such payment will be so made and designating the bank account to
which such payments shall be so made and in the case of payments of Principal surrenders the same to the Trustee in exchange for
a Security or Securities aggregating the same principal amount as the unredeemed Principal amount of the Securities surrendered.
3.
Paying Agent.
Initially,
● (the “Trustee”) will act as Paying Agent. The Issuer may change any Paying Agent without notice to
the Holders.
4.
Indenture.
The
Issuer issued the Securities under an Indenture, dated as of ● (the “Indenture”), between the Issuer
and the Trustee. Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein. The terms of the
Securities include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act
of 1939 (15 U.S.C. Sections 77aaa-77bbbb) (the “TIA”), as in effect on the date of the Indenture until such
time as the Indenture is qualified under the TIA, and thereafter as in effect on the date on which the Indenture is qualified
under the TIA. Notwithstanding anything to the contrary herein, the Securities are subject to all such terms, and Holders of Securities
are referred to the Indenture and the TIA for a statement of them. To the extent the terms of the Indenture and this Security
are inconsistent, the terms of the Indenture shall govern.
5.
Denominations; Transfer; Exchange.
The
Securities are in registered form, without coupons, in denominations of $1,000 and multiples of $1,000. A Holder shall register
the transfer of or exchange Securities in accordance with the Indenture. The Issuer may require a Holder, among other things,
to furnish appropriate endorsements and transfer documents and to pay certain transfer taxes or similar governmental charges payable
in connection therewith as permitted by the Indenture. The Issuer need not issue, authenticate, register the transfer of or exchange
any Securities or portions thereof for a period of fifteen (15) days before such series is selected for redemption, nor need the
Issuer register the transfer or exchange of any security selected for redemption in whole or in part.
6.
Persons Deemed Owners.
The
registered Holder of a Security shall be treated as the owner of it for all purposes.
7.
Unclaimed Funds.
If
funds for the payment of Principal or interest remain unclaimed for two years, the Trustee and the Paying Agent will repay the
funds to the Issuer at its written request. After that, all liability of the Trustee and such Paying Agent with respect to such
funds shall cease.
8.
Legal Defeasance and Covenant Defeasance.
The
Issuer may be discharged from its obligations under the Securities and under the Indenture with respect to the Securities except
for certain provisions thereof, and may be discharged from obligations to comply with certain covenants contained in the Securities
and in the Indenture with respect to the Securities, in each case upon satisfaction of certain conditions specified in the Indenture.
9.
Amendment; Supplement; Waiver.
Subject
to certain exceptions, the Securities and the provisions of the Indenture relating to the Securities may be amended or supplemented
with the written consent of the Holders of at least a majority in aggregate Principal amount of the Securities then outstanding,
and any existing Default or Event of Default or compliance with certain provisions may be waived with the consent of the Holders
of a majority in aggregate Principal amount of the Securities then outstanding. Without notice to or consent of any Holder, the
parties thereto may amend or supplement the Indenture and the Securities to, among other things, cure any ambiguity, defect or
inconsistency, provide for uncertificated Securities in addition to or in place of certificated Securities or comply with any
requirements of the Commission in connection with the qualification of the Indenture under the Trust Indenture Act, or make any
other change that does not adversely affect the rights of any Holder of a Security.
10.
Defaults and Remedies.
If
an Event of Default (other than certain bankruptcy Events of Default with respect to the Issuer) occurs and is continuing, the
Trustee or the Holders of at least 25% in aggregate Principal amount of Securities then outstanding may declare all of the Securities
to be due and payable immediately in the manner and with the effect provided in the Indenture. If a bankruptcy Event of Default
with respect to the Issuer occurs and is continuing, all the Securities shall be immediately due and payable immediately in the
manner and with the effect provided in the Indenture without any notice or other action on the part of the Trustee or any Holder.
Holders of Securities may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee is not
obligated to enforce the Indenture or the Securities unless it has received indemnity satisfactory to it. The Indenture permits,
subject to certain limitations therein provided, Holders of a majority in aggregate Principal amount of the Securities then outstanding
to direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of Securities notice of certain
continuing Defaults or Events of Default if it determines that withholding notice is in their interest.
11.
Conversion.
Reference
is made to the Indenture, including, without limitation, provisions giving the Holder of this Security the right to convert this
Security into Capital Stock of the Issuer on the terms and subject to the limitations as more fully specified in the Indenture.
The initial conversion rate for this Security is ●. This conversion rate is subject to modification as provided in the Indenture.
Such further provisions shall for all purposes have the same effect as though fully set forth at this place.
12.
Trustee Dealings with Issuer.
The
Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise
deal with the Issuer as if it were not the Trustee.
13.
No Recourse Against Others.
No
stockholder, director, officer, employee or incorporator, as such, of the Issuer or any successor Person thereof shall have any
liability for any obligation under the Securities or the Indenture or for any claim based on, in respect of or by reason of, such
obligations or their creation. Each Holder of a Security by accepting a Security waives and releases all such liability. The waiver
and release are part of the consideration for the issuance of the Securities.
14.
Authentication.
This
Security shall not be valid until the Trustee manually signs the certificate of authentication on this Security.
15.
Abbreviations and Defined Terms.
Customary
abbreviations may be used in the name of a Holder of a Security or an assignee, such as: TEN COM (= tenants in common), TEN ENT
(= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian),
and U/G/M/A (= Uniform Gifts to Minors Act).
16.
CUSIP Numbers.
Pursuant
to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuer has caused CUSIP numbers
to be printed on the Securities as a convenience to the Holders of the Securities. No representation is made as to the accuracy
of such numbers as printed on the Securities and reliance may be placed only on the other identification numbers printed hereon.
17.
Governing Law.
The
laws of the State of New York shall govern the Indenture and this Security thereof.
ASSIGNMENT
FORM
|
I
or we assign and transfer this Security to
|
|
(Print
or type name, address and zip code of assignee or transferee)
|
|
(Insert Social Security
or other identifying number of assignee or transferee)
|
and
irrevocably appoint ___________________ agent to transfer this Security on the books of the Issuer. The agent may substitute another
to act for him.
|
Dated:
|
|
|
Signed:
|
|
|
|
|
|
|
(Signed exactly
as name appears on the other side of this Security)
|
|
Signature Guarantee:
|
|
|
|
Participant in a
recognized Signature Guarantee Medallion Program (or other signature guarantor program reasonably acceptable to the Trustee)
|
Exhibit
4.6
MATINAS
BIOPHARMA HOLDINGS, INC., as Issuer
and
●,
as Trustee
INDENTURE
Dated
as of ●
Subordinated
Debt Securities
CROSS
REFERENCE SHEET1
Between
Provisions
of the Trust Indenture Act of 1939 and the Indenture to be dated as of _________, 20___ between MATINAS BIOPHARMA HOLDINGS, INC.
and ___________________, as Trustee:
|
Section
of the Act
|
|
Section
of Indenture
|
|
310(a)(1)
and (2)
|
|
5.08
|
|
310(a)(3)
and (4)
|
|
Inapplicable
|
|
310(b)
|
|
5.09(a),
(b) and (d)
|
|
310(c)
|
|
Inapplicable
|
|
311(a)
|
|
Inapplicable
|
|
311(b)
|
|
Inapplicable
|
|
311(c)
|
|
Inapplicable
|
|
312(a)
|
|
3.05
|
|
312(b)
|
|
3.05
|
|
312(c)
|
|
4.02(c)
|
|
313(a)
|
|
5.12
|
|
313(b)(1)
|
|
5.12
|
|
313(b)(2)
|
|
5.12
|
|
313(c)
|
|
5.12
|
|
313(d)
|
|
5.12
|
|
314(a)
|
|
3.06
|
|
314(b)
|
|
Inapplicable
|
|
314(c)(1)
and (2)
|
|
10.05
|
|
314(c)(3)
|
|
Inapplicable
|
|
314(d)
|
|
Inapplicable
|
|
314(e)
|
|
10.05
|
|
314(f)
|
|
Inapplicable
|
|
315(a),
(c) and (d)
|
|
5.01
|
|
315(b)
|
|
4.11
|
|
315(e)
|
|
4.12
|
|
316(a)(1)
|
|
4.09
|
|
316(a)(2)
|
|
Not
required
|
|
316(a)
(last sentence)
|
|
6.04
|
|
316(b)
|
|
4.07
|
|
317(a)
|
|
4.02
|
|
317(b)
|
|
3.03(a)
and (b)
|
|
318(a)
|
|
10.07
|
1
This Cross Reference Sheet is not part of the Indenture.
Table
of Contents
|
|
|
Page
|
|
|
|
|
|
ARTICLE
1 DEFINITIONS
|
1
|
|
Section 1.01
|
Certain Terms Defined
|
1
|
|
|
|
|
|
ARTICLE
2 SECURITIES
|
6
|
|
Section 2.01
|
Forms Generally
|
6
|
|
Section 2.02
|
Form of Trustee’s Certification of Authentication
|
7
|
|
Section 2.03
|
Amount Unlimited; Issuable in Series
|
7
|
|
Section 2.04
|
Authentication and Delivery of Securities
|
8
|
|
Section 2.05
|
Execution of Securities
|
9
|
|
Section 2.06
|
Certificate of Authentication
|
9
|
|
Section 2.07
|
Denomination and Date of Securities; Payments
of Interest
|
9
|
|
Section 2.08
|
Registration, Transfer and Exchange
|
10
|
|
Section 2.09
|
Mutilated, Defaced, Destroyed, Lost and Stolen
Securities
|
11
|
|
Section 2.10
|
Cancellation of Securities; Destruction Thereof
|
12
|
|
Section 2.11
|
Temporary Securities
|
12
|
|
Section 2.12
|
Computation of Interest
|
12
|
|
Section 2.13
|
CUSIP Numbers
|
12
|
|
|
|
|
|
ARTICLE
3 COVENANTS OF THE ISSUER AND THE TRUSTEE
|
13
|
|
Section 3.01
|
Payment of Principal and Interest
|
13
|
|
Section 3.02
|
Offices for Payments, etc
|
13
|
|
Section 3.03
|
Paying Agents
|
13
|
|
Section 3.04
|
Certificate of the Issuer
|
14
|
|
Section 3.05
|
List of Securityholders
|
14
|
|
Section 3.06
|
Reports
by the Issuer
|
15
|
|
Section 3.07
|
Corporate Existence
|
15
|
|
Section 3.08
|
Restrictions on Mergers, Sales and Consolidations
|
15
|
|
Section 3.09
|
Further Assurances
|
15
|
|
|
|
|
|
ARTICLE
4 REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
|
15
|
|
Section 4.01
|
Event of Default Defined; Acceleration of Maturity;
Waiver of Default
|
15
|
|
Section 4.02
|
Collection of Indebtedness by Trustee; Trustee
May Prove Debt
|
17
|
|
Section 4.03
|
Application of Proceeds
|
18
|
|
Section 4.04
|
Suits for Enforcement
|
19
|
|
Section 4.05
|
Restoration of Rights on Abandonment of Proceedings
|
19
|
|
Section 4.06
|
Limitations on Suits by Securityholder
|
19
|
|
Section 4.07
|
Unconditional Right of Securityholders to Institute
Certain Suits
|
19
|
|
Section 4.08
|
Powers and Remedies Cumulative; Delay or Omission
Not Waiver of Default
|
19
|
|
Section 4.09
|
Control by Securityholders
|
20
|
|
Section 4.10
|
Waiver of Past Defaults
|
20
|
|
Section 4.11
|
Trustee to Give Notice of Default, But May Withhold
in Certain Circumstances
|
20
|
|
Section 4.12
|
Right of Court to Require Filing of Undertaking
to Pay Costs
|
20
|
|
|
|
|
|
ARTICLE
5 CONCERNING THE TRUSTEE
|
21
|
|
Section 5.01
|
Duties and Responsibilities of the Trustee
|
21
|
|
Section 5.02
|
Certain Rights of the Trustee
|
22
|
|
Section
5.03
|
Trustee Not Responsible for Recitals, Disposition
of Securities or Application of Proceeds Thereof
|
23
|
|
Section 5.04
|
Trustee and Agents May Hold Securities; Collections,
etc
|
23
|
|
Section 5.05
|
Monies Held by Trustee
|
23
|
|
Section 5.06
|
Compensation and Indemnification of Trustee
and Its Prior Claim
|
23
|
|
Section 5.07
|
Right of Trustee to Rely on Officers’
Certificate, etc
|
23
|
|
Section 5.08
|
Persons Eligible for Appointment as Trustee
|
24
|
|
Section 5.09
|
Resignation and Removal; Appointment of Successor
Trustee
|
24
|
|
Section 5.10
|
Acceptance of Appointment by Successor
|
25
|
|
Section 5.11
|
Merger, Conversion, Consolidation or Succession
to Business of Trustee
|
25
|
|
Section 5.12
|
Reports to the Trustee
|
25
|
|
|
|
|
|
ARTICLE
6 CONCERNING THE SECURITYHOLDERS
|
26
|
|
Section 6.01
|
Evidence of Action Taken by Securityholders
|
26
|
|
Section 6.02
|
Proof of Execution of Instruments and of Holding
of Securities; Record Date
|
26
|
|
Section 6.03
|
Holders to be Treated as Owners
|
26
|
|
Section 6.04
|
Securities Owned by Issuer Deemed Not Outstanding
|
26
|
|
Section 6.05
|
Right of Revocation of Action Taken
|
27
|
|
|
|
|
|
ARTICLE
7 SUPPLEMENTAL INDENTURES
|
27
|
|
Section 7.01
|
Supplemental Indentures Without Consent of Securityholders
|
27
|
|
Section 7.02
|
Supplemental Indentures With Consent of Securityholders
|
28
|
|
Section 7.03
|
Effect of Supplemental Indenture
|
29
|
|
Section 7.04
|
Documents to Be Given to Trustee
|
29
|
|
Section 7.05
|
Notation on Securities in Respect of Supplemental
Indentures
|
29
|
|
|
|
|
|
ARTICLE
8 CONSOLIDATION, MERGER, SALE OR CONVEYANCE
|
30
|
|
Section 8.01
|
Issuer May Consolidate, etc
|
30
|
|
Section 8.02
|
Successor Corporation Substituted
|
30
|
|
|
|
|
|
ARTICLE
9 DISCHARGE OF INDENTURE
|
30
|
|
Section 9.01
|
Defeasance Within One Year of Payment
|
30
|
|
Section 9.02
|
Defeasance
|
31
|
|
Section 9.03
|
Covenant Defeasance
|
32
|
|
Section 9.04
|
Application of Trust Money
|
32
|
|
Section 9.05
|
Repayment to Issuer
|
32
|
|
|
|
|
|
ARTICLE
10 MISCELLANEOUS PROVISIONS
|
33
|
|
Section 10.01
|
Incorporators, Stockholders, Officers and Directors
Exempt from Individual Liability
|
33
|
|
Section 10.02
|
Provisions of Indenture for the Sole Benefit
of Parties and Securityholders
|
33
|
|
Section 10.03
|
Successors and Assigns of Issuer Bound by Indenture
|
33
|
|
Section 10.04
|
Notices and Demands on Issuer, Trustee and Securityholders
|
33
|
|
Section 10.05
|
Officers’ Certificates and Opinions of
Counsel; Statements to be Contained Therein
|
33
|
|
Section 10.06
|
Payments Due on Saturdays, Sundays and Holidays
|
34
|
|
Section 10.07
|
Conflict of Any Provision of Indenture with
Trust Indenture Act of 1939
|
34
|
|
Section 10.08
|
New York Law to Govern
|
34
|
|
Section 10.09
|
Counterparts
|
34
|
|
Section 10.10
|
Effect of Headings
|
34
|
|
|
|
|
|
ARTICLE
11 REDEMPTION OF SECURITIES
|
34
|
|
Section 11.01
|
Applicability of Article
|
34
|
|
Section 11.02
|
Notice of Redemption; Partial Redemptions
|
34
|
|
Section 11.03
|
Payment of Securities Called for Redemption
|
35
|
|
Section 11.04
|
Exclusion of Certain Securities from Eligibility
for Selection for Redemption
|
36
|
|
Section 11.05
|
Conversion Arrangement On Call For Redemption
|
36
|
|
|
|
|
|
ARTICLE
12 CONVERSION OF SECURITIES
|
36
|
|
Section 12.01
|
Applicability of Article
|
36
|
|
Section 12.02
|
Right of Securityholders to Convert Securities
|
37
|
|
Section 12.03
|
Issuance of Shares of Capital Stock on Conversion
|
37
|
|
Section 12.04
|
No Payment or Adjustment for Interest or Dividends
|
38
|
|
Section 12.05
|
Adjustment of Conversion Rate
|
38
|
|
Section 12.06
|
No Fractional Shares to Be Issued
|
40
|
|
Section 12.07
|
Preservation of Conversion Rights Upon Consolidation,
Merger, Sale or Conveyance
|
41
|
|
Section 12.08
|
Notice to Security Holders of a Series Prior
to Taking Certain Types of Action
|
41
|
|
Section 12.09
|
Covenant to Reserve Shares for Issuance on Conversion
of Securities
|
41
|
|
Section 12.10
|
Compliance with Governmental Requirements
|
42
|
|
Section 12.11
|
Payment of Taxes Upon Certificates for Shares
Issued Upon Conversion
|
42
|
|
Section 12.12
|
Trustee’s Duties with Respect to Conversion
Provisions
|
42
|
|
|
|
|
|
ARTICLE
13 SUBORDINATION OF SECURITIES
|
42
|
|
Section 13.01
|
Agreement Of Subordination
|
42
|
|
Section 13.02
|
Payments to Holders
|
43
|
|
Section 13.03
|
Subrogation Of Securities
|
44
|
|
Section 13.04
|
Authorization By Holders
|
44
|
|
Section 13.05
|
Notice to Trustee
|
44
|
|
Section 13.06
|
Trustee’s Relation to Senior Indebtedness
|
45
|
|
Section 13.07
|
No Impairment Of Subordination
|
45
|
|
Section 13.08
|
Rights Of Trustee
|
45
|
THIS
INDENTURE, dated as of , between MATINAS BIOPHARMA HOLDINGS, INC., a Delaware corporation (the “Issuer”) and
●, a ● corporation, as trustee (the “Trustee”).
W
I T N E S S E T H:
WHEREAS,
the Issuer has duly authorized the issue from time to time of its unsecured debentures, notes or other evidences of indebtedness
to be issued in one or more series (the “Securities”) up to such principal amount or amounts as may from time
to time be authorized in accordance with the terms of this Indenture and to provide, among other things, for the authentication,
delivery and administration thereof, the Issuer has duly authorized the execution and delivery of this Indenture; and
WHEREAS,
all things necessary to make this Indenture a valid indenture and agreement according to its terms have been done;
NOW,
THEREFORE:
In
consideration of the premises and the purchases of the Securities by the Holders thereof, the Issuer and the Trustee mutually
covenant and agree for the equal and proportionate benefit of the respective Holders from time to time of the Securities as follows:
ARTICLE
1
DEFINITIONS
Section
1.01 Certain Terms Defined. The following terms (except as otherwise expressly provided or unless the context otherwise
clearly requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings
specified in this Section. All other terms used in this Indenture that are defined in the Trust Indenture Act of 1939 or the definitions
of which in the Securities Act of 1933 are referred to in the Trust Indenture Act of 1939, as amended, including terms defined
therein by reference to the Securities Act of 1933, as amended, (except as herein otherwise expressly provided or unless the context
otherwise clearly requires), shall have the meanings assigned to such terms in said Trust Indenture Act and in said Securities
Act as in force at the date of this Indenture. All accounting terms used herein and not expressly defined shall have the meanings
assigned to such terms in accordance with GAAP. The words “herein”, “hereof” and “hereunder”
and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.
The terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular.
“Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For the purposes of this definition, “control” when used with respect to
any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.
“Authorized
Newspaper” means a newspaper in the English language or in an official language of the country of publication, customarily
printed on each Business Day, whether or not published on Saturdays, Sundays or holidays, and of general circulation in the place
in connection with which the term is used or in the financial community of such place. If, because of temporary suspension of
publication or general circulation of any newspaper or for any other reason, it is impossible or impracticable to make any publication
of any notice required by this Indenture in the manner herein provided, such publication or other notice in lieu thereof which
is made at the written direction of the Issuer by the Trustee shall constitute a sufficient publication of such notice.
“Board
of Directors” means either the Board of Directors of the Issuer or any committee of such Board duly authorized to act
hereunder.
“Business
Day” means, with respect to any Security, a day that in the city (or in all of the cities, if more than one) in which
amounts are payable, as specified in the form of such Security, is not a day on which banking institutions are authorized by law
or regulation to close.
“Capitalized
Lease” means, as applied to any Person, any lease of any property (whether real, personal, or mixed) of which the discounted
present value of the rental obligations of such Person as lessee, in conformity with GAAP, is required to be capitalized on the
balance sheet of such Person; and “Capitalized Lease Obligation” is defined to mean the rental obligations,
as aforesaid, under such lease.
“Capital
Stock” means any and all shares, interests, participations or other equivalents (however designated, whether voting
or non-voting) of the Issuer’s capital stock or other ownership interests, whether now outstanding or issued after the date
of this Indenture, including, without limitation, all Common Stock and Preferred Stock.
“Closing
Price” on any day when used with respect to any class of Capital Stock means the closing sale price per share (or if
no closing sale price is reported, the average of the bid and ask prices or, if more than one in either case, the average of the
average bid and the average ask prices) on that date as reported by The Nasdaq Global Select Market or, if such Capital Stock
is not listed on The Nasdaq Global Select Market, then on the principal U.S. national or regional securities exchange on which
such Capital Stock is then listed. If such Capital Stock is not listed on either The Nasdaq Global Select Market or on any U.S.
national or regional securities exchange on the relevant date, the Closing Price will be the last quoted bid price for the Company’s
Common Stock in the over-the-counter market on the relevant date as reported by the OTC Markets Group Inc. or similar organization.
In the event that no such quotation is available for any day, the Board of Directors shall be entitled to determine in good faith
the current market price on the basis of such quotations as it considers appropriate.
“Commission”
means the Securities and Exchange Commission, as from time to time constituted, created under the Securities Exchange Act of 1934,
or if at any time after the execution and delivery of this Indenture such Commission is not existing and performing the duties
now assigned to it under the Trust Indenture Act, then the body performing such duties on such date.
“Common
Stock” means any and all shares, interests, participations or other equivalents (however designated, whether voting
or non-voting) of the Issuer’s common stock, par value $0.001 per share, whether now outstanding or issued after the date
of the Indenture, including, without limitation, all series and classes of such common stock.
“Corporate
Trust Office” means the office of the Trustee at which the corporate trust business of the Trustee shall, at any particular
time, be principally administered, which office is, at the date as of which this Indenture is dated, located at ●.
“Currency
Agreement” means any foreign exchange contract, currency swap agreement, or other similar agreement or arrangement designed
to protect against the fluctuation in currency values.
“Default”
means any Event of Default as defined in Section 4.01 and any event that is, or after notice or passage of time or both would
be, an Event of Default.
“Depositary”
means, with respect to the Securities of any series issuable or issued in the form of one or more Registered Global Securities,
the Person designated as Depositary by the Issuer pursuant to Section 2.03 until a successor Depositary shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter “Depositary” shall mean or include each Person
who is then a Depositary hereunder, and if at any time there is more than one such Person, “Depositary” as used with
respect to the Securities of any such series shall mean the Depositary with respect to the Registered Global Securities of that
series.
“Determination
Date” has the meaning specified in Section 12.05.
“Event
of Default” has the meaning specified in Section 4.01.
“GAAP”
means generally accepted accounting principles in the United States of America as in effect as of the date of determination, including,
without limitation, those set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute
of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as approved by a significant segment of the accounting profession. All ratios and computations
contained in this Indenture shall be computed in conformity with GAAP applied on a consistent basis.
“Guarantee”
means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness or other obligation
of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise,
of such Person:
(i)
to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation of such other
Person (whether arising by virtue of partnership arrangements, or by agreement to keep-well, to purchase assets, goods, securities,
or services, to take-or-pay, or to maintain financial statement conditions or otherwise); or
(ii)
entered into for purposes of assuring in any other manner the obligee of such Indebtedness or other obligation of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or in part);
provided,
that the term “Guarantee” shall not include endorsements for collection or deposit in the ordinary course of
business. The term “Guarantee” used as a verb has a corresponding meaning.
“Holder”,
“Securityholder” or other similar terms mean the registered holder of any Security.
“Indebtedness”
means, with respect to any Person at any date of determination (without duplication):
(i)
all indebtedness of such Person for borrowed money;
(ii)
all obligations of such Person evidenced by bonds, debentures, notes, or other similar instruments, in each case, for value received
or settlement of claims;
(iii)
all obligations of such Person in respect of letters of credit or other similar instruments (including reimbursement obligations
with respect thereto);
(iv)
all obligations of such Person to pay the deferred and unpaid purchase price of property or services (but excluding trade accounts
payable or accrued liabilities arising in the ordinary course of business);
(v)
all obligations of such Person as lessee under Capitalized Leases;
(vi)
all Indebtedness of other Persons secured by a Lien on any asset of such Person, whether or not such Indebtedness is assumed by
such Person; provided that the amount of such Indebtedness shall be the lesser of:
(1)
the fair market value of such asset at such date of determination; and
(2)
amount of such Indebtedness;
(vii)
all Indebtedness of other Persons to the extent Guaranteed by such Person; and
(viii)
to the extent not otherwise included in this definition, obligations under Currency Agreements and Interest Rate Agreements.
Notwithstanding
the foregoing, in no event shall the term “Indebtedness” be deemed to include letters of credit or bonds that secure
performance or surety bonds or similar instruments that are issued in the ordinary course of business.
The
amount of Indebtedness of any Person at any date shall be the outstanding balance at such date of all unconditional obligations
as described above and, with respect to contingent obligations, the maximum liability upon the occurrence of the contingency giving
rise to the obligation; provided that:
(x)
the amount outstanding at any time of any Indebtedness issued with original issue discount is the face amount of such Indebtedness
less the remaining unamortized portion of the original issue discount of such Indebtedness at such time as determined in conformity
with GAAP; and
(y)
Indebtedness shall not include any liability for federal, state, local, or other taxes.
“Indenture”
means this instrument as originally executed and delivered or, if amended or supplemented as herein provided, as so amended or
supplemented or both, and shall include the forms and terms of particular series of Securities established as contemplated hereunder.
“Interest”
means, when used with respect to non-interest bearing Securities, interest payable after maturity. “Interest Rate Agreement”
means any obligation of any Person pursuant to any interest rate swap, cap, collar or similar arrangement providing protection
against fluctuations in interest rates. For purposes of the Indenture, the amount of such obligation shall be the amount determined
in respect thereof as of the end of the then most recently ended fiscal quarter of such Person, based on the assumption that such
obligation had terminated at the end of such fiscal quarter, and in making such determination, if any agreement relating to such
obligation provides for the netting of amounts payable by and to such Person thereunder or if any such agreement provides for
the simultaneous payment of amounts by and to such Person, then in each such case, the amount of such obligation shall be the
net amount so determined, plus any premium due upon default by such Person.
“Issuer”
means the Person identified as “Issuer” in the first paragraph hereof and, subject to Article 8, its successors and
assigns.
“Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind, or any other
type of preferential arrangement that has the practical effect of creating a security interest, in respect of such asset. For
the purposes of this Indenture, the Issuer shall be deemed to own subject to a Lien any asset that it has acquired or holds subject
to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement relating
to such asset.
“Officers’
Certificate” means a certificate signed by the chairman of the Issuer’s Board of Directors, its president or any
vice president, and by its treasurer, any assistant treasurer, its secretary or any assistant secretary of the Issuer, and delivered
to the Trustee. Each such certificate shall comply with Section 314 of the Trust Indenture Act of 1939 and include the statements
provided for in Section 10.05.
“Opinion
of Counsel” means an opinion in writing signed by legal counsel who may be an employee of or counsel to the Issuer and
who shall be satisfactory to the Trustee. Each such opinion shall comply with Section 314 of the Trust Indenture Act of 1939 and
include the statements provided for in Section 10.05, if and to the extent required hereby.
“Original
Issue Date” of any Security (or portion thereof) means the earlier of (i) the date of such Security or (ii) the date
of any Security (or portion thereof) for which such Security was issued (directly or indirectly) on registration of transfer,
exchange or substitution.
“Original
Issue Discount Security” means any Security that provides for an amount less than the Principal amount thereof to be
due and payable upon a declaration of acceleration of the maturity thereof pursuant to Section 4.01.
“Outstanding”,
when used with reference to Securities, shall, subject to the provisions of Section 6.04, mean, as of any particular time, all
Securities authenticated and delivered by the Trustee under this Indenture, except:
(i)
Securities theretofore canceled by the Trustee or delivered to the Trustee for cancellation;
(ii)
Securities, or portions thereof, for the payment or redemption of which monies in the necessary amount shall have been deposited
in trust with the Trustee or with any paying agent (other than the Issuer) or shall have been set aside, segregated and held in
trust by the Issuer for the Holders of such Securities (if the Issuer shall act as its own paying agent), provided that if such
Securities, or portions thereof, are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given
as herein provided, or provision satisfactory to the Trustee shall have been made for giving such notice; and
(iii)
Securities in substitution for which other Securities shall have been authenticated and delivered, or which shall have been paid,
pursuant to the terms of Section 2.09 (except with respect to any such Security as to which proof satisfactory to the Trustee
is presented that such Security is held by a person in whose hands such Security is a legal, valid and binding obligation of the
Issuer).
In
determining whether the Holders of the requisite Principal amount of Outstanding Securities of any or all series have given any
request, demand, authorization, direction, notice, consent or waiver hereunder, the Principal amount of an Original Issue Discount
Security that shall be deemed to be Outstanding for such purposes shall be the amount of the Principal thereof that would be due
and payable as of the date of such determination upon a declaration of acceleration of the maturity thereof pursuant to Section
4.01.
“Person”
means any individual, corporation, partnership, limited liability company, joint venture, association, joint stock company, trust,
unincorporated organization or government or any agency or political subdivision thereof or any other entity.
“Preferred
Stock” means any and all shares, interests, participations or other equivalents (however designated, whether voting
or non-voting) of the Issuer’s preferred stock, par value $0.001 per share, whether now outstanding or issued after the
date of the Indenture, including, without limitation, all series and classes of such preferred stock.
“Principal”
means, with respect to the Securities or any Security or any portion thereof, the principal amount of such Securities, Security
or portion thereof, and shall be deemed to include “and premium, if any”.
“record
date” as used with respect to any interest payment date (except a date for payment of defaulted interest), has the meaning
specified in Section 2.07.
“Registered
Global Security” means a Security evidencing all or a part of a series of Registered Securities, issued to the Depositary
for such series in accordance with Section 2.04, and bearing the legend prescribed in Section 2.04.
“Registered
Security” means any Security registered on the register maintained by the Issuer pursuant to Section 2.08.
“Responsible
Officer” when used with respect to the Trustee means any officer within the corporate trust department of the Trustee,
including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer
of the Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be such officers,
respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with
the particular subject and who shall have direct responsibility for the administration of this Indenture.
“Security”
or “Securities” has the meaning stated in the first recital of this Indenture, or, as the case may be, Securities
that have been authenticated and delivered under this Indenture.
“Senior
Indebtedness” of the Issuer means (a) all Indebtedness of the Issuer, whether currently outstanding or hereafter issued,
unless, by the terms of the instrument creating or evidencing such Indebtedness, it is provided that such Indebtedness is not
superior in right of payment to the Securities, and (b) any modifications, refunding, deferrals, renewals or extensions of any
such Indebtedness or securities, notes or other evidence of Indebtedness issued in exchange for such Indebtedness; provided that
in no event shall “Senior Indebtedness” include (i) Indebtedness of the Issuer owed or owing to any Subsidiary of
the Issuer or any officer, director or employee of the Issuer or any Subsidiary of the Issuer, (ii) Indebtedness to trade creditors
or (iii) any liability for taxes owned or owing by the Issuer.
“Subsidiary”
means, with respect to any Person, any corporation, association or other business entity of which more than 50% of all votes represented
by all classes of outstanding Voting Stock is owned, directly or indirectly, by such Person and one or more other Subsidiaries
of such Person.
“Trustee”
means the Person identified as “Trustee” in the first paragraph hereof and, subject to the provisions of Article
5, shall also include any successor trustee.
“Trust
Indenture Act of 1939” (except as otherwise provided in Section 7.01 and Section 7.02) means the Trust Indenture Act
of 1939 as in force at the date as of which this Indenture was originally executed.
“UCC”
means the Uniform Commercial Code, as in effect in each applicable jurisdiction. “Unregistered Security” means any
Security other than a Registered Security.
“U.S.
Government Obligations” means securities that are (i) direct obligations of the United States of America for the payment
of which its full faith and credit is pledged or (ii) obligations of an agency of instrumentality of the United States of America
the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, and
shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government
Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for
the account of the holder of a depository receipt; provided that (except as required by law) such custodian is not authorized
to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian
in respect of the U.S. Government Obligation or the specific payment of interest on or principal of the U.S. Government Obligation
evidenced by such depository receipt.
“Voting
Stock” means, with respect to any Person, capital stock of any class or kind ordinarily having the power to vote for
the election of directors, managers or other voting members of the governing body of such Person.
“vice
president” when used with respect to the Issuer or the Trustee, means any vice president, whether or not designated
by a number or a word or words added before or after the title of “vice president”.
“Wholly-Owned”
is defined to mean, with respect to any Subsidiary of any Person, such Subsidiary if all of the outstanding common stock or other
similar equity ownership interests (but not including preferred stock) in such Subsidiary (other than any director’s qualifying
shares or investments by foreign nationals mandated by applicable law) is owned directly or indirectly by such Person.
“Yield
to Maturity” means the yield to maturity on a series of securities, calculated at the time of issuance of such series,
or, if applicable, at the most recent redetermination of interest on such series, and calculated in accordance with accepted financial
practice.
ARTICLE
2
SECURITIES
Section
2.01 Forms Generally. The Securities of each series shall be substantially in such form (not inconsistent with this Indenture)
as shall be established by or pursuant to a resolution of the Board of Directors or in one or more indentures supplemental hereto,
in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this
Indenture and may have imprinted or otherwise reproduced thereon such legend or legends, not inconsistent with the provisions
of this Indenture, as may be required to comply with any law or with any rules or regulations pursuant thereto, or with any rules
of any securities exchange or to conform to general usage, all as may be determined by the officers executing such Securities,
as evidenced by their execution of the Securities. The Issuer shall furnish any such legends to the Trustee in writing.
The
definitive Securities shall be printed, lithographed or engraved on steel engraved borders or may be produced in any other manner,
all as determined by the officers executing such Securities, as evidenced by their execution of such Securities.
Section
2.02 Form of Trustee’s Certification of Authentication. The Trustee’s certificate of authentication on all
Securities shall be in substantially the following form:
This
is one of the Securities of the series designated herein and referred to in the within-mentioned Indenture.
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as
Trustee
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By:
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Authorized
Signatory:
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Section
2.03 Amount Unlimited; Issuable in Series. The aggregate Principal amount of Securities which may be authenticated and
delivered under this Indenture is unlimited.
The
Securities may be issued in one or more series. There shall be established in or pursuant to a resolution of the Board of Directors
and set forth in an Officers’ Certificate, or established in one or more indentures supplemental hereto, prior to the issuance
of Securities of any series:
(a)
the title of the Securities of the series (which shall distinguish the Securities of the series from all other Securities);
(b)
any limit upon the aggregate Principal amount of the Securities of the series that may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Securities of the series pursuant to Section 2.08, Section 2.09, Section 2.11 or Section 12.03);
(c)
the date or dates on which the Principal of the Securities of the series is payable;
(d)
the rate or rates at which the Securities of the series shall bear interest, if any, or the method by which such rate shall be
determined, the date or dates from which such interest shall accrue, the interest payment dates on which such interest shall be
payable and the record dates for the determination of Holders to whom interest is payable;
(e)
the place or places where the Principal of and any interest on Securities of the series shall be payable (if other than as provided
in Section 3.02);
(f)
the price or prices at which, the period or periods within which and the terms and conditions upon which Securities of the series
may be redeemed, in whole or in part, at the option of the Issuer;
(g)
the obligation, if any, of the Issuer to redeem, purchase or repay Securities of the series at the option of a Holder thereof
and the price or prices at which, the period or periods within which and the terms and conditions upon which Securities of the
series shall be redeemed, purchased or repaid, in whole or in part, pursuant to such obligation;
(h)
the obligation, if any, of the Issuer to permit the conversion of the Securities of such series into Capital Stock, and the terms
and conditions upon which such conversion shall be effected (including, without limitation, the initial conversion price or rate,
the conversion period and any other provision in addition to or in lieu of those set forth in this Indenture relative to such
obligation);
(i)
if other than denominations of $1,000 and any multiple thereof, the denominations in which Securities of the series shall be issuable;
(j)
if other than the Principal amount thereof, the portion of the Principal amount of Securities of the series which shall be payable
upon declaration of acceleration of the maturity thereof pursuant to Section 4.01 or provable in bankruptcy pursuant to Section
4.02;
(k)
if the Securities of the series are issuable in whole or in part as one or more Registered Global Securities, the identity of
the Depositary for such Registered Global Security or Securities;
(l)
any other terms of the series (which terms shall not be inconsistent with the provisions of this Indenture);
(m)
any trustees, authenticating or paying agents, transfer agents or registrar or any other agents with respect to the Securities
of such series; and
(n)
the extent to which payments on the Securities will be subordinated to the payment of Senior Indebtedness of the Issuer.
All
Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided
in or pursuant to such resolution of the Board of Directors or in any such indenture supplemental hereto.
Section
2.04 Authentication and Delivery of Securities. At any time and from time to time after the execution and delivery of this
Indenture, the Issuer may deliver Securities of any series executed by the Issuer to the Trustee for authentication, and the Trustee
shall thereupon authenticate and deliver such Securities to or upon the written order of the Issuer, such order to be signed by
both (a) the chairman of its Board of Directors, its president or any vice president and by its treasurer, any assistant treasurer,
its secretary or any assistant secretary, without any further action by the Issuer. In authenticating such Securities and accepting
the additional responsibilities under this Indenture in relation to such Securities the Trustee shall receive, and (subject to
Section 5.01) shall be fully protected in relying upon:
(a)
a certified copy of any resolution or resolutions of the Board of Directors authorizing the action taken pursuant to the resolution
or resolutions delivered under clause (b) below;
(b)
a copy of any resolution or resolutions of the Board of Directors relating to such series, in each case certified by the secretary
or an assistant secretary of the Issuer;
(c)
an executed supplemental indenture, if any, and the documentation required to be delivered pursuant to Section 7.04;
(d)
an Officers’ Certificate setting forth the form and terms of the Securities as required pursuant to Section 2.01 and Section
2.03, respectively and prepared in accordance with Section 10.05;
(e)
an Opinion of Counsel, prepared in accordance with Section 10.05, to the effect:
(i)
that the form or forms and terms of such Securities have been established by or pursuant to a resolution of the Board of Directors
or by a supplemental indenture as permitted by Section 2.01 and Section 2.03 in conformity with the provisions of this Indenture;
and
(ii)
that such Securities, when authenticated and delivered by the Trustee and issued by the Issuer in the manner and subject to any
conditions specified in such Opinion of Counsel, will constitute valid and binding obligations of the Issuer enforceable against
the Issuer in accordance with their terms, except to the extent that enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or similar laws now or hereafter in effect relating to creditors’ rights
generally, and general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at
law).
The
Trustee shall have the right to decline to authenticate and deliver any Securities under this section if the Trustee, being advised
by counsel, determines that such action may not lawfully be taken by the Issuer or if the Trustee in good faith by its board of
directors or board of trustees, executive committee, or a trust committee of directors or trustees or Responsible Officers shall
determine that such action would expose the Trustee to personal liability.
If
the Issuer shall establish pursuant to Section 2.03 that the Securities of a series or a portion thereof are to be issued in the
form of one or more Registered Global Securities, then the Issuer shall execute (in accordance with Section 2.05) and the Trustee
shall authenticate and make available for delivery one or more Registered Global Securities that (i) shall represent and shall
be denominated in an amount equal to the aggregate Principal amount of all of the Securities of such series issued in such form
and not yet canceled, (ii) shall be registered in the name of the Depositary for such Registered Global Security or Securities
or the nominee of such Depositary, (iii) shall be delivered by the Trustee to such Depositary or its custodian or pursuant to
such Depositary’s instructions and (iv) shall bear a legend substantially to the following effect: “Unless and until
it is exchanged in whole or in part for Securities in definitive registered form, this Security may not be transferred except
as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee
of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary.”
Section
2.05 Execution of Securities. The Securities shall be signed on behalf of the Issuer by the chairman of its Board of Directors,
its president, any vice president, its treasurer or any assistant treasurer, under its corporate seal and attested by its secretary
or any assistant secretary. Such signatures may be the manual or facsimile signatures of the present or any future such officers.
The seal of the Issuer may be in the form of a facsimile thereof and may be impressed, affixed, imprinted or otherwise reproduced
on the Securities. Typographical and other minor errors or defects in any such reproduction of the seal or any such signature
shall not affect the validity or enforceability of any Security that has been duly authenticated and delivered by the Trustee.
In
case any officer of the Issuer who shall have signed any of the Securities shall cease to be such officer before the Security
so signed shall be authenticated and delivered by the Trustee or disposed of by the Issuer, such Security nevertheless may be
authenticated and delivered or disposed of as though the person who signed such Security had not ceased to be such officer of
the Issuer; and any Security may be signed on behalf of the Issuer by such persons as, at the actual date of the execution of
such Security, shall be the proper officers of the Issuer, although at the date of the execution and delivery of this Indenture
any such person was not such an officer.
Section
2.06 Certificate of Authentication. Only such Securities as shall bear thereon a certificate of authentication substantially
in the form hereinbefore recited, executed by the Trustee by the manual signature of one of its authorized signatories, shall
be entitled to the benefits of this Indenture or be valid or obligatory for any purpose. Such certificate by the Trustee upon
any Security executed by the Issuer shall be conclusive evidence that the Security so authenticated has been duly authenticated
and delivered hereunder and that the Holder is entitled to the benefits of this Indenture.
Section
2.07 Denomination and Date of Securities; Payments of Interest. The Securities shall be issuable as registered securities
without coupons and in denominations as shall be specified as contemplated by Section 2.03. In the absence of any such specification
with respect to the Securities of any series, the Securities of such series shall be issuable in denominations of $1,000 and any
multiple thereof. The Securities shall be numbered, lettered, or otherwise distinguished in such manner or in accordance with
such plan as the officers of the Issuer executing the same may determine as evidenced by the execution and authentication thereof.
Each
Security shall be dated the date of its authentication, shall bear interest, if any, from the date and shall be payable on the
dates, in each case, which shall be specified as contemplated by Section 2.03.
The
person in whose name any Security of any series is registered at the close of business on any record date applicable to a particular
series with respect to any interest payment date for such series shall be entitled to receive the interest, if any, payable on
such interest payment date notwithstanding any transfer or exchange of such Security subsequent to the record date and prior to
such interest payment date, except if and to the extent the Issuer shall default in the payment of the interest due on such interest
payment date for such series, in which case such defaulted interest shall be paid to the persons in whose names Outstanding Securities
for such series are registered at the close of business on a subsequent record date (which shall be not less than five Business
Days prior to the date of payment of such defaulted interest) established by notice given by mail by or on behalf of the Issuer
to the Holders of Securities not less than 15 days preceding such subsequent record date. The term “record date”
as used with respect to any interest payment date (except a date for payment of defaulted interest) shall mean the date specified
as such in the terms of the Securities of any particular series, or, if no such date is so specified, if such interest payment
date is the first day of a calendar month, the fifteenth day of the next preceding calendar month or, if such interest payment
date is the fifteenth day of a calendar month, the first day of such calendar month, whether or not such record date is a Business
Day.
Section
2.08 Registration, Transfer and Exchange. The Issuer will keep or cause to be kept at each office or agency to be maintained
for the purpose as provided in Section 3.02 a register or registers in which, subject to such reasonable regulations as it may
prescribe, it will register, and will register the transfer of, Securities as in this Article provided. Such register shall be
in written form in the English language or in any other form capable of being converted into such form within a reasonable time.
At all reasonable times such register or registers shall be open for inspection by the Trustee.
At
the option of the Holder thereof, Registered Securities of any series (other than a Registered Global Security, except as set
forth below) may be exchanged for a Registered Security or Registered Securities of such series and tenor having authorized denominations
and an equal aggregate Principal amount, upon surrender of such Registered Securities to be exchanged at the agency of the Issuer
that shall be maintained for such purpose in accordance with Section 3.02 and upon payment, if the Issuer shall so require, of
the charges hereinafter provided. If the Securities of any series are issued in both registered and unregistered form, except
as otherwise established pursuant to Section 2.03, at the option of the Holder thereof, Unregistered Securities of any series
may be exchanged for Registered Securities of such series and tenor having authorized denominations and an equal aggregate Principal
amount, upon surrender of such Unregistered Securities to be exchanged at the agency of the Issuer that shall be maintained for
such purpose in accordance with Section 3.02 and upon payment, if the Issuer shall so require, of the charges hereinafter provided.
At the option of the Holder thereof, if Unregistered Securities of any series, maturity date, interest rate and Original Issue
Date are issued in more than one authorized denomination, except as otherwise established pursuant to Section 2.03, such Unregistered
Securities may be exchanged for Unregistered Securities of such series and tenor having authorized denominations and an equal
aggregate Principal amount, upon surrender of such Unregistered Securities to be exchanged at the agency of the Issuer that shall
be maintained for such purpose in accordance with Section 3.02 and upon payment, if the Issuer shall so require, of the charges
hereinafter provided. Registered Securities of any series may not be exchanged for Unregistered Securities of such series. Whenever
any Securities are so surrendered for exchange, the Issuer shall execute, and the Trustee shall authenticate and make available
for delivery, the Securities which the Holder making the exchange is entitled to receive.
All
Registered Securities presented for registration of transfer, exchange, redemption, conversion or payment shall be duly endorsed
by, or be accompanied by a written instrument or instruments of transfer in form satisfactory to the Issuer and the Trustee duly
executed by, the Holder or his attorney duly authorized in writing.
The
Issuer may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection
with any exchange or registration of transfer of Securities. No service charge shall be made for any such transaction.
Notwithstanding
any other provision of this Section 2.08, unless and until it is exchanged in whole or in part for Securities in definitive registered
form, a Registered Global Security representing all or a portion of the Securities of a series may not be transferred except as
a whole by the Depositary for such series to a nominee of such Depositary or by a nominee of such Depositary to such Depositary
or another nominee of such Depositary or by such Depositary or any such nominee to a successor Depositary for such series or a
nominee of such successor Depositary.
If
at any time the Depositary for any Registered Global Securities of any series notifies the Issuer that it is unwilling or unable
to continue as Depositary for such Registered Global Securities or if at any time the Depositary for such Registered Global Securities
shall no longer be eligible under applicable law, the Issuer shall appoint a successor Depositary eligible under applicable law
with respect to such Registered Global Securities. If a successor Depositary eligible under applicable law for such Registered
Global Securities is not appointed by the Issuer within 90 days after the Issuer receives such notice or becomes aware of such
ineligibility, the Issuer will execute, and the Trustee, upon receipt of the Issuer’s order for the authentication and delivery
of definitive Registered Securities of such series and tenor, will authenticate and make available for delivery Registered Securities
of such series and tenor, in any authorized denominations, in an aggregate Principal amount equal to the Principal amount of such
Registered Global Securities, in exchange for such Registered Global Securities.
The
Issuer may at any time and in its sole discretion determine that any Registered Global Securities of any series shall no longer
be maintained in global form. In such event, or in the event that there shall have occurred and be continuing an Event of Default
with respect to a series of Securities, the Issuer will, upon the request of any Holder, execute, and the Trustee, upon receipt
of the Issuer’s order for the authentication and delivery of definitive Registered Securities of such series and tenor,
will authenticate and make available for delivery, Registered Securities of such series and tenor in any authorized denominations,
in an aggregate Principal amount equal to the Principal amount of such Registered Global Securities, in exchange for such Registered
Global Securities.
Any
time the Registered Securities of any series are not in the form of Registered Global Securities pursuant to the preceding two
paragraphs, the Issuer agrees to supply the Trustee with a reasonable supply of certificated Registered Securities without the
legend required by Section 2.04 and the Trustee agrees to hold such Registered Securities in safekeeping until authenticated and
delivered pursuant to the terms of this Indenture.
If
established by the Issuer pursuant to Section 2.03 with respect to any Registered Global Security, the Depositary for such Registered
Global Security may surrender such Registered Global Security in exchange in whole or in part for Registered Securities of the
same series and tenor in definitive registered form on such terms as are acceptable to the Issuer and such Depositary. Thereupon,
the Issuer shall execute, and the Trustee shall authenticate and make available for delivery, without service charge,
(i)
to the Person specified by such Depositary new Registered Securities of the same series and tenor, of any authorized denominations
as requested by such Person, in an aggregate Principal amount equal to and in exchange for such Person’s beneficial interest
in the Registered Global Security; and
(ii)
to such Depositary a new Registered Global Security in a denomination equal to the difference, if any, between the Principal amount
of the surrendered Registered Global Security and the aggregate Principal amount of Registered Securities authenticated and delivered
pursuant to clause (i) above.
Registered
Securities issued in exchange for a Registered Global Security pursuant to this Section 2.08 shall be registered in such names
and in such authorized denominations as the Depositary for such Registered Global Security, pursuant to instructions from its
direct or indirect participants or otherwise, shall instruct the Trustee or an agent of the Issuer or the Trustee. The Trustee
or such agent shall deliver such Securities to or as directed by the Persons in whose names such Securities are so registered.
All
Securities issued upon any transfer or exchange of Securities shall be valid obligations of the Issuer, evidencing the same debt,
and entitled to the same benefits under this Indenture, as the Securities surrendered upon such transfer or exchange.
Notwithstanding
anything herein or in the forms or terms of any Securities to the contrary, none of the Issuer, the Trustee or any agent of the
Issuer or the Trustee shall be required to exchange any Unregistered Security for a Registered Security if such exchange would
result in adverse Federal income tax consequences to the Issuer (such as, for example, the inability of the Issuer to deduct from
its income, as computed for Federal income tax purposes, the interest payable on the Unregistered Securities) under then applicable
United States Federal income tax laws. The Trustee and any such agent shall be entitled to rely on an Officers’ Certificate
or an Opinion of Counsel in determining such result.
Neither
the Registrar nor the Issuer shall be required (i) to issue, authenticate, register the transfer of or exchange Securities of
any series for a period of 15 days before the mailing of a notice of redemption of such Securities to be redeemed or (ii) to register
the transfer of or exchange any Security selected for redemption in whole or in part.
Section
2.09 Mutilated, Defaced, Destroyed, Lost and Stolen Securities. In case any temporary or definitive Security shall become
mutilated or defaced and shall be surrendered to the Trustee, the Issuer shall execute, and the Trustee shall authenticate and
deliver, a new Security of the same series, bearing a number not contemporaneously outstanding, in exchange and substitution for
the mutilated or defaced Security. If the Holder of any Security claims that the Security has been lost, destroyed or wrongfully
taken, the Issuer shall execute, and the Trustee shall authenticate and deliver, a new Security of the same series, bearing a
number not contemporaneously outstanding, in exchange and substitution for the lost, destroyed or wrongfully taken Security, if
the applicant so requests before the Issuer has notice that the Security has been acquired by a protected purchaser, and the applicant
furnishes to the Issuer and to the Trustee and any agent of the Issuer or the Trustee such security or indemnity as may be required
by them to indemnify and defend and to save each of them harmless and the applicant satisfies other reasonable requirements imposed
by the Issuer.
Upon
the issuance of any substitute Security, the Issuer may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee and its
counsel) connected therewith. In case any Security which has matured or is about to mature or has been called for redemption in
full shall become mutilated or defaced or be destroyed, lost or stolen, the Issuer may instead of issuing a substitute Security,
pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated or defaced Security), if
the applicant for such payment shall furnish to the Issuer and to the Trustee and any agent of the Issuer or the Trustee such
security or taking, the applicant shall also furnish to the Issuer and the Trustee and any agent of the Issuer or the Trustee
evidence to their satisfaction of the destruction, loss or wrongful taking of such Security and of the ownership thereof.
Every
substitute Security of any series issued pursuant to the provisions of this section by virtue of the fact that any such Security
is destroyed, lost or stolen shall constitute an additional contractual obligation of the Issuer, whether or not the destroyed,
lost or wrongfully taken Security shall be at any time enforceable by anyone and shall be entitled to all the benefits of (but
shall be subject to all the limitations of rights set forth in) this Indenture equally and proportionately with any and all other
Securities of such series duly authenticated and delivered hereunder. All Securities shall be held and owned upon the express
condition that, to the extent permitted by law, the foregoing provisions are exclusive with respect to the replacement or payment
of mutilated, defaced or destroyed, lost or wrongfully taken Securities and shall preclude any and all other rights or remedies.
Section
2.10 Cancellation of Securities; Destruction Thereof. All Securities surrendered for payment, redemption, repurchase, conversion,
registration of transfer or exchange, if surrendered to the Issuer or any agent of the Issuer or the Trustee, shall be delivered
to the Trustee for cancellation or, if surrendered to the Trustee, shall be canceled by it; and no Securities shall be issued
in lieu thereof except as expressly permitted by any of the provisions of this Indenture. The Trustee shall dispose of canceled
Securities held by it in accordance with the record retention policies of the Trustee in effect from time to time and, if such
canceled certificates are destroyed, shall deliver a certificate of destruction to the Issuer. If the Issuer shall acquire any
of the Securities, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such
Securities unless and until the same are delivered to the Trustee for cancellation.
Section
2.11 Temporary Securities. Pending the preparation of definitive Securities for any series, the Issuer may execute and
the Trustee shall authenticate and deliver temporary Securities for such series (printed, lithographed, typewritten or otherwise
reproduced, in each case in form satisfactory to the Trustee). Temporary Securities of any series shall be issuable as registered
Securities without coupons, of any authorized denomination, and substantially in the form of the definitive Securities of such
series but with such omissions, insertions and variations as may be appropriate for temporary Securities, all as may be determined
by the Issuer with the concurrence of the Trustee. Temporary Securities may contain such reference to any provisions of this Indenture
as may be appropriate. Every temporary Security shall be executed by the Issuer and be authenticated by the Trustee upon the same
conditions and in substantially the same manner, and with like effect, as the definitive Securities. Without unreasonable delay
the Issuer shall execute and shall furnish definitive Securities of such series and thereupon temporary Securities of such series
may be surrendered in exchange therefor without charge at each office or agency to be maintained by the Issuer for that purpose
pursuant to Section 3.02, and the Trustee shall authenticate and deliver in exchange for such temporary Securities of such series
a like aggregate Principal amount of definitive Securities of the same series of authorized denominations. Until so exchanged,
the temporary Securities of any series shall be entitled to the same benefits under this Indenture as definitive Securities of
such series.
Section
2.12 Computation of Interest. Except as otherwise specified in the Securities of a series, interest shall be computed on
the basis of a 360-day year of twelve 30-day months.
Section
2.13 CUSIP Numbers. The Issuer in issuing the Securities may use “CUSIP” numbers (if then generally in use),
and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that
any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities
or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed
on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Issuer will
notify the Trustee of any change in the “CUSIP” numbers.
ARTICLE
3
COVENANTS
OF THE ISSUER AND THE TRUSTEE
Section
3.01 Payment of Principal and Interest. The Issuer covenants and agrees for the benefit of each series of Securities that
it will duly and punctually pay or cause to be paid the Principal of, and interest on, each of the Securities of such series at
the place or places, at the respective times and in the manner provided in such Securities. Each installment of interest on the
Securities of any series may be paid by mailing checks for such interest payable to or upon the written order of the Holders of
Securities entitled thereto as they shall appear on the registry books of the Issuer.
Notwithstanding
any provisions of this Indenture and the Securities of any series to the contrary, if the Issuer and a Holder of any Registered
Security so agree or if expressly provided pursuant to Section 2.03, payments of interest on, and any portion of the Principal
of, such Holder’s Registered Security shall be made by the paying agent, upon receipt from the Issuer of immediately available
funds by 11:00 a.m., New York City time (or such other time as may be agreed to between the Issuer and the paying agent) or the
Issuer, directly to the Holder of such Security (by wire transfer of Federal funds or immediately available funds or otherwise)
if the Holder has delivered written instructions to the Trustee 15 days prior to such payment date requesting that such payment
will be so made and designating the bank account to which such payments shall be so made and, in the case of payments of Principal,
surrenders the same to the Trustee. The Trustee shall be entitled to rely on the last instruction delivered by the Holder pursuant
to this Section 3.01 unless a new instruction is delivered 15 days prior to a payment date. The Issuer will indemnify and hold
each of the Trustee and any paying agent harmless against any loss, liability or expense (including attorneys’ fees and
expenses) resulting from any act or omission to act on the part of the Issuer or any such Holder in connection with any such agreement
or from making any payment in accordance with any such agreement.
Section
3.02 Offices for Payments, etc. So long as any of the Securities remain outstanding, the Issuer will maintain in the Borough
of Manhattan, The City of New York an office or agency (o) where the Securities may be presented for payment, (p) where the Securities
may be presented for registration of transfer and for exchange as in this Indenture provided, (q) where notices and demands to
or upon the Issuer in respect of the Securities or of this Indenture may be served and (r) for Securities of each series that
is convertible, where such Securities may be presented for conversion. The Issuer will give to the Trustee written notice of the
location of any such office or agency and of any change of location thereof. Unless otherwise specified in accordance with Section
2.03, the Issuer hereby initially designates the Corporate Trust Office of Trustee as the office to be maintained by it for each
such purpose. In case the Issuer shall fail to so designate or maintain any such office or agency or shall fail to give such notice
of the location or of any change in the location thereof, presentations and demands may be made and notices may be served at the
Corporate Trust Office.
Section
3.03 Paying Agents. Whenever the Issuer shall appoint a paying agent other than the Trustee with respect to the Securities
of any series, it will cause such paying agent to execute and deliver to the Trustee an instrument in which such agent shall agree
with the Trustee, subject to the provisions of this Section:
(a)
that it will hold all sums received by it as such agent for the payment of the Principal of or interest on the Securities of such
series (whether such sums have been paid to it by the Issuer or by any other obligor on the Securities of such series) in trust
for the benefit of the Holders of the Securities of such series or of the Trustee;
(b)
that it will give the Trustee notice of any failure by the Issuer (or by any other obligor on the Securities of such series) to
make any payment of the Principal of or interest on the Securities of such series when the same shall be due and payable; and
during the continuance of the failure referred to in clause Section 3.03(b) above.
The
Issuer will, on or prior to each due date of the Principal of or interest on the Securities of such series, deposit with the paying
agent a sum sufficient to pay such Principal or interest so becoming due, and (unless such paying agent is the Trustee) the Issuer
will promptly notify the Trustee of any failure to take such action.
If
the Issuer shall act as its own paying agent with respect to the Securities of any Series, it will, on or before each due date
of the Principal of or interest on the Securities of such series, set aside, segregate and hold in trust for the benefit of the
Holders of the Securities of such series a sum sufficient to pay such Principal or interest so becoming due. The Issuer will promptly
notify the Trustee of any failure to take such action.
Whenever
the Issuer shall have one or more paying agents for any series of Securities, it will, on or before each due date of the Principal
of or interest on any Securities of such series, deposit with the paying agent or agents for the Securities of such series a sum,
by 11:00 a.m. New York City time in immediately available funds on the payment date, sufficient to pay the Principal or interest
so becoming due with respect to the Securities of such series, and (unless such paying agent is the Trustee) the Issuer will promptly
notify the Trustee in writing of any failure so to act.
Anything
in this section to the contrary notwithstanding, the Issuer may at any time, for the purpose of obtaining a satisfaction and discharge
with respect to one or more or all series of Securities hereunder, or for any other reason, pay or cause to be paid to the Trustee
all sums held in trust for any such series by the Issuer or any paying agent hereunder, as required by this Section, such sums
to be held by the Trustee upon the trusts herein contained.
Anything
in this Section 3.03 to the contrary notwithstanding, the agreement to hold sums in trust as provided in this Section 3.03 is
subject to the provisions of Section 9.05.
Section
3.04 Certificate of the Issuer. Within 120 days after the close of the fiscal year ended ●, and within 120 days after
the close of each fiscal year thereafter, the Issuer will furnish to the Trustee a brief certificate (which need not comply with
Section 10.05) from the principal executive, financial or accounting officer of the Issuer as to his or her knowledge of the Issuer’s
compliance with all conditions and covenants under the Indenture (such compliance to be determined without regard to any period
of grace or requirement of notice provided under the Indenture).
At
the time such certificate is filed, the Issuer will also file with the Trustee a letter or statement of the independent accountants
who shall have certified the financial statements of the Issuer for its preceding fiscal year to the effect that, in making the
examination necessary for certification of such financial statements, they have obtained no knowledge of any default by the Issuer
in the performance or fulfillment of any covenant, agreement or condition contained in this Indenture, which default remains uncured
at the date of such letter or statement, or, if they shall have obtained knowledge of any such uncured default, specifying in
such letter or statement such default or defaults and the nature and status thereof, it being understood that such accountants
shall not be liable directly or indirectly for failure to obtain knowledge of any such default or defaults, and that nothing contained
in this Section 3.04 shall be construed to require such accountants to make any investigation beyond the scope required in connection
with such examination.
Section
3.05 List of Securityholders. If and so long as the Trustee shall not be the Security registrar for the Securities of any
series, the Issuer will furnish or cause to be furnished to the Trustee a list in such form as the Trustee may reasonably require
of the names and addresses of the Holders of the Securities of such series pursuant to Section 312 of the Trust Indenture Act
of 1939 (a) semi-annually not more than 10 days after each record date for the payment of interest on such Securities, as hereinabove
specified, as of such record date and on dates to be determined pursuant to Section 2.03 for non-interest bearing Securities in
each year and (b) at such other times as the Trustee may request in writing, within 30 days after receipt by the Issuer of any
such request as of a date not more than 10 days prior to the time such information is furnished.
Section
3.06 Reports by the Issuer. The Issuer covenants to:
(a)
file, whether or not required to do so under applicable law, with the Trustee, within 15 days after the Issuer files the same
with the Commission:
(i)
copies of the annual reports and of the information, documents, and other reports which the Issuer files with the Commission pursuant
to Section 13 or Section 15(d) of the Securities Exchange Act of 1934; and
(ii)
such additional information, documents and reports with respect to compliance by the Issuer with the conditions and covenants
provided for in this Indenture as the Issuer may from time to time file with the Commission; and
(b)
transmit to the Securityholders, in the manner and to the extent provided in Section 10.04, such summaries of any information,
documents and reports required to be filed with the Trustee pursuant to the provisions of subdivision (a) of this Section 3.06
as may be required by the rules and regulations of the Commission.
Delivery
of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of
such shall not constitute constructive notice of any information contained therein or determinable from information contained
therein, including the Issuer’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officers’ Certificates).
Section
3.07 Corporate Existence. So long as any of the Securities remain unpaid, the Issuer will at all times (except as otherwise
provided or permitted elsewhere in this Indenture) do or cause to be done all things necessary to preserve and keep in full force
and effect its corporate existence.
Section
3.08 Restrictions on Mergers, Sales and Consolidations. So long as any of the Securities remain unpaid, the Issuer will
not consolidate or merge with or sell, convey or lease all or substantially all of its property to any other corporation except
as permitted in Article 8 hereof.
Section
3.09 Further Assurances. From time to time whenever requested by the Trustee, the Issuer will execute and deliver such
further instruments and assurances and do such further acts as may be reasonably necessary or proper to carry out more effectually
the purposes of this Indenture or to secure the rights and remedies hereunder of the Holders of the Securities of any series.
ARTICLE
4
REMEDIES
OF THE TRUSTEE AND SECURITYHOLDERS
ON
EVENT OF DEFAULT
Section
4.01 Event of Default Defined; Acceleration of Maturity; Waiver of Default. “Event of Default” with
respect to Securities of any series wherever used herein, means any one of the following events which shall have occurred and
be continuing (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative
or governmental body):
(a)
default by the Issuer in the payment of any installment of interest upon any of the Securities of such series as and when the
same shall become due and payable, and continuance of such default for a period of 30 days;
(b)
default by the Issuer in the payment of all or any part of the Principal on any of the Securities of such series as and when the
same shall become due and payable either at maturity, upon redemption, by declaration or otherwise, and continuance of such default
for a period of five days;
(c)
default by the Issuer in the performance, or breach by the Issuer, of any of its covenants or agreements in respect of the Securities
of such series (other than a covenant or agreement in respect of the Securities of such series a default in whose performance
or whose breach is elsewhere in this section specifically dealt with), and continuance of such default or breach for a period
of 30 consecutive days after there has been given, by registered or certified mail, to the Issuer by the Trustee or to the Issuer
and the Trustee by the Holders of at least 25% in Principal amount of the Outstanding Securities of all series affected thereby,
a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a notice of
default hereunder;
(d)
the entry by a court having jurisdiction in the premises of a decree or order for relief in respect of the Issuer in an involuntary
case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or the appointment of a receiver,
liquidator, assignee, custodian, trustee or sequestrator (or similar official) of the Issuer or for any substantial part of the
Issuer’s property and assets or the ordering of the winding up or liquidation of the Issuer’s affairs, and the continuance
of any such decree or order unstayed and in effect for a period of 90 consecutive days;
(e)
the commencement by the Issuer of a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter
in effect, or the consent by the Issuer to the entry of an order for relief in an involuntary case under any such law, or the
consent by the Issuer to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee or sequestrator
(or similar official) of the Issuer or for any substantial part of the Issuer’s property, or the making of any general assignment
by the Issuer for the benefit of creditors; or
(f)
any other Event of Default provided in the supplemental indenture or resolution of the Board of Directors under which such series
of Securities is issued or in the form of Security for such series.
If
an Event of Default described in clauses 4.01(a), 4.01(b), 4.01(c) or 4.01(f) occurs and is continuing, then, and in each and
every such case, unless the Principal of all of the Securities of such series shall have already become due and payable, either
the Trustee or the Holders of not less than 25% in aggregate Principal amount of the Securities of any affected series then Outstanding
hereunder (each such series voting as a separate class) by notice in writing to the Issuer (and to the Trustee if given by Securityholders),
may declare the entire Principal (or, if the Securities of such series are Original Issue Discount Securities, such portion of
the Principal amount as may be specified in the terms of such series) of all Securities of such series and the interest accrued
thereon, if any, to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable.
If an Event of Default described in clauses Section 4.01(d) or Section 4.01(e) occurs and is continuing, then the Principal amount
of all the Securities then Outstanding and interest accrued thereon, if any, shall be and become immediately due and payable,
without any notice or other action by any Holder or the Trustee, to the full extent permitted by applicable law.
The
foregoing provisions, however, are subject to the condition that if, at any time after the Principal (or, if the Securities are
Original Issue Discount Securities, such portion of the Principal as may be specified in the terms thereof) of the Securities
of any series (or of all the Securities, as the case may be) shall have been so declared due and payable, and before any judgment
or decree for the payment of the monies due shall have been obtained or entered as hereinafter provided, the Issuer shall pay
or shall deposit with the Trustee a sum sufficient to pay all matured installments of interest upon all the Securities of such
series (or of all the Securities, as the case may be) and the Principal of any and all Securities of such series (or of all the
Securities, as the case may be) which shall have become due otherwise than by acceleration (with interest upon such Principal
and, to the extent that payment of such interest is enforceable under applicable law, on overdue installments of interest, at
the same rate as the rate of interest or Yield to Maturity (in the case of Original Issue Discount Securities) specified in the
Securities of such series (or at the respective rates of interest or Yields to Maturity of all the Securities, as the case may
be) to the date of such payment or deposit) and such amount as shall be sufficient to cover reasonable compensation to the Trustee,
its agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the Trustee except
as a result of negligence or bad faith, and if any and all Events of Default under the Indenture, other than the non-payment of
the Principal of Securities which shall have become due by acceleration, shall have been cured, waived or otherwise remedied as
provided herein, then and in every such case the Holders of a majority in aggregate Principal amount of all the then Outstanding
Securities of all such series that have been accelerated, each such series voting as a separate class, by written notice to the
Issuer and to the Trustee, may waive all defaults with respect to such series (or with respect to all the Securities, as the case
may be) and rescind and annul such declaration and its consequences, but no such waiver or rescission and annulment shall extend
to or shall affect any subsequent default or shall impair any right consequent thereon.
For
all purposes under this Indenture, if a portion of the Principal of any Original Issue Discount Securities shall have been accelerated
and declared due and payable pursuant to the provisions hereof, then, from and after such declaration, unless such declaration
has been rescinded and annulled, the Principal amount of such Original Issue Discount Securities shall be deemed, for all purposes
hereunder, to be such Portion of the Principal thereof as shall be due and payable as a result of such acceleration, and payment
of such portion of the Principal thereof as shall be due and payable as a result of such acceleration, together with interest,
if any, thereon and all other amounts owing thereunder, shall constitute payment in full of such Original Issue Discount Securities.
Section
4.02 Collection of Indebtedness by Trustee; Trustee May Prove Debt. The Issuer covenants that (h) in case default shall
be made in the payment of any installment of interest on any of the Securities of any series when such interest shall have become
due and payable, and such default shall have continued for a period of 30 days or (i) in case default shall be made in the payment
of all or any part of the Principal of any of the Securities of any series when the same shall have become due and payable, whether
upon maturity of the Securities of such series or upon any redemption or by declaration or otherwise, then in each case upon demand
of the Trustee, the Issuer will pay to the Trustee for the benefit of the Holders of the Securities of such series (x) the whole
amount that then shall have become due and payable on all Securities of such series for Principal or interest, as the case may
be (with interest to the date of such payment upon the overdue Principal and, to the extent that payment of such interest is enforceable
under applicable law, on overdue installments of interest at the same rate as the rate of interest or Yield to Maturity (in the
case of Original Issue Discount Securities) specified in the Securities of such series) and (y) in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection, including reasonable compensation to the Trustee
and each predecessor Trustee, their respective agents and counsel, and any expenses and liabilities incurred, and all advances
made, by the Trustee and each predecessor Trustee except as a result of its negligence or bad faith.
Until
such demand is made by the Trustee, the Issuer may pay the Principal of and interest on the Securities of any series to the registered
Holders, whether or not the Principal of and interest on the Securities of such series be overdue.
In
case the Issuer shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express
trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums
so due and unpaid, and may prosecute any such action or proceedings to judgment or final decree, and may enforce any such judgment
or final decree against the Issuer or other obligor upon such Securities and collect in the manner provided by law out of the
property of the Issuer or other obligor upon such Securities, wherever situated, the monies adjudged or decreed to be payable.
In
case there shall be pending proceedings relative to the Issuer or any other obligor upon the Securities under Title 11 of the
United States Code or any other applicable Federal or state bankruptcy, insolvency or other similar law, or in case a receiver,
assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for
or taken possession of the Issuer or its property or such other obligor, or in case of any other comparable judicial proceedings
relative to the Issuer or other obligor upon the Securities of any series, or to the creditors or property of the Issuer or such
other obligor, the Trustee, irrespective of whether the Principal of any Securities shall then be due and payable as therein expressed
or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand pursuant to the provisions of
this Section, shall be entitled and empowered, by intervention in such proceedings or otherwise:
(a)
to file and prove a claim or claims for the whole amount of Principal and interest (or, if the Securities of any series are Original
Issue Discount Securities, such portion of the Principal amount as may be specified in the terms of such series) owing and unpaid
in respect of the Securities of any series, and to file such other papers or documents as may be necessary or advisable in order
to have the claims of the Trustee (including any claim for reasonable compensation to the Trustee and each predecessor Trustee,
and their respective agents, attorneys and counsel, and for reimbursement of all expenses and liabilities incurred, and all advances
made, by the Trustee and each predecessor Trustee, except as a result of negligence or bad faith) and of the Securityholders allowed
in any judicial proceedings relative to the Issuer or other obligor upon the Securities of any series, or to the creditors or
property of the Issuer or such other obligor;
(b)
unless prohibited by applicable law and regulations, to vote on behalf of the Holders of the Securities of any series in any election
of a trustee or a standby trustee in arrangement, reorganization, liquidation or other bankruptcy or insolvency proceedings or
person performing similar functions in comparable proceedings; and
(c)
to collect and receive any monies or other property payable or deliverable on any such claims, and to distribute all amounts received
with respect to the claims of the Securityholders and of the Trustee on their behalf; and any trustee, receiver, or liquidator,
custodian or other similar official is hereby authorized by each of the Securityholders to make payments to the Trustee, and,
in the event that the Trustee shall consent to the making of payments directly to the Securityholders, to pay to the Trustee such
amounts as shall be sufficient to cover reasonable compensation to the Trustee, each predecessor Trustee and their respective
agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the Trustee and each
predecessor Trustee except as a result of negligence or bad faith and all other amounts due to the Trustee or any predecessor
Trustee pursuant to Section 5.06.
Nothing
herein contained shall be deemed to authorize the Trustee to authorize or consent to or vote for or accept or adopt on behalf
of any Securityholder any plan of reorganization, arrangement, adjustment or composition affecting the Securities of any series
or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Securityholder in any
such proceeding except, as aforesaid, to vote for the election of a trustee in bankruptcy or similar person.
All
rights of action and of asserting claims under this Indenture, or under any of the Securities, may be enforced by the Trustee
without the possession of any of the Securities or the production thereof on any trial or other proceedings relative thereto,
and any such action or proceedings instituted by the Trustee shall be brought in its own name as trustee of an express trust,
and any recovery of judgment, subject to the payment of the expenses, disbursements and compensation of the Trustee, each predecessor
Trustee and their respective agents and attorneys, shall be for the ratable benefit of the Holders of the Securities in respect
of which such action was taken.
In
any proceedings brought by the Trustee (and also any proceedings involving the interpretation of any provision of this Indenture
to which the Trustee shall be a party) the Trustee shall be held to represent all the Holders of the Securities in respect to
which such action was taken, and it shall not be necessary to make any Holders of such Securities parties to any such proceedings.
Section
4.03 Application of Proceeds. Any monies collected by the Trustee pursuant to this Article in respect of any series shall
be applied in the following order at the date or dates fixed by the Trustee and, in case of the distribution of such monies on
account of Principal or interest, upon presentation of the several Securities in respect of which monies have been collected and
stamping (or otherwise noting) thereon the payment, or issuing Securities of such series in reduced Principal amounts in exchange
for the presented Securities of like series if only partially paid, or upon surrender thereof if fully paid:
FIRST:
To the payment of costs and expenses applicable to such series in respect of which monies have been collected, including reasonable
compensation to the Trustee and each predecessor Trustee and their respective agents and attorneys and of all expenses and liabilities
incurred, and all advances made, by the Trustee and each predecessor Trustee except as a result of negligence or bad faith, and
all other amounts due to the Trustee or any predecessor Trustee pursuant to Section 5.06;
SECOND:
In case the Principal of the Securities of such series in respect of which monies have been collected shall not have become and
be then due and payable, to the payment of interest on the Securities of such series in default in the order of the maturity of
the installments of such interest, with interest (to the extent that such interest has been collected by the Trustee) upon the
overdue installments of interest at the same rate as the rate of interest or Yield to Maturity (in the case of Original Issue
Discount Securities) specified in such Securities, such payments to be made ratably to the persons entitled thereto, without discrimination
or preference;
THIRD:
In case the Principal of the Securities of such series in respect of which monies have been collected shall have become and shall
be then due and payable, to the payment of the whole amount then owing and unpaid upon all the Securities of such series for Principal
and interest, with interest upon the overdue Principal, and (to the extent that such interest has been collected by the Trustee)
upon overdue installments of interest at the same rate as the rate of interest or Yield to Maturity (in the case of Original Issue
Discount Securities) specified in the Securities of such series; and in case such monies shall be insufficient to pay in full
the whole amount so due and unpaid upon the Securities of such series, then to the payment of such Principal and interest or yield
to maturity, without preference or priority of Principal over interest or yield to maturity, or of interest or yield to maturity
over Principal, or of any installment of interest over any other installment of interest, or of any Security of such series over
any other Security of such series, ratably to the aggregate of such Principal and accrued and unpaid interest or yield to maturity;
and
FOURTH:
To the payment of the remainder, if any, to the Issuer or any other person lawfully entitled thereto.
Section
4.04 Suits for Enforcement. In case an Event of Default has occurred, has not been waived and is continuing, the Trustee
may proceed to protect and enforce the rights vested in it by this Indenture, either at law or in equity or in bankruptcy or otherwise,
whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any
power granted in this Indenture or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by
law.
Section
4.05 Restoration of Rights on Abandonment of Proceedings. In case the Trustee shall have proceeded to enforce any right
under this Indenture and such proceedings shall have been discontinued or abandoned for any reason, or shall have been determined
adversely to the Trustee, then and in every such case the Issuer and the Trustee shall be restored respectively to their former
positions and rights hereunder, and all rights, remedies and powers of the Issuer, the Trustee and the Securityholders shall continue
as though no such proceedings had been taken.
Section
4.06 Limitations on Suits by Securityholder. No Holder of any Security of any series shall have any right by virtue or
by availing of any provision of this Indenture to institute any action or proceeding at law or in equity or in bankruptcy or otherwise
upon or under or with respect to this Indenture, or for the appointment of a trustee, receiver, liquidator, custodian or other
similar official or for any other remedy hereunder, unless such Holder previously shall have given to the Trustee written notice
of an Event of Default and of the continuance thereof, as hereinbefore provided, and unless also the Holders of not less than
25% in aggregate Principal amount of the Securities of such series then outstanding shall have made written request upon the Trustee
to institute such action or proceedings in respect of such Event of Default in its own name as trustee hereunder and shall have
offered to the Trustee indemnity satisfactory to the Trustee against the costs, expenses and liabilities to be incurred therein
or thereby and the Trustee for 60 days after its receipt of such notice, request and offer of indemnity shall have failed to institute
any such action or proceeding and no direction inconsistent with such written request shall have been given to the Trustee pursuant
to Section 4.09; it being understood and intended, and being expressly covenanted by the Holder of every Security with every other
Holder and the Trustee, that no one or more Holders of Securities of any series shall have any right in any manner whatever by
virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of any other such Holder of
Securities, or to obtain or seek to obtain priority over or preference to any other such Holder or to enforce any right under
this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all Holders of Securities
of the applicable series. For the protection and enforcement of the provisions of this Section, each and every Securityholder
and the Trustee shall be entitled to such relief as can be given either at law or in equity.
Section
4.07 Unconditional Right of Securityholders to Institute Certain Suits. Notwithstanding any other provision in this Indenture
and any provision of any Security, the right of any Holder of any Security to receive payment of the Principal of or interest
on such Security on or after the respective due dates expressed in such Security, or to institute suit for the enforcement of
any such payment on or after such respective dates, shall not be impaired or affected without the consent of such Holder.
Section
4.08 Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default. Except as provided in Section 4.06, no right
or remedy herein conferred upon or reserved to the Trustee or to the Securityholders is intended to be exclusive of any other
right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of
any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate
right or remedy.
No
delay or omission of the Trustee or of any Securityholder to exercise any right or power accruing upon any Event of Default occurring
and continuing as aforesaid shall impair any such right or power or shall be construed to be a waiver of any such Event of Default
or an acquiescence therein; and, subject to Section 4.06, every power and remedy given by this Indenture or by law to the Trustee
or to the Securityholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by
the Securityholders.
Section
4.09 Control by Securityholders. The Holders of a majority in aggregate Principal amount of the Securities of each series
affected (with each series voting as a separate class) at the time outstanding shall have the right to direct the time, method,
and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee with respect to the Securities of such series by this Indenture; provided that such direction shall not be otherwise
than in accordance with law and the provisions of this Indenture and provided further that (subject to the provisions of Section
5.01) the Trustee shall have the right to decline to follow any such direction if the Trustee, being advised by counsel, shall
determine that the action or proceeding so directed may not lawfully be taken or if the Trustee in good faith by its board of
directors, the executive committee, or a trust committee of directors or Responsible Officers of the Trustee shall determine that
the action or proceedings so directed would subject the Trustee to personal liability or if the Trustee in good faith shall so
determine that the actions or forbearances specified in or pursuant to such direction would be unduly prejudicial to the interests
of Holders of the Securities of all series so affected not joining in the giving of said direction.
Nothing
in this Indenture shall impair the right of the Trustee to take any action which is not inconsistent with such direction or directions
by Securityholders.
Section
4.10 Waiver of Past Defaults. Prior to a declaration of the acceleration of the maturity of the Securities of any series
as provided in Section 4.01, the Holders of a majority in aggregate Principal amount of the Securities of such series at the time
Outstanding (each such series voting as a separate class) may on behalf of the Holders of all the Securities of such series waive
an existing default or Event of Default, except a default in the payment of Principal of or interest on any Security as specified
in clauses (a) or (b) of Section 4.01 or in respect of a covenant or provision hereof which cannot be modified or amended without
the consent of each Holder affected as provided in Section 7.02. In the case of any such waiver, the Issuer, the Trustee and the
Holders of the Securities of each series affected shall be restored to their former positions and rights hereunder, respectively.
Upon
any such waiver, such default shall cease to exist and be deemed to have been cured and not to have occurred, and any Event of
Default arising therefrom shall be deemed to have been cured, and not to have occurred for every purpose of this Indenture; but
no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon.
Section
4.11 Trustee to Give Notice of Default, But May Withhold in Certain Circumstances. The Trustee shall give to the Securityholders
of any series, as the names and addresses of such Holders appear on the registry books, notice by mail of all defaults known to
Responsible Officers of the Trustee which have occurred with respect to such series, such notice to be transmitted within 90 days
after the occurrence thereof, unless such defaults shall have been cured before the giving of such notice (the term “default”
or “defaults” for the purposes of this section being hereby defined to mean any event or condition which is, or with
notice or lapse of time or both would become, an Event of Default); provided that, except in the case of default in the payment
of the Principal of or interest on any of the Securities of such series, the Trustee shall be protected in withholding such notice
if and so long as the board of directors, the executive committee, or a trust committee of directors or trustees and/or Responsible
Officers of the Trustee in good faith determines that the withholding of such notice is in the interests of the Securityholders
of such series.
Section
4.12 Right of Court to Require Filing of Undertaking to Pay Costs. All parties to this Indenture agree, and each Holder
of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any
suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such
suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses,
against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such
party litigant; provided that the provisions of this Section 4.12 shall not apply to (i) any suit instituted by the Trustee,
(ii) any suit instituted by any Securityholder or group of Securityholders of any series holding in the aggregate more than 10%
in aggregate Principal amount of the Securities of such series or (iii) any suit instituted by a Holder pursuant to Section 4.07.
ARTICLE
5
CONCERNING
THE TRUSTEE
Section
5.01 Duties and Responsibilities of the Trustee. With respect to the Holders of any series of Securities issued hereunder,
the Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a particular series and after the
curing or waiving of all Events of Default which may have occurred with respect to such series, undertakes to perform such duties
and only such duties as are specifically set forth in this Indenture. In case an Event of Default with respect to the Securities
of a series has occurred (which has not been cured or waived) the Trustee shall exercise such of the rights and powers vested
in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use
under the circumstances in the conduct of such person’s own affairs.
(a)
Prior to the occurrence of an Event of Default with respect to the Securities of any series and after the curing or waiving of
all such Events of Default with respect to such series which may have occurred:
(i)
the duties and obligations of the Trustee with respect to the Securities of any Series shall be determined solely by the express
provisions of this Indenture, and the Trustee shall not be liable except for the performance of such duties and obligations as
are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against
the Trustee; and
(ii)
in the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and
the correctness of the opinions expressed therein, upon any statements, certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture; but in the case of any such statements, certificates or opinions which by any
provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same
to determine whether or not they conform to the requirements of this Indenture.
(b)
No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own
negligent failure to act or its own willful misconduct, except that:
(i)
this subsection (b) shall not be construed to limit the effect of subsection (a) of this Section 5.01;
(ii)
the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Responsible Officers
of the Trustee, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; and
(iii)
the Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it in good faith in accordance
with the direction of the Holders relating to the time, method and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture.
None
of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal
financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if there shall
be reasonable ground for believing that the repayment of such funds or adequate indemnity against such liability is not reasonably
assured to it.
The
provisions of this Section 5.01 are in furtherance of and subject to Sections 315 and 316 of the Trust Indenture Act of 1939.
Whether
or not therein expressly provided, every provision of this Indenture relating to the conduct of, affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this Section 5.01.
Section
5.02 Certain Rights of the Trustee. In furtherance of and subject to the Trust Indenture Act of 1939, and subject to Section
5.01:
(a)
In the absence of bad faith on its part, the Trustee may conclusively rely and shall be protected in acting or refraining from
acting upon any resolution, Officers’ Certificate or any other certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, coupon, security or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties;
(b)
any request, direction, order or demand of the Issuer mentioned herein shall be sufficiently evidenced by an Officers’ Certificate
(unless other evidence in respect thereof be herein specifically prescribed); and any resolution of the Board of Directors may
be evidenced to the Trustee by a copy thereof certified by the secretary or an assistant secretary of the Issuer;
(c)
the Trustee may consult with counsel of its selection and any advice or Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted to be taken by it hereunder in good faith and in accordance
with such advice or Opinion of Counsel;
(d)
the Trustee shall be under no obligation to exercise any of the trusts or powers vested in it by this Indenture at the request,
order or direction of any of the Securityholders pursuant to the provisions of this Indenture, unless such Securityholders shall
have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which might be incurred
by it in connection with such request, order or direction;
(e)
the Trustee shall not be liable for any action taken or omitted by it in good faith and believed by it to be authorized or within
the discretion, rights or powers conferred upon it by this Indenture;
(f)
prior to the occurrence of an Event of Default hereunder and after the curing or waiving of all Events of Default, the Trustee
shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, appraisal, bond, debenture, note, coupon, security, or other paper
or document unless requested in writing so to do by the Holders of not less than a majority in aggregate Principal amount of the
Securities of all series affected then outstanding; provided that, if the payment within a reasonable time to the Trustee of the
costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee,
not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require indemnity
satisfactory to it against such expenses or liabilities as a condition to proceeding, and the reasonable expenses of every such
investigation shall be paid by the Issuer or, if paid by the Trustee or any predecessor trustee, shall be repaid by the Issuer
upon demand;
(g)
the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through
agents or attorneys not regularly in its employ and the Trustee shall not be responsible for any misconduct or negligence on the
part of any such agent or attorney appointed with due care by it hereunder;
(h)
the Trustee shall not be liable for any action taken, suffered or omitted in good faith and believed by it to be authorized or
within the discretion, rights or powers conferred upon it by this Indenture;
(i)
the Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee
has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee
at the Corporate Trust Office of the Trustee, and such notice references the Securities and this Indenture;
(j)
the rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to
be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent,
custodian and other Person employed to act hereunder; and
(k)
the Trustee may request that the Issuer deliver an Officers’ Certificate setting forth the names of individuals and/or titles
of officers authorized at such time to take specified actions pursuant to this Indenture, which Officers’ Certificate may
be signed by any person authorized to sign an Officers’ Certificate, including any person specified as so authorized in
any such certificate previously delivered and not superseded.
Section
5.03 Trustee Not Responsible for Recitals, Disposition of Securities or Application of Proceeds Thereof. The recitals contained
herein and in the Securities, except the Trustee’s certificates of authentication, shall be taken as the statements of the
Issuer, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no representation as to the
validity or sufficiency of this Indenture or the Securities. The Trustee shall not be accountable for the use or application by
the Issuer of any of the Securities or of the proceeds thereof.
Section
5.04 Trustee and Agents May Hold Securities; Collections, etc. The Trustee or any agent of the Issuer or the Trustee, in
its individual or any other capacity, may become the owner or pledgee of Securities with the same rights it would have if it were
not the Trustee or such agent and may otherwise deal with the Issuer and receive, collect, hold and retain collections from the
Issuer with the same rights it would have if it were not the Trustee or such agent.
Section
5.05 Monies Held by Trustee. All monies received by the Trustee in trust hereunder need not be segregated from other funds
except to the extent required by mandatory provisions of law. Neither the Trustee nor any agent of the Issuer or the Trustee shall
be under any liability for interest on any monies received by it hereunder.
Section
5.06 Compensation and Indemnification of Trustee and Its Prior Claim. The Issuer covenants and agrees to pay to the Trustee
from time to time, and the Trustee shall be entitled to, such compensation as shall be agreed in writing from time to time by
the Issuer and the Trustee (which shall not be limited by any provision of law in regard to the compensation of a trustee of an
express trust) and the Issuer covenants and agrees to pay or reimburse the Trustee and each predecessor Trustee upon its request
for all reasonable expenses, disbursements and advances incurred or made by or on behalf of it in accordance with any of the provisions
of this Indenture (including the reasonable compensation and the expenses and disbursements of its counsel and of all agents and
other persons not regularly in its employ) except to the extent any such expense, disbursement or advance may arise from its negligence
or bad faith. The Issuer also covenants and agrees to indemnify the Trustee and each predecessor Trustee for, and to hold it harmless
against, any loss, liability or expense arising out of or in connection with the acceptance or administration of this Indenture
or the trusts hereunder and the performance of its duties hereunder, including the costs and expenses of defending itself against
or investigating any claim of liability (whether asserted by the Issuer, a Holder or any other Person) in the premises, except
to the extent such loss, liability or expense is due to the negligence or bad faith of the Trustee or such predecessor Trustee.
The obligations of the Issuer under this section to compensate and indemnify the Trustee and each predecessor Trustee and to pay
or reimburse the Trustee and each predecessor Trustee for expenses, disbursements and advances shall constitute additional indebtedness
hereunder and shall survive the satisfaction and discharge of this Indenture or the resignation or removal of the Trustee. Such
additional indebtedness shall be a senior claim and lien to that of the Securities upon all property and funds held or collected
by the Trustee as such, except funds held in trust for the benefit of the Holders of particular Securities, and the Securities
are hereby subordinated to such senior claim. The parties agree that if the Trustee renders services following an Event of Default
under Section 4.01(d) or (e), compensation for such services is intended to constitute administrative expense under any bankruptcy
law.
Section
5.07 Right of Trustee to Rely on Officers’ Certificate, etc. Subject to Section 5.01 and Section 5.02, whenever in
the administration of the trusts of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or
established prior to taking or suffering or omitting any action hereunder, such matter (unless other evidence in respect thereof
be herein specifically prescribed) may, in the absence of negligence or bad faith on the part of the Trustee, be deemed to be
conclusively proved and established by an Officers’ Certificate delivered to the Trustee, and such certificate, in the absence
of negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or
omitted by it under the provisions of this Indenture upon the faith thereof.
Section
5.08 Persons Eligible for Appointment as Trustee. The Trustee for each series of Securities hereunder shall at all times
be a corporation which is eligible in accordance with the provisions of Section 310(a) of the Trust Indenture Act of 1939 and
which has (or which is a Wholly-Owned Subsidiary, directly or indirectly, of a bank holding company which has) a combined capital
and surplus of $50,000,000. If such corporation or holding company publishes reports of condition at least annually, pursuant
to law or to the requirements of a Federal, State or District of Columbia supervising or examining authority, then for the purposes
of this Section, the combined capital and surplus of such corporation or holding company shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published.
Section
5.09 Resignation and Removal; Appointment of Successor Trustee. (a) The Trustee, or any trustee or trustees hereafter appointed,
may at any time resign with respect to one or more or all series of Securities by giving written notice of resignation to the
Issuer. Upon receiving such notice of resignation, the Issuer shall promptly appoint a successor trustee or trustees with respect
to the applicable series by written instrument in duplicate, executed by authority of the Board of Directors, one copy of which
instrument shall be delivered to the resigning Trustee and one copy to the successor trustee or trustees. If no successor Trustee
shall have been so appointed with respect to any series and have accepted appointment within 30 days after the mailing of such
notice of resignation, the resigning Trustee may petition, at the expense of the Issuer, any court of competent jurisdiction for
the appointment of a successor Trustee, or any Securityholder who has been a bona fide Holder of a Security or Securities of the
applicable series for at least six months may, subject to the provisions of Section 4.12, on behalf of himself and all others
similarly situated, petition any such court for the appointment of a successor Trustee. Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, appoint a successor Trustee.
(b)
In case at any time any of the following shall occur:
(i)
the Trustee shall fail to comply with the provisions of Section 310(b) of the Trust Indenture Act of 1939 with respect to any
series of Securities after written request therefor by the Issuer or by any Securityholder who has been a bona fide Holder of
a Security or Securities of such series for at least six months;
(ii)
the Trustee shall cease to be eligible in accordance with the provisions of Section 310(a) of the Trust Indenture Act of 1939
and shall fail to resign after written request therefor by the Issuer or by any Securityholder; or
(iii)
the Trustee shall become incapable of acting with respect to any series of Securities, or shall be adjudged a bankrupt or insolvent,
or a receiver or liquidator of the Trustee or of its property shall be appointed, or any public officer shall take charge or control
of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation; then, in any such
case, the Issuer may remove the Trustee with respect to the applicable series of Securities and appoint a successor trustee for
such series by written instrument, in duplicate, executed by order of the Board of Directors of the Issuer, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the successor Trustee, or, subject to Section 315(e) of
the Trust Indenture Act of 1939, any Securityholder who has been a bona fide Holder of a Security or Securities of such series
for at least six months may on behalf of himself and all others similarly situated, petition any court of competent jurisdiction
for the removal of the Trustee and the appointment of a successor trustee with respect to such series. Such court may thereupon,
after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.
(c)
The Holders of a majority in aggregate Principal amount of the Securities of each series at the time outstanding may at any time
remove the Trustee with respect to Securities of such series and appoint a successor Trustee with respect to the Securities of
such series by delivering to the Trustee so removed, to the successor Trustee so appointed and to the Issuer the evidence provided
in Section 6.01 of the action in that regard taken by the Securityholders.
(d)
Any resignation or removal of the Trustee with respect to any series and any appointment of a successor trustee with respect to
such series pursuant to any of the provisions of this Section 5.09 shall become effective upon acceptance of appointment by the
successor trustee as provided in Section 5.10.
Section
5.10 Acceptance of Appointment by Successor. Any successor Trustee appointed as provided in Section 5.09 shall execute
and deliver to the Issuer and to its predecessor Trustee an instrument accepting such appointment hereunder, and thereupon the
resignation or removal of the predecessor Trustee with respect to all or any applicable series shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become vested with all rights, powers, duties and obligations
with respect to such series of its predecessor hereunder, with like effect as if originally named as Trustee for such series hereunder.
On the written request of the Issuer or of the successor Trustee, upon payment of its charges then unpaid, the Trustee ceasing
to act shall, subject to Section 5.06, pay over to the successor Trustee all monies at the time held by it hereunder and shall
execute and deliver an instrument transferring to such successor Trustee all such rights, powers, duties and obligations. Upon
request of any such successor Trustee, the Issuer shall execute any and all instruments in writing for more fully and certainly
vesting in and confirming to such successor Trustee all such rights and powers. Any Trustee ceasing to act shall, nevertheless,
retain a prior claim upon all property or funds held or collected by such Trustee to secure any amounts then due it pursuant to
the provisions of Section 5.06.
If
a successor Trustee is appointed with respect to the Securities of one or more (but not all) series, the Issuer, the predecessor
Trustee and each successor Trustee with respect to the Securities of any applicable series shall execute and deliver an indenture
supplemental hereto which shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights,
powers, trusts and duties of the predecessor Trustee with respect to the Securities of any series as to which the predecessor
Trustee is not retiring shall continue to be vested in the predecessor Trustee, and shall add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one
Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees
of the same trust and that each such Trustee shall be Trustee of a trust or trusts under separate indentures.
Upon
acceptance of appointment by any successor Trustee as provided in this Section 5.10, the Issuer shall mail notice thereof by first-class
mail to the Holders of Securities of any series for which such successor Trustee is acting as Trustee at their last addresses
as they shall appear in the Security register. If the acceptance of appointment is substantially contemporaneous with the resignation,
then the notice called for by the preceding sentence may be combined with the notice called for by Section 5.09. If the Issuer
fails to mail such notice within 10 days after acceptance of appointment by the successor Trustee, the successor Trustee shall
cause such notice to be mailed at the expense of the Issuer.
Section
5.11 Merger, Conversion, Consolidation or Succession to Business of Trustee. Any corporation into which the Trustee may
be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation
to which the Trustee shall be a party, or any corporation succeeding to all or substantially all the corporate trust business
of the Trustee, shall be the successor of the Trustee hereunder, provided that such corporation shall be eligible under the provisions
of Section 5.08, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding.
In
case at the time such successor to the Trustee shall succeed to the trusts created by this Indenture any of the Securities of
any series shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication
of any predecessor Trustee and deliver such Securities so authenticated; and, in case at that time any of the Securities of any
series shall not have been authenticated, any successor to the Trustee may authenticate such Securities either in the name of
any predecessor hereunder or in the name of the successor Trustee; and in all such cases such certificate shall have the full
force which it is anywhere in the Securities of such series or in this Indenture provided that the certificate of the Trustee
shall have; provided, that the right to adopt the certificate of authentication of any predecessor Trustee or to authenticate
Securities of any series in the name of any predecessor Trustee shall apply only to its successor or successors by merger, conversion
or consolidation.
Section
5.12 Reports to the Trustee. The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant thereto.
If required by Section 313(a) of the Trust Indenture Act, the Trustee shall, within sixty days after each May 15 following the
date of the initial issuance of Securities under this Indenture deliver to Holders a brief report, dated as of such May 15, which
complies with the provisions of such Section 313(a).
A
copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange,
if any, upon which the Securities are listed, with the Commission and with the Issuer. The Issuer will promptly notify the Trustee
when the Securities are listed on any stock exchange and of any delisting thereof.
ARTICLE
6
CONCERNING
THE SECURITYHOLDERS
Section
6.01 Evidence of Action Taken by Securityholders. Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by a specified percentage in Principal amount of the Securityholders
of any or all series may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such
specified percentage of Securityholders in person or by agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments are delivered to the Trustee. Proof of execution
of any instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject
to Section 5.01 and Section 5.02) conclusive in favor of the Trustee and the Issuer, if made in the manner provided in this Article.
Section
6.02 Proof of Execution of Instruments and of Holding of Securities; Record Date. Subject to Section 5.01 and Section 5.02,
the execution of any instrument by a Securityholder or his agent or proxy may be proved by the certificate of any notary public
or other officer authorized to take acknowledgment of deeds, that the Person executing such instrument acknowledged to such notary
public or other such officer the execution thereof, or by an affidavit of a witness to such execution sworn to before any such
notary public or other officer. Where such execution is by an officer of a corporation or association or a member of a partnership
on behalf of such corporation, association or partnership, as the case may be, or by any other Person acting in a representative
capacity, such certificate or affidavit shall also constitute sufficient proof of such Person’s authority. The holding of
Securities shall be proved by the Security register or by a certificate of the registrar thereof. The Issuer may set a record
date for purposes of determining the identity of Holders of Securities of any series entitled to vote or consent to any action
referred to in Section 6.01, which record date may be set at any time or from time to time by notice to the Trustee, for any date
or dates (in the case of any adjournment or reconsideration) not more than 60 days nor less than five days prior to the proposed
date of such vote or consent, and thereafter, notwithstanding any other provisions hereof, only Holders of Securities of such
series of record on such record date shall be entitled to so vote or give such consent or revoke such vote or consent.
Section
6.03 Holders to be Treated as Owners. Prior to due presentment of a Security for registration of transfer, the Issuer,
the Trustee and any agent of the Issuer or the Trustee may deem and treat the person in whose name any Security shall be registered
upon the Security register for such series as the absolute owner of such Security (whether or not such Security shall be overdue
and notwithstanding any notation of ownership or other writing thereon) for the purpose of receiving payment of or on account
of the Principal of and, subject to the provisions of this Indenture, interest on such Security and for all other purposes, and
neither the Issuer nor the Trustee nor any agent of the Issuer or the Trustee shall be affected by any notice to the contrary.
All such payments so made to any such person, or upon his order, shall be valid, and, to the extent of the sum or sums so paid,
effectual to satisfy and discharge the liability for monies payable upon any such Security.
Section
6.04 Securities Owned by Issuer Deemed Not Outstanding. In determining whether the Holders of the requisite aggregate Principal
amount of Outstanding Securities of any or all series have concurred in any direction, consent or waiver under this Indenture,
Securities which are owned by the Issuer or any other obligor on the Securities with respect to which such determination is being
made or by any person directly or indirectly controlling or controlled by or under direct or indirect common control with the
Issuer or any other obligor on the Securities with respect to which such determination is being made shall be disregarded and
deemed not to be Outstanding for the purpose of any such determination, except that for the purpose of determining whether the
Trustee shall be protected in relying on any such direction, consent or waiver only Securities as to which the Trustee has received
written notice are so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded
as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect
to such Securities and that the pledgee is not the Issuer or any other obligor upon the Securities or any person directly or indirectly
controlling or controlled by or under direct or indirect common control with the Issuer or any other obligor on the Securities.
In case of a dispute as to such right, the advice of counsel shall be full protection in respect of any decision made by the Trustee
in accordance with such advice. Upon request of the Trustee, the Issuer shall furnish to the Trustee promptly an Officers’
Certificate listing and identifying all Securities, if any, known by the Issuer to be owned or held by or for the account of any
of the above-described persons; and, subject to Section 5.01 and Section 5.02, the Trustee shall be entitled to accept such Officers’
Certificate as conclusive evidence of the facts therein set forth and of the fact that all Securities not listed therein are Outstanding
for the purpose of any such determination.
Section
6.05 Right of Revocation of Action Taken. At any time prior to (but not after) the evidencing to the Trustee, as provided
in Section 6.01, of the taking of any action by the Holders of the percentage in aggregate Principal amount of the Securities
of any or all series, as the case may be, specified in this Indenture in connection with such action, any Holder of a Security
the serial number of which is shown by the evidence to be included among the serial numbers of the Securities the Holders of which
have consented to such action may, by filing written notice at the Corporate Trust Office and upon proof of holding as provided
in this Article, revoke such action so far as concerns such Security. Except as aforesaid any such action taken by the Holder
of any Security shall be conclusive and binding upon such Holder and upon all future Holders and owners of such Security and of
any Securities issued in exchange or substitution therefor, irrespective of whether or not any notation in regard thereto is made
upon any such Security. Any action taken by the Holders of the percentage in aggregate Principal amount of the Securities of any
or all series, as the case may be, specified in this Indenture in connection with such action shall be conclusively binding upon
the Issuer, the Trustee and the Holders of all the Securities affected by such action.
ARTICLE
7
SUPPLEMENTAL
INDENTURES
Section
7.01 Supplemental Indentures Without Consent of Securityholders. The Issuer, when authorized by a resolution of its Board
of Directors certified to the Trustee, and the Trustee may from time to time and at any time enter into an indenture or indentures
supplemental hereto for one or more of the following purposes:
(a)
to evidence the succession of another corporation to the Issuer, or successive successions, and the assumption by the successor
corporation of the covenants, agreements and obligations of the Issuer pursuant to Article 8;
(b)
(i) to cure any ambiguity or to correct or supplement any provision contained herein or in any supplemental indenture which may
be defective or inconsistent with any other provision contained herein or in any supplemental indenture, (ii) to conform the terms
of Securities to the description thereof in the prospectus and prospectus supplement (or similar offering document) offering such
Securities or (iii) to make such other provisions in regard to matters or questions arising under this Indenture or under any
supplemental indenture as the Board of Directors may deem necessary or desirable and which shall not adversely affect the interests
of the Holders of the Securities in any material respect;
(c)
to establish the form or terms of Securities of any series as permitted by Section 2.01 and Section 2.03;
(d)
to evidence and provide for the acceptance of appointment hereunder by a successor trustee with respect to the Securities of one
or more series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one trustee, pursuant to the requirements of Section 5.10;
(e)
to comply with any requirements of the Commission in connection with the qualification of this Indenture under the Trust Indenture
Act of 1939;
(f)
to provide for uncertificated or Unregistered Securities and to make all appropriate changes for such purpose;
(g)
to make any change that would not reasonably be expected to adversely affect the rights of any Holder in any material respect;
(h)
to add to the covenants of the Issuer such new covenants, restrictions, conditions or provisions as its Board of Directors shall
consider to be for the protection of the Holders of Securities, and with respect to which the Trustee has received an Opinion
of Counsel to a similar effect, and to make the occurrence, or the occurrence and continuance, of a default in any such additional
covenants, restrictions, conditions or provisions an Event of Default; provided, that in respect of any such additional covenant,
restriction, condition or provision such supplemental indenture may provide for a particular period of grace after default (which
period may be shorter or longer than that allowed in the case of other defaults) or may provide for an immediate enforcement upon
such an Event of Default or may limit the remedies available to the Trustee upon such an Event of Default or may limit the right
of the Holders of a majority in aggregate Principal amount of the Securities of such series to waive such an Event of Default;
or
(i)
to make any change so long as no Securities are Outstanding.
The
Trustee is hereby authorized to join with the Issuer in the execution of any such supplemental indenture, to make any further
appropriate agreements and stipulations which may be therein contained and to accept the conveyance, transfer, assignment, mortgage
or pledge of any property thereunder, but the Trustee shall not be obligated to enter into any such supplemental indenture which
affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.
Any
supplemental indenture authorized by the provisions of this section may be executed without the consent of the Holders of any
of the Securities at the time outstanding, notwithstanding any of the provisions of Section 7.02.
Section
7.02 Supplemental Indentures With Consent of Securityholders. With the consent (evidenced as provided in Article 6) of
the Holders of not less than a majority in aggregate Principal amount of the Securities at the time Outstanding of all series
affected by such supplemental indenture (voting as one class), the Issuer, when authorized by a resolution of its Board of Directors,
and the Trustee may, from time to time and at any time, enter into an indenture or indentures supplemental hereto for the purpose
of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental
indenture or of modifying in any manner the rights of the Holders of the Securities of each such series; provided, that no such
supplemental indenture shall without the consent of each Holder affected thereby:
(i)
change the stated maturity of the Principal of, or the time of payment of any installment of interest on, such Holder’s
Security;
(ii)
reduce the Principal thereof or the rate of interest thereon, or any premium payable with respect thereto;
(iii)
change any place of payment where, or the currency in which, any Security or any premium or the interest thereon is payable;
(iv)
change the provisions for calculating any redemption or repurchase price, including the definitions relating thereto;
(v)
make any change to Section 4.07 or Section 4.10 (except to include other provisions subject to Section 4.10);
(vi)
reduce the percentage in Principal amount of outstanding Securities of the relevant series the consent of whose Holders is required
for any such supplemental indenture, for any waiver of compliance with any provisions of this Indenture or any defaults and their
consequences provided for in this Indenture;
(vii)
alter or impair the right to convert any Security at the rate and upon the terms provided in Article 12;
(viii)
waive a default in the payment of Principal of or interest on any Security of such Holder (except pursuant to a rescission of
acceleration pursuant to Section 4.01);
(ix)
adversely affect the rights of such Holder under any mandatory redemption or repurchase provision or any right of redemption or
repurchase at the option of such Holder;
(x)
modify any of the provisions of this Section 7.02, except to increase any such percentage or to provide that certain other provisions
of this Indenture cannot be modified or waived without the consent of the Holder of each outstanding Security affected thereby;
(xi)
modify Article 13 of this Indenture or the definition of “Senior Indebtedness” in Article 1 hereof in a manner adverse
to Holders of any series of Securities; or
(xii)
change or waive any provision that, pursuant to a board resolution or indenture supplemental hereto establishing the terms of
one or more series of Securities, is prohibited to be so changed or waived.
Upon
the written request of the Issuer, accompanied by a copy of a resolution of the Board of Directors certified by the secretary
or an assistant secretary of the Issuer authorizing the execution of any such supplemental indenture, and upon the filing with
the Trustee of evidence of the consent of Securityholders as aforesaid and other documents, if any, required by Section 6.01,
the Trustee shall join with the Issuer in the execution of such supplemental indenture unless such supplemental indenture affects
the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion,
but shall not be obligated to, enter into such supplemental indenture.
It
shall not be necessary for the consent of the Securityholders under this section to approve the particular form of any proposed
supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof.
Promptly
after the execution by the Issuer and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the
Issuer shall mail a notice thereof by first class mail to the Holders of Securities of each series affected thereby at their addresses
as they shall appear on the registry books of the Issuer, setting forth in general terms the substance of such supplemental indenture.
Any failure of the Issuer to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity
of any such supplemental indenture.
Section
7.03 Effect of Supplemental Indenture. Upon the execution of any supplemental indenture pursuant to the provisions hereof,
this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations
of rights, obligations, duties and immunities under this Indenture of the Trustee, the Issuer and the Holders of Securities of
each series affected thereby shall thereafter be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be
part of the terms and conditions of this Indenture for any and all purposes.
Section
7.04 Documents to Be Given to Trustee. The Trustee, subject to the provisions of Section 5.01 and Section 5.02, may receive
an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant
to this Article 7 complies with the applicable provisions of this Indenture.
Section
7.05 Notation on Securities in Respect of Supplemental Indentures. Securities of any series authenticated and delivered
after the execution of any supplemental indenture pursuant to the provisions of this Article may bear a notation in form approved
by the Trustee for such series as to any matter provided for by such supplemental indenture or as to any action taken at any such
meeting. If the Issuer or the Trustee shall so determine, new Securities of any series so modified as to conform, in the opinion
of the Trustee and the Board of Directors, to any modification of this Indenture contained in any such supplemental indenture
may be prepared by the Issuer, authenticated by the Trustee and delivered in exchange for the Securities of such series then outstanding.
ARTICLE
8
CONSOLIDATION,
MERGER, SALE OR CONVEYANCE
Section
8.01 Issuer May Consolidate, etc., on Certain Terms. The Issuer covenants that it will not merge or consolidate with any
other Person or sell, convey, transfer, lease or otherwise dispose of all or substantially all of its property and assets to any
Person (other than a consolidation with or merger with or into or a sale, conveyance, transfer, lease or other disposition to
a Wholly-Owned Subsidiary with a positive net worth; provided that, in connection with any such merger of the Issuer with
a Wholly-Owned Subsidiary, no consideration (other than common stock) in the surviving person or the Issuer shall be issued or
distributed to the stockholders of the Issuer), unless (xv) either (x) the Issuer shall be the continuing corporation, or the
successor corporation or (y) the Person formed by such consolidation or into which the Issuer is merged or that acquires by sale
or conveyance substantially all the assets of the Issuer (if other than the Issuer) shall be a corporation or limited liability
company organized and validly existing under the laws of the United States of America or any jurisdiction thereof and shall expressly
assume the due and punctual payment of the Principal of and interest on all the Securities, according to their tenor, and the
due and punctual performance and observance of all of the covenants and conditions of this Indenture to be performed or observed
by the Issuer, by supplemental indenture satisfactory to the Trustee, executed and delivered to the Trustee by such Person, (xvi)
immediately after giving effect to such transaction, no default or Event of Default shall have occurred and be continuing and
(xvii) the Issuer delivers to the Trustee an Officers’ Certificate and Opinion of Counsel, in each case stating that such
consolidation, merger or transfer and such supplemental indenture complies with this Section 8.01 and that all conditions precedent
provided for herein relating to such transaction have been complied with; provided, however, that the foregoing limitations
shall not apply if, in the good faith determination of the Board of Directors, whose determination shall be evidenced by a board
resolution certified to the Trustee, the principal purpose of such transaction is to change the state of incorporation of the
Issuer; and provided further that any such transaction shall not have as one of its purposes the evasion of the foregoing
limitations.
Section
8.02 Successor Corporation Substituted. In case of any such consolidation, merger, sale, conveyance, transfer, lease or
other disposition, and following such an assumption by the successor Person, such successor Person shall succeed to and be substituted
for the Issuer, with the same effect as if it had been named herein. Such successor Person may cause to be signed, and may issue
either in its own name or in the name of the Issuer prior to such succession any or all of the Securities issuable hereunder which
theretofore shall not have been signed by the Issuer and delivered to the Trustee; and, upon the order of such successor Person
instead of the Issuer and subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee, pursuant
to the terms hereof, shall authenticate and shall deliver any Securities which previously shall have been signed and delivered
by the officers of the Issuer to the Trustee for authentication, and any Securities which such successor Person thereafter shall
cause to be signed and delivered to the Trustee for that purpose. All of the Securities so issued shall in all respects have the
same legal rank and benefit under this Indenture as the Securities theretofore or thereafter issued in accordance with the terms
of this Indenture as though all of such Securities had been issued at the date of the execution hereof.
In
case of any such consolidation, merger, sale, conveyance, transfer, lease or other disposition, such changes in phraseology and
form (but not in substance) may be made in the Securities thereafter to be issued as may be appropriate.
Upon
the assumption by the successor Person in the manner described in this Article, the Issuer shall be discharged from all obligations
and covenants under this Indenture and the Securities.
ARTICLE
9
DISCHARGE
OF INDENTURE
Section
9.01 Defeasance Within One Year of Payment. Except as otherwise provided in this Section 9.01, the Issuer may terminate
its obligations under the Securities of any series and this Indenture with respect to Securities of such series if:
(i)
all Securities of such series previously authenticated and delivered (other than destroyed, lost or wrongfully taken Securities
of such series that have been replaced or Securities of such series for whose payment money or securities have theretofore been
held in trust and thereafter repaid to the Issuer, as provided in Section 9.05) have been delivered to the Trustee for cancellation
and the Issuer has paid all sums payable by it hereunder; or
(ii)
(A) the Securities of such series mature within one year or all of them are to be called for redemption within one year under
arrangements satisfactory to the Trustee for giving the notice of redemption, (B) the Issuer irrevocably deposits in trust with
the Trustee, as trust funds solely for the benefit of the Holders of such Securities for that purpose, money or U.S. Government
Obligations or a combination thereof sufficient (unless such funds consist solely of money, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification thereof delivered to the Trustee), without consideration
of any reinvestment and after payment of all Federal, state and local taxes or other charges and assessments in respect thereof
payable by the Trustee, to pay Principal of and interest on the Securities of such series to maturity or redemption, as the case
may be, and to pay all other sums payable by it hereunder and (C) the Issuer delivers to the Trustee an Officers’ Certificate
and an Opinion of Counsel, in each case stating that all conditions precedent provided for herein relating to the satisfaction
and discharge of this Indenture with respect to the Securities of such series have been complied with.
With
respect to the foregoing clause (i), only the Issuer’s obligations under Sections 5.06 and 9.05 in respect of the Securities
of such series shall survive. With respect to the foregoing clause (ii), only the Issuer’s obligations in Sections 2.03
through 2.11, 3.02, 5.06, 5.09 and 9.05 in respect of the Securities of such series shall survive until such Securities of such
series are no longer outstanding. Thereafter, only the Issuer’s obligations in Sections 5.06 and 9.05 in respect of the
Securities of such series shall survive. After any such irrevocable deposit, the Trustee shall acknowledge in writing the discharge
of the Issuer’s obligations under the Securities of such series and this Indenture with respect to the Securities of such
series except for those surviving obligations specified above.
Section
9.02 Defeasance. Except as provided below, the Issuer will be deemed to have paid and will be discharged from any and all
obligations in respect of the Securities of any series and the provisions of this Indenture will no longer be in effect with respect
to the Securities of such series (and the Trustee, at the expense of the Issuer, shall execute instruments in form and substance
satisfactory to the Issuer and the Trustee acknowledging the same) if the following conditions shall have been satisfied:
(i)
the Issuer has irrevocably deposited in trust with the Trustee as trust funds specifically pledged as security for, and dedicated
solely to, Holders of the Securities of such series, for payment of the Principal of and interest on the Securities of such series,
money or U.S. Government Obligations or a combination thereof sufficient (unless such funds consist solely of money, in the opinion
of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the
Trustee) without consideration of any reinvestment and after payment of all federal, state and local taxes or other charges and
assessments in respect thereof payable by the Trustee, to pay and discharge the Principal of and accrued interest on the outstanding
Securities of such series to maturity or earlier redemption (irrevocably provided for under arrangements satisfactory to the Trustee),
as the case may be;
(ii)
such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other material
agreement or instrument to which the Issuer is a party or by which it is bound;
(iii)
no default or Event of Default with respect to the Securities of such series shall have occurred and be continuing on the date
of such deposit;
(iv)
the Issuer shall have delivered to the Trustee (1) either (x) a ruling directed to the Trustee received from the Internal Revenue
Service to the effect that the Holders of the Securities of such series will not recognize income, gain or loss for Federal income
tax purposes as a result of the Issuer’s exercise of its option under this Section 9.02 and will be subject to federal income
tax on the same amount and in the same manner and at the same times as would have been the case if such deposit and defeasance
had not occurred or (y) an Opinion of Counsel to the same effect as the ruling described in clause (x) above and based upon a
change in law and (2) an Opinion of Counsel to the effect that the Holders of the Securities of such series have a valid security
interest in the trust funds subject to no prior liens under the UCC; and
(v)
the Issuer has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, in each case stating that all
conditions precedent provided for herein relating to the defeasance contemplated by this Section 9.02 of the Securities of such
series have been complied with.
The
Issuer’s obligations in Sections 2.03 through 2.11, 3.02, 5.06, 5.09 and 9.05 with respect to the Securities of such series
shall survive until such Securities are no longer outstanding. Thereafter, only the Issuer’s obligations in Sections 5.06
and 9.05 shall survive.
Section
9.03 Covenant Defeasance. The Issuer may omit to comply with any term, provision or condition set forth in Sections 3.04,
3.06 or 3.08 (or any other specific covenant relating to the Securities of any series provided for in a Board Resolution or supplemental
indenture pursuant to Section 2.03 which may by its terms be defeased pursuant to this Section 9.03), and such omission shall
be deemed not to be an Event of Default under clause (c) of Section 4.01, with respect to the outstanding Securities of such series
if:
(i)
the Issuer has irrevocably deposited in trust with the Trustee as trust funds solely for the benefit of the Holders of the Securities
of such series, for payment of the Principal of and interest, if any, on the Securities of such series, money or U.S. Government
Obligations or a combination thereof in an amount sufficient (unless such funds consist solely of money, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee) without
consideration of any reinvestment and after payment of all Federal, state and local taxes or other charges and assessments in
respect thereof payable by the Trustee, to pay and discharge the Principal of and interest on the outstanding Securities of such
series to maturity or earlier redemption (irrevocably provided for under arrangements satisfactory to the Trustee), as the case
may be;
(ii)
such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other material
agreement or instrument to which the Issuer is a party or by which it is bound;
(iii)
no default or Event of Default with respect to the Securities of such series shall have occurred and be continuing on the date
of such deposit;
(iv)
the Issuer has delivered to the Trustee an Opinion of Counsel to the effect that (A) the Holders of the Securities of such series
have a valid security interest in the trust funds subject to no prior liens under the UCC and (B) such Holders will not recognize
income, gain or loss for Federal income tax purposes as a result of such deposit and covenant defeasance and will be subject to
federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit
and defeasance had not occurred; and
(v)
the Issuer has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, in each case stating that all
conditions precedent provided for herein relating to the covenant defeasance contemplated by this Section 9.03 of the Securities
of such series have been complied with.
Section
9.04 Application of Trust Money. Subject to Section 9.05, the Trustee or Paying Agent shall hold in trust money or U.S.
Government Obligations deposited with it pursuant to 9.01, 9.02, 9.03, as the case may be, in respect of the Securities of any
series and shall apply the deposited money and the proceeds from deposited U.S. Government Obligations in accordance with the
Securities of such series and this Indenture to the payment of Principal of and interest on the Securities of such series; provided
that such money need not be segregated from other funds except to the extent required by law. The Issuer shall pay and indemnify
the Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Government Obligations deposited pursuant
to 9.01, 9.02, 9.03, as the case may be, or the Principal and interest received in respect thereof, other than any such tax, fee
or other charge that by law is for the account of the Holders.
Section
9.05 Repayment to Issuer. Subject to Sections 5.06 and 9.01, the Trustee and the Paying Agent shall promptly pay to the
Issuer upon request set forth in an Officers’ Certificate any money held by them at any time and not required to make payments
hereunder and thereupon shall be relieved from all liability with respect to such money. Subject to applicable escheat or abandoned
property laws, the Trustee and the Paying Agent shall pay to the Issuer upon written request any money held by them and required
to make payments hereunder under this Indenture that remains unclaimed for two years; provided that the Trustee or such
Paying Agent before being required to make any payment shall cause to be published at the expense of the Issuer once in an Authorized
Newspaper or mail to each Holder entitled to such money at such Holder’s address (as set forth in the register) notice that
such money remains unclaimed and that after a date specified therein (which shall be at least 30 days from the date of such publication
or mailing) any unclaimed balance of such money then remaining will be repaid to the Issuer. After payment to the Issuer, Holders
entitled to such money must look to the Issuer for payment as unsecured general creditors unless an abandoned property law designates
another Person, and all liability of the Trustee and such Paying Agent with respect to such money shall cease.
ARTICLE
10
MISCELLANEOUS
PROVISIONS
Section
10.01 Incorporators, Stockholders, Officers and Directors Exempt from Individual Liability. No recourse under or upon any
obligation, covenant or agreement contained in this Indenture or in any Security, or because of any indebtedness evidenced thereby,
shall be had against any incorporator, as such, or against any past, present or future stockholder, officer, director or employee,
as such, of the Issuer or of any successor Person thereof, either directly or through the Issuer or any successor Person thereof,
under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable
proceeding or otherwise, all such liability being expressly waived and released by the acceptance of the Securities by the Holders
thereof and as part of the consideration for the issue of the Securities.
Section
10.02 Provisions of Indenture for the Sole Benefit of Parties and Securityholders. Nothing in this Indenture or in the
Securities, expressed or implied, shall give or be construed to give to any person, firm or corporation, other than the parties
hereto and their successors and the Holders of the Securities, any legal or equitable right, remedy or claim under this Indenture
or under any covenant or provision herein contained, all such covenants and provisions being for the sole benefit of the parties
hereto and their successors and of the Holders of the Securities.
Section
10.03 Successors and Assigns of Issuer Bound by Indenture. All the covenants, stipulations, promises and agreements contained
in this Indenture by or on behalf of the Issuer shall bind its successors and assigns, whether so expressed or not.
Section
10.04 Notices and Demands on Issuer, Trustee and Securityholders. Any notice or demand which by any provision of this Indenture
is required or permitted to be given or served by the Trustee or by the Holders of Securities to or on the Issuer may be given
or served by being deposited postage prepaid, first-class mail (except as otherwise specifically provided herein) addressed (until
another address of the Issuer is filed by the Issuer with the Trustee) to Matinas Biopharma Holdings, Inc. at 1545 Route 206 South,
Suite 302, Bedminster, New Jersey 07921, Attention: Chief Financial Officer. Any notice, direction, request or demand by the Issuer
or any Securityholder to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given
or made at the Corporate Trust Office.
Where
this Indenture provides for notice to Holders, such notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder entitled thereto, at such Holder’s last address as
it appears in the Security register. In any case where notice to Holders is given by mail, neither the failure to mail such notice,
nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other
Holders. Where this Indenture provides for notice in any manner, such notice may be waived in writing by the person entitled to
receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice
by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken
in reliance upon such waiver.
In
case, by reason of the suspension of or irregularities in regular mail service, it shall be impracticable to mail notice to the
Issuer and Securityholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner
of giving such notice as shall be satisfactory to the Trustee shall be deemed to be a sufficient giving of such notice.
Section
10.05 Officers’ Certificates and Opinions of Counsel; Statements to be Contained Therein. Upon any application or
demand by the Issuer to the Trustee to take any action under any of the provisions of this Indenture, the Issuer shall furnish
to the Trustee an Officers’ Certificate stating that all conditions precedent provided for in this Indenture relating to
the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions
precedent have been complied with, except that in the case of any such application or demand as to which the furnishing of such
documents is specifically required by any provision of this Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.
Each
certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition
or covenant provided for in this Indenture shall include (a) a statement that the person making such certificate or opinion has
read such covenant or condition, (b) a brief statement as to the nature and scope of the examination or investigation upon which
the statements or opinions contained in such certificate or opinion are based, (c) a statement that, in the opinion of such person,
he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been complied with and (d) a statement as to whether or not, in the opinion of such person, such
condition or covenant has been complied with.
Any
certificate, statement or opinion of an officer of the Issuer may be based, insofar as it relates to legal matters, upon a certificate
or opinion of or representations by counsel, unless such officer knows that the certificate or opinion or representations with
respect to the matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise
of reasonable care should know that the same are erroneous. Any certificate, statement or opinion of counsel may be based, insofar
as it relates to factual matters, information with respect to which is in the possession of the Issuer, upon the certificate,
statement or opinion of or representations by an officer or officers of the Issuer, unless such counsel knows that the certificate,
statement or opinion or representations with respect to the matters upon which his certificate, statement or opinion may be based
as aforesaid are erroneous, or in the exercise of reasonable care should know that the same are erroneous.
Any
certificate, statement or opinion of an officer of the Issuer or of counsel may be based, insofar as it relates to accounting
matters, upon a certificate or opinion of or representations by an accountant or firm of accountants in the employ of the Issuer,
unless such officer or counsel, as the case may be, knows that the certificate or opinion or representations with respect to the
accounting matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise
of reasonable care should know that the same are erroneous.
Any
certificate or opinion of any independent firm of public accountants filed with the Trustee shall contain a statement that such
firm is independent.
Section
10.06 Payments Due on Saturdays, Sundays and Holidays. If the date of maturity of interest on or Principal of the Securities
of any series or the date fixed for redemption or repayment of any such Security shall not be a Business Day, then payment of
interest or Principal need not be made on such date, but may be made on the next succeeding Business Day with the same force and
effect as if made on the date of maturity or the date fixed for redemption, and no interest shall accrue for the period after
such date.
Section
10.07 Conflict of Any Provision of Indenture with Trust Indenture Act of 1939. If and to the extent that any provision
of this Indenture limits, qualifies or conflicts with another provision incorporated in this Indenture by operation of Sections
310 to 317, inclusive, of the Trust Indenture Act of 1939, such incorporated provision shall control.
Section
10.08 New York Law to Govern. This Indenture and each Security shall be deemed to be a contract under the laws of the State
of New York, and for all purposes shall be construed in accordance with the laws of such State.
Section
10.09 Counterparts. This Indenture may be executed in any number of counterparts, each of which shall be an original; but
such counterparts shall together constitute but one and the same instrument.
Section
10.10 Effect of Headings. The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.
ARTICLE
11
REDEMPTION
OF SECURITIES
Section
11.01 Applicability of Article. The provisions of this Article shall be applicable to the Securities of any series which
are redeemable before their maturity except as otherwise specified as contemplated by Section 2.03 for Securities of such series.
Section
11.02 Notice of Redemption; Partial Redemptions. Notice of redemption to the Holders of Securities of any series to be
redeemed as a whole or in part at the option of the Issuer shall be given by mailing notice of such redemption by first class
mail, postage prepaid, at least 30 days and not more than 60 days prior to the date fixed for redemption to such Holders of Securities
of such series at their last addresses as they shall appear upon the registry books. Any notice which is mailed in the manner
herein provided shall be conclusively presumed to have been duly given, whether or not the Holder receives the notice. Failure
to give notice by mail, or any defect in the notice to the Holder of any Security of a series designated for redemption as a whole
or in part shall not affect the validity of the proceedings for the redemption of any other Security of such series.
The
notice of redemption to each such Holder shall specify the CUSIP numbers of such Securities to be redeemed, the Principal amount
of each Security of such series held by such Holder to be redeemed, the date fixed for redemption, the redemption price, the place
or places of payment, that payment will be made upon presentation and surrender of such Securities, that interest accrued to the
date fixed for redemption will be paid as specified in such notice and that on and after said date interest thereon or on the
portions thereof to be redeemed will cease to accrue. In case any Security of a series is to be redeemed in part only the notice
of redemption shall state the portion of the Principal amount thereof to be redeemed, the method the Trustee shall use to determine
such Securities to be redeemed as specified in the last paragraph of this Section 11.02, if applicable, and shall state that on
and after the date fixed for redemption, upon surrender of such Security, a new Security or Securities of such series in Principal
amount equal to the unredeemed portion thereof will be issued.
The
notice of redemption of Securities of any series to be redeemed at the option of the Issuer shall be given by the Issuer or, at
the Issuer’s written request, by the Trustee in the name and at the expense of the Issuer.
By
11:00 a.m. (New York City time) on the redemption date specified in the notice of redemption given as provided in this Section,
the Issuer will deposit with the Trustee or with one or more paying agents (or, if the Issuer is acting as its own paying agent,
set aside, segregate and hold in trust as provided in Section 3.03) an amount of money sufficient to redeem on the redemption
date all the Securities of such series so called for redemption at the appropriate redemption price, together with accrued interest
to the date fixed for redemption. If less than all the outstanding Securities of a series are to be redeemed, the Issuer will
deliver to the Trustee at least 70 days (unless a shorter period shall be satisfactory to the Trustee) prior to the date fixed
for redemption an Officers’ Certificate stating the aggregate Principal amount of Securities to be redeemed.
In
the case of the redemption of all of the Securities of a series outstanding, the Issuer shall notify the Trustee in writing of
the redemption date 45 days (unless a shorter period shall be satisfactory to the Trustee) prior to the redemption date.
If
less than all the Securities of a series are to be redeemed, the Trustee shall select, pro rata or by lot or in such manner as
it shall deem appropriate and fair, Securities of such series to be redeemed in whole or in part. Securities of a series may be
redeemed in part in multiples equal to the minimum authorized denomination for Securities of such series or any multiple thereof.
The Trustee shall promptly notify the Issuer in writing of the Securities of such series selected for redemption and, in the case
of any Securities of such series selected for partial redemption, the Principal amount thereof to be redeemed. For all purposes
of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities of any series
shall relate, in the case of any Security redeemed or to be redeemed only in part, to the portion of the Principal amount of such
Security which has been or is to be redeemed.
Section
11.03 Payment of Securities Called for Redemption. If notice of redemption has been given as above provided, the Securities
or portions of Securities specified in such notice shall become due and payable on the date and at the place stated in such notice
at the applicable redemption price, together with interest accrued to the date fixed for redemption, and on and after said date
(unless the Issuer shall default in the payment of such Securities at the redemption price, together with interest accrued to
said date) interest on the Securities or portions of Securities so called for redemption shall cease to accrue and, except as
provided in Section 5.05 and Section 9.04, such Securities shall cease from and after the date fixed for redemption to be entitled
to any benefit or security under this Indenture, and the Holders thereof shall have no right in respect of such Securities except
the right to receive the redemption price thereof and unpaid interest to the date fixed for redemption. On presentation and surrender
of such Securities at a place of payment specified in said notice, said Securities or the specified portions thereof shall be
paid and redeemed by the Issuer at the applicable redemption price, together with interest accrued thereon to the date fixed for
redemption; provided that any semiannual payment of interest becoming due on the date fixed for redemption shall be payable to
the Holders of such Securities registered as such on the relevant record date subject to the terms and provisions of Section 2.07
hereof.
If
any Security called for redemption shall not be so paid upon surrender thereof for redemption, the Principal shall, until paid
or duly provided for, bear interest from the date fixed for redemption at the rate of interest or Yield to Maturity (in the case
of an Original Issue Discount Security) borne by the Security.
Upon
presentation of any Security redeemed in part only, the Issuer shall execute and the Trustee shall authenticate and deliver to
or on the order of the Holder thereof, at the expense of the Issuer, a new Security or Securities of such series, of authorized
denominations, in Principal amount equal to the unredeemed portion of the Security so presented, pursuant to Sections 2.04, 2.05
and 2.06.
Section
11.04 Exclusion of Certain Securities from Eligibility for Selection for Redemption. Securities shall be excluded from
eligibility for selection for redemption if they are identified by registration and certificate number in a written statement
signed by an authorized officer of the Issuer and delivered to the Trustee at least 40 days prior to the last date on which notice
of redemption may be given as being owned of record and beneficially by, and not pledged or hypothecated by either (a) the Issuer
or (b) an entity specifically identified in such written statement directly or indirectly controlling or controlled by or under
direct or indirect common control with the Issuer.
Section
11.05 Conversion Arrangement On Call For Redemption. In connection with any redemption of Securities, the Issuer shall
deposit the amount due in connection with such redemption as required by Section 11.02 or it may arrange for the purchase and
conversion of any Securities called for redemption by an agreement with one or more investment bankers or other purchasers to
purchase such Securities and to make the deposit required of it by Section 11.02 on its behalf by paying to the Trustee or the
Paying Agent in trust for the Securityholders, on or before 10:00 a.m. New York time on the redemption date, an amount no less
than the redemption price, together with interest, if any, accrued to the redemption date of such Securities, in immediately available
funds. Notwithstanding anytime to the contrary contained in this Article 11, the obligation of the Issuer to pay the redemption
price of such Securities, including all accrued interest, if any, shall be deemed to be satisfied and discharged to the extent
such amount is so paid by such purchasers. If such an agreement is entered into, any Securities not duly surrendered for conversion
by the Holders thereof may, at the option of the Issuer, be deemed, to the fullest extent permitted by law, acquired by such purchasers
from such Holders and (notwithstanding anything to the contrary contained in Article 12) surrendered by such purchasers for conversion,
all as of immediately prior to the close of business on the last day on which Securities of such series called for redemption
may be converted in accordance with this Indenture and the terms of such Securities, subject to payment of the above amount aforesaid.
The Trustee or the Paying Agent shall hold and pay to the Securityholders whose Securities are selected for redemption any such
amount paid to it in the same manner as it would monies deposited with it by the Issuer for the redemption of Securities. Without
the Trustee’s and the Paying Agent’s prior written consent, no arrangement between the Issuer and such purchasers
for the purchase and conversion of any Securities shall increase or otherwise affect any of the powers, duties, responsibilities
or obligations of the Trustee as set forth in this Indenture, and the Issuer agrees to indemnify the Trustee from, and hold it
harmless against, any loss, liability or expense arising out of or in connection with any such arrangement for the purchase and
conversion of any Securities between the Issuer and such purchasers, including the costs and expenses incurred by the Trustee
and the Paying Agent in the defense of any claim or liability arising out of or in connection with the exercise or performance
of any of its powers, duties, responsibilities or obligations under this Indenture.
ARTICLE
12
CONVERSION
OF SECURITIES
Section
12.01 Applicability of Article. Securities of any series which are convertible into Capital Stock at the option of the
Securityholder shall be convertible in accordance with their terms and (unless otherwise specified as contemplated by Section
2.03 for Securities of any series) in accordance with this Article. Each reference in this Article 12 to “a Security”
or “the Securities” refers to the Securities of the particular series that is convertible into Capital Stock. Each
reference in this Article to “Capital Stock” into which Securities of any series are convertible refers to the class
of Capital Stock into which the Securities of such series are convertible in accordance with their terms (as specified as contemplated
by Section 2.03). If more than one series of Securities with conversion privileges are outstanding at any time, the provisions
of this Article 12 shall be applied separately to each such series.
Section
12.02 Right of Securityholders to Convert Securities. Subject to and upon compliance with the terms of the Securities and
the provisions of Section 11.05 and this Article 12, at the option of the Holder thereof, any Security of any series of any authorized
denomination, or any portion of the Principal amount thereof which is $1,000 or any integral multiple of $1,000, may, at any time
during the period specified in the Securities of such series, or in case such Security or portion thereof shall have been called
for redemption, then in respect of such Security or portion thereof until and including, but not after (unless the Issuer shall
default in payment due upon the redemption thereof) the close of business on the Business Day prior to the date fixed for redemption
except that in the case of redemption at the option of the Securityholder, if specified in the terms of such Securities, such
right shall terminate upon receipt of written notice of the exercise of such option, be converted into duly authorized, validly
issued, fully paid and nonassessable shares of Capital Stock, as specified in such Security, at the conversion rate for each $1,000
Principal amount of Securities (such initial conversion rate reflecting an initial conversion price specified in such Security)
in effect on the conversion date, or, in case an adjustment in the conversion rate has taken place pursuant to the provisions
of Section 12.05, then at the applicable conversion rate as so adjusted, upon surrender of the Security or Securities, the Principal
amount of which is so to be converted, to the Issuer at any time during usual business hours at the office or agency to be maintained
by it in accordance with the provisions of Section 3.02, accompanied by a written notice of election to convert as provided in
Section 12.03 and, if so required by the Issuer and the Trustee, by a written instrument or instruments of transfer in form satisfactory
to the Issuer and the Trustee duly executed by the registered Holder or his attorney duly authorized in writing. All Securities
surrendered for conversion shall, if surrendered to the Issuer or any conversion agent, be delivered to the Trustee for cancellation
and cancelled by it, or shall, if surrendered to the Trustee, be cancelled by it, as provided in Section 2.10.
The
initial conversion price or conversion rate in respect of a series of Securities shall be as specified in the Securities of such
series. The conversion price or conversion rate will be subject to adjustment on the terms set forth in Section 12.05 or such
other or different terms, if any, as may be specified by Section 2.03 for Securities of such series. Provisions of this Indenture
that apply to conversion of all of a Security also apply to conversion of a portion of it.
Section
12.03 Issuance of Shares of Capital Stock on Conversion. As promptly as practicable after the surrender, as herein provided,
of any Security or Securities for conversion, the Issuer shall deliver or cause to be delivered at its said office or agency to
or upon the written order of the Holder of the Security or Securities so surrendered a certificate or certificates representing
the number of duly authorized, validly issued, fully paid and nonassessable shares of Capital Stock into which such Security or
Securities may be converted in accordance with the terms thereof and the provisions of this Article 12. Prior to delivery of such
certificate or certificates, the Issuer shall require a written notice at its said office or agency from the Holder of the Security
or Securities so surrendered stating that the Holder irrevocably elects to convert such Security or Securities, or, if less than
the entire Principal amount thereof is to be converted, stating the portion thereof to be converted. Such notice shall also state
the name or names (with address and social security or other taxpayer identification number) in which said certificate or certificates
are to be issued. Such conversion shall be deemed to have been made at the time that such Security or Securities shall have been
surrendered for conversion and such notice shall have been received by the Issuer or the Trustee, the rights of the Holder of
such Security or Securities as a Securityholder shall cease at such time, the person or persons entitled to receive the shares
of Capital Stock upon conversion of such Security or Securities shall be treated for all purposes as having become the record
holder or holders of such shares of Capital Stock at such time and such conversion shall be at the conversion rate in effect at
such time. In the case of any Security of any series which is converted in part only, upon such conversion, the Issuer shall execute
and the Trustee shall authenticate and deliver to the Holder thereof, as requested by such Holder, a new Security or Securities
of such series of authorized denominations in aggregate Principal amount equal to the unconverted portion of such Security.
If
the last day on which a Security may be converted is not a Business Day in a place where a conversion agent is located, the Security
may be surrendered to that conversion agent on the next succeeding day that is a Business Day.
The
Issuer will not be required to deliver certificates for shares of Capital Stock upon conversion while its stock transfer books
are closed for a meeting of shareholders or for the payment of dividends or for any other purpose, but certificates for shares
of Capital Stock shall be delivered as soon as the stock transfer books shall again be opened.
Section
12.04 No Payment or Adjustment for Interest or Dividends. Unless otherwise specified as contemplated by Section 2.03 for
Securities of such series, Securities surrendered for conversion during the period from the close of business on any regular record
date (or special record date for payment of defaulted interest) next preceding any interest payment date to the opening of business
on such interest payment date (except Securities called for redemption on a redemption date within such period) when surrendered
for conversion must be accompanied by payment of an amount equal to the interest thereon which the registered Holder is to receive
on such interest payment date. Payment of interest shall be made, as of such interest payment date or such date, as the case may
be, to the Holder of record of the Securities as of such regular, or special record date, as applicable. Except where Securities
surrendered for conversion must be accompanied by payment as described above, no interest on converted Securities will be payable
by the Issuer on any interest payment date subsequent to the date of conversion. No other payment or adjustment for interest or
dividends is to be made upon conversion. Notwithstanding the foregoing, upon conversion of any Original Issue Discount Security,
the fixed number of shares of Capital Stock into which such Security is convertible delivered by the Issuer to the Holder thereof
shall be applied, first, to pay the accrued original issue discount attributable to the period from the date of issuance to the
date of conversion of such Security, and, second, to pay the balance of the Principal amount of such Security.
Section
12.05 Adjustment of Conversion Rate. Unless otherwise specified as contemplated by Section 2.03 for Securities of such
series, the conversion rate for Securities in effect at any time shall be subject to adjustment as follows:
(a)
In case the Issuer shall (i) declare a dividend or make a distribution on the class of Capital Stock into which Securities of
such series are convertible in shares of its Capital Stock, (ii) subdivide the outstanding shares of the class of Capital Stock
into which Securities of such series are convertible into a greater number of shares, (iii)combine the outstanding shares of the
class of Capital Stock into which Securities of such series are convertible into a smaller number of shares or (iv) issue by reclassification
of the shares of the class of Capital Stock into which Securities of such series are convertible (including any such reclassification
in connection with a consolidation or merger in which the Issuer is the continuing corporation) any shares, the conversion rate
for the Securities of such series in effect at the time of the record subdivision, combination or reclassification, shall be proportionately
adjusted so that the Holder of any Security of such series surrendered for conversion after such time shall be entitled to receive
the number and kind of shares which he would have owned or have been entitled to receive had such Security been converted immediately
prior to such time. Similar adjustments shall be made whenever any event listed above shall occur.
(b)
In case the Issuer shall fix a record date for the issuance of rights or warrants to all holders of the class of Capital Stock
into which Securities of such series are convertible entitling them (for a period expiring within 45 days after such record date)
to subscribe for or purchase shares of such class of Capital Stock (or securities convertible into shares of such class of Capital
Stock) at a price per share (or, in the case of a right or warrant to purchase securities convertible into such class of Capital
Stock, having a conversion price per share, after adding thereto the exercise price, computed on the basis of the maximum number
of shares of such class of Capital Stock issuable upon conversion of such convertible securities, per share of such class of Capital
Stock, so issuable) less than the current market price per share of such class of Capital Stock (as defined in subsection (e)
below) on the date on which such issuance was declared or otherwise announced by the Issuer (the “Determination Date”),
the number of shares of such class of Capital Stock into which each $1,000 Principal amount of Securities shall be convertible
after such record date shall be determined by multiplying the number of shares of such class of Capital Stock into which such
Principal amount of Securities was convertible immediately prior to such record date by a fraction, of which the numerator shall
be the number of shares of such class of Capital Stock outstanding on the Determination Date plus the number of additional shares
of such class of Capital Stock offered for subscription or purchase (or in the case of a right or warrant to purchase securities
convertible into such class of Capital Stock, the aggregate number of additional shares of such class of Capital Stock into which
the convertible securities so offered are initially convertible), and of which the denominator shall be the number of shares of
such class of Capital Stock outstanding on the Determination Date plus the number of shares of such class of Capital Stock obtained
by dividing the aggregate offering price of the total number of shares so offered (or, in the case of a right or warrant to purchase
securities convertible into such class of Capital Stock, the aggregate initial conversion price of the convertible securities
so offered, after adding thereto the aggregate exercise price of such rights or warrants computed on the basis of the maximum
number of shares of such class of Capital Stock issuable upon conversion of such convertible securities) by such current market
price. Shares of such class of Capital Stock of the Issuer owned by or held for the account of the Issuer shall not be deemed
outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is
fixed; and to the extent that shares of such class of Capital Stock are not delivered (or securities convertible into shares of
such class of Capital Stock are not delivered) after the expiration of such rights or warrants (or, in the case of rights or warrants
to purchase securities convertible into such class of Capital Stock once exercised, the expiration of the conversion right of
such securities) the conversion rate shall be readjusted to the conversion rate which would then be in effect had the adjustments
made upon the issuance of such rights or warrants (or securities convertible into shares) been made upon the basis of delivery
of only the number of shares actually delivered. In the event that such rights or warrants are not so issued, the conversion rate
shall again be adjusted to be the conversion rate which would then be in effect if such record date had not been fixed.
(c)
In case the Issuer shall fix a record date for the making of a distribution to all holders of the class of Capital Stock into
which Securities of such series are convertible (including any such distribution made in connection with a consolidation or merger
in which the Issuer is the continuing corporation) of evidences of its indebtedness or assets (excluding any cash dividends paid
from retained earnings and dividends payable in Capital Stock for which adjustment is made pursuant to subsection (a) above or
(d) below) or subscription rights or warrants (excluding subscription rights or warrants to purchase the class of Capital Stock
into which Securities of such series are convertible), the number of shares of such class of Capital Stock into which each $1,000
Principal amount of Securities of such series shall be convertible after such record date shall be determined by multiplying the
number of shares of such class of Capital Stock into which such Principal amount of Securities was convertible immediately prior
to such record date by a fraction, of which the numerator shall be the fair market value of the assets of the Issuer, after deducting
therefrom all liabilities of the Issuer and all preferences (including accrued but unpaid dividends) in respect of classes of
Capital Stock having a preference with respect to the assets of the Issuer over such class of Capital Stock (all as determined
by the Board of Directors, whose determination shall be conclusive, and described in a certificate signed by chairman of the Issuer’s
Board of Directors, its president, any vice president, its treasurer, any assistant treasurer, its secretary or any assistant
secretary, filed with the Trustee and each conversion agent) on such record date, and of which the denominator shall be such fair
market value after deducting therefrom such liabilities and preferences, less the fair market value (as determined by the Board
of Directors, whose determination shall be conclusive, and described in a statement filed with the Trustee and each conversion
agent) of the assets or evidences of indebtedness, so distributed or of such subscription rights or warrants applicable, so distributed.
Such adjustment shall be made successively whenever such a record date is fixed; and in the event that such distribution is not
so made, the conversion rate shall again be adjusted to the conversion rate which would then be in effect if such record date
had not been fixed.
(d)
In case the Issuer shall, by dividend or otherwise, distribute to all holders of its Capital Stock cash (excluding any dividend
or distribution in connection with the liquidation, dissolution or winding up of the Issuer, whether voluntary or involuntary),
then, in such case, unless the Issuer elects to reserve such cash for distribution to the Holders of the Securities upon the conversion
of the Securities so that any such Holder converting Securities will receive upon such conversion, in addition to the shares of
Capital Stock to which such Holder is entitled, the amount of cash which such Holder would have received if such Holder had, immediately
prior to the record date for such distribution of cash, converted its Securities into Capital Stock, the conversion rate shall
be adjusted so that the same shall equal the rate determined by multiplying the conversion rate in effect immediately prior to
the record date by a fraction of which the denominator shall be the current market price of the Capital Stock (determined as provided
in Section 12.05(e) on the record date less the amount of cash so distributed (and not excluded as provided above) applicable
to one share of Capital Stock and the numerator shall be such current market price of the Capital Stock (determined as provided
in Section 12.05(e)), such adjustment to be effective immediately prior to the opening of business on the day following the record
date; provided, however, that in the event the portion of the cash so distributed applicable to one share of Capital Stock is
equal to or greater than the current market price of the Capital Stock (determined as provided in (e)Section 12.05(e)) on the
record date, in lieu of the foregoing adjustment, adequate provision shall be made so that each Securityholder shall have the
right to receive upon conversion the amount of cash such Holder would have received had such Holder converted each Security on
the record date. If such dividend or distribution is not so paid or made, the conversion rate shall again be adjusted to be the
conversion rate which would then be in effect if such dividend or distribution had not been declared.
(e)
For the purpose of any computation under subsections (b) and (d) above and Section 12.06, the current market price per share of
the Capital Stock on any date as of which such price is to be computed shall mean the average of the Closing Prices for the 30
consecutive Business Days commencing 45 Business Days before such date.
(f)
No adjustment in the conversion rate shall be required unless such adjustment would require a cumulative increase or decrease
of at least 1% in such rate; provided, however, that any adjustments which by reason of this subsection (f) are not required to
be made shall be carried forward and taken into account in any subsequent adjustment; and provided further, that adjustments
shall be required and made in accordance with the provisions of this Article 12 (other than this subsection (f)) not later than
such time as may be required in order to preserve the tax-free nature of a States income tax purposes to the Holders of Securities
or the class of Capital Stock into which such Securities are convertible. All calculations under this Article 12 shall be made
to the nearest cent or to the nearest one-thousandth of a share, as the case may be. Anything in this Section 12.05 to the contrary
notwithstanding, the Issuer shall be entitled to make such adjustments in the conversion rate, in addition to those required by
this Section 12.05, as it in its discretion shall determine to be advisable in order that any stock dividend, subdivision of shares,
distribution of rights to purchase stock or securities, or distribution of securities convertible into or exchangeable for stock
hereafter made by the Issuer to its shareholders shall not be taxable for United States income tax purposes.
(g)
Whenever the conversion rate is adjusted, as herein provided, the Issuer shall promptly file with the Trustee and with the office
or agency maintained by the Issuer for the conversion of Securities of such series pursuant to Section 3.02, a certificate of
a firm of independent public accountants of recognized national standing selected by the Board of Directors (who may be the regular
accountants employed by the Issuer) setting forth the conversion rate after such adjustment and setting forth a brief statement
of the facts requiring such adjustment and a computation thereof. Such certificate shall be conclusive evidence of the correctness
of such adjustment. Neither the Trustee nor any conversion agent shall be under any duty or responsibility with respect to any
such certificate or any facts or computations set forth therein, except to exhibit said certificate from time to time to any Securityholder
of such series desiring to inspect the same. The Issuer shall promptly cause a notice setting forth the adjusted conversion rate
to be mailed to the Holders of Securities of such series, as their names and addresses appear upon the register of the Issuer.
(h)
In the event that at any time, as a result of shares of any other class of Capital Stock becoming issuable in exchange or substitution
for or in lieu of shares of the class of Capital Stock into which such Securities are convertible or as a result of an adjustment
made pursuant to subsection (a) above, the Holder of any Security of such series thereafter surrendered for conversion shall become
entitled to receive any shares of the Issuer other than shares of the class of Capital Stock into which the Issuer of such series
are convertible, thereafter the number of such other shares so receivable upon conversion of any Security shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the
class of Capital Stock into which the Securities of such series are convertible contained in subsections (a) to (f), inclusive,
above, and the provisions of this Article 12 with respect to the class of Capital Stock into which the Securities of such series
are convertible shall apply on like terms to any such other shares.
(i)
The conversion rate with respect to any Original Issue Discount Security, the terms of which provide for convertibility, shall
not be adjusted during the term of such Original Issue Discount Security for accrued original issue discount.
(j)
In the event that the Securities of any series are convertible into more than one class of Capital Stock, the provisions of this
Section 12.05 shall apply separately to events affecting each such class.
Section
12.06 No Fractional Shares to Be Issued. No fractional shares of Capital Stock shall be issued upon conversions of Securities.
If more than one Security of any series shall be surrendered for conversion at one time by the same Holder, the number of full
shares which shall be issuable upon conversion thereof shall be computed on the basis of the aggregate Principal amount of the
Securities of such series (or specified portions thereof to the extent permitted hereby) so surrendered. Instead of a fraction
of a share of Capital Stock which would otherwise be issuable upon conversion of any Security or Securities (or specified portions
thereof), the Issuer shall pay a cash adjustment in respect of such fraction of a share in an amount equal to the same fractional
interest of the current market price (as defined in Section 12.05) per share of Capital Stock on the Business Day next preceding
the day of conversion.
Section
12.07 Preservation of Conversion Rights Upon Consolidation, Merger, Sale or Conveyance. In case of any consolidation of
the Issuer with, or merger of the Issuer into, any other corporation (other than a consolidation or merger in which the Issuer
is the continuing corporation), or in the case of any sale or transfer of all or substantially all of the assets of the Issuer,
the corporation formed by such consolidation or the corporation into which the Issuer shall have been merged or the corporation
which shall have acquired such assets, as the case may be, shall execute and deliver to the Trustee, a supplemental indenture,
subject to the provisions of Article 12and ARTICLE 8 as they relate to supplemental indentures, providing that the Holder of each
Security then Outstanding of a series which was convertible into Capital Stock shall have the right thereafter to convert such
Security into the kind and amount of shares of stock and other securities and property, including cash, receivable upon such consolidation,
merger, sale or transfer by a holder of the number of shares of Capital Stock of the Issuer into which such Securities might have
been converted immediately prior to such consolidation, merger, sale or transfer. Such supplemental indenture shall conform to
the provisions of the Trust Indenture Act of 1939 as then in effect and shall provide for adjustments which shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Article 12. Neither the Trustee nor any conversion agent
shall be under any responsibility to determine the correctness of any provision contained in any such supplemental indenture relating
either to the kind or amount of shares of stock or other securities or property receivable by Securityholders upon the conversion
of their Securities after any such consolidation, merger, sale or transfer, or to any adjustment to be made with respect there
to and, subject to the provisions of Article 5, may accept as conclusive evidence of the correctness of any such provisions, and
shall be protected in relying upon, an Opinion of Counsel with respect thereto. If in the case of any such consolidation, merger,
sale or transfer, the stock or other securities and property receivable by a Holder of the Securities includes stock or other
securities and property of a corporation other than the successor or purchasing corporation, then such supplemental indenture
shall also be executed by such other corporation and shall contain such additional provisions to protect the interests of the
Holders of the Securities as the Board of Directors shall reasonably consider necessary. The above provisions of this Section
12.07 shall similarly apply to successive consolidations, mergers, sales or transfers.
Section
12.08 Notice to Security Holders of a Series Prior to Taking Certain Types of Action. With respect to the Securities of any series,
in case:
(a)
the Issuer shall authorize the issuance to all holders of the class of Capital Stock into which Securities of such series are
convertible of rights or warrants to subscribe for or purchase shares of its Capital Stock or of any other right;
(b)
the Issuer shall authorize the distribution to all holders of the class of Capital Stock into which Securities of such series
are convertible of evidences of its indebtedness or assets (except for the exclusions with respect to certain dividends set forth
in Section 12.05(c));
(c)
of any subdivision, combination or reclassification of the class of Capital Stock into which Securities of such series are convertible
or of any consolidation or merger to which the Issuer is a party and for which approval by the shareholders of the Issuer is required,
or of the sale or transfer of all or substantially all of the assets of the Issuer; or
(d)
of the voluntary or involuntary dissolution, liquidation or winding up of the Issuer; then the Issuer shall cause to be filed
with the Trustee and at the office or agency maintained for the purpose of conversion of Securities of such series pursuant to
Section 3.02, and shall cause to be mailed to the Holders of Securities of such series, at their last addresses as they shall
appear upon the register of the Issuer, at least 10 days prior to the applicable record date hereinafter specified, a notice stating
(i) the date as of which the holders of such class of Capital Stock to be entitled to receive any such rights, warrants or distribution
are to be determined, or (ii) the date on which any such subdivision, combination, reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation, winding up or other action is expected to become effective, and the date as of which it is
expected that holders of record of such class of Capital Stock shall be entitled to exchange their Capital Stock of such class
for securities or other property, if any, deliverable upon such subdivision, combination, reclassification, consolidation, merger,
sale, transfer, dissolution, liquidation, winding up or other action. The failure to give the notice required by this Section
12.08 or any defect therein shall not affect the legality or validity of any distribution, right, warrant, subdivision, combination,
reclassification, consolidation, merger, sale, transfer, dissolution, liquidation, winding up or other action, or the vote upon
any of the foregoing. Such notice shall also be published by and at the expense of the Issuer not later than the aforesaid filing
date at least once in an Authorized Newspaper.
Section
12.09 Covenant to Reserve Shares for Issuance on Conversion of Securities. The Issuer covenants that at all times it will
reserve and keep available out of each class of its authorized Capital Stock, free from preemptive rights, solely for the purpose
of issue upon conversion of Securities of any series as herein provided, such number of shares of Capital Stock of such class
as shall then be issuable upon the conversion of all Outstanding Securities of such series. The Issuer covenants that an shares
of Capital Stock which shall be so issuable shall, when issued or delivered, be duly and validly issued shares of the class of
authorized Capital Stock into which Securities of such series are convertible, and shall be fully paid and nonassessable, free
of all liens and charges and not subject to preemptive rights and that, upon conversion, the appropriate capital stock accounts
of the Issuer will be duly credited.
Section
12.10 Compliance with Governmental Requirements. The Issuer covenants that if any shares of Capital Stock required to be
reserved for purposes of conversion of Securities hereunder require registration or listing with or approval of any governmental
authority under any Federal or State law, pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of
1934, as amended, or any national or regional securities exchange on which such Capital Stock is listed at the time of delivery
of any shares of such Capital Stock, before such shares may be issued upon conversion, the Issuer will use reasonable efforts
to cause such shares to be duly registered, listed or approved, as the case may be.
Section
12.11 Payment of Taxes Upon Certificates for Shares Issued Upon Conversion. The issuance of certificates for shares of
Capital Stock upon the conversion of Securities shall be made without charge to the converting Securityholders for any tax (including,
without limitation, all documentary and stamp taxes) in respect of the issuance and delivery of such certificates, and such certificates
shall be issued in the respective names of, or in such names as may be directed by, the Holders of the Securities converted; provided,
however, that the Issuer shall not be required to pay any tax which may be payable in respect of any transfer involved in the
issuance and delivery of any such certificate in a name other than that of the Holder of the Security converted, and the Issuer
shall not be required to issue or deliver such certificates unless or until the person or persons requesting the issuance thereof
shall have paid to the Issuer the amount of such tax or shall have established to the satisfaction of the Issuer that such tax
has been paid.
Section
12.12 Trustee’s Duties with Respect to Conversion Provisions. The Trustee and any conversion agent shall not at any
time be under any duty or responsibility to any Securityholder to determine whether any facts exist which may require any adjustment
of the conversion rate or conversion price, or with respect to the nature or extent of any such adjustment when made, or with
respect to the method employed, or herein or in any supplemental indenture provided to be employed, in making the same. Neither
the Trustee nor any conversion agent shall be accountable with respect to the registration under securities laws, listing, validity
or value (or the kind or amount) of any shares of Capital Stock, or of any other securities or property, which may at any time
be issued or delivered upon the conversion of any Security; and neither the Trustee nor any conversion agent makes any representation
with respect thereto. Neither the Trustee nor any conversion agent shall be responsible for any failure of the Issuer to make
any cash payment or to issue, transfer or deliver any shares of stock or stock certificates or other securities or property upon
the surrender of any Security for the purpose of conversion; and the Trustee, subject to the provisions of Article 5, and any
conversion agent shall not be responsible for any failure of the Issuer to comply with any of the covenants of the Issuer contained
in this Article 12.
ARTICLE
13
SUBORDINATION
OF SECURITIES
Section
13.01 Agreement Of Subordination. The Issuer covenants and agrees, and each Holder of Securities issued hereunder by his
acceptance thereof likewise covenants and agrees, that all Securities shall be issued subject to the provisions of this ARTICLE
13; and each Holder, whether upon original issue or upon transfer or assignment thereof, accepts and agrees to be bound by such
provisions.
The
payment of the principal of, premium, if any, and interest on all Securities issued hereunder shall, to the extent and in the
manner hereinafter set forth, be subordinated and subject in right of payment to the prior payment in full of all Senior Indebtedness,
whether outstanding at the date of this Indenture or thereafter incurred.
The
provisions of this ARTICLE 13 define the subordination of the Securities, as obligations of the Issuer, with respect to Senior
Indebtedness of the Issuer, as defined for the Issuer.
No
provision of this ARTICLE 13 shall prevent the occurrence of any default or Event of Default hereunder.
Section
13.02 Payments to Holders. In the event and during the continuation of any default in the payment of principal, premium,
interest or any other payment due on any Senior Indebtedness of the Issuer continuing beyond the period of grace, if any, specified
in the instrument or lease evidencing such Senior Indebtedness of the Issuer, then, unless and until such default shall have been
cured or waived or shall have ceased to exist, no payment shall be made by the Issuer with respect to the principal of, or premium,
if any, or interest on the Securities, except payments made pursuant to Article 9 hereof from amounts deposited with the Trustee
pursuant thereto prior to the happening of such default.
Upon
any payment by the Issuer, or distribution of assets of the Issuer of any kind or character, whether in cash, property or securities,
to creditors upon any dissolution or winding-up or liquidation or reorganization of the Issuer, whether voluntary or involuntary
or in bankruptcy, insolvency, receivership or other proceedings, all amounts due or to become due upon all Senior Indebtedness
of the Issuer shall first be paid in full, or payment thereof provided for in money in accordance with its terms, before any payment
is made on account of principal (including, if applicable, any cash due upon conversion the Securities), premium, if any, or interest
on the Securities (except payments made pursuant to ARTICLE 9 hereof from amounts deposited with the Trustee pursuant thereto
prior to the happening of such dissolution, winding-up, liquidation or reorganization); and upon any such dissolution or winding-up
or liquidation or reorganization any payment by the Issuer, or distribution of assets of the Issuer of any kind or character,
whether in cash, property or securities, to which the holders of the Securities or the Trustee would be entitled, except for the
provisions of this ARTICLE 13, shall (except as aforesaid) be paid by the Issuer or by any receiver, trustee in bankruptcy, liquidating
trustee, agent or other Person making such payment or distribution, or by the holders of the Securities or by the Trustee under
this Indenture if received by them or it, directly to the holders of Senior Indebtedness of the Issuer (pro rata to such holders
on the basis of the respective amounts of Senior Indebtedness of the Issuer held by such holders, as calculated by the Issuer)
or their representative or representatives, or to the trustee or trustees under any indenture pursuant to which any instruments
evidencing any Senior Indebtedness of the Issuer may have been issued, as their respective interests may appear, to the extent
necessary to pay all Senior Indebtedness of the Issuer in full, in money or money’s worth, after giving effect to any concurrent
payment or distribution to or for the holders of Senior Indebtedness of the Issuer, before any payment or distribution is made
to the holders of the Securities or to the Trustee.
In
the event that, notwithstanding the foregoing, any payment or distribution of assets of the Issuer of any kind or character, whether
in cash, property or securities, prohibited by the foregoing, shall be received by the Trustee or the holders of the Securities
before all Senior Indebtedness of the Issuer is paid in full, or provision is made for such payment in money in accordance with
its terms, such payment or distribution shall be held in trust for the benefit of and shall be paid over or delivered to the holders
of Senior Indebtedness of the Issuer or their representative or representatives, or to the trustee or trustees under any indenture
pursuant to which any instruments evidencing any Senior Indebtedness of the Issuer may have been issued, as their respective interests
may appear, as calculated by the Issuer, for application to the payment of all Senior Indebtedness of the Issuer remaining unpaid
to the extent necessary to pay all Senior Indebtedness of the Issuer in full in money in accordance with its terms, after giving
effect to any concurrent payment or distribution to or for the holders of such Senior Indebtedness.
For
purposes of this ARTICLE 13, the words, “cash, property or securities” shall not be deemed to include shares of stock
of the Issuer as reorganized or readjusted, or securities of the Issuer or any other corporation provided for by a plan of reorganization
or readjustment, the payment of which is subordinated at least to the extent provided in this ARTICLE 13 with respect to the Securities
to the payment of all Senior Indebtedness of the Issuer which may at the time be outstanding; provided that (i) the Senior Indebtedness
of the Issuer is assumed by the new corporation, if any, resulting from any such reorganization or readjustment, and (ii) the
rights of the holders of the Senior Indebtedness of the Issuer (other than leases) and of leases which are assumed are not, without
the consent of such holders, altered by such reorganization or readjustment. The consolidation of the Issuer with, or the merger
of the Issuer into, another corporation or the liquidation or dissolution of the Issuer following the conveyance or transfer of
its property as an entirety, or substantially as an entirety, to another corporation upon the terms and conditions provided for
in ARTICLE 8 hereof shall not be deemed a dissolution, winding-up, liquidation or reorganization for the purposes of this Section
13.02 if such other corporation shall, as a part of such consolidation, merger, conveyance or transfer, comply with the conditions
stated in ARTICLE 8 hereof. Nothing in this Section 13.02 shall apply to claims of, or payments to, the Trustee under or pursuant
to Section 5.06.
Section
13.03 Subrogation Of Securities. Subject to the payment in full of all Senior Indebtedness of the Issuer, the rights of
the holders of the Securities shall be subrogated to the rights of the holders of Senior Indebtedness of the Issuer to receive
payments or distributions of cash, property or securities of the Issuer applicable to the Senior Indebtedness of the Issuer until
principal (including, if applicable, any cash due upon conversion the Securities), premium, if any, and interest on the Securities
on the Securities shall be paid in full; and, for the purposes of such subrogation, no payments or distributions to the holders
of the Senior Indebtedness of the Issuer of any cash, property or securities to which the holders of the Securities or the Trustee
would be entitled except for the provisions of this ARTICLE 13 to or for the benefit of the holders of Senior Indebtedness of
the Issuer by holders of the Securities or the Trustee, shall, as between the Issuer, its creditors other than holders of Senior
Indebtedness of the Issuer, and the holders of the Securities, be deemed to be a payment by the Issuer to or on account of the
Senior Indebtedness of the Issuer. It is understood that the provisions of this ARTICLE 13 are and are intended solely for the
purpose of defining the relative rights of the holders of the Securities, on the one hand, and the holders of the Senior Indebtedness
of the Issuer, on the other hand.
Nothing
contained in this ARTICLE 13 or elsewhere in this Indenture or in the Securities is intended to or shall impair, as between the
Issuer, its creditors other than the holders of its Senior Indebtedness, and the holders of the Securities, the obligation of
the Issuer, which is absolute and unconditional, to pay to the holders of the Securities the principal (including, if applicable,
any cash due upon conversion the Securities), premium, if any, and interest on the Securities as and when the same shall become
due and payable in accordance with their terms, or is intended to or shall affect the relative rights of the holders of the Securities
and creditors of the Issuer other than the holders of its Senior Indebtedness, nor shall anything herein or therein prevent the
Trustee or the holder of any Security from exercising all remedies otherwise permitted by applicable law upon default under this
Indenture, subject to the rights, if any, under this ARTICLE 13 of the holders of Senior Indebtedness of the Issuer in respect
of cash, property or securities of the Issuer received upon the exercise of any such remedy.
Upon
any payment or distribution of assets of the Issuer referred to in this ARTICLE 13, the Trustee, subject to the provisions of
Section 5.01, and the holders of the Securities shall be entitled to rely upon any order or decree made by any court of competent
jurisdiction in which such dissolution, winding-up, liquidation or reorganization proceedings are pending, or a certificate of
the receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or distribution, delivered
to the Trustee or to the holders of the Securities, for the purpose of ascertaining the Persons entitled to participate in such
distribution, the holders of the Senior Indebtedness and other indebtedness of the Issuer, the amount thereof or payable thereon,
the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this ARTICLE 13.
Section
13.04 Authorization By Holders. Each holder of a Security by his or her acceptance thereof authorizes and directs the Trustee
on his or her behalf to take such action as may be necessary or appropriate to effectuate the subordination provided in this ARTICLE
13 appoints the Trustee his attorney-in-fact for any and all such purposes.
Section
13.05 Notice to Trustee. The Issuer shall give promptly written notice to a Responsible Officer of the Trustee of any fact
known to the Issuer which would prohibit the making of any payment of monies to or by the Trustee in respect of the Securities
pursuant to the provisions of this ARTICLE 13. Notwithstanding the provisions of this ARTICLE 13 or any other provision of this
Indenture, the Trustee shall not be charged with knowledge of the existence of any facts which would prohibit the making of any
payment of amounts to or by the Trustee in respect of the Securities pursuant to the provisions of this ARTICLE 13, unless and
until a Responsible Officer of the Trustee shall have received written notice thereof at the Corporate Trust Office of the Trustee
from the Issuer or a holder or holders of Senior Indebtedness or from any trustee therefor; and before the receipt of any such
written notice, the Trustee, subject to the provisions of Section 5.01, shall be entitled in all respects to assume that no such
facts exist; provided that if on a date not fewer than three Business Days prior to the date upon which by the terms hereof
any such amounts may become payable for any purpose (including, without limitation, the payment of principal (including, if applicable,
any cash due upon conversion of the Securities), premium, if any, and interest on any Security) the Trustee shall not have received,
with respect to such monies, the notice provided for in this Section 13.05, then, anything herein contained to the contrary notwithstanding,
the Trustee shall have full power and authority to receive such amounts and to apply the same to the purpose for which they were
received, and shall not be affected by any notice to the contrary which may be received by it on or after such prior date. Notwithstanding
anything to the contrary hereinbefore set forth, nothing shall prevent any payment or delivery by the Issuer or the Trustee to
the Holders of amounts in connection with a redemption of Securities if (i) notice of such redemption has been given pursuant
to ARTICLE 11 or Section 9.01 hereof prior to the receipt by the Trustee of written notice as aforesaid, and (ii) such notice
of redemption is given not earlier than 60 days before the redemption date.
The
Trustee conclusively shall be entitled to rely on the delivery to it of a written notice by a Person representing himself to be
a holder of Senior Indebtedness of the Issuer (or a trustee on behalf of such holder) to establish that such notice has been given
by a holder of Senior Indebtedness of the Issuer or a trustee on behalf of any such holder or holders. In the event that the Trustee
determines in good faith that further evidence is required with respect to the right of any Person as a holder of Senior Indebtedness
of the Issuer to participate in any payment or distribution pursuant to this ARTICLE 13, the Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness of the Issuer held by such
Person, the extent to which such Person is entitled to participate in such payment or distribution and any other facts pertinent
to the rights of such Person under this ARTICLE 13, and if such evidence is not furnished the Trustee may defer any payment to
such Person pending judicial determination as to the right of such Person to receive such payment.
Section
13.06 Trustee’s Relation to Senior Indebtedness. The Trustee in its individual capacity shall be entitled to all
the rights set forth in this ARTICLE 13 in respect of any Senior Indebtedness of the Issuer at any time held by it, to the same
extent as any other holder of Senior Indebtedness of the Issuer and nothing elsewhere in this Indenture shall deprive the Trustee
of any of its rights as such holder.
With
respect to the holders of Senior Indebtedness of the Issuer, the Trustee undertakes to perform or to observe only such of its
covenants and obligations as are specifically set forth in this ARTICLE 13, and no implied covenants or obligations with respect
to the holders of Senior Indebtedness of the Issuer shall be read into this Indenture against the Trustee. The Trustee shall not
be deemed to owe any fiduciary duty to the holders of Senior Indebtedness of the Issuer and the Trustee shall not be liable to
any holder of Senior Indebtedness of the Issuer if it shall pay over or deliver to holders of Securities, the Issuer or any other
Person money or assets to which any holder of Senior Indebtedness of the Issuer shall be entitled by virtue of this ARTICLE 13
or otherwise.
Section
13.07 No Impairment Of Subordination. No right of any present or future holder of any Senior Indebtedness to enforce subordination
as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Issuer
or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Issuer with the terms, provisions
and covenants of this Indenture, regardless of any knowledge thereof which any such holder may have or otherwise be charged with.
Section
13.08 Rights Of Trustee. Nothing in this ARTICLE 13 shall apply to claims of or payments to, the Trustee pursuant to Section
5.06.
IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, as of the first date written above.
MATINAS
BIOPHARMA HOLDINGS, INC., as Issuer
●,
as Trustee
FORM
OF NOTE
UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE REGISTERED FORM, THIS SECURITY MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.
UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
MATINAS
BIOPHARMA HOLDINGS, INC.
●
% Subordinated Note Due ●
No.
● CUSIP No.: ●
$
●
MATINAS
BIOPHARMA HOLDINGS, INC., a Delaware corporation (“Issuer”, which term includes any successor corporation),
for value received promises to pay to CEDE & CO. or its registered assigns, the principal sum of ● on ●.
Interest
Payment Dates: ● and ● (each, an “Interest Payment Date”), commencing on ●. Interest Record
Dates: ● and ● (each, an “Interest Record Date”).
Reference
is made to the further provisions of this Security contained herein, which will for all purposes have the same effect as if set
forth at this place.
IN
WITNESS WHEREOF, the Issuer has caused this Security to be signed manually or by facsimile by its duly authorized officer.
MATINAS
BIOPHARMA HOLDINGS, INC.
This
is one of the series designated herein and referred to in the within-mentioned Indenture.
●,
as Trustee
(REVERSE
OF SECURITY)
MATINAS
BIOPHARMA HOLDINGS, INC.
●%
Subordinated Note Due ●
1.
Interest.
MATINAS
BIOPHARMA HOLDINGS, INC., a Delaware corporation (the “Issuer”), promises to pay interest on the Principal
amount of this Security at the rate per annum shown above. Cash interest on the Securities will accrue from the most recent date
to which interest has been paid or, if no interest has been paid, from ●. The Issuer will pay interest semi-annually in
arrears on each Interest Payment Date, commencing ●. Interest will be computed on the basis of a 360-day year of twelve
30-day months.
The
Issuer shall pay interest on overdue Principal from time to time on demand at the rate borne by the Securities and on overdue
installments of interest (without regard to any applicable grace periods) to the extent lawful.
2.
Method of Payment.
The
Issuer shall pay interest on the Securities (except defaulted interest) to the persons who are the registered Holders at the close
of business on the Interest Record Date immediately preceding the Interest Payment Date notwithstanding any transfer or exchange
of such Security subsequent to such Interest Record Date and prior to such Interest Payment Date. Holders must surrender Securities
to the Trustee to collect Principal payments. The Issuer shall pay Principal and interest in money of the United States that at
the time of payment is legal tender for payment of public and private debts (“U.S. Legal Tender”). However,
the payments of interest, and any portion of the Principal (other than interest payable at maturity or on any redemption or repayment
date or the final payment of Principal) shall be made by the Paying Agent, upon receipt from the Issuer of immediately available
funds by 11:00 a.m., New York City time (or such other time as may be agreed to between the Issuer and the Paying Agent or the
Issuer), directly to a Holder (by Federal funds wire transfer or otherwise) if the Holder has delivered written instructions to
the Trustee 15 days prior to such payment date requesting that such payment will be so made and designating the bank account to
which such payments shall be so made and in the case of payments of Principal surrenders the same to the Trustee in exchange for
a Security or Securities aggregating the same principal amount as the unredeemed Principal amount of the Securities surrendered.
3.
Paying Agent.
Initially,
● (the “Trustee”) will act as Paying Agent. The Issuer may change any Paying Agent without notice to
the Holders.
4.
Indenture.
The
Issuer issued the Securities under an Indenture, dated as of ● (the “Indenture”), between the Issuer
and the Trustee. Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein. The terms of the
Securities include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act
of 1939 (15 U.S.C. Sections 77aaa-77bbbb) (the “TIA”), as in effect on the date of the Indenture until such
time as the Indenture is qualified under the TIA, and thereafter as in effect on the date on which the Indenture is qualified
under the TIA. Notwithstanding anything to the contrary herein, the Securities are subject to all such terms, and Holders of Securities
are referred to the Indenture and the TIA for a statement of them. To the extent the terms of the Indenture and this Security
are inconsistent, the terms of the Indenture shall govern.
5.
Subordination.
The
indebtedness of the Issuer evidenced by this Security, including the Principal hereof and interest hereon, is, to the extent and
in the manner set forth in the Indenture, subordinate and junior in right of payment to the Company’s obligations to holders
of Senior Indebtedness of the Issuer and each Holder of this Security, by acceptance hereof, agrees to and shall be bound by such
provisions of the Indenture and all other provisions of the Indenture.
6.
Denominations; Transfer; Exchange.
The
Securities are in registered form, without coupons, in denominations of $1,000 and multiples of $1,000. A Holder shall register
the transfer of or exchange Securities in accordance with the Indenture. The Issuer may require a Holder, among other things,
to furnish appropriate endorsements and transfer documents and to pay certain transfer taxes or similar governmental charges payable
in connection therewith as permitted by the Indenture. The Issuer need not issue, authenticate, register the transfer of or exchange
any Securities or portions thereof for a period of fifteen (15) days before such series is selected for redemption, nor need the
Issuer register the transfer or exchange of any security selected for redemption in whole or in part.
7.
Persons Deemed Owners.
The
registered Holder of a Security shall be treated as the owner of it for all purposes.
8.
Unclaimed Funds.
If
funds for the payment of Principal or interest remain unclaimed for two years, the Trustee and the Paying Agent will repay the
funds to the Issuer at its written request. After that, all liability of the Trustee and such Paying Agent with respect to such
funds shall cease.
9.
Legal Defeasance and Covenant Defeasance.
The
Issuer may be discharged from its obligations under the Securities and under the Indenture with respect to the Securities except
for certain provisions thereof, and may be discharged from obligations to comply with certain covenants contained in the Securities
and in the Indenture with respect to the Securities, in each case upon satisfaction of certain conditions specified in the Indenture.
10.
Amendment; Supplement; Waiver.
Subject
to certain exceptions, the Securities and the provisions of the Indenture relating to the Securities may be amended or supplemented
with the written consent of the Holders of at least a majority in aggregate Principal amount of the Securities then outstanding,
and any existing Default or Event of Default or compliance with certain provisions may be waived with the consent of the Holders
of a majority in aggregate Principal amount of the Securities then outstanding. Without notice to or consent of any Holder, the
parties thereto may amend or supplement the Indenture and the Securities to, among other things, cure any ambiguity, defect or
inconsistency, provide for uncertificated Securities in addition to or in place of certificated Securities or comply with any
requirements of the Commission in connection with the qualification of the Indenture under the Trust Indenture Act, or make any
other change that does not adversely affect the rights of any Holder of a Security.
11.
Defaults and Remedies.
If
an Event of Default (other than certain bankruptcy Events of Default with respect to the Issuer) occurs and is continuing, the
Trustee or the Holders of at least 25% in aggregate Principal amount of Securities then outstanding may declare all of the Securities
to be due and payable immediately in the manner and with the effect provided in the Indenture. If a bankruptcy Event of Default
with respect to the Issuer occurs and is continuing, all the Securities shall be immediately due and payable immediately in the
manner and with the effect provided in the Indenture without any notice or other action on the part of the Trustee or any Holder.
Holders of Securities may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee is not
obligated to enforce the Indenture or the Securities unless it has received indemnity satisfactory to it. The Indenture permits,
subject to certain limitations therein provided, Holders of a majority in aggregate Principal amount of the Securities then outstanding
to direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of Securities notice of certain
continuing Defaults or Events of Default if it determines that withholding notice is in their interest.
12.
Conversion.
Reference
is made to the Indenture, including, without limitation, provisions giving the Holder of this Security the right to convert this
Security into Capital Stock of the Issuer on the terms and subject to the limitations as more fully specified in the Indenture.
The initial conversion rate for this Security is ●. This conversion rate is subject to modification as provided in the Indenture.
Such further provisions shall for all purposes have the same effect as though fully set forth at this place.
13.
Trustee Dealings with Issuer.
The
Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise
deal with the Issuer as if it were not the Trustee.
14.
No Recourse Against Others.
No
stockholder, director, officer, employee or incorporator, as such, of the Issuer or any successor Person thereof shall have any
liability for any obligation under the Securities or the Indenture or for any claim based on, in respect of or by reason of, such
obligations or their creation. Each Holder of a Security by accepting a Security waives and releases all such liability. The waiver
and release are part of the consideration for the issuance of the Securities.
15.
Authentication.
This
Security shall not be valid until the Trustee manually signs the certificate of authentication on this Security.
16.
Abbreviations and Defined Terms.
Customary
abbreviations may be used in the name of a Holder of a Security or an assignee, such as: TEN COM (= tenants in common), TEN ENT
(= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian),
and U/G/M/A (= Uniform Gifts to Minors Act).
17.
CUSIP Numbers.
Pursuant
to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuer has caused CUSIP numbers
to be printed on the Securities as a convenience to the Holders of the Securities. No representation is made as to the accuracy
of such numbers as printed on the Securities and reliance may be placed only on the other identification numbers printed hereon.
18.
Governing Law.
The
laws of the State of New York shall govern the Indenture and this Security thereof.
ASSIGNMENT
FORM
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I
or we assign and transfer this Security to
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(Print
or type name, address and zip code of assignee or transferee)
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(Insert
Social Security or other identifying number of assignee or transferee)
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and
irrevocably appoint ___________________ agent to transfer this Security on the books of the Issuer. The agent may substitute
another to act for him.
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Dated:
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Signed:
(Signed exactly as name appears on the other side of this Security)
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Signature
Guarantee:
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Participant
in a recognized Signature Guarantee Medallion Program (or other signature guarantor program reasonably acceptable to the Trustee)
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Exhibit
5.01
July
2, 2020
Matinas
Biopharma Holdings, Inc.
1545
Route 206 South
Suite
302
Bedminster,
NJ 07921
Re:
Shelf Registration on Form S-3
Ladies
and Gentlemen:
This opinion is being
furnished to you in connection with the Registration Statement on Form S-3 (the “Registration Statement”), including
the base prospectus that is part of the Registration Statement (the “Prospectus”) and the Sales Agreement prospectus
that is part of the Registration Statement (the “ATM Prospectus”), filed by Matinas Biopharma Holdings, Inc., a Delaware
corporation (the “Company”), with the Securities and Exchange Commission (the “Commission”) on July 2,
2020 under the Securities Act of 1933, as amended (the “Securities Act”).
The
Prospectus provides that it will be supplemented in the future by one or more prospectus supplements (each, a “Prospectus
Supplement”). The Prospectus, as supplemented by the various Prospectus Supplements, will provide for the issuance and sale
by the Company from time to time of up to $200,000,000 aggregate offering price of (i) shares of the Company’s common stock,
par value $0.0001 per share (the “Common Stock”), (ii) shares of the Company’s preferred stock, par value $0.0001
per share (the “Preferred Stock”), in one or more series or classes, (iii) warrants to purchase shares of Common Stock
or Preferred Stock (the “Warrants”), (iv) the Company’s senior debt securities and subordinated debt securities
(collectively, the “Debt Securities”), which may be issued pursuant to a senior debt indenture (the “Senior
Debt Indenture”) between the Company and the trustee to be named therein (the “Senior Debt Trustee”) and a subordinated
debt indenture (the “Subordinated Debt Indenture,” and together with the Senior Debt Indenture, the “Indentures”)
between the Company and the trustee to be named therein (the “Subordinated Debt Trustee” and, together with the Senior
Debt Trustee, the “Trustees”), (v) subscription rights to purchase Common Stock or Debt Securities (the “Subscription
Rights”) or (vi) units composed of any of the foregoing (the “Units”). The Common Stock, Preferred Stock, Warrants,
Debt Securities, Subscription Rights and Units are collectively referred to herein as the “Securities.” The Warrants
may be issued pursuant to a warrant agreement (the “Warrant Agreement”) between the Company and a bank or trust company
as warrant agent. Any Preferred Stock may be exchangeable for and/or convertible into shares of Common Stock or another series
of Preferred Stock. Any Debt Securities may be exchangeable and/or convertible into shares of Common Stock or Preferred Stock.
The Units may be issued pursuant to a Unit Agreement (the “Unit Agreement”) between the Company and a bank or trust
company as unit agent. The Securities are being registered for offering and sale from time to time pursuant to Rule 415 under
the Securities Act.
The
ATM Prospectus relates to the sale by the Company of shares of common stock having an aggregate offering price of up to $50,000,000
(the “ATM Shares”) under an at-the-market sales agreement dated as of July 2, 2020 (the “Sales Agreement”)
between the Company and BTIG, LLC.
In
rendering our opinions set forth below, we have reviewed the Registration Statement and the exhibits thereto. We have also reviewed
such corporate documents and records of the Company, such certificates of public officials and officers of the Company and such
other matters as we have deemed necessary or appropriate for purposes of this opinion. In our examination, we have assumed: (i)
the authenticity of original documents and the genuineness of all signatures; (ii) the conformity to the originals of all documents
submitted to us as copies; (iii) the truth, accuracy and completeness of the information, representations and warranties contained
in the instruments, documents, certificates and records we have reviewed; and (iv) the legal capacity for all purposes relevant
hereto of all natural persons and, with respect to all parties to agreements or instruments relevant hereto other than the Company,
that such parties had the requisite power and authority (corporate or otherwise) to execute, deliver and perform such agreements
or instruments, that such agreements or instruments have been duly authorized by all requisite action (corporate or otherwise),
executed and delivered by such parties and that such agreements or instruments are the valid, binding and enforceable obligations
of such parties. As to any facts material to the opinions expressed herein that were not independently established or verified,
we have relied upon oral or written statements and representations of officers and other representatives of the Company.
Based
on the foregoing, and subject to the assumptions, limitations and qualifications set forth herein, we are of the opinion that:
1.
With respect to shares of Common Stock (other than the ATM Shares), when (a) the issuance and the terms of the sale of the shares
of Common Stock have been duly authorized by the Board of Directors of the Company in conformity with the Company’s certificate
of incorporation and bylaws; (b) such shares have been issued and delivered against payment of the purchase price therefor in
an amount in excess of the par value thereof, in accordance with the applicable definitive purchase, underwriting or similar agreement,
and as contemplated by the Registration Statement, the Prospectus and the related Prospectus Supplement; and (c) to the extent
such shares of Common Stock are to be issued upon the conversion, exchange or exercise of any Preferred Stock, Warrants or Debt
Securities, when such shares have been duly issued and delivered as contemplated by the terms of the applicable Preferred Stock,
the Warrant Agreement relating to such Warrants or the Indenture relating to such Debt Securities, respectively, the shares of
Common Stock will be validly issued, fully paid and nonassessable.
2.
With respect to the ATM Shares, (a) when the Registration Statement has become effective under the Securities Act, and (b) when
the ATM Shares have been issued and sold in accordance with the Sales Agreement, and as described in the Registration Statement
and ATM Prospectus, the ATM Shares will be validly issued, fully paid and nonassessable.
3.
With respect to any particular series of shares of Preferred Stock, when (a) the issuance and the terms of the sale of the shares
of Preferred Stock have been duly authorized by the Board of Directors of the Company in conformity with the Company’s certificate
of incorporation and bylaws; (b) an appropriate certificate of designation relating to a series of the Preferred Stock to be sold
under the Registration Statement has been duly authorized and adopted and filed with the Secretary of State of Delaware; (c) the
terms of issuance and sale of shares of such series of Preferred Stock have been duly established in conformity with the Company’s
certificate of incorporation and bylaws so as not to violate any applicable law or result in a default under or breach of any
agreement or instrument binding upon the Company and comply with any requirement or restriction imposed by any court or governmental
body having jurisdiction over the Company or any of its property; (d) such shares have been issued and delivered against payment
of the purchase price therefor in an amount in excess of the par value thereof, in accordance with the applicable definitive purchase,
underwriting or similar agreement, and as contemplated by the Registration Statement, the Prospectus and the related Prospectus
Supplement; and (e) to the extent such shares of Preferred Stock are to be issued upon the conversion, exchange or exercise of
any Preferred Stock, Warrants or Debt Securities, when such shares have been duly issued and delivered as contemplated by the
terms of the applicable Preferred Stock, the Warrant Agreement relating to such Warrants or the Indenture relating to such Debt
Securities, respectively, the shares of Preferred Stock will be validly issued, fully paid and nonassessable.
4.
With respect to Warrants, when (a) the issuance and the terms of the sale of the Warrants have been duly authorized by the Board
of Directors of the Company; (b) the terms of the Warrants and of their issuance and sale have been duly established so as not
to violate any applicable law or result in a default under or breach of any agreement or instrument binding upon the Company and
comply with any requirement or restriction imposed by any court or governmental body having jurisdiction over the Company or any
of its property; (c) the Warrants and the applicable Warrant Agreement relating to the Warrants, if any, have been duly executed
and countersigned and the Warrants have been issued and sold in accordance with the applicable definitive purchase, underwriting
or similar agreement, as contemplated by the Registration Statement, the Prospectus and the related Prospectus Supplement; and
(d) the Company has received the applicable consideration for the Warrants as contemplated by the Registration Statement, the
Prospectus and the related Prospectus Supplement(s), the Warrants will constitute valid and binding obligations of the Company.
5.
With respect to Debt Securities, when (a) the issuance and the terms of the sale of the Debt Securities have been duly authorized
by the Board of Directors of the Company; (b) the terms of the Debt Securities and of their issuance and sale have been duly established
so as not to violate any applicable law or result in a default under or breach of any agreement or instrument binding upon the
Company and comply with any requirement or restriction imposed by any court or governmental body having jurisdiction over the
Company or any of its property; (c) the Debt Securities and the applicable Indenture relating to the Debt Securities have been
duly executed and countersigned and in the case of the Indenture, duly authenticated by the Trustee, and the Debt Securities have
been issued and sold as contemplated by the Registration Statement, the Prospectus and the related Prospectus Supplement; and
(d) the Company has received the applicable consideration for the Debt Securities as contemplated by the Registration Statement,
the Prospectus and the related Prospectus Supplement(s), the Debt Securities will constitute valid and binding obligations of
the Company.
6.
With respect to the Subscription Rights, when both: (a) the issuance and the terms of the sale of the Subscription Rights have
been duly authorized by the Board of Directors of the Company; (b) the terms of the Subscription Rights and of their issuance
and sale have been duly established so as not to violate any applicable law or result in a default under or breach of any agreement
or instrument binding upon the Company and comply with any requirement or restriction imposed by any court or governmental body
having jurisdiction over the Company or any of its property; and (c) the agreement(s) relating to the Subscription Rights have
been duly authorized and validly executed and delivered by the Company, then the Subscription Rights will be valid and binding
obligations of the Company, enforceable against the Company in accordance with their terms.
7.
With respect to Units, when (a) the issuance and the terms of the sale of the Units have been duly authorized by the Board of
Directors of the Company; (b) the terms of the Units and of their issuance and sale have been duly established so as not to violate
any applicable law or result in a default under or breach of any agreement or instrument binding upon the Company and comply with
any requirement or restriction imposed by any court or governmental body having jurisdiction over the Company or any of its property;
(c) the Unit Agreement and the Units have been duly executed and countersigned and the Units have been issued and sold in accordance
with the applicable Unit Agreement, as contemplated by the Registration Statement, the Prospectus and the related Prospectus Supplement;
and (d) the Company has received the applicable consideration for the Units as contemplated by the Registration Statement, the
Prospectus and the related Prospectus Supplement(s), the Units will constitute valid and binding obligations of the Company.
In
rendering the opinions set forth above, we have assumed that (i) the Registration Statement (and any applicable post-effective
amendment thereto) will have become effective under the Securities Act, a Prospectus Supplement will have been prepared and filed
with the Commission describing the Securities offered thereby and such Securities will have been issued and sold in accordance
with the terms of such Prospectus Supplement and in compliance with all applicable laws; and (ii) a definitive purchase, underwriting
or similar agreement with respect to such Securities (if applicable) will have been duly authorized, executed and delivered by
the Company and the other parties thereto; (iii) the Securities will be duly authorized by all necessary corporate action by the
Company and any agreement pursuant to which such Securities may be issued will be duly authorized, executed and delivered by the
Company and the other parties thereto; (iv) the Company will remain duly organized, validly existing and in good standing under
applicable state law; and (v) the Company has reserved a sufficient number of shares of its duly authorized, but unissued, Common
Stock and Preferred Stock as is necessary to provide for the issuance of the shares of Common Stock and Preferred Stock pursuant
to the Registration Statement.
The
opinions set forth above are subject to the following exceptions, limitations and qualifications: (i) the effect of bankruptcy,
insolvency, reorganization, fraudulent conveyance, moratorium or other similar laws now or hereafter in effect relating to or
affecting the rights and remedies of creditors; (ii) the effect of general principles of equity, including without limitation,
concepts of materiality, reasonableness, good faith and fair dealing and the possible unavailability of specific performance or
injunctive relief, regardless of whether enforcement is considered in a proceeding in equity or at law, and the discretion of
the court before which any proceeding therefor may be brought; and (iii) the unenforceability under certain circumstances under
law or court decisions of provisions providing for the indemnification of, or contribution to, a party with respect to liability
where such indemnification or contribution is contrary to public policy. We express no opinion concerning the enforceability of
any waiver of rights or defenses with respect to stay, extension or usury laws. Our opinion expressed herein is also subject to
the qualification that no term or provision shall be included in any certificate of designation relating to any series of the
Preferred Stock, Warrant Agreement, Indenture, Unit Agreement or any other agreement or instrument pursuant to which any of the
Securities are to be issued that would affect the validity of such opinion.
Our
opinion is limited to the federal laws of the United States, the General Corporation Law of the State of Delaware (including reported
judicial decisions interpreting the General Corporation Law of the State of Delaware) and the State of New York. We express no
opinion as to the effect of the law of any other jurisdiction. Our opinion is rendered as of the date hereof, and we assume no
obligation to advise you of changes in law or fact (or the effect thereof on the opinions expressed herein) that hereafter may
come to our attention.
We
hereby consent to the inclusion of this opinion as Exhibit 5.1 to the Registration Statement and to the references to our firm
therein and in the Prospectus and the ATM Prospectus, and in any Prospectus Supplement under the caption “Legal Matters.”
In giving our consent, we do not admit that we are in the category of persons whose consent is required under Section 7 of the
Securities Act or the rules and regulations thereunder.
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Very
truly yours,
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/s/
Lowenstein Sandler LLP
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LOWENSTEIN
SANDLER LLP
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Exhibit
23.01
CONSENT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We
consent to the incorporation by reference in the Registration Statement of Matinas BioPharma Holdings, Inc. and Subsidiaries (the
“Company”) on Form S-3 to be filed on or about July 2, 2020 of our reports dated March 9, 2020, on our audits of the
consolidated financial statements as of December 31, 2019 and 2018 and for each of the years in the two-year period ended December
31, 2019, and the effectiveness of the Company’s internal control over financial reporting as of December 31, 2019 (which
report expresses an adverse opinion on the effectiveness of the Company’s internal control over financial reporting because
of material weaknesses), both of which reports are included in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2019. Our report includes an explanatory paragraph that refers to a change in the method for accounting for leases
due to the adoption of Accounting Standards Update 2016-02. We also consent to the reference to our firm under the caption “Experts”
in such Registration Statement on Form S-3.
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/s/
EISNERAMPER LLP
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EISNERAMPER
LLP
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Iselin,
New Jersey
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July
2, 2020
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