Table of Contents
As filed with the Securities
and Exchange Commission on August 5, 2021
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-3
REGISTRATION STATEMENT
Under
The
Securities Act of 1933
Intrusion Inc.
(Exact
name of registrant as specified in its charter)
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Delaware
(State or other jurisdiction
of
incorporation or organization)
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75-1911917
(I.R.S. Employer
Identification Number)
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101 East Park Blvd, Suite
1200
Plano, Texas 75074
(415)
845 9964
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)
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B. Franklin Byrd
Chief Financial Officer
101 East Park Blvd, Suite
1200
Plano, Texas 75074
(972) 301 3658
(Name, address, including zip
code, and telephone number, including area code, of agent for service)
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Copies to:
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J. Robert Suffoletta
Wilson Sonsini Goodrich
& Rosati,
Professional Corporation
900 S. Capital of Texas
Highway
Las Cimas IV, 5th Floor
Austin, TX 78746
(512) 338-5400
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From time to time after the effective date of this registration statement.
(Approximate date of commencement of proposed sale to the public)
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. ☒
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, 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 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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Accelerated filer ☐
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Non-accelerated filer ☒
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Smaller reporting company ☒
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Emerging growth company ☐
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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 Securities Act. ☐
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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 security
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Proposed
maximum
aggregate
offering price
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Amount of
registration fee
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Common Stock, par value $0.01 per share
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(2)
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(3)
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(3)
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—
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Preferred Stock, par value $0.01 per share
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(2)
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(3)
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(3)
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—
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Debt Securities
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(2)
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(3)
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(3)
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—
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Warrants
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(2)
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(3)
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(3)
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—
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Units
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(2)
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(3)
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(3)
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—
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Total
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(2)
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$100,000,000(3)
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$10,910.00
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(1)
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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.
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(2)
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There are being registered hereunder such indeterminate number of shares of common stock, number of shares of preferred stock, principal amount of debt securities, and number of warrants to purchase common stock, preferred stock or debt securities, which may be offered individually or as units comprised of one or more of the other securities, as will have an aggregate initial offering price not to exceed $100,000,000. If any debt securities are issued at an original issue discount, then the offering price of such debt securities shall be in such greater principal amount as shall result in an aggregate initial offering price not to exceed $100,000,000, less the aggregate dollar amount of all securities previously issued hereunder. Any securities registered hereunder may be sold separately or as units with other securities registered hereunder. The securities registered also include such indeterminate number of shares of common stock and preferred stock and amount of debt securities as may be issued upon conversion of or exchange for preferred stock or debt securities that provide for conversion or exchange, upon exercise of warrants or pursuant to the antidilution provisions of any such securities.
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(3)
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The proposed maximum initial offering price per share and the proposed maximum aggregate offering price per class of security will be determined, from time to time, by the registrant in connection with the issuance by the registrant of the securities registered hereunder and is not specified as to each class of security pursuant to General Instruction II.D of Form S-3.
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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 that specifically states that this registration statement shall thereafter become effective
in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until this 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
We
are filing this registration statement with the Securities and Exchange Commission (the “SEC”) using a “shelf”
registration process. Under this registered “shelf,” in the future, we may, from time to time, sell any combination
of the securities described herein, in one or more offerings, up to a maximum aggregate offering price of $100,000,000.
On August 5, 2021, we entered into a sales agreement
with B. Riley Securities, Inc. (the “Sales Agreement”) relating to our offering of up to $50,000,000 of our common stock
that will be effective once this registration statement is declared effective by the SEC. Accordingly, this registration statement contains
two prospectuses:
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a base prospectus,
which covers the potential future offering, issuance and sale of such indeterminate number of shares of common stock and preferred stock,
principal amount of debt securities, and warrants to purchase common stock, preferred stock or debt securities, which may be offered
individually or as units comprised of one or more of the other securities, which together shall have an aggregate initial offering price
not to exceed $100,000,000; and
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a sales agreement
prospectus supplement covering the offering, issuance and sale of shares of our common stock with an aggregate offering price of up to
$50,000,000 that may be issued and sold under the Sales Agreement we entered into with B. Riley Securities, Inc., dated August 5, 2021.
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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 supplement immediately follows the base prospectus. The shares of common stock
that may be offered, issued and sold under the sales agreement prospectus supplement is included in the $100,000,000 of securities that
may be offered, issued and sold under the base prospectus. In the event of the termination of the sales agreement, any portion of the
$50,000,000 included in the sales agreement prospectus supplement that is not sold pursuant to the sales agreement will be available for
sale in other offerings pursuant to the base prospectus.
The information in this
prospectus is not complete and may be changed. The securities may not be sold until the registration statement 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 jurisdiction where the offer or sale is not permitted.
SUBJECT
TO COMPLETION, DATED AUGUST 5, 2021
PRELIMINARY
Prospectus
Intrusion Inc.
$100,000,000
Common Stock
Preferred Stock
Debt Securities
Warrants
Units
We may, from time to time in one or more offerings,
offer and sell up to $100,000,000 in the aggregate of common stock, preferred stock, debt securities, warrants to purchase common stock,
preferred stock or debt securities, or any combination of the foregoing, either individually or as units comprised of one or more of the
other securities.
This prospectus provides a general description
of the securities we may offer in the future. In the event of an offering of securities, we will provide the specific terms of the securities
offered in one or more supplements to this prospectus. We may also authorize one or more free writing prospectuses to be provided to you
in connection with these offerings. The prospectus supplement and any related free writing prospectus may add, update or change information
contained in this prospectus. You should read carefully this prospectus, the applicable prospectus supplement and any related free writing
prospectus, as well as the documents incorporated by reference before you invest in any of our securities. This prospectus may not
be used to offer or sell any securities unless accompanied by the applicable prospectus supplement.
Our common stock is listed on the Nasdaq Global
Select Market under the symbol “INTZ.” On August 4, 2021, the last reported sale price for our common stock was $4.29 per
share.
Investing in our securities involves a high
degree of risk. See “Risk Factors” beginning on page 4 of this prospectus and in the documents incorporated by reference in
this prospectus, as updated in the applicable prospectus supplement, any related free writing prospectus and other future filings we make
with the Securities and Exchange Commission that are incorporated by reference into this prospectus, for a discussion of the factors you
should consider carefully before deciding to purchase our securities.
We will sell these securities directly to investors,
through agents designated from time to time or to or through underwriters or dealers. For additional information on the methods of sale,
you should refer to the section entitled “Plan of Distribution” in this prospectus. If any underwriters are involved in the
sale of any securities with respect to which this prospectus is being delivered, the names of such underwriters and any applicable commissions
or discounts will be set forth in a prospectus supplement. The price to the public of such securities and the net proceeds we expect to
receive from such sale will also be set forth in a prospectus supplement.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus.
Any representation to the contrary is a criminal offense.
The
date of this prospectus is , 2021.
TABLE OF CONTENTS
Page
About
this Prospectus
This prospectus is part of a registration statement
that we filed with the Securities and Exchange Commission (the “SEC”), under the Securities Act of 1933, as amended (the “Securities
Act”), using a “shelf” registration process. Under this shelf registration process, we may from time to time sell common
stock, preferred stock, debt securities or warrants to purchase common stock, preferred stock or debt securities, or any combination of
the foregoing, either individually or as units comprised of one or more of the other securities, in one or more offerings up to a total
dollar amount of $100,000,000. We have provided to you in this prospectus a general description of the securities we may offer. Each time
we sell securities under this shelf registration, we will, to the extent required by law, provide a prospectus supplement that will contain
specific information about the terms of that offering. We may also authorize one or more free writing prospectuses to be provided to you
that may contain material information relating to these offerings. The prospectus supplement and any related free writing prospectus that
we may authorize to be provided to you may also add, update or change information contained in this prospectus or in any documents that
we have incorporated by reference into this prospectus. To the extent there is a conflict between the information contained in this prospectus
and the prospectus supplement or any related free writing prospectus, you should rely on the information in the prospectus supplement
or the related free writing prospectus, as applicable; provided that if any statement in one of these documents is inconsistent with a
statement in another document having a later date — for example, a document filed after the date of this prospectus and incorporated
by reference into this prospectus or any prospectus supplement or any related free writing perspective — the statement in the document
having the later date modifies or supersedes the earlier statement.
We have not authorized any dealer, agent or other
person to give any information or to make any representation other than those contained or incorporated by reference in this prospectus
and any accompanying prospectus supplement, or any related free writing prospectus that we may authorize to be provided to you. You must
not rely upon any information or representation not contained or incorporated by reference in this prospectus or an accompanying prospectus
supplement, or any related free writing prospectus that we may authorize to be provided to you. This prospectus and the accompanying prospectus
supplement, if any, do not constitute an offer to sell or the solicitation of an offer to buy any securities other than the registered
securities to which they relate, nor do this prospectus and the accompanying prospectus supplement constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation
in such jurisdiction. You should not assume that the information contained in this prospectus, any applicable prospectus supplement or
any related free writing prospectus is accurate on any date subsequent to the date set forth on the front of the document or that any
information we have incorporated by reference is correct on any date subsequent to the date of the document incorporated by reference
(as our business, financial condition, results of operations and prospects may have changed since that date), even though this prospectus,
any applicable prospectus supplement or any related free writing prospectus is delivered or securities are sold on a later date.
As permitted by SEC rules and regulations, the
registration statement of which this prospectus forms a part includes additional information not contained in this prospectus. You may
read the registration statement and the other reports we file with the SEC at its website or at its offices described below under “Where
You Can Find More Information.”
Summary
This summary highlights the information contained
elsewhere in or incorporated by reference into this prospectus. Because this is only a summary, it does not contain all of the information
that you should consider before investing in our securities. You should carefully read this entire prospectus, including the information
contained under the heading “Risk Factors,” and all other information included or incorporated by reference into this prospectus
in their entirety before you invest in our securities.
Unless the context otherwise requires, all
references in this prospectus to “Intrusion,” “we,” “us,” “our,” “the Company”
or similar words refer to Intrusion Inc., a Delaware corporation, together with its consolidated subsidiaries, taken as a whole.
Company Overview
We develop, sell and support products that protect
any-sized company or government organization by fusing advanced threat intelligence with real-time artificial intelligence to neutralize
cyberattacks as they occur—including Zero-Day attacks. We market and distribute our solutions through a direct sales force and value-added
resellers. Our end-user customers include U.S. federal government entities, state and local government entities, and companies ranging
in size from mid-market to large enterprises.
We were organized in Texas in 1983 and reincorporated
in Delaware in 1995. Our principal executive offices are located at 101 East Park Boulevard, Suite 1200, Plano, Texas 75074, and our telephone
number is (415) 845 9964. Our corporate website is www.intrusion.com. We make available free of charge through our Investor Relations
website, available at ir.intrusion.com, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form
8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), as soon as reasonably practicable after we electronically file such material with, or furnish
it to, the SEC. The information contained in, or that can be accessed through, our website is not part of this prospectus.
The Securities We May Offer
We may offer shares of our common stock and preferred
stock, various series of debt securities and warrants to purchase any of such securities, either individually or in units, with a total
value of up to $100,000,000 from time to time under this prospectus, together with any applicable prospectus supplement and related free
writing prospectus, at prices and on terms to be determined by market conditions at the time of offering. If we issue any 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. Each time we offer securities under this prospectus, we will provide offerees with a prospectus supplement that will
describe the specific amounts, prices and other important terms of the securities being offered, including, to the extent applicable:
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designation or classification;
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aggregate principal amount or aggregate offering price;
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maturity, if applicable;
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original issue discount, if any;
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rates and times of payment of interest or dividends, if any;
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redemption, conversion, exchange or sinking fund terms, if any;
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conversion or exchange prices or rates, if any, and, if applicable, any provisions for changes
to or adjustments in the conversion or exchange prices or rates and in the securities or other property receivable upon conversion or
exchange;
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restrictive covenants, if any;
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voting or other rights, if any; and
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important U.S. federal income tax considerations.
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The prospectus supplement and any related free
writing prospectus that we may authorize to be provided to you may also add, update or change information contained in this prospectus
or in documents we have incorporated by reference. However, no prospectus supplement or free writing prospectus will offer a security
that is not registered and described in this prospectus at the time of the effectiveness of the registration statement of which this prospectus
is a part.
We may sell the securities to or through underwriters,
dealers or agents or directly to purchasers. We, as well as any agents acting on our behalf, reserve the sole right to accept and to reject
in whole or in part any proposed purchase of securities. Each prospectus supplement will set forth the names of any underwriters, dealers
or agents involved in the sale of securities described in that prospectus supplement and any applicable fee, commission or discount arrangements
with them, details regarding any over-allotment option granted to them, and net proceeds to us. The following is a summary of the securities
we may offer with this prospectus.
Common Stock
As of the date of this prospectus, our restated
certificate of incorporation (our “certificate of incorporation”), authorizes us to issue 80,000,000 shares of common stock,
par value $0.01 per share, of which 17,624,506 shares were issued and outstanding as of July 30, 2021. We may offer shares of our common
stock either alone or underlying other registered securities convertible into or exercisable for our common stock. Holders of our common
stock are entitled to share ratably in such dividends as our board of directors may declare from time to time out of legally available
funds, subject to the preferential rights of the holders of any then-outstanding shares of our preferred stock. Currently, we do not pay
any dividends on our common stock. Each holder of our common stock is entitled to one vote per share. In this prospectus, we provide a
general description of, among other things, the rights and restrictions that apply to holders of our common stock.
Preferred Stock
As of the date of this prospectus, we have no
outstanding shares of preferred stock. However, our certificate of incorporation authorizes us to issue 5,000,000 shares of preferred
stock, par value $0.01 per share. Our board of directors has the authority, subject to limitations prescribed by Delaware law, to issue
preferred stock in one or more series, to establish from time to time the number of shares to be included in each series, and to fix the
designation, powers, preferences and rights of the shares of each series and any of its qualifications, limitations or restrictions, in
each case without further vote or action by our stockholders. Each series of preferred stock offered by us will be more fully described
in the particular prospectus supplement that will accompany this prospectus, including redemption provisions, rights in the event of our
liquidation, dissolution or winding-up, voting rights and conversion rights.
Debt Securities
We may offer general debt obligations, which may
be secured or unsecured, senior or subordinated and convertible into shares of our common stock. In this prospectus, we refer to the senior
debt securities and the subordinated debt securities together as the “debt securities.” We may issue debt securities under
a note purchase agreement or under an indenture to be entered between us and a trustee; forms of the senior and subordinated indentures
are included as exhibits to the registration statement of which this prospectus is a part. The relevant indenture does not limit the amount
of securities that may be issued under it and provides that debt securities may be issued in one or more series. The senior debt securities
will have the same rank as all of our other indebtedness that is not subordinated. The subordinated debt securities will be subordinated
to our senior debt on terms set forth in the applicable prospectus supplement. In addition, the subordinated debt securities will be effectively
subordinated to creditors and preferred stockholders of our subsidiaries. Our board of directors will determine the terms of each series
of debt securities being offered. This prospectus contains only general terms and provisions of the debt securities. The applicable prospectus
supplement will describe the particular terms of the debt securities offered thereby. You should read any prospectus supplement and any
free writing prospectus that we may authorize to be provided to you related to the series of debt securities being offered, as well as
the complete note agreements and/or indentures that contain the terms of the debt securities. Forms of indentures have been filed as exhibits
to the registration statement of which this prospectus is a part, and supplemental indentures and forms of debt securities containing
the terms of debt securities we offer under this prospectus will be filed as exhibits to the registration statement of which this prospectus
is a part, or will be incorporated by reference from another report that we file with the SEC.
Warrants
We may offer warrants for the purchase of shares
of our common stock or preferred stock or of debt securities. We may issue the warrants by themselves or together with common stock, preferred
stock or debt securities, and the warrants may be attached to or separate from any offered securities. Our board of directors will determine
the terms of the warrants. This prospectus contains only general terms and provisions of the warrants. The applicable prospectus supplement
will describe the particular terms of the warrants being offered thereby. You should read any prospectus supplement and any free writing
prospectus that we may authorize to be provided to you related to the series of warrants being offered, as well as the complete form of
warrant and/or the warrant agreement and warrant certificate, as applicable, that contain the terms of the warrants. We will file as an
exhibit to the registration statement of which this prospectus is a part, or will incorporate by reference from another report that we
file with the SEC, the form of warrant and/or the warrant agreement and warrant certificate, as applicable, that contain the terms of
the particular series of warrants we are offering, and any supplemental agreements, before the issuance of such warrants.
Units
We may offer units consisting of our common stock
or preferred stock, debt securities and/or warrants to purchase any of these securities in one or more series. We may evidence each series
of units by unit certificates that we will issue under a separate agreement. We may enter into unit agreements with a unit agent. Each
unit agent will be a bank or trust company that we select. We will indicate the name and address of the unit agent in the applicable prospectus
supplement relating to a particular series of units. This prospectus contains only a summary of certain general features of the units.
The applicable prospectus supplement will describe the particular features of the units being offered thereby. You should read any prospectus
supplement and any free writing prospectus that we may authorize to be provided to you related to the series of units being offered, as
well as the complete unit agreements that contain the terms of the units. Specific unit agreements will contain additional important terms
and provisions and we will file as an exhibit to the registration statement of which this prospectus is a part, or will incorporate by
reference from another report that we file with the SEC, the form of each unit agreement relating to units offered under this prospectus.
Risk
Factors
Investing in our securities involves a high degree
of risk. You should carefully consider the risk factors set forth under “Risk Factors” in Item 1A of our Annual Report on
Form 10-K for the year ended December 31, 2020 and our subsequently filed Quarterly Reports on Form 10-Q, each of which is incorporated
by reference in this prospectus, together with all other information contained or incorporated by reference in this prospectus, as may
be updated by our subsequent filings under the Exchange Act, and the risk factors and other information contained in any applicable prospectus
supplement and in any related free writing prospectus in connection with a specific offering, before deciding whether to purchase any
of the securities being registered pursuant to the registration statement of which this prospectus is a part. Each of the risk factors
could adversely affect our business, operating results and financial condition, as well as adversely affect the value of an investment
in our securities, and the occurrence of any of these risks might cause you to lose all or part of your investment. Additional risks and
uncertainties that we do not presently know about or that we currently believe are not material may also adversely affect our business.
Forward-Looking
Statements
This prospectus, each prospectus supplement and
the information incorporated by reference in this prospectus and each prospectus supplement contain certain statements that constitute
“forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange
Act. Such forward-looking statements are generally accompanied by words such as “estimate,” “expect,” “believe,”
“should,” “would,” “could,” “anticipate,” “may,” “will,” “continue,”
“project,” “potentially,” “plan” or other words that convey uncertainty of future events or outcomes.
These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and
other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any
future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Factors that
may cause actual results to differ materially from current expectations, which we describe in more detail in our Annual Report on Form
10-K for the year ended December 31, 2020 and our subsequently filed Quarterly Reports on Form 10-Q, include, but are not limited to:
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that to improve
our financial performance, we must increase our revenue levels;
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our ability to
successfully market, promote, and sell our new commercial solution, INTRUSION Shield, and market it through new sales channels to a new
set of prospective customers;
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our INTRUSION Shield
solution failing to perform as expected or us being unable to meet our customers’ needs or to achieve market acceptance;
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effects of the
coronavirus on the U.S. and global economies;
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customer concentration
including many U.S. government entities;
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technological changes
in the network security industry;
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intense competition
from both start-up and established companies;
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potential conflict of your interests with the interests of our larger stockholders;
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technical or other
errors with our products;
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actual or threatened
litigation and the costs and efforts spent to defend against such litigation;
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a breach of network
security;
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our ability to
protect our intellectual property and the cost associated with defending claims of infringement; and
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our intended use
of the net proceeds from offerings of our securities under this prospectus.
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If
one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results
may vary significantly from what we projected. These forward-looking statements and other statements made elsewhere in this prospectus
and the documents incorporated by reference in this prospectus are made in reliance on the Private Securities Litigation Reform Act of
1995. Any forward-looking statement you read in this prospectus and the documents incorporated by reference in this prospectus reflects
our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our
operations, results of operations, growth strategy and liquidity. Subject to applicable law, we assume no obligation to publicly update
or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those
anticipated in these forward-looking statements, even if new information becomes available in the future.
Use
of Proceeds
Except as described in any prospectus supplement
and any free writing prospectus in connection with a specific offering, we currently intend to use the net proceeds for working capital
and general corporate purposes.
Securities
We May Offer
We may offer shares of common stock, shares of
preferred stock, debt securities, or warrants to purchase common stock, preferred stock or debt securities, or any combination of the
foregoing, either individually or as units comprised of one or more of the other securities. We may offer up to $100,000,000 of securities
under this prospectus. If securities are offered as units, we will describe the terms of the units in a prospectus supplement.
Description
of Common Stock and Preferred Stock
The following description of our common stock
and preferred stock, together with any additional information we include in any applicable prospectus supplement or any related free writing
prospectus, summarizes the material terms and provisions of our common stock and the preferred stock that we may offer under this prospectus.
While the terms we have summarized below will apply generally to any future common stock or preferred stock that we may offer, we will
describe the particular terms of any class or series of these securities in more detail in the applicable prospectus supplement. For the
complete terms of our common stock and preferred stock, please refer to our certificate of incorporation and our bylaws, each as amended
to date, that are incorporated by reference into the registration statement of which this prospectus is a part or may be incorporated
by reference in this prospectus or any applicable prospectus supplement. The terms of these securities may also be affected by the Delaware
General Corporation Law (the “DGCL”). The summary below and that contained in any applicable prospectus supplement or any
related free writing prospectus are qualified in their entirety by reference to our certificate of incorporation and bylaws, as in effect
at the time of any offering of securities under this prospectus.
Common Stock
As of the date of this prospectus, our certificate
of incorporation authorizes us to issue 80,000,000 shares of common stock, par value $0.01 per share, of which 17,624,506 shares were
issued and outstanding as of July 30, 2021. Additional shares of authorized common stock may be issued, as authorized by our board of
directors from time to time, without stockholder approval, except as may be required by applicable securities exchange requirements. The
holders of common stock possess exclusive voting rights in us, except to the extent our board of directors specifies voting power with
respect to any other class of securities issued in the future. Each holder of our common stock is entitled to one vote for each share
held of record on each matter submitted to a vote of stockholders, including the election of directors. Stockholders do not have any right
to cumulate votes in the election of directors.
Subject to preferences that may be granted to
the holders of preferred stock, each holder of our common stock is entitled to share ratably in distributions to stockholders and to receive
ratably such dividends as may be declared from time to time by our board of directors out of legally available funds. In the event of
our liquidation, dissolution or winding up, holders of our common stock will be entitled to share ratably in the net assets legally available
for distribution to stockholders after the payment of all of our debts and other liabilities and the satisfaction of any liquidation preference
granted to the holders of any shares of preferred stock. Holders of our common stock have no preemptive, conversion, subscription or other
rights, and there are no redemption or sinking fund provisions applicable to our common stock.
All of the outstanding shares of our common stock
are fully paid and non-assessable. The shares of common stock offered by this prospectus or upon the conversion of any preferred stock
or debt securities or exercise of any warrants offered pursuant to this prospectus, when issued and paid for, will also be, fully paid
and non-assessable.
Securities Exchange Listing
Our common stock is listed on the Nasdaq Global
Select Market under the symbol “INTZ.”
Transfer Agent and Registrar
The transfer agent and registrar for our common
stock is Computershare.
Preferred Stock
While we currently have no shares of preferred
stock issued and outstanding, our certificate of incorporate provides that up to 5,000,000 shares of preferred stock may be issued from
time to time in one or more series, at the discretion of the board of directors without stockholder approval, with each such series to
consist of such number of shares and to have such voting powers (whether full or limited, or no voting powers) and such designations,
powers, preferences and relative, participating, optional, redemption, conversion, exchange or other special rights, and such qualifications,
limitations or restrictions thereof, as shall be stated in the resolution or resolutions providing for the issuance of such series adopted
by the board prior to the issuance thereof. This means that our board has the discretion to issue shares of preferred stock that had provisions
that could be superior in rights and preferences to shares of our common stock and which could be dilutive to holders of our common stock.
Further, such rights and preferences could have the effect of preventing or hindering certain fundamental transactions, such as a merger
or sale of all or substantially all of our assets or another change of control that would otherwise be beneficial to the holders of our
common stock.
The particular terms of each class or series
of preferred stock that we may offer under this prospectus, including redemption rights, liquidation preferences, voting rights, dividend
rights and/or conversion rights, will be more fully described in the applicable prospectus supplement relating to the preferred stock
offered thereby. The rights, preferences and restrictions of any series of preferred stock that we may offer under this prospectus will
be set forth in the certificate of designation relating to that series. We will file as an exhibit to the registration statement of which
this prospectus is a part, or will incorporate by reference from another report we file with the SEC, the form of any certificate of
designation that describes the terms of the series of preferred stock we may offer before the issuance of the related series of preferred
stock. The applicable prospectus supplement will specify the terms of the series of preferred stock we may offer, including, but not
limited to:
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the distinctive
designation and the maximum number of shares in the series;
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the number of shares
we are offering and purchase price per share;
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the liquidation
preference, if any;
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the terms on which
dividends, if any, will be paid;
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the voting rights,
if any, of the shares of the relevant series;
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the terms and conditions,
if any, on which the shares of the series shall be convertible into, or exchangeable for, shares of any other class or classes of capital
stock;
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the terms on which
the shares may be redeemed, if at all;
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any listing of
the preferred stock on any securities exchange or market;
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a discussion of
any material or special U.S. federal income tax considerations applicable to the preferred stock; and
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any or all other
preferences, rights, restrictions, including restrictions on transferability, and qualifications of shares of the series.
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The description of preferred stock above and the
description of the terms of a particular series of preferred stock in any applicable prospectus supplement are not complete. You should
refer to the applicable certificate of designation for complete information.
The DGCL provides that the holders of preferred
stock will have the right to vote separately as a class on any proposal involving fundamental changes in the rights of holders of that
preferred stock. This right is in addition to any voting rights that may be provided for in the applicable certificate of designation.
Anti-takeover Effects of Provisions of Our
Charter and Bylaws
Our charter and our bylaws, include a number of
provisions that could deter hostile takeovers or delay or prevent changes in control of our company, including the following:
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Board of Directors Vacancies: Our charter and bylaws authorize only our board of directors to fill vacant directorships, including newly created seats. In addition, the number of directors constituting our board of directors may only be set by a resolution adopted by a majority vote of our entire board of directors. These provisions would prevent a stockholder from increasing the size of our board of directors and then gaining control of our board of directors by filling the resulting vacancies with its own nominees. This makes it more difficult to change the composition of our board of directors but promotes continuity of management.
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Stockholder Action; Special Meetings of Stockholders: Our charter provides that our stockholders may not take action by written consent, but may only take action at annual or special meetings of our stockholders. As a result, a holder controlling a majority of our capital stock would not be able to amend our bylaws or remove directors without holding a meeting of our stockholders called in accordance with our bylaws. Further, our bylaws and charter provide that special meetings of our stockholders may be called only by a majority of our board of directors, the Chairman of our board of directors or our Chief Executive Officer, thus prohibiting a stockholder from calling a special meeting. These provisions might delay the ability of our stockholders to force consideration of a proposal or for stockholders controlling a majority of our capital stock to take any action, including the removal of directors.
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Advance
Notice Requirements for Stockholder Proposals and Director Nominations: Our bylaws provide advance notice procedures for stockholders
seeking to bring matters before our annual meeting of stockholders or to nominate candidates for election as directors at our annual meeting
of stockholders. Our bylaws also specify certain requirements regarding the form and content of a stockholder’s notice. These provisions
might preclude our stockholders from bringing matters before our annual meeting of stockholders or from making nominations for directors
at our annual meeting of stockholders if the proper procedures are not followed. We expect that these
provisions might also discourage or deter a
potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting
to obtain control of our board of directors.
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No Cumulative Voting: The DGCL provides that stockholders are not entitled to the right to cumulate votes in the election of directors unless a corporation’s certificate of incorporation provides otherwise. Our charter does not provide for cumulative voting.
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Indemnification. Our certificate of incorporation and bylaws provide that we will indemnify our officers and directors against losses as they incur in investigations and legal proceedings resulting from their services to us, which may include service in connection with takeover defense measures.
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Delaware Anti-takeover Statute
We are subject to Section 203 of the DGCL, an
anti-takeover law. In general, Section 203 prohibits, with some exceptions, a publicly held Delaware corporation from engaging in a “business
combination” with any “interested stockholder” for a period of three years following the date that stockholder became
an interested stockholder, unless:
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prior to that 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 consummation 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 commenced, excluding for purposes of determining the number of shares of voting stock outstanding (but not the voting stock owned by the interested stockholder) those shares owned by persons who are directors and officers and by excluding employee stock plans in which employee participants do not have the right to determine whether shares held subject to the plan will be tendered in a tender or exchange offer; or
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on or subsequent to that date, the business combination is approved by the board of directors of the corporation and authorized at an annual or special meeting of 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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Section 203 defines “business combination”
to include any of 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 of 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 loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.
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In general, Section 203 defines an “interested
stockholder” as any person who, together with the person’s affiliates and associates, beneficially owns, or within three years
prior to the determination of interested stockholder status did beneficially own, 15% or more of the outstanding voting stock of the corporation.
The above provisions may deter a hostile takeover
or delay a change in control.
Description
of Debt Securities
We may issue debt securities, in one or more series,
as either senior or subordinated debt or as senior or subordinated convertible debt. The following description, together with the additional
information we include in any applicable prospectus supplements or free writing prospectuses, summarizes the material terms and provisions
of the debt securities that we may offer under this prospectus. While the terms we have summarized below will apply generally to any future
debt securities we may offer under this prospectus, we will describe the particular terms of any debt securities that we may offer in
more detail in the applicable prospectus supplement or free writing prospectus. The terms of any debt securities we offer under a prospectus
supplement may differ from the terms we describe below. However, no prospectus supplement shall fundamentally change the terms that are
set forth in this prospectus or offer a security that is not registered and described in this prospectus at the time of its effectiveness.
As of July 30, 2021, we had no outstanding registered debt securities. Unless the context requires otherwise, whenever we refer to the
“indentures,” we also are referring to any supplemental indentures that specify the terms of a particular series of debt securities.
We will issue any senior debt securities under
the senior indenture that we will enter into with the trustee named in the senior indenture. We will issue any subordinated debt securities
under the subordinated indenture and any supplemental indentures that we will enter into with the trustee named in the subordinated indenture.
We have filed forms of these documents as exhibits to the registration statement, of which this prospectus is a part, and supplemental
indentures and forms of debt securities containing the terms of the debt securities being offered will be filed as exhibits to the registration
statement of which this prospectus is a part or will be incorporated by reference from reports that we file with the SEC.
The indentures will be qualified under the Trust
Indenture Act of 1939, as amended (the “Trust Indenture Act”). We use the term “trustee” to refer to either the
trustee under the senior indenture or the trustee under the subordinated indenture, as applicable.
The following summaries of material provisions
of the senior debt securities, the subordinated debt securities and the indentures are subject to, and qualified in their entirety by
reference to, all of the provisions of the indenture and any supplemental indentures applicable to a particular series of debt securities.
We urge you to read the applicable prospectus supplements and any related free writing prospectuses related to the debt securities that
we may offer under this prospectus, as well as the complete indentures that contains the terms of the debt securities. Except as we may
otherwise indicate, the terms of the senior indenture and the subordinated indenture are identical.
General
The terms of each series of debt securities will
be established by or pursuant to a resolution of our board of directors and set forth or determined in the manner provided in an officers’
certificate or by a supplemental indenture. Debt securities may be issued in separate series without limitation as to aggregate principal
amount. We may specify a maximum aggregate principal amount for the debt securities of any series. We will describe in the applicable
prospectus supplement the terms of the series of debt securities being offered, including:
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the principal amount being offered, and if a series, the total amount authorized and the total amount outstanding;
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any limit on the amount that may be issued;
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whether or not we will issue the series of debt securities in global form, and, if so, the terms and who the depositary will be;
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whether and under what circumstances, if any, we will pay additional amounts on any debt securities held by a person who is not a United States person for tax purposes, and whether we can redeem the debt securities if we have to pay such additional amounts;
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the annual interest rate, which may be fixed or variable, or the method for determining the rate and the date interest will begin to accrue, the dates interest will be payable and the regular record dates for interest payment dates or the method for determining such dates;
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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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the terms of the subordination of any series of subordinated debt;
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the place where payments will be made;
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restrictions on transfer, sale or other assignment, if any;
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our right, if any, to defer payment of interest and the maximum length of any such deferral period;
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the date, if any, after which, and the price at which, we may, at our option, redeem the series of debt securities pursuant to any optional or provisional redemption provisions and the terms of those redemption provisions;
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provisions for a sinking fund purchase or other analogous fund, if any, including the date, if any, on which, and the price at which we are obligated, pursuant thereto or otherwise, to redeem, or at the holder’s option, to purchase, the series of debt securities and the currency or currency unit in which the debt securities are payable;
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whether the indenture will restrict our ability or the ability of our subsidiaries to:
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incur additional indebtedness;
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issue additional securities;
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pay dividends or make distributions in respect of our capital stock or the capital stock of our subsidiaries;
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place restrictions on our subsidiaries’ ability to pay dividends, make distributions or transfer assets;
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make investments or other restricted payments;
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sell or otherwise dispose of assets;
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enter into sale-leaseback transactions;
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engage in transactions with stockholders or affiliates;
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issue or sell stock of our subsidiaries; or
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effect a consolidation or merger;
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whether the indenture will require us to maintain any interest coverage, fixed charge, cash flow-based, asset-based or other financial ratios;
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a discussion of certain material or special U.S. federal income tax considerations applicable to the debt securities;
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information describing any book-entry features;
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the applicability of the provisions in the indenture on discharge;
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whether the debt securities are to be offered at a price such that they will be deemed to be offered at an “original issue discount” as defined in paragraph (a) of Section 1273 of the Internal Revenue Code of 1986, as amended;
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the denominations in which we will issue the series of debt securities, if other than denominations of $1,000 and any integral multiple thereof;
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the currency of payment of debt securities if other than U.S. dollars and the manner of determining the equivalent amount in U.S. dollars; and
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any other specific terms, preferences, rights or limitations of, or restrictions on, the debt securities, including any additional events of default or covenants provided with respect to the debt securities, and any terms that may be required by us or advisable under applicable laws or regulations.
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Conversion or Exchange Rights
We will set forth in the applicable prospectus
supplement the terms under which a series of debt securities may be convertible into or exchangeable for our common stock, our preferred
stock or other securities (including securities of a third party). We will include provisions as to whether conversion or exchange is
mandatory, at the option of the holder or at our option. We may include provisions pursuant to which the number of shares of our common
stock, our preferred stock or other securities (including securities of a third party) that the holders of the series of debt securities
receive would be subject to adjustment.
Consolidation, Merger or Sale
Unless we provide otherwise in the prospectus
supplement applicable to a particular series of debt securities, the indentures will not contain any covenant that restricts our ability
to merge or consolidate, or sell, convey, transfer or otherwise dispose of all or substantially all of our assets. However, any successor
to or acquirer of such assets must assume all of our obligations under the indentures or the debt securities, as appropriate. If the debt
securities are convertible into or exchangeable for our other securities or securities of other entities, the person with whom we consolidate
or merge or to whom we sell all of our property must make provisions for the conversion of the debt securities into securities that the
holders of the debt securities would have received if they had converted the debt securities before the consolidation, merger or sale.
Events of Default under the
Indenture
Unless we provide otherwise in the prospectus
supplement applicable to a particular series of debt securities, the following are events of default under the indentures with respect
to any series of debt securities that we may issue:
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if we fail to pay interest when due and payable and our failure continues for 90 days and the time for payment has not been extended;
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if we fail to pay the principal, premium or sinking fund payment, if any, when due and payable at maturity, upon redemption or repurchase or otherwise, and the time for payment has not been extended;
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if we fail to observe or perform any other covenant contained in the debt securities or the indentures, other than a covenant specifically relating to another series of debt securities, and our failure continues for 90 days after we receive notice from the trustee or we and the trustee receive notice from the holders of at least 25% in aggregate principal amount of the outstanding debt securities of the applicable series; and
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if specified events of bankruptcy, insolvency or reorganization occur.
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We will describe in each applicable prospectus
supplement any additional events of default relating to the relevant series of debt securities.
If an event of default with respect to debt securities
of any series occurs and is continuing, other than an event of default specified in the last bullet point above, the trustee or the holders
of at least 25% in aggregate principal amount of the outstanding debt securities of that series, by notice to us in writing, and to the
trustee if notice is given by such holders, may declare the unpaid principal, premium, if any, and accrued interest, if any, due and payable
immediately. If an event of default arises due to the occurrence of certain specified bankruptcy, insolvency or reorganization events,
the unpaid principal, premium, if any, and accrued interest, if any, of each issue of debt securities then outstanding shall be due and
payable without any notice or other action on the part of the trustee or any holder.
The holders of a majority in principal amount
of the outstanding debt securities of an affected series may waive any default or event of default with respect to the series and its
consequences, except defaults or events of default regarding payment of principal, premium, if any, or interest, unless we have cured
the default or event of default in accordance with the indenture. Any waiver shall cure the default or event of default.
Subject to the terms of the indentures, if an
event of default under an indenture shall occur and be continuing, the trustee will be under no obligation to exercise any of its rights
or powers under such indenture at the request or direction of any of the holders of the applicable series of debt securities, unless such
holders have offered the trustee reasonable indemnity or security satisfactory to it against any loss, liability or expense. The holders
of a majority in principal amount of the outstanding debt securities of any series will 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 debt securities of that series, provided that:
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the direction so given by the holder is not in conflict with any law or the applicable indenture; and
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subject to its duties under the Trust Indenture Act, the trustee need not take any action that might involve it in personal liability or might be unduly prejudicial to the holders not involved in the proceeding.
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The indentures provide that if an event of default
has occurred and is continuing, the trustee will be required in the exercise of its powers to use the degree of care that a prudent person
would use in the conduct of its own affairs. The trustee, however, may refuse to follow any direction that conflicts with law or the indenture,
or that the trustee determines is unduly prejudicial to the rights of any other holder of the relevant series of debt securities, or that
would involve the trustee in personal liability. Prior to taking any action under the indentures, the trustee will be entitled to indemnification
against all costs, expenses and liabilities that would be incurred by taking or not taking such action.
A holder of the debt securities of any series
will have the right to institute a proceeding under the indentures or to appoint a receiver or trustee, or to seek other remedies only
if:
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the holder has given written notice to the trustee of a continuing event of default with respect to that series;
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the holders of at least 25% in aggregate principal amount of the outstanding debt securities of that series have made a written request and such holders have offered reasonable indemnity to the trustee or security satisfactory to it against any loss, liability or expense or to be incurred in compliance with instituting the proceeding as trustee; and
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the trustee does not institute the proceeding and does not receive from the holders of a majority in aggregate principal amount of the outstanding debt securities of that series other conflicting directions within 90 days after the notice, request and offer.
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These limitations do not apply to a suit instituted
by a holder of debt securities if we default in the payment of the principal, premium, if any, or interest on, the debt securities, or
other defaults that may be specified in the applicable prospectus supplement.
We will periodically file statements with the
trustee regarding our compliance with specified covenants in the indentures.
The indentures provide that if a default occurs
and is continuing and is actually known to a responsible officer of the trustee, the trustee must mail to each holder notice of the default
within the earlier of 90 days after it occurs and 30 days after it is known by a responsible officer of the trustee or written notice
of it is received by the trustee, unless such default has been cured or waived. Except in the case of a default in the payment of principal
or premium of, or interest on, any debt security or certain other defaults specified in an indenture, 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 responsible
officers of the trustee, in good faith determine that withholding notice is in the best interests of holders of the relevant series of
debt securities.
Modification of Indenture; Waiver
Subject to the terms of the indenture for any
series of debt securities that we may issue, we and the trustee may change an indenture without the consent of any holders with respect
to the following specific matters:
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to fix any ambiguity, defect or inconsistency in the indenture;
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to comply with the provisions described above under “Description of Debt Securities — Consolidation, Merger or Sale;”
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to comply with any requirements of the SEC in connection with the qualification of any indenture under the Trust Indenture Act;
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to add to, delete from or revise the conditions, limitations and restrictions on the authorized amount, terms or purposes of issue, authentication and delivery of debt securities, as set forth in the indenture;
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to provide for the issuance of, and establish the form and terms and conditions of, the debt securities of any series as provided under “Description of Debt Securities — General,” to establish the form of any certifications required to be furnished pursuant to the terms of the indenture or any series of debt securities, or to add to the rights of the holders of any series of debt securities;
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to evidence and provide for the acceptance of appointment hereunder by a successor trustee;
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to provide for uncertificated debt securities and to make all appropriate changes for such purpose;
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to add such new covenants, restrictions, conditions or provisions for the benefit of the holders, to make the occurrence, or the occurrence and the continuance, of a default in any such additional covenants, restrictions, conditions or provisions an event of default or to surrender any right or power conferred to us in the indenture; or
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to change anything that does not adversely affect the interests of any holder of debt securities of any series in any material respect.
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In addition, under the indentures, the rights
of holders of a series of debt securities may be changed by us and the trustee with the written consent of the holders of at least a majority
in aggregate principal amount of the outstanding debt securities of each series that is affected. However, subject to the terms of the
indenture for any series of debt securities that we may issue or otherwise provided in the prospectus supplement applicable to a particular
series of debt securities, we and the trustee may only make the following changes with the consent of each holder of any outstanding debt
securities affected:
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extending the stated maturity of the series of debt securities;
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reducing the principal amount, reducing the rate of or extending the time of payment of interest, or reducing any premium payable upon the redemption or repurchase of any debt securities; or
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reducing the percentage of debt securities, the holders of which are required to consent to any amendment, supplement, modification or waiver.
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Discharge
Each indenture provides that, subject to the terms
of the indenture and any limitation otherwise provided in the prospectus supplement applicable to a particular series of debt securities,
we may elect to be discharged from our obligations with respect to one or more series of debt securities, except for specified obligations,
including obligations to:
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register the transfer or exchange of debt securities of the series;
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replace stolen, lost or mutilated debt securities of the series;
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maintain paying agencies;
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hold monies for payment in trust;
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recover excess money held by the trustee;
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compensate and indemnify the trustee; and
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appoint any successor trustee.
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In order to exercise our rights to be discharged,
we must deposit with the trustee money or government obligations sufficient to pay all the principal of, and any premium and interest
on, the debt securities of the series on the dates payments are due.
Form, Exchange and Transfer
We will issue the debt securities of each series
only in fully registered form without coupons and, unless we otherwise specify in the applicable prospectus supplement, in denominations
of $1,000 and any integral multiple thereof. The indentures provide that we may issue debt securities of a series in temporary or permanent
global form and as book-entry securities that will be deposited with, or on behalf of, The Depository Trust Company or another depositary
named by us and identified in a prospectus supplement with respect to that series. See “Legal Ownership of Securities” below
for a further description of the terms relating to any book-entry securities.
At the option of the holder, subject to the terms
of the indentures and the limitations applicable to global securities described in the applicable prospectus supplement, the holder of
the debt securities of any series can exchange the debt securities for other debt securities of the same series, in any authorized denomination
and of like tenor and aggregate principal amount.
Subject to the terms of the indentures and the
limitations applicable to global securities set forth in the applicable prospectus supplement, holders of the debt securities may present
the debt securities for exchange or for registration of transfer, duly endorsed or with the form of transfer endorsed thereon duly executed
if so required by us or the security registrar, at the office of the security registrar or at the office of any transfer agent designated
by us for this purpose. Unless otherwise provided in the debt securities that the holder presents for transfer or exchange, we will make
no service charge for any registration of transfer or exchange, but we may require payment of any taxes or other governmental charges.
We will name in the applicable prospectus supplement
the security registrar, and any transfer agent in addition to the security registrar, that we initially designate for any debt securities.
We may at any time designate additional transfer agents or rescind the designation of any transfer agent or approve a change in the office
through which any transfer agent acts, except that we will be required to maintain a transfer agent in each place of payment for the debt
securities of each series.
If we elect to redeem the debt securities of
any series, we will not be required to:
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issue, register
the transfer of, or exchange any debt securities of that series during a period beginning at the opening of business 15 days before the
day of mailing of a notice of redemption of any debt securities that may be selected for redemption and ending at the close of business
on the day of the mailing; or
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register the transfer
of or exchange any debt securities so selected for redemption, in whole or in part, except the unredeemed portion of any debt securities
we are redeeming in part.
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Information Concerning the Trustee
The trustee, other than during the occurrence
and continuance of an event of default under an indenture, undertakes to perform only those duties as are specifically set forth in the
applicable indenture and is under no obligation to exercise any of the powers given it by the indentures at the request of any holder
of debt securities unless it is offered reasonable security and indemnity against the costs, expenses and liabilities that it might incur.
However, upon an event of default under an indenture, the trustee must use the same degree of care as a prudent person would exercise
or use in the conduct of his or her own affairs.
Payment and Paying Agents
Unless we otherwise indicate in the applicable
prospectus supplement, we will make payment of the interest on any debt securities on any interest payment date to the person in whose
name the debt securities, or one or more predecessor securities, are registered at the close of business on the regular record date for
the interest payment.
We will pay principal of and any premium and interest
on the debt securities of a particular series at the office of the paying agents designated by us, except that unless we otherwise indicate
in the applicable prospectus supplement, we will make interest payments by check that we will mail to the holder or by wire transfer to
certain holders. Unless we otherwise indicate in the applicable prospectus supplement, we will designate the corporate trust office of
the trustee as our sole paying agent for payments with respect to debt securities of each series. We will name in the applicable prospectus
supplement any other paying agents that we initially designate for the debt securities of a particular series. We will maintain a paying
agent in each place of payment for the debt securities of a particular series.
All money we pay to a paying agent or the trustee
for the payment of the principal of or any premium or interest on any debt securities that remains unclaimed at the end of two years after
such principal, premium or interest has become due and payable will be repaid to us, and the holder of the debt security thereafter may
look only to us for payment thereof.
Governing Law
The indentures and the debt securities will be
governed by and construed in accordance with the laws of the State of New York, except to the extent that the Trust Indenture Act is applicable.
Ranking Debt Securities
The subordinated debt securities will be unsecured
and will be subordinate and junior in priority of payment to certain other indebtedness to the extent described in a prospectus supplement.
The subordinated indenture does not limit the amount of subordinated debt securities that we may issue. It also does not limit us from
issuing any other secured or unsecured debt.
The senior debt securities will be unsecured and
will rank equally in right of payment to all our other senior unsecured debt. The senior indenture does not limit the amount of senior
debt securities that we may issue. It also does not limit us from issuing any other secured or unsecured debt.
Description
of Warrants
General
We may issue warrants for the purchase of common
stock, preferred stock or debt securities. Warrants may be offered independently or together with common stock, preferred stock or debt
securities offered by any prospectus supplement and may be attached to or separate from those securities. While the terms we have summarized
below will apply generally to any warrants that we may offer under this prospectus, we will describe in particular the terms of any series
of warrants that we may offer in more detail in the applicable prospectus supplement and any applicable free writing prospectus. The terms
of any warrants offered under a prospectus supplement may differ from the terms described below.
We will file as an exhibit to the registration
statement of which this prospectus is a part, or will incorporate by reference from another report that we file with the SEC, the form
of warrant and/or warrant agreement, which may include a form of warrant certificate, as applicable, that describes the terms of the particular
series of warrants we may offer before the issuance of the related series of warrants. We may issue the warrants under a warrant agreement
that we will enter into with a warrant agent to be selected by us. The warrant agent will act solely as our agent in connection with the
warrants and will not assume any obligation or relationship of agency or trust for or with any registered holders of warrants or beneficial
owners of warrants. The following summary of material provisions of the warrants and warrant agreements are subject to, and qualified
in their entirety by reference to, all the provisions of the form of warrant and/or warrant agreement and warrant certificate applicable
to a particular series of warrants. We urge you to read the applicable prospectus supplement and any related free writing prospectus,
as well as the complete form of warrant and/or the warrant agreement and warrant certificate, as applicable, that contain the terms of
the warrants.
The particular terms of any issue of warrants
will be described in the prospectus supplement relating to the issue. Those terms may include:
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the title of such warrants;
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the aggregate number of such warrants;
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the price or prices at which such warrants will be issued;
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the currency or currencies (including composite currencies) in which the price of such warrants may be payable;
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the terms of the securities purchasable upon exercise of such warrants and the procedures and conditions relating to the exercise of such warrants;
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the price at which the securities purchasable upon exercise of such warrants may be purchased;
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the date on which the right to exercise such warrants will commence and the date on which such right shall expire;
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any provisions for adjustment of the number or amount of securities receivable upon exercise of the warrants or the exercise price of the warrants;
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if applicable, the minimum or maximum amount of such warrants that may be exercised at any one time;
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if applicable, the designation and terms of the securities with which such warrants are issued and the number of such warrants issued with each such security;
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if applicable, the date on and after which such warrants and the related securities will be separately transferable;
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information with respect to book-entry procedures, if any;
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the terms of any rights to redeem or call the warrants;
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U.S. federal income tax consequences of holding or exercising the warrants, if material; and
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any other terms of such warrants, including terms, procedures and limitations relating to the exchange or exercise of such warrants.
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Each warrant will entitle its holder to purchase
the principal amount of debt securities or the number of shares of preferred stock or common stock at the exercise price set forth in,
or calculable as set forth in, the applicable prospectus supplement. The warrants may be exercised as set forth in the prospectus supplement
relating to the warrants offered. Unless we otherwise specify in the applicable prospectus supplement, warrants may be exercised at any
time up to the close of business on the expiration date set forth in the prospectus supplement relating to the warrants offered thereby.
After the close of business on the expiration date, unexercised warrants will become void.
We will specify the place or places where, and
the manner in which, warrants may be exercised in the form of warrant, warrant agreement or warrant certificate and applicable prospectus
supplement. Upon receipt of payment and the warrant or warrant certificate, as applicable, properly completed and duly executed at the
corporate trust office of the warrant agent, if any, or any other office, including ours, indicated in the prospectus supplement, we will,
as soon as practicable, issue and deliver the securities purchasable upon such exercise. If less than all of the warrants (or the warrants
represented by such warrant certificate) are exercised, a new warrant or a new warrant certificate, as applicable, will be issued for
the remaining amount of warrants. If we so indicate in the applicable prospectus supplement, holders of the warrants may surrender securities
as all or part of the exercise price for warrants.
Prior to the exercise of any warrants to purchase
common stock, preferred stock or debt securities, holders of the warrants will not have any of the rights of holders of the common stock,
preferred stock or debt securities purchasable upon exercise, including (i) in the case of warrants for the purchase of common stock
or preferred stock, the right to vote or to receive any payments of dividends or payments upon our liquidation, dissolution or winding
up on the common stock or preferred stock purchasable upon exercise, if any; or (ii) in the case of warrants for the purchase of
debt securities, the right to receive payments of principal of, any premium or interest on the debt securities purchasable upon exercise
or to enforce covenants in the applicable indenture.
Description
of Units
The following description, together with the additional
information we may include in any applicable prospectus supplement, summarizes the material terms and provisions of the units that we
may offer under this prospectus. While the terms we have summarized below will apply generally to any units that we may offer under this
prospectus, we will describe the particular terms of any series of units in more detail in the applicable prospectus supplement and any
related free writing prospectus. The terms of any units offered under a prospectus supplement may differ from the terms described below.
However, no prospectus supplement will fundamentally change the terms that are set forth in this prospectus or offer a security that is
not registered and described in this prospectus at the time of its effectiveness.
We will file as an exhibit to the registration
statement of which this prospectus is a part, or will incorporate by reference from another report we file with the SEC, the form of unit
agreement that describes the terms of the series of units we may offer under this prospectus, and any supplemental agreements, before
the issuance of the related series of units. The following summaries of material terms and provisions of the units are subject to, and
qualified in their entirety by reference to, all the provisions of the unit agreement and any supplemental agreements applicable to a
particular series of units. We urge you to read the applicable prospectus supplement and any related free writing prospectus, as well
as the complete unit agreement and any supplemental agreements that contain the terms of the units.
General
We may issue units comprised of one or more debt
securities, shares of common stock, shares of preferred stock and warrants 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. 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.
We will describe in the applicable prospectus
supplement the terms of the series of units, including, but not limited to:
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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 of the governing unit agreement that differ from those described below; and
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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 provisions described in this section, as well
as those described under “Description of Common Stock and Preferred Stock,” “Description of Debt Securities” and
“Description of Warrants” will apply to each unit and to any common stock and/or preferred stock, debt security or warrant
included in each unit, respectively.
Issuance in Series
We may issue units in such amounts and in numerous
distinct series as we determine.
Enforceability
of Rights by Holders of Units
Each unit agent will act solely as our agent under
the applicable unit agreement and will not assume any obligation or relationship of agency or trust with any holder of any unit. A single
bank or trust company may act as unit agent for more than one series of units. A unit agent will have no duty or responsibility in case
of any default by us under the applicable unit agreement or unit, including any duty or responsibility to initiate any proceedings at
law or otherwise, or to make any demand upon us. Any holder of a unit may, without the consent of the related unit agent or the holder
of any other unit, enforce by appropriate legal action its rights as holder under any security included in the unit.
We, the unit agents and any of their agents may
treat the registered holder of any unit certificate as an absolute owner of the units evidenced by that certificate for any purpose and
as the person entitled to exercise the rights attaching to the units so requested, despite any notice to the contrary.
Legal
Ownership of Securities
We can issue securities in registered form or
in the form of one or more global securities. We describe global securities in greater detail below. We refer to those persons who have
securities registered in their own names on the books that we or any applicable trustee or depositary or warrant agent maintain for this
purpose as the “holders” of those securities. These persons are the legal holders of the securities. We refer to those persons
who, indirectly through others, own beneficial interests in securities that are not registered in their own names, as “indirect
holders” of those securities. As we discuss below, indirect holders are not legal holders, and investors in securities issued in
book-entry form or in “street name” will be indirect holders.
Book-Entry Holders
We may issue securities in book-entry form only,
as we will specify in the applicable prospectus supplement. This means securities may be represented by one or more global securities
registered in the name of a financial institution that holds them as depositary on behalf of other financial institutions that participate
in the depositary’s book-entry system. These participating institutions, which are referred to as participants, in turn, hold beneficial
interests in the securities on behalf of themselves or their customers.
Only the person in whose name a security is registered
is recognized as the holder of that security. Global securities will be registered in the name of the depositary. Consequently, for global
securities, we will recognize only the depositary as the holder of the securities, and we will make all payments on the securities to
the depositary. The depositary passes along the payments it receives to its participants, which in turn pass the payments along to their
customers who are the beneficial owners. The depositary and its participants do so under agreements they have made with one another or
with their customers; they are not obligated to do so under the terms of the securities.
As a result, investors in a global security will
not own securities directly. Instead, they will own beneficial interests in a global security, through a bank, broker or other financial
institution that participates in the depositary’s book-entry system or holds an interest through a participant. As long as the securities
are issued in global form, investors will be indirect holders, and not legal holders, of the securities.
Street Name Holders
We may terminate a global security or issue securities
that are not issued in global form. In these cases, investors may choose to hold their securities in their own names or in “street
name.” Securities held by an investor in street name would be registered in the name of a bank, broker or other financial institution
that the investor chooses, and the investor would hold only a beneficial interest in those securities through an account he or she maintains
at that institution.
For securities held in street name, we or any
applicable trustee or depositary will recognize only the intermediary banks, brokers and other financial institutions in whose names the
securities are registered as the holders of those securities, and we or any such trustee or depositary will make all payments on those
securities to them. These institutions pass along the payments they receive to their customers who are the beneficial owners, but only
because they agree to do so in their customer agreements or because they are legally required to do so. Investors who hold securities
in street name will be indirect holders, not legal holders, of those securities.
Legal Holders
Our obligations, as well as the obligations of
any applicable trustee or third party employed by us or a trustee, run only to the legal holders of the securities. We do not have obligations
to investors who hold beneficial interests in global securities, in street name or by any other indirect means. This will be the case
whether an investor chooses to be an indirect holder of a security or has no choice because we are issuing the securities only in global
form.
For example, once we make a payment or give a
notice to the legal holder, we have no further responsibility for the payment or notice even if that holder is required, under agreements
with its participants or customers or by law, to pass it along to the indirect holders but does not do so. Similarly, we may want to obtain
the approval of the legal holders to amend an indenture, to relieve us of the consequences of a default or of our obligation to comply
with a particular provision of an indenture, or for other purposes. In such an event, we would seek approval only from the legal holders,
and not the indirect holders, of the securities. Whether and how the legal holders contact the indirect holders is up to the legal holders.
Special Considerations for Indirect
Holders
If you hold securities through a bank, broker
or other financial institution, either in book-entry form because the securities are represented by one or more global securities or in
street name, you should check with your own institution to find out:
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how it handles
securities payments and notices;
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whether it imposes
fees or charges;
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how it would handle
a request for the legal holders’ consent, if ever required;
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whether and how
you can instruct it to send you securities registered in your own name so you can be a legal holder, if that is permitted in the future;
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how it would exercise
rights under the securities if there were a default or other event triggering the need for legal holders to act to protect their interests;
and
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if the securities
are in book-entry form, how the depositary’s rules and procedures will affect these matters.
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Global Securities
A global security is a security that represents
one or any other number of individual securities held by a depositary. Generally, all securities represented by the same global securities
will have the same terms.
Each security issued in book-entry form will be
represented by a global security that we issue to, deposit with and register in the name of a financial institution or its nominee that
we select. The financial institution that we select for this purpose is called the depositary. Unless we specify otherwise in the applicable
prospectus supplement, The Depository Trust Company, New York, New York, (“DTC”), will be the depositary for all securities
issued in book-entry form.
A global security may not be transferred to or
registered in the name of anyone other than the depositary, its nominee or a successor depositary, unless special termination situations
arise. We describe those situations below under “—Special Situations When A Global Security Will Be Terminated.” As
a result of these arrangements, the depositary, or its nominee, will be the sole registered owner and legal holder of all securities represented
by a global security, and investors will be permitted to own only beneficial interests in a global security. Beneficial interests must
be held by means of an account with a broker, bank or other financial institution that in turn has an account with the depositary or with
another institution that does. Thus, an investor whose security is represented by a global security will not be a legal holder of the
security, but only an indirect holder of a beneficial interest in the global security.
If the prospectus supplement for a particular
security indicates that the security will be issued as a global security, then the security will be represented by a global security at
all times unless and until the global security is terminated. If termination occurs, we may issue the securities through another book-entry
clearing system or decide that the securities may no longer be held through any book-entry clearing system.
Special Considerations For Global
Securities
As an indirect holder, an investor’s rights
relating to a global security will be governed by the account rules of the investor’s financial institution and of the depositary,
as well as general laws relating to securities transfers. We do not recognize an indirect holder as a holder of securities and instead
deal only with the depositary that holds the global security.
If securities are issued only as global securities,
an investor should be aware of the following:
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an investor cannot cause the securities to be registered in his or her name, and cannot obtain non-global certificates for his or her interest in the securities, except in the special situations we describe below;
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an investor will be an indirect holder and must look to his or her own bank or broker for payments on the securities and protection of his or her legal rights relating to the securities, as we describe above;
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an investor may not be able to sell interests in the securities to some insurance companies and to other institutions that are required by law to own their securities in non-book-entry form;
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an investor may not be able to pledge his or her interest in the global security in circumstances where certificates representing the securities must be delivered to the lender or other beneficiary of the pledge in order for the pledge to be effective;
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the depositary’s policies, which may change from time to time, will govern payments, transfers, exchanges and other matters relating to an investor’s interest in the global security. We and any applicable trustee have no responsibility for any aspect of the depositary’s actions or for its records of ownership interests in the global security. We and the trustee also do not supervise the depositary in any way;
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the depositary may, and we understand that DTC will, require that those who purchase and sell interests in the global security within its book-entry system use immediately available funds, and your broker or bank may require you to do so as well; and
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financial institutions that participate in the depositary’s book-entry system, and through which an investor holds its interest in the global security, may also have their own policies affecting payments, notices and other matters relating to the securities. There may be more than one financial intermediary in the chain of ownership for an investor. We do not monitor and are not responsible for the actions of any of those intermediaries.
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Special Situations When a Global
Security Will Be Terminated
In a few special situations described below, a
global security will terminate and interests in it will be exchanged for physical certificates representing those interests. After that
exchange, the choice of whether to hold securities directly or in street name will be up to the investor. Investors must consult their
own banks or brokers to find out how to have their interests in securities transferred to their own names, so that they will be direct
holders. We have described the rights of holders and street name investors above.
A global security will terminate when the following
special situations occur:
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if the depositary notifies us that it is unwilling, unable or no longer qualified to continue as depositary for that global security and we do not appoint another institution to act as depositary within 90 days;
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if we notify any applicable trustee that we wish to terminate that global security; or
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if an event of default has occurred with regard to securities represented by that global security and has not been cured or waived.
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The applicable prospectus supplement may also
list additional situations for terminating a global security that would apply only to the particular series of securities covered by the
prospectus supplement. When a global security terminates, the depositary, and neither we nor any applicable trustee, is responsible for
deciding the names of the institutions that will be the initial direct holders.
Plan
of Distribution
We may sell the securities to or through underwriters
or dealers, through agents, or directly to one or more purchasers. A prospectus supplement or supplements (and any related free writing
prospectus that we may authorize to be provided to you) will describe the terms of the offering of the securities, including, to the extent
applicable:
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the name or names of any agents or underwriters;
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the purchase price of the securities being offered and the proceeds we will receive from the sale;
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any over-allotment or other options under which underwriters may purchase additional securities from us;
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any agency fees or underwriting discounts and other items constituting agents’ or underwriters’ compensation;
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any public offering price;
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any discounts or concessions allowed or reallowed or paid to dealers; and
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any securities exchanges or markets on which such securities may be listed.
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We may distribute the securities from time to
time in one or more transactions at:
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fixed price or prices, which may be changed from time to time;
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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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Agents
We may designate agents who agree to use their
reasonable efforts to solicit purchases of our securities for the period of their appointment or to sell our securities on a continuing
basis. We will name any agent involved in the offering and sale of securities and we will describe any fees or commissions we will pay
the agent in the applicable prospectus supplement.
Underwriters
If we use underwriters for a sale of securities,
the underwriters will acquire the securities for their own account. The underwriters may resell the securities in one or more transactions,
including negotiated transactions, at a fixed public offering price or at varying prices determined at the time of sale. The obligations
of the underwriters to purchase the securities will be subject to the conditions set forth in the applicable underwriting agreement. Subject
to certain conditions, the underwriters will be obligated to purchase all the securities of the series offered if they purchase any of
the securities of that series. We may change from time to time any public offering price and any discounts or concessions the underwriters
allow or reallow or pay to dealers. We may use underwriters with whom we have a material relationship. We will describe the nature of
any such relationship in any applicable prospectus supplement naming any such underwriter. Only underwriters we name in the prospectus
supplement are underwriters of the securities offered by the prospectus supplement.
We may provide agents and underwriters with indemnification
against civil liabilities related to offerings under this prospectus, including liabilities under the Securities Act, or contribution
with respect to payments that the agents or underwriters may make with respect to these liabilities.
Direct Sales
We may also sell securities directly to one or
more purchasers without using underwriters or agents. Underwriters, dealers and agents that participate in the distribution of the securities
may be underwriters as defined in the Securities Act, and any discounts or commissions they receive from us and any profit on their resale
of the securities may be treated as underwriting discounts and commissions under the Securities Act. We will identify in the applicable
prospectus supplement any underwriters, dealers or agents and will describe their compensation. We may have agreements with the underwriters,
dealers and agents to indemnify them against specified civil liabilities, including liabilities under the Securities Act. Underwriters,
dealers and agents may engage in transactions with or perform services for us in the ordinary course of their businesses.
Trading Markets and Listing
of Securities
Unless otherwise specified in the applicable prospectus
supplement, each class or series of securities will be a new issue with no established trading market, other than our common stock, which
is currently listed on the Nasdaq Global Select Market. We may elect to list any other class or series of securities on any exchange or
market, but we are not obligated to do so. It is possible that one or more underwriters may make a market in a class or series of securities,
but the underwriters will not be obligated to do so and may discontinue any market making at any time without notice. We cannot give any
assurance as to the liquidity of the trading market for any of the securities.
Stabilization Activities
Any underwriter may engage in overallotment, stabilizing
transactions, short covering transactions and penalty bids in accordance with Regulation M under the Exchange Act. Overallotment involves
sales in excess of the offering size, which create a short position. Stabilizing transactions permit bids to purchase the underlying security
so long as the stabilizing bids do not exceed a specified maximum. Short covering transactions involve purchases of the securities in
the open market after the distribution is completed to cover short positions. Penalty bids permit the underwriters to reclaim a selling
concession from a dealer when the securities originally sold by the dealer are purchased in a covering transaction to cover short positions.
Those activities may cause the price of the securities to be higher than it would otherwise be. If commenced, the underwriters may discontinue
any of these activities at any time.
Passive Market Making
Any underwriters who are qualified market makers
on the Nasdaq Global Select Market may engage in passive market making transactions in the securities on the Nasdaq Global Select Market
in accordance with Rule 103 of Regulation M, during the business day prior to the pricing of the offering, before the commencement of
offers or sales of the securities. Passive market makers must comply with applicable volume and price limitations and must be identified
as passive market makers. In general, a passive market maker must display its bid at a price not in excess of the highest independent
bid for such security. If all independent bids are lowered below the passive market maker’s bid, however, the passive market maker’s
bid must then be lowered when certain purchase limits are exceeded.
Legal
Matters
The validity of the securities being offered by
this prospectus will be passed upon for us by Wilson Sonsini Goodrich & Rosati, Professional Corporation, Austin, Texas. If the validity
of any securities is also passed upon by counsel any underwriters, dealers or agents, that counsel will be named in the prospectus supplement
relating to that specific offering.
Experts
The consolidated financial statements incorporated
in this prospectus by reference to the Annual Report on Form 10-K for the two-year period ended December 31, 2020 have been so incorporated
in reliance on the report of Whitley Penn LLP, an independent registered public accounting firm, given on the authority of said firm as
experts in auditing and accounting.
Where
You Can Find More Information
We file annual, quarterly and other reports, proxy
statements and other information with the SEC. Our SEC filings are available to the public over the Internet at the SEC’s website
at www.sec.gov. Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, including any
amendments to those reports, and other information that we file with or furnish to the SEC pursuant to Section 13(a) or 15(d) of the Exchange
Act can also be accessed free of charge through the Internet. These filings will be available as soon as reasonably practicable after
we electronically file such material with, or furnish it to, the SEC.
We have filed with the SEC a registration statement
under the Securities Act of 1933 relating to the offering of these securities. The registration statement, including the attached exhibits,
contains additional relevant information about us and the securities. This prospectus does not contain all of the information set forth
in the registration statement. You can obtain a copy of the registration statement, at prescribed rates, from the SEC at the address listed
above. The registration statement and the documents referred to below under “Information Incorporated by Reference” are also
available on our Internet website, ir.intrusion.com. We have not incorporated by reference into this prospectus the information
on our website, and you should not consider it to be a part of this prospectus.
Information
Incorporated by Reference
The SEC allows us to “incorporate by reference”
into this prospectus the information we file with the SEC. This means that we can disclose important information to you by referring you
to those documents. Any statement contained in a document incorporated by reference in this prospectus shall be deemed to be modified
or superseded for purposes of this prospectus to the extent that a statement contained herein, or in any subsequently filed document,
which also is incorporated by reference herein, modifies or supersedes such earlier statement. Any such statement so modified or superseded
shall not be deemed, except as so modified or superseded, to constitute a part of this prospectus.
We hereby incorporate by reference into this prospectus
the following documents that we have filed with the SEC under the Exchange Act File No. 001-20191 (other than information that is furnished
and not filed with the SEC):
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our Annual Report on Form 10-K for the year ended December 31, 2020, including the portions
of our Definitive Proxy Statement on Schedule 14A that are incorporated by reference into such Annual Report, filed with the SEC
on April 5, 2021;
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our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021; and
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our Current Reports on Form 8-K filed on January 13, 2021, January 21, 2021, January 25,
2021, February 10, 2021, May 11, 2021, May 24, 2021 and July 23, 2021.
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All documents that we file with the SEC pursuant
to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act (other than the information that is furnished and not filed with the SEC)
(i) after the initial filing of the registration statement of which this prospectus forms a part and prior to the effectiveness of
such registration statement and (ii) after the date of this prospectus and prior to the termination of offerings under this prospectus
shall be deemed to be incorporated by reference in this prospectus from the date of filing of the documents, unless we specifically provide
otherwise. Information that we file with the SEC will automatically update and may replace information previously filed with the SEC.
To the extent that any information contained in any such SEC filing or any exhibit thereto, was or is furnished to, rather than filed
with the SEC, such information or exhibit is specifically not incorporated by reference.
Upon written or oral request made to us at the
address or telephone number below, we will, at no cost to the requester, provide to each person, including any beneficial owner, to whom
this prospectus is delivered, a copy of any or all of the information that has been incorporated by reference in this prospectus (other
than an exhibit to a filing, unless that exhibit is specifically incorporated by reference into that filing), but not delivered with this
prospectus. You may also access this information on our Investor Relations website at ir.intrusion.com by viewing the “SEC
Filings” subsection of the “Financials” menu. No additional information on our website is deemed to be part of or incorporated
by reference into this prospectus. We have included our website address in this prospectus solely as an inactive textual reference.
Intrusion Inc.
101 East Park Blvd, Suite 1200
Plano, Texas 75074
Attn: Investor Relations
(415) 845 9964
$100,000,000
Common Stock
Preferred Stock
Debt Securities
Warrants
Units
PROSPECTUS
, 2021
The information in
this prospectus supplement is not complete and may be changed. The securities may not be sold until the registration statement filed
with the Securities and Exchange Commission is effective. This prospectus supplement is not an offer to sell these securities and it
is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
SUBJECT
TO COMPLETION, DATED AUGUST 5, 2021
PRELIMINARY PROSPECTUS SUPPLEMENT
Up to $50,000,000
Common Stock
We have entered into a sales agreement, dated
August 5, 2021, (the “Sales Agreement”), with B. Riley Securities, Inc. (“B. Riley Securities”), relating to shares
of our common stock, $0.01 par value per share, offered by this prospectus supplement and the accompanying prospectus. In accordance with
the terms of the Sales Agreement, we may offer and sell shares of our common stock having an aggregate offering price of up to $50,000,000,
from time to time through our agent, B. Riley Securities.
Our common stock is listed on the Nasdaq Global
Select Market under the symbol “INTZ.” The last reported sale price of our common stock on August 4, 2021 was $4.29 per share.
Upon our delivery of a placement notice and subject
to the terms and conditions of the sales agreement, B. Riley Securities may sell shares of our common stock by methods deemed to be an
“at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended (the “Securities
Act”). B. Riley Securities will act as sales agent using its commercially reasonable efforts consistent with its normal trading
and sales practices, on mutually agreed terms between B. Riley Securities and us. There is no arrangement for funds to be received in
any escrow, trust or similar arrangement.
B. Riley Securities will be entitled to compensation
at a fixed commission rate of up to 3.0% of the gross proceeds of each sale of shares of our common stock and up to 5.0% of the gross
proceeds from each block trade of shares of our common stock sold under the Sales Agreement. In connection with the sale of our shares
of common stock on our behalf, B. Riley Securities will be deemed to be an “underwriter” within the meaning of the Securities
Act and the compensation of B. Riley Securities will be deemed to be underwriting commissions or discounts. We have also agreed to provide
indemnification and contribution to B. Riley Securities with respect to certain liabilities, including liabilities under the Securities
Act. See the section titled “Plan of Distribution” beginning on page S-9 of this prospectus supplement.
Investing in our securities involves a high
degree of risk. See “Risk Factors” beginning on page S-3 of this prospectus supplement, as well as the documents incorporated
by reference in this prospectus supplement, for a discussion of the factors you should carefully consider before deciding to purchase
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 supplement or the
accompanying prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
B. RILEY SECURITIES
The date of this prospectus
supplement is , 2021
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS SUPPLEMENT
This document is in two parts. The first part
is this prospectus supplement, including the documents incorporated by reference, which describes the specific terms of this offering.
The second part, the accompanying prospectus, including the documents incorporated by reference, provides more general information. Before
you invest, you should carefully read this prospectus supplement, the accompanying prospectus, all information incorporated by reference
herein and therein, as well as the additional information described under “Where You Can Find Additional Information” on page
S-11 of this prospectus supplement. These documents contain information you should consider when making your investment decision. This
prospectus supplement may add, update or change information contained in the accompanying prospectus. In this prospectus supplement, as
permitted by law, we “incorporate by reference” information from other documents that we file with the Securities and Exchange
Commission (the “SEC”). This means that we can disclose important information to you by referring to those documents. The
information incorporated by reference is considered to be a part of this prospectus supplement and the accompanying prospectus and should
be read with the same care. When we make future filings with the SEC to update the information contained in documents that have been incorporated
by reference, the information included or incorporated by reference in this prospectus supplement is considered to be automatically updated
and superseded. In other words, in case of a conflict or inconsistency between information contained in this prospectus supplement and
information in the accompanying prospectus or incorporated by reference into this prospectus supplement, you should rely on the information
contained in the document with the latest date.
You should rely only on the information contained
or incorporated by reference in this prospectus supplement, the accompanying prospectus and in any free writing prospectuses we may provide
to you in connection with this offering. We have not, and B. Riley Securities has not, authorized any other person to provide you with
any information that is different. If anyone provides you with different or inconsistent information, you should not rely on it. We are
offering to sell, and seeking offers to buy, shares of our common stock only in jurisdictions where offers and sales are permitted. The
distribution of this prospectus supplement and the offering of the common stock in certain jurisdictions may be restricted by law. Persons
outside the United States who come into possession of this prospectus supplement must inform themselves about, and observe any restrictions
relating to, the offering of the common stock and the distribution of this prospectus supplement 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 supplement by any person in any jurisdiction in which it is unlawful for such person to make such an offer
or solicitation.
We further note that the representations, warranties
and covenants made by us in any agreement that is filed as an exhibit to any document that is incorporated by reference in the accompanying
prospectus were made solely for the benefit of the parties to such agreement, including, in some cases, for the purpose of allocating
risk among the parties to such agreements, and should not be deemed to be a representation, warranty or covenant to you. Moreover, such
representations, warranties or covenants were accurate only as of the date when made. Accordingly, such representations, warranties and
covenants should not be relied on as accurately representing the current state of our affairs.
PROSPECTUS SUPPLEMENT SUMMARY
This summary highlights selected information
about us, this offering and information appearing elsewhere in this prospectus supplement and in the documents we incorporate by reference.
This summary is not complete and does not contain all the information you should consider before investing in our common stock pursuant
to this prospectus supplement and the accompanying prospectus. Before making an investment decision, to fully understand this offering
and its consequences to you, you should carefully read this entire prospectus supplement and the accompanying prospectus, including “Risk
Factors” beginning on page S-3 of this prospectus supplement and the consolidated financial statements and related notes and the
other information that we incorporated by reference herein, including our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q
that we file from time to time.
Unless the context otherwise requires, all
references in this prospectus supplement to “Intrusion,” “we,” “us,” “our,” “the
Company” or similar words refer to Intrusion Inc., together with our consolidated subsidiaries.
Company Overview
We develop, sell and support products that protect
any-sized company or government organization by fusing advanced threat intelligence with real-time artificial intelligence to neutralize
cyberattacks as they occur—including Zero-Day attacks. We market and distribute our solutions through a direct sales force and value-added
resellers. Our end-user customers include U.S. federal government entities, state and local government entities, and companies ranging
in size from mid-market to large enterprises.
We were organized in Texas in 1983 and reincorporated
in Delaware in 1995. Our principal executive offices are located at 101 East Park Boulevard, Suite 1200, Plano, Texas 75074, and our telephone
number is (415) 845 9964. Our corporate website is www.intrusion.com. We make available free of charge through our Investor Relations
website, available at ir.intrusion.com, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form
8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), as soon as reasonably practicable after we electronically file such material with, or furnish
it to, the SEC. The information contained in, or that can be accessed through, our website is not part of this prospectus supplement.
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 up to $50,000,000.
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Common stock to be outstanding immediately after this offering:
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Up to 50,720,483 shares (as more fully described
in the notes following this table), assuming sales of 11,655,011 shares of our common stock in this offering at an offering price of
$4.29 per share, which was the last reported sale price of our common stock on the Nasdaq Global Select Market on August 4, 2021. The
actual number of shares issued will vary depending on how many shares of our common stock we choose to sell and the prices at which such
sales occur.
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Plan of Distribution:
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“At the market offering” that may
be made from time to time through our agent, B. Riley Securities, pursuant to the terms of the Sales Agreement. See “Plan of Distribution”
beginning on page S-9.
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Use of Proceeds:
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We intend to use the net proceeds for working
capital and general corporate purposes. See “Use of Proceeds” on page S-6.
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Risk Factors:
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This investment involves a high degree of risk.
See “Risk Factors” beginning on page S-3 of this prospectus supplement, as well as the other information included in or incorporated
by reference in this prospectus supplement and the accompanying prospectus, for a discussion of risks you should carefully consider before
investing in our securities.
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Nasdaq Global Select Market symbol:
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INTZ
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The number of shares of common stock outstanding
immediately after this offering is based on 17,624,506 shares of our common stock outstanding as of July 30, 2021 and excludes:
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479,776 shares of our common stock issuable upon exercise of options outstanding as of July 30, 2021, with a weighted-average exercise price of $1.67 per share; and
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2,042,460 shares of our common stock reserved for future grants under our 2021 Omnibus Incentive Plan.
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RISK FACTORS
Investing in our securities involves a high
degree of risk and uncertainty. In addition to the other information included or incorporated by reference in this prospectus supplement
and the accompanying prospectus, you should carefully consider the risks described below before making an investment decision with respect
to our common stock. We expect to update the risk factors described or incorporated by reference herein and in the accompanying prospectus
from time to time in the periodic and current reports that we file with the SEC after the date of this prospectus supplement. These updated
risk factors will be incorporated by reference in this prospectus supplement and the accompanying prospectus. Please refer to these subsequent
reports for additional information relating to the risks associated with investing in our common stock. If any of such risks and uncertainties
actually occurs, our business, financial condition, and results of operations could be severely harmed. This could cause the trading price
of our common stock to decline, and you could lose all or part of your investment.
Risks Related to this Offering
Future sales of our common stock in the
public market by our stockholders may cause the market price of our common stock to fall.
If our existing stockholders sell, or indicate
an intention to sell, substantial amounts of our common stock in the public market, the trading price of our stock could decline. As of
July 30, 2021, we had 17,624,506 shares of common stock outstanding. Substantially all of our outstanding shares of common stock may be
sold in the public market. If substantial additional shares are sold, or if it is perceived that they will be sold, in the public market,
the trading price of our common stock could decline. Sales of a substantial number of shares of our common stock in the public market
could occur at any time. We may issue common stock from time to time in connection with this offering. The issuance from time to time
of these new shares of our common stock, or our ability to issue new shares of common stock in this offering, could result in resales
of our common stock by our current stockholders who may be concerned about the potential ownership dilution of their holdings. In turn,
these sales could have the effect of depressing the market price for our common stock.
There may be future sales or other dilution
of our equity, which may adversely affect the market price of our common stock.
We are generally not restricted from issuing additional
common stock, including any securities that are convertible into or exchangeable for, or that represent the right to receive, common stock.
The market price of our common stock could decline as a result of sales of common stock or securities that are convertible into or exchangeable
for, or that represent the right to receive, common stock after this offering or the perception that such sales could occur.
We have broad discretion in the use of our
cash and cash equivalents, including the net proceeds from this offering.
We currently anticipate that the net proceeds
from this offering will be used for working capital and general corporate purposes. We have broad discretion in the use of our cash and
cash equivalents, including the net proceeds from this offering, and investors must rely on the judgment of our management regarding the
use of our cash and cash equivalents. Our management may not use cash and cash equivalents in ways that ultimately increase the value
of your investment. Our failure to use our cash and cash equivalents effectively could result in financial losses that could have a material
adverse effect on our business, cause the price of our common stock to decline and delay the development of our product candidate. Pending
their use, we may invest our cash and cash equivalents in short-term or long-term, investment-grade, interest-bearing securities. These
investments may not yield favorable returns. If we do not invest or apply our cash and cash equivalents in ways that enhance shareholder
value, we may fail to achieve expected financial results, which could cause the price of our common stock to decline.
You may experience immediate and substantial
dilution in the book value per share of the common stock you purchase.
Because the prices per share at which shares of
our common stock are sold in this offering may be substantially higher than the book value per share of our common stock, you may suffer
immediate and substantial dilution in the net tangible book value of the common stock you purchase in this offering. The shares sold in
this offering, if any, will be sold from time to time at various prices. After giving effect to the sale of our common stock in the maximum
aggregate offering amount of $50,000,000 at an assumed offering price of $4.54 per share, the last reported sale price of our common stock
on the Nasdaq Global Select Market on July 30, 2021 and after deducting estimated offering commissions and expenses payable by us, our
net tangible book value as of March 31, 2021 would have been $59.8 million, or $2.09 per share of common stock. This represents
an immediate increase in the net tangible book value of $1.41 per share to our existing stockholders and an immediate and substantial
dilution in as-adjusted net tangible book value of approximately $2.45 per share to new investors who purchase our common stock in the
offering. See “Dilution” beginning on page S-7 of this prospectus supplement for a more detailed discussion of the dilution
you may incur in connection with this offering.
We do not expect to pay any cash dividends
in the foreseeable future.
We do not expect to pay dividends and we expect
retain our future earnings to fund the development and growth of our business. As a result, capital appreciation, if any, of our common
stock will be stockholders’ sole source of gain, if any, for the foreseeable future.
SPECIAL NOTE REGARDING
FORWARD-LOOKING STATEMENTS
This prospectus supplement and the information
incorporated by reference in this prospectus supplement contain certain statements that constitute “forward-looking statements”
within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Such forward-looking statements are generally
accompanied by words such as “estimate,” “expect,” “believe,” “should,” “would,”
“could,” “anticipate,” “may,” “will,” “continue,” project,” “potentially,”
“plan” or other words that convey uncertainty of future events or outcomes. These statements relate to future events or to
our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results,
levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from
current expectations, which we describe in more detail in our Annual Report on Form 10-K for the year ended December 31, 2020 and our
subsequently filed Quarterly Reports on Form 10-Q, include, but are not limited to:
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that to improve
our financial performance, we must increase our revenue levels;
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our ability to
successfully market, promote, and sell our new commercial solution, INTRUSION Shield, and market it through new sales channels to a new
set of prospective customers;
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our INTRUSION Shield
solution failing to perform as expected or us being unable to meet our customers’ needs or to achieve market acceptance;
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effects of the
coronavirus on the U.S. and global economies;
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customer concentration
including many U.S. government entities;
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technological changes
in the network security industry;
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intense competition
from both start-up and established companies;
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potential conflict
of your interests with the interests of our larger stockholders;
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technical or other
errors with our products;
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actual or threatened
litigation and the costs and efforts spent to defend against such litigation;
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a breach of network
security;
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our ability to
protect our intellectual property and the cost associated with defending claims of infringement; and
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our intended use
of the net proceeds from the offering of our securities under this prospectus supplement.
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If
one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results
may vary significantly from what we projected. These forward-looking statements and other statements made elsewhere in this prospectus
supplement and the documents incorporated by reference in this prospectus supplement are made in reliance on the Private Securities Litigation
Reform Act of 1995. Any forward-looking statement you read in this prospectus supplement and the documents incorporated by reference
in this prospectus supplement reflects our current views with respect to future events and is subject to these and other risks, uncertainties
and assumptions relating to our operations, results of operations, growth strategy and liquidity. Subject to applicable law, we assume
no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could
differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
USE OF PROCEEDS
We will have broad discretion in the use of the
net proceeds from any sale of securities offered under this prospectus supplement. We intend to use the net proceeds for working capital
and general corporate purposes.
DILUTION
If you invest in our common stock, your interest
will be diluted to the extent of the difference between the public offering price per share and the adjusted net tangible book value per
share of our common stock after this offering.
The
net tangible book value of our common stock as of March 31, 2021, was approximately $12.0 million, or approximately $0.68
per share. Net tangible book value per share represents the amount of our total tangible assets, excluding goodwill and intangible assets,
less total liabilities, divided by the total number of shares of our common stock outstanding. Dilution per share to new investors represents
the difference between the amount per share paid by purchasers for each share of common stock in this offering and the net tangible book
value per share of our common stock immediately following the completion of this offering.
After
giving effect to the sale of shares of our common stock in the aggregate amount of $50,000,000 at an assumed offering price of $4.54
per share, which was the last reported sale price of our common stock on July 30, 2021 on the Nasdaq Global Select Market,
and after deducting estimated commissions and estimated offering expenses, our as-adjusted net tangible book value as of March 31, 2021
would have been approximately $59.8 million, or approximately $2.09 per share. This represents an immediate increase in net tangible
book value of approximately $1.41 per share to our existing stockholders and an immediate dilution in as-adjusted net tangible book value
of approximately $2.45 per share to purchasers of our common stock in this offering, as illustrated by the following table:
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Assumed offering price per share
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$
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4.54
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Net tangible book value per share as of March 31, 2021
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$
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0.68
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Increase per share attributable to this offering
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$
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1.41
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As-adjusted net tangible book value per share as of March 31, 2021, after giving effect to this offering
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$
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2.09
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Dilution per share to new investors participating in this offering
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$
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2.45
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The
table above assumes, for illustrative purposes only, an aggregate of 11,013,215 shares of our common stock are sold at a price
of $4.54 per share, for aggregate gross proceeds of $50,000,000. The shares, if any, sold in this offering will be sold from time to time
at various prices. An increase of $2.45 per share in the price at which the shares are sold from the assumed offering price of $4.54 per
share shown in the table above, assuming all of our common stock in the aggregate gross amount of $50,000,000 is sold at that price, would
result in adjusted net tangible book value per share after the offering of $2.41 per share and increase the dilution in net tangible book
value per share to new investors in this offering to $4.58 per share, after deducting commissions and estimated aggregate offering expenses
payable by us. A decrease of $2.45 per share in the price at which the shares are sold from the assumed offering price of $4.54 per share
shown in the table above, assuming all of our common stock in the aggregate gross amount of $50,000,000 is sold at that price, would result
in adjusted net tangible book value per share after the offering of $1.44 per share and decrease the dilution in net tangible book value
per share to new investors in this offering to $0.65 per share, after deducting commissions and estimated aggregate offering expenses
payable by us. This information is supplied for illustrative purposes only.
The table above is based on 17,615,006 shares
of our common stock outstanding as of March 31, 2021 and excludes:
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404,110 shares of our common stock issuable upon exercise of options outstanding as of March 31, 2021, with a weighted-average exercise price of $1.12 per share;
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1,000 shares of our common stock reserved for grants under our 2015 Stock Incentive Plan as of March 31, 2021.
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To the extent that any outstanding options are
exercised, new options are issued under our equity incentive plan, or we otherwise issue additional shares of common stock in the future
at prices per share below the price per share for any shares sold in this offering, there will be further dilution to new investors.
PLAN OF DISTRIBUTION
We have entered into the Sales Agreement with B.
Riley Securities under which we may offer and sell up to $50,000,000 of our shares of common stock from time to time through B. Riley
Securities as our sales agent. Sales of our shares of common stock, if any, under this prospectus supplement 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.
Each
time we wish to issue and sell our shares of common stock under the Sales Agreement, we will notify B. Riley Securities of the number
of shares to be issued, the dates on which such sales are anticipated to be made, any limitation on the number of shares to be sold in
any one day and any minimum price below which sales may not be made. Once we have so instructed B. Riley Securities, unless B. Riley Securities
declines to accept the terms of such notice, B. Riley Securities has agreed to use its reasonable best efforts consistent with its normal
trading and sales practices and applicable state and federal laws, rules and regulations and the rules of Nasdaq to sell such shares
up to the amount specified on such terms. The obligations of B. Riley Securities under the Sales Agreement to sell our shares of common
stock is subject to a number of conditions that we must meet.
The settlement of sales of shares of common stock
between us and B. Riley Securities is generally anticipated to occur on the second trading day following the date on which the sale was
made. Sales of our shares of 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 B. Riley Securities may agree upon. There is no arrangement for funds to be
received in an escrow, trust or similar arrangement.
We will pay B. Riley Securities a commission at
a rate of up to 3.0% of the aggregate gross proceeds we receive from each sale of our shares of common stock and up to 5.0% of the gross
proceeds from each block trade of shares of our common stock. Because there is no minimum offering amount required as a condition to close
this offering, the actual total public offering amount, commissions and proceeds to us, if any, are not determinable at this time. In
addition, we have agreed to reimburse B. Riley Securities for the fees and disbursements of its counsel, payable upon execution of the
Sales Agreement, in an amount not to exceed $40,000, plus up to $3,000 quarterly for ongoing diligence requirements, including ongoing
legal fees, following the execution date. We estimate that the total expenses for the offering, excluding any commissions or expense reimbursement
payable to B. Riley Securities under the terms of the Sales Agreement, will be approximately $150,000. The remaining sale proceeds, after
deducting any other transaction fees, will equal our net proceeds from the sale of such shares.
B. Riley Securities will provide written confirmation
to us before the open on Nasdaq on the day following each day on which our shares of common stock are sold under the Sales Agreement.
Each confirmation will include the number of shares sold on that day, the aggregate gross proceeds of such sales and the proceeds to us.
We will report at least quarterly the number of
shares of common stock sold through B. Riley Securities under the Sales Agreement, the net proceeds to us and the compensation paid by
us to B. Riley Securities as sales agent, if any.
In connection with the sale of our shares of common
stock on our behalf, B. Riley Securities will be deemed to be an “underwriter” within the meaning of the Securities Act, and
the compensation of B. Riley will be deemed to be underwriting commissions or discounts. We have agreed to indemnify B. Riley Securities
against certain civil liabilities, including liabilities under the Securities Act. We have also agreed to contribute to payments B. Riley
Securities may be required to make in respect of such liabilities.
The offering of our shares of common stock 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) the termination of the Sales Agreement as permitted therein. We and B. Riley Securities may each terminate the Sales Agreement
at any time upon five days’ prior notice.
This summary of the material provisions of the Sales
Agreement does not purport to be a complete statement of its terms and conditions. A copy of the Sales Agreement is filed as an exhibit
to the accompanying prospectus.
B. Riley Securities and its affiliates have in the
past and may in the future provide various investment banking, commercial banking, financial advisory and other financial services for
us and our affiliates, for which services they may in the future receive customary fees and expenses. In the course of its business, B.
Riley Securities may actively trade our securities for its own account or for the accounts of clients, and, accordingly, B. Riley Securities
may at any time hold long or short positions in such securities. B. Riley Securities may also communicate independent investment recommendations,
market color or trading ideas and/or publish or express independent research views in respect of such securities or instruments and may
at any time hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments. To the extent
required by Regulation M, B. Riley Securities will not engage in any market making activities involving our common stock while the offering
is ongoing under this prospectus supplement.
This prospectus supplement in electronic format
may be made available on a website maintained by B. Riley Securities, and B. Riley Securities may distribute this prospectus supplement
electronically.
LEGAL MATTERS
The
validity of the securities offered hereby will be passed upon for us by Wilson Sonsini Goodrich & Rosati, Professional
Corporation, Austin, Texas. B. Riley Securities, Inc. is being represented in connection with this offering by The NBD Group, Los Angeles,
California.
EXPERTS
The consolidated financial statements incorporated
in this prospectus supplement by reference to the Annual Report on Form 10-K for the two-year period ended December 31, 2020 have
been so incorporated in reliance on the report of Whitley Penn LLP, an independent registered public accounting firm, given on the authority
of such firm as experts in auditing and accounting.
WHERE YOU CAN FIND ADDITIONAL
INFORMATION
We
file annual, quarterly and current reports, proxy statements and other information with the SEC. The SEC maintains an Internet website
that contains reports, proxy and information statements and other information regarding issuers, including us, that file electronically
with the SEC. The address for the SEC’s website is www.sec.gov.
We make available, free of charge, through our
investor relations website, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, statements of
changes in beneficial ownership of securities and amendments to those reports and statements as soon as reasonably practicable after they
are filed with the SEC. The address for our website is ir.intrusion.com. The contents on our website are not part of this
prospectus supplement, and the reference to our website does not constitute incorporation by reference into this prospectus supplement
of the information contained at that site.
INCORPORATION OF CERTAIN
INFORMATION BY REFERENCE
The SEC allows us to “incorporate by reference”
into this prospectus supplement the information we file with the SEC. This means that we can disclose important information to you by
referring you to those documents. Any statement contained in a document incorporated by reference in this prospectus supplement shall
be deemed to be modified or superseded for purposes of this prospectus supplement to the extent that a statement contained herein, or
in any subsequently filed document, which also is incorporated by reference herein, modifies or supersedes such earlier statement. Any
such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this prospectus
supplement.
We hereby incorporate by reference into this prospectus
supplement the following documents that we have filed with the SEC under the Exchange Act File No. 001-20191 (other than information that
is furnished and not filed with the SEC):
|
·
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|
our Annual Report on Form 10-K for the year ended December 31, 2020, including the portions
of our Definitive Proxy Statement on Schedule 14A that are incorporated by reference into such Annual Report, filed with the SEC
on April 5, 2021;
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|
·
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our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021; and
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|
·
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our Current Reports on Form 8-K filed on January 13, 2021, January 21, 2021, January 25,
2021, February 10, 2021, May 11, 2021, May 24, 2021 and July 23, 2021.
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All documents that we file with the SEC pursuant
to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act (other than the information that is furnished and not filed with the SEC)
(i) after the initial filing of the registration statement of which this prospectus supplement forms a part and prior to the effectiveness
of such registration statement and (ii) after the date of this prospectus supplement and prior to the termination of the offering
shall be deemed to be incorporated by reference in this prospectus supplement from the date of filing of the documents, unless we specifically
provide otherwise. Information that we file with the SEC will automatically update and may replace information previously filed with the
SEC. To the extent that any information contained in any such SEC filing or any exhibit thereto, was or is furnished to, rather than filed
with the SEC, such information or exhibit is specifically not incorporated by reference.
Upon written or oral request made to us at the
address or telephone number below, we will, at no cost to the requester, provide to each person, including any beneficial owner, to whom
this prospectus supplement is delivered, a copy of any or all of the information that has been incorporated by reference in this prospectus
supplement (other than an exhibit to a filing, unless that exhibit is specifically incorporated by reference into that filing), but not
delivered with this prospectus supplement. You may also access this information on our Investor Relations website at ir.intrusion.com
by viewing the “SEC Filings” subsection of the “Financials” menu. No additional information on our website
is deemed to be part of or incorporated by reference into this prospectus supplement. We have included our website address in this prospectus
supplement solely as an inactive textual reference.
Intrusion Inc.
101 East Park Blvd, Suite 1200
Plano, Texas 75074
Attn: Investor Relations
(415) 845 9964
Up to $50,000,000
Common Stock
PROSPECTUS SUPPLEMENT
B. Riley Securities
, 2021
PART II
INFORMATION NOT REQUIRED
IN PROSPECTUS
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Item 14.
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Other Expenses of Issuance and Distribution
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The following table sets forth the fees and expenses
incurred or expected to be incurred by us in connection with the issuance and distribution of the securities being registered, other than
underwriting discounts and commissions:
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|
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Amount
to be Paid
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SEC registration fee
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$
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10,910
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|
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FINRA filing fee
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$
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15,500
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|
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Transfer agent fees and expenses
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|
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*
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|
|
Legal fees and expenses
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|
|
*
|
|
|
Accounting fees and expenses
|
|
|
*
|
|
|
Printing fees and engraving expenses
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|
|
*
|
|
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Miscellaneous expenses
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|
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*
|
|
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Total
|
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$
|
*
|
|
|
*
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These fees or expenses cannot be estimated at this time, as they are calculated based on
the securities offered and the number of issuances. An estimate of the aggregate expenses in connection with the sale and distribution
of the securities being offered will be included in the applicable prospectus supplement.
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Item 15.
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Indemnification of Directors and Officers
|
Section 145 of the Delaware General Corporation
Law authorizes a corporation to indemnify its directors and officers against liabilities arising out of actions, suits and proceedings
to which they are made or threatened to be made a party by reason of the fact of their prior or current service to the corporation as
a director or officer, in accordance with the provisions of Section 145, which are sufficiently broad to permit indemnification under
certain circumstances for liabilities arising under the Securities Act of 1933, as amended (the “Securities Act”). The indemnity
may cover expenses (including attorneys’ fees) judgments, fines and amounts paid in settlement actually and reasonably incurred
by the director or officer in connection with any such action, suit or proceeding. Section 145 permits corporations to pay expenses
(including attorneys’ fees) incurred by directors and officers in advance of the final disposition of such action, suit or proceeding.
In addition, Section 145 provides that a corporation has the power to purchase and maintain insurance on behalf of its directors
and officers against any liability asserted against them and incurred by them in their capacity as a director or officer, or arising out
of their status as such, whether or not the corporation would have the power to indemnify the director or officer against such liability
under Section 145.
Our restated certificate of incorporation, as
amended (our “Certificate of Incorporation”), provides that (a) any of our directors or officers made a party to an action,
suit or proceeding, whether civil, criminal, administrative, arbitrative or investigative, or any appeal in such action, suit or proceeding,
and any inquiry or investigation that could lead to such action, suit or proceeding (each, a “Proceeding”), by reason of such
person’s service as our director or officer or as a director, officer, partner, venturer, proprietor, trustee, employee, agent or
similar functionary of another enterprise per our request, shall be indemnified and held harmless by us to the fullest extent permitted
by the Delaware General Corporation Law against all judgments, penalties (including excise and similar taxes), fines, settlements, and
reasonable expenses (including attorneys’ fees) actually incurred by such person in connection with such Proceeding; (b) we must
advance reasonable expenses incurred in defending any such Proceeding, subject to limited exceptions; and (c) the indemnification rights
conferred by it are not exclusive of any rights permitted by law.
Our corporate bylaws (our “Bylaws”),
provide that (a) we must indemnify our directors and officers to the maximum extent and in the manner permitted by the Delaware General
Corporation Law against judgments, penalties (including excise taxes), fines, amounts paid in settlement and reasonable expenses (including
court and attorneys’ fees) actually incurred in such settlement and reasonable expenses (including court and attorneys’ fees)
actually incurred by such person with a Proceeding by reason of such person’s service as our director or officer or as a director,
officer, partner, venturer, proprietor, trustee, employee, agent or similar functionary of another enterprise per our request, subject
to certain limited exceptions, (b) we shall advance expenses incurred by any director or officer who was or is a witness or was or
is named as a defendant or respondent in a Proceeding, in reasonable intervals prior to the final disposition of such Proceeding, subject
to certain limited exceptions, and (c) the indemnification rights conferred in our Bylaws are not exclusive.
Our Bylaws also empower our board of directors
to authorize us to indemnify our employees or agents, and to advance reasonable expenses of such persons to the same extent and subject
to the same conditions as the indemnification provided to our directors and officers.
We have entered into indemnification agreements
with each of our directors and executive officers to give such directors and officers additional contractual assurances regarding the
scope of the indemnification set forth in our Certificate of Incorporation and Bylaws and to provide additional procedural protections.
These agreements, among other things, provide that we will indemnify our directors and executive officers for judgments, penalties (including
excise and similar taxes), fines, settlements and reasonable expenses (including attorneys’ fees and court costs) actually and reasonably
incurred by a director or executive officer in connection with any threatened, pending or completed action, suit or proceeding, any appeal
in such action, suit or proceeding, and any inquiry or investigation that could lead to such action, suit or proceeding to which such
person was, is or is threatened to be made a party, a witness or other participant by reason of such person’s services as our director
or executive officer, or as a director or executive officer of any other company or enterprise to which the person provides services at
our request.
In addition, the indemnification agreements provide
that, upon the request of a director or executive officer, we shall advance expenses to the director or officer. We intend to enter into
indemnification agreements with any new directors and executive officers in the future.
We have also obtained an insurance policy covering
our directors and officers with respect to certain liabilities, including liabilities arising under the Securities Act.
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Incorporated by Reference
|
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Exhibit Number
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Exhibit Description
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Form
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File/Film
No.
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|
Filing
Date
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Filed
Herewith
|
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1.1*
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Form of Underwriting Agreement
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1.2
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Sales Agreement, dated August 5, 2021, between the registrant and B. Riley Securities, Inc.
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X
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3.1
|
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Restated Certificate of Incorporation
|
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Form 8-K
|
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000-20191
10897516
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06/15/2010
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3.2
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Corporate Bylaws
|
|
Form 10-K
|
|
000-20191
1573027
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03/21/2001
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|
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4.1
|
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Form of Common Stock Certificate
|
|
Form 10-K
|
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000-20191
04692000
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03/26/2004
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4.2*
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Form of Preferred Stock Certificate
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|
|
|
|
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4.3*
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Form of Certificate of Designation of Preferred Stock
|
|
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|
|
|
|
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4.4
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Form of Senior Indenture
|
|
|
|
|
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|
|
X
|
|
4.5
|
|
Form of Subordinated Indenture
|
|
|
|
|
|
|
|
X
|
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4.6*
|
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Form of Senior Note
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|
|
|
|
|
|
|
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4.7*
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|
Form of Subordinated Note
|
|
|
|
|
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|
|
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4.8*
|
|
Form of Warrant Agreement
|
|
|
|
|
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|
|
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4.9*
|
|
Form of Warrant
|
|
|
|
|
|
|
|
|
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4.10*
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Form of Unit Agreement
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|
|
|
|
|
|
|
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5.1
|
|
Opinion of Wilson Sonsini Goodrich & Rosati, Professional Corporation
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|
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|
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X
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10.1
|
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Form of Indemnification Agreement
|
|
Form 10-K
|
|
000-20191
18722668
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|
03/29/2018
|
|
|
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23.1
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Consent of Whitley Penn LLP, Independent Registered Public Accounting Firm
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|
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X
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23.2
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Consent of Wilson Sonsini Goodrich & Rosati, Professional Corporation (included in the opinion filed as Exhibit 5.1 to this Registration Statement)
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X
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24.1
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Power of Attorney (included on the signature page to this Registration Statement)
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|
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X
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25.1**
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Statement of Eligibility on Form T-1 under the Trust Indenture Act of 1939, as amended, of the Trustee under the Senior Indenture
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25.2**
|
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Statement of Eligibility on Form T-1 under the Trust Indenture Act of 1939, as amended, of the Trustee under the Subordinated Indenture
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* To
be filed by amendment or as an exhibit to a report pursuant to Section 13(a), 13(c) or 15(d) of the Exchange Act.
** To
be filed pursuant to Section 305(b)(2) of the Trust Indenture Act of 1939, as amended.
(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 the 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 the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of 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 Securities and Exchange Commission (the “SEC”), pursuant to Rule 424(b)
if, in the aggregate, the changes in volume and price represent no more than a 20 percent 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 the registration statement or any
material change to such information in the registration statement;
provided,
however, that paragraphs (1)(i), (1)(ii) and (1)(iii) 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 Exchange Act that are incorporated by reference in the registration statement, or is contained in a form
of prospectus filed pursuant to Rule 424(b) that is part of the 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) each
prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the
date the filed prospectus was deemed part of and included in the registration statement; and
(ii) 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 such form of 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.
(5) that,
for the purpose of determining liability of a 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 such 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.
(6) 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 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.
(7) to
file an application for the purpose of determining the eligibility of the trustee to act under subsection (a) of Section 310
of the Trust Indenture Act in accordance with the rules and regulations prescribed by the Commission under Section 305(b)(2) of the
Trust Indenture Act.
(b) 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 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, the registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Plano, State of Texas, on August 5, 2021.
Intrusion
Inc.
By: /s/ B. Franklin Byrd
B. Franklin Byrd
Chief Financial Officer
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each
person whose signature appears below hereby constitutes and appoints Anthony J. LeVecchio and B. Franklin Byrd, and each of them acting
individually, as his or her true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him or
her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments to this registration statement,
including post-effective amendments, and registration statements filed pursuant to Rule 462 under the Securities Act and otherwise,
and to file the same, with all exhibits thereto, and all other documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorney-in-fact and agent and each of them, full power and authority to do and perform each and every act and thing
requisite and necessary to be done in connection therewith and about the premises, as fully for all intents and purposes as they, he or
she might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent or any of them, or their, his
or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated:
|
Signature
|
Title
|
Date
|
|
|
|
|
|
/s/
Anthony J. LeVecchio
Anthony J. LeVecchio
|
Executive Chairman of the Board, Director
(Principal Executive Officer)
|
August 5, 2021
|
|
|
|
|
|
/s/ B. Franklin Byrd
B. Franklin Byrd
|
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
August 5, 2021
|
|
|
|
|
|
/s/
Gregory K. Wilson
Gregory K. Wilson
|
Director
|
August 5, 2021
|
|
|
|
|
|
/s/
Jamie M. Schnur
Jamie M. Schnur
|
Director
|
August 5, 2021
|
|
|
|
|
|
/s/
James F. Gero
James F. Gero
|
Director
|
August 5, 2021
|
|
|
|
|
|
/s/
Katrinka B. McCallum
Katrinka B. McCallum
|
Director
|
August 5, 2021
|
Exhibit 1.2
INTRUSION INC.
Common Stock
At Market
Issuance Sales Agreement
August 5, 2021
B. Riley Securities, Inc.
11100 Santa Monica Boulevard
Suite 800
Los Angeles, CA 90025
Ladies and Gentlemen:
Intrusion Inc., a Delaware
corporation (the “Company”), confirms its agreement (this “Agreement”) with B. Riley Securities,
Inc. (the “Agent”) 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 through the Agent, shares (the “Placement Shares”)
of the Company’s common stock, par value $0.01 per share (the “Common Stock”); provided, however, that
in no event shall the Company issue or sell through the Agent such number or dollar amount of Placement Shares that exceeds the number
of shares or dollar amount registered on the Prospectus Supplement (as defined below) (the “Maximum Amount”). Notwithstanding
anything to the contrary contained herein, the parties hereto agree that compliance with the limitations set forth in this Section
1 on the number of Placement Shares issued and sold under this Agreement shall be the sole responsibility of the Company and that
the Agent shall have no obligation in connection with such compliance. The issuance and sale of Placement Shares through the Agent will
be effected pursuant to the Registration Statement (as defined below), although nothing in this Agreement shall be construed as requiring
the Company to use the Registration Statement to issue any Placement Shares.
The Company has filed or will
file, in accordance with the provisions of the Securities Act of 1933, as amended and the rules and regulations thereunder (the “Securities
Act”), with the Securities and Exchange Commission (the “Commission”), a registration statement on Form S-3,
including a base prospectus, relating to certain securities, including the Placement Shares, to be issued from time to time by the Company,
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 thereunder (the “Exchange Act”). The Company has prepared
a prospectus supplement to the base prospectus included as part of such registration statement specifically relating to the Placement
Shares (the “Prospectus Supplement”). Upon request by the Agent, the Company will furnish to the Agent, for use by
the Agent, a reasonable number of copies of the base prospectus included as part of such registration statement, as supplemented by the
Prospectus Supplement, relating to the Placement Shares. Except where the context otherwise requires, such registration statement, and
any post-effective amendment thereto, including all documents filed as part thereof or incorporated by reference therein, and including
any information contained in a Prospectus (as defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the
Securities Act or deemed to be a part of such registration statement pursuant to Rule 430B of the Securities Act, or any subsequent
registration statement on Form S-3 filed pursuant to Rule 415(a)(6) under the Securities Act by the Company to cover any Placement Shares,
is herein called the “Registration Statement.” The base prospectus, including all documents incorporated or deemed
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), included in the Registration Statement, as supplemented by the
Prospectus Supplement, in the form in which such base prospectus and/or Prospectus Supplement have most recently been filed by the Company
with the Commission pursuant to Rule 424(b) under the Securities Act, is herein called the “Prospectus.” 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 incorporated by reference therein (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 the
most recent copy filed with the Commission pursuant to its Electronic Data Gathering Analysis and Retrieval System, or if applicable,
the Interactive Data Electronic Application system when used by the Commission (collectively, “EDGAR”).
2.
Placements. Each time that the Company wishes to issue and sell Placement Shares hereunder (each, a “Placement”),
it will notify the Agent by electronic mail (or other method mutually agreed to in writing by the parties) of the number or dollar amount
of Placement Shares to be sold, the time period during which sales are requested to be made, any limitation on the number or dollar amount
of Placement Shares that may be sold in any one day and any minimum price below which sales may not be made (a “Placement Notice”),
the form of which is attached hereto as Schedule 1. The Placement Notice shall originate from any of the individuals from the Company
set forth on Schedule 3 (with a copy to each of the other individuals from the Company listed on such schedule), and shall be addressed
to each of the individuals from the Agent set forth on Schedule 3, as such Schedule 3 may be amended from time to time.
The Placement Notice shall be effective immediately upon receipt by the Agent unless and until (i) the Agent declines to accept the terms
contained therein for any reason, in its sole discretion, within two (2) Business Days (as defined below) of receipt of such Placement
Notice, (ii) the entire amount of the Placement Shares thereunder has been sold, (iii) the Company suspends or terminates the Placement
Notice, which suspension and termination rights may be exercised by the Company in its sole discretion, or (iv) this Agreement has been
terminated under the provisions of Section 13. The amount of any discount, commission or other compensation to be paid by the Company
to the Agent in connection with the sale of the Placement Shares shall be calculated in accordance with the terms set forth in Schedule
2. It is expressly acknowledged and agreed that neither the Company nor the Agent will have any obligation whatsoever with respect
to a Placement or any Placement Shares unless and until the Company delivers a Placement Notice to the Agent and the Agent 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 Section 2 or 3 of this Agreement and the terms of a Placement Notice, the terms of the Placement
Notice will control.
3.
Sale of Placement Shares by the Agent. Subject to the terms and conditions of this Agreement, for the period specified in
a Placement Notice, the Agent 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 Nasdaq Capital Market (“Nasdaq”), to
sell the Placement Shares up to the amount specified in, and otherwise in accordance with the terms of, such Placement Notice. The Agent
will provide written confirmation to the Company no later than the opening of the Trading Day (as defined below) immediately following
the Trading Day on which it has made sales of Placement Shares hereunder setting forth the number of Placement Shares sold on such day,
the compensation payable by the Company to the Agent pursuant to Section 2 with respect to such sales, and the Net Proceeds (as
defined below) payable to the Company, with an itemization of the deductions made by the Agent (as set forth in Section 5(b)) from
the gross proceeds that it receives from such sales. Subject to the terms and limitations set forth in a Placement Notice, the Agent shall
sell Placement Shares by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415 of the
Securities Act. For the purposes hereof, “Trading Day” means any day on which shares of Common Stock are available
to be purchased and sold on Nasdaq.
4.
Suspension of Sales. The Company or the Agent may, upon notice to the other party in writing (including by email correspondence
to each of the individuals 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 individuals of the other party set forth on Schedule 3), suspend
any sale of Placement Shares (a “Suspension”); provided, however, that such suspension shall not affect or impair
any party’s obligations with respect to any Placement Shares sold hereunder prior to the receipt of such notice. While a Suspension
is in effect, any obligation under Sections 7(k), 7(l), and 7(m) with respect to the delivery of certificates, opinions,
or comfort letters to the Agent, shall be waived. Each of the parties agrees that no such notice under this Section 4 shall be
effective against any other party unless it is made to one of the individuals named on Schedule 3 hereto, as such Schedule may
be amended from time to time.
5.
Sale and Delivery to the Agent; Settlement.
a.
Sale of Placement Shares. On the basis of the representations and warranties herein contained and subject to the terms and
conditions herein set forth, upon the Agent’s acceptance of the terms of a Placement Notice, and unless the sale of the Placement
Shares described therein has been declined, suspended, or otherwise terminated in accordance with the terms of this Agreement, the Agent,
for the period specified in the Placement Notice, will use its reasonable best efforts consistent with its normal trading and sales practices
and applicable state and federal laws, rules and regulations and the rules of Nasdaq to sell such Placement Shares up to the amount specified
in, and otherwise in accordance with the terms of, such Placement Notice. The Company acknowledges and agrees that (i) there can be no
assurance that the Agent will be successful in selling Placement Shares, (ii) the Agent will incur no liability or obligation to the Company
or any other person or entity if it does not sell Placement Shares for any reason other than a failure by the Agent to use its reasonable
best efforts consistent with its normal trading and sales practices and applicable state and federal laws, rules and regulations and the
rules of Nasdaq to sell such Placement Shares as required under this Agreement, and (iii) the Agent shall not purchase Placement Shares
on a principal basis pursuant to this Agreement, except as otherwise agreed by the Agent and the Company.
b.
Settlement of Placement Shares. Unless otherwise specified in the applicable Placement Notice, 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 Agent shall notify the Company of
each sale of Placement Shares no later than the opening of the Trading Day following the Trading Day that the Agent sold Placement Shares.
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 the Agent at which such Placement Shares were sold, after
deduction for (i) the Agent’s commission, discount or other compensation for such sales payable by the Company pursuant to Section
2 hereof, and (ii) any transaction fees imposed by any governmental or self-regulatory organization in respect of such sales.
c.
Delivery of Placement Shares. On or before each Settlement Date, the Company will, or will cause its transfer agent to,
electronically transfer the Placement Shares being sold by crediting the Agent’s or its designee’s account (provided the Agent
shall have given the Company written notice of such designee and such designee’s account information at least one Trading Day prior
to the Settlement Date) 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 hereto, which Placement Shares in all cases shall be freely tradable, transferable,
registered shares in good deliverable form. On each Settlement Date, the Agent will deliver the related Net Proceeds in same day funds
to an account designated by the Company on, or prior to, the Settlement Date. The Agent will be responsible for obtaining DWAC instructions
or instructions for delivery by other means with regard to the transfer of Placement Shares being sold. The Company agrees that if the
Company, or its transfer agent (if applicable), defaults in its obligation to deliver Placement Shares on a Settlement Date through no
fault of the Agent, then in addition to and in no way limiting the rights and obligations set forth in Section 11(a) hereto, it
will (i) hold the Agent harmless against any loss, claim, damage, or reasonable, documented out-of-pocket expense (including reasonable
and documented out-of-pocket legal fees and expenses), as incurred, arising out of or in connection with such default by the Company or,
pursuant to the Company’s direct action or inaction, its transfer agent (if applicable) and (ii) pay to the Agent (without duplication)
any commission, discount, or other compensation to which it would otherwise have been entitled absent such default (other than a failure
by the Agent to provide instructions to the Company or its transfer agent); provided, however, that the Company shall not be obligated
to so indemnify and reimburse the Agent if the Placement Shares are not delivered due to (1) a suspension or material limitation in trading
in securities generally on the New York Stock Exchange or Nasdaq; (2) a general moratorium on commercial banking activities declared by
either federal or New York State authorities or a material disruption in commercial banking or securities settlement or clearance services
in the United States; (3) an outbreak or escalation of hostilities or acts of terrorism involving the United States or a declaration by
the United States of a national emergency or war; or (4) any other calamity or crisis or any change in financial, political or economic
conditions in the United States or elsewhere.
d.
Limitations on Offering Size. Under no circumstances shall the Company cause or request the offer or sale of any Placement
Shares if, after giving effect to the sale of such Placement Shares, the aggregate number of Placement Shares sold pursuant to this Agreement
would exceed the lesser of (A) together with all sales of Placement Shares under this Agreement, the Maximum Amount, (B) the amount available
for offer and sale under the currently effective Registration Statement and (C) the 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 the Agent in writing. Under no circumstances shall the Company cause or request the offer or sale of any Placement
Shares pursuant to this Agreement at a price lower than the minimum price 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 the Agent in writing.
6.
Representations and Warranties of the Company. Except as disclosed in the Registration Statement or the Prospectus (including
the Incorporated Documents), the Company represents and warrants to, and agrees with the Agent that as of the date of this Agreement and
as of each Applicable Time (as defined below), unless such representation, warranty or agreement specifies a different date or time:
a.
Registration Statement and Prospectus. The transactions contemplated by this Agreement meet the requirements for and comply
with the conditions for the use of Form S-3 under the Securities Act. The Registration Statement has been or will be filed with the
Commission and has been or will be declared effective under the Securities Act. The Prospectus Supplement will name the Agent as the sales
agent in the section entitled “Plan of Distribution.” The Company has not received, and has no notice of, any order of the
Commission preventing or suspending the use of the Registration Statement, or instituting proceedings for that purpose. The Registration
Statement and the offer and sale of Placement Shares as contemplated hereby meet the requirements of Rule 415 under the Securities Act
and comply in all material respects with said Rule. Any statutes, regulations, contracts or other documents that are required to be described
in the Registration Statement or the Prospectus or to be filed as exhibits to the Registration Statement have been so described or filed,
as applicable. 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 the Agent and its counsel. The Company has not distributed and, prior to the later to occur of each Settlement Date
and completion of the distribution of the Placement Shares, will not distribute any offering material in connection with the offering
or sale of the Placement Shares other than the Registration Statement and the Prospectus and any Issuer Free Writing Prospectus (as defined
below) to which the Agent has consented, which consent will not be unreasonably withheld, conditioned or delayed, or that is required
by applicable law or the listing maintenance requirements of Nasdaq. The Company has not, in the 12 months preceding the date hereof,
received notice from Nasdaq to the effect that the Company is not in compliance with the listing or maintenance requirements of Nasdaq.
To the Company’s knowledge, it is in compliance with all such listing and maintenance requirements.
b.
No Misstatement or Omission. At each Settlement Date, the Registration Statement and the Prospectus, as of such date, will
conform in all material respects with the requirements of the Securities Act. The Registration Statement, when it became or becomes effective,
did 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 and any amendment and supplement thereto, on the date thereof and at each Applicable
Time (defined below), did not or will not include an untrue statement of a material fact or omit to state a material fact necessary to
make the statements therein, in light of the circumstances under which they were made, not misleading. The foregoing shall not apply to
statements in, or omissions from, any such document made in reliance upon, and in conformity with, information furnished to the Company
by the Agent specifically for use in the preparation thereof.
c.
Conformity with Securities Act and Exchange Act. The Registration Statement, the Prospectus, any Issuer Free Writing Prospectus
or any amendment or supplement thereto, and the Incorporated Documents, when such documents were or are filed with the Commission under
the Exchange Act or became or become effective under the Securities Act, as the case may be, conformed or will conform in all material
respects with the requirements of the Securities Act and the Exchange Act, as applicable.
d.
Financial Information. The consolidated financial statements of the Company included or incorporated by reference in the
Registration Statement and the Prospectus, together with the related notes and schedules, present fairly, in all material respects, the
consolidated financial position of the Company and the Subsidiaries (as defined below) as of the dates indicated and the consolidated
results of operations, cash flows and changes in stockholders’ equity of the Company and the Subsidiaries for the periods specified
(subject, in the case of unaudited statements, to normal year-end audit adjustments, which are not or were not expected to be material,
either individually or in the aggregate) and have been prepared in all material respects in compliance with the published requirements
of the Securities Act and Exchange Act, as applicable, and in conformity with generally accepted accounting principles in the United States
(“GAAP”) applied on a consistent basis (except (i) for such adjustments to accounting standards and practices as are
noted therein and (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary
statements) during the periods involved; the other financial and statistical data with respect to the Company and the Subsidiaries contained
or incorporated by reference in the Registration Statement and the Prospectus, are, in all material respects, accurately and fairly presented
and prepared on a basis consistent with the financial statements and books and records of the Company; there are no financial statements
(historical or pro forma) that are required to be included or incorporated by reference in the Registration Statement or the Prospectus
that are not included or incorporated by reference as required; the Company and the Subsidiaries, on an consolidated basis, do not have
any material liabilities or obligations, direct or contingent (including any off balance sheet obligations), not described in the Registration
Statement and the Prospectus that are required to be described in the Registration Statement or Prospectus; and all disclosures contained
or incorporated by reference in the Registration Statement and the Prospectus, if any, regarding “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 of the Exchange
Act and Item 10 of Regulation S-K under the Securities Act, to the extent applicable.
e.
Conformity with EDGAR Filing. The Prospectus delivered to the Agent for use in connection with the sale of the Placement
Shares pursuant to this Agreement will be identical to the versions of the Prospectus created to be transmitted to the Commission for
filing via EDGAR, except to the extent permitted by Regulation S-T.
f.
Organization. The Company and any subsidiary that is a significant subsidiary (as such term is defined in Rule 1-02 of Regulation
S-X promulgated by the Commission) (each, a “Subsidiary,” collectively, the “Subsidiaries”), have
been duly incorporated or organized, as the case may be, and are validly existing and in good standing under the laws of their respective
jurisdictions of incorporation or organization, as applicable. The Company and the Subsidiaries are duly licensed or qualified as a foreign
corporation to do business and are in good standing under the laws of each other jurisdiction in which their respective ownership or lease
of property or the conduct of their respective businesses requires such license or qualification, and have all requisite power and authority
necessary to own or hold their respective properties and to conduct their respective businesses as described in the Registration Statement
and the Prospectus, except, in each case, where the failure to be so qualified or in good standing or have such power or authority would
not, individually or in the aggregate, have a material adverse effect on the condition, financial or otherwise, or in the earnings, business
affairs, management, properties, operations or results of operations of the Company and its Subsidiaries considered as one enterprise,
whether or not arising in the ordinary course of business, or prevent the consummation of the transactions contemplated hereby (a “Material
Adverse Effect”).
g.
No Violation or Default. Neither the Company nor any Subsidiary is (i) in violation of its charter or by-laws or similar
organizational documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would constitute such
a default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust,
loan agreement or other similar agreement or instrument to which the Company or any Subsidiary is a party or by which the Company or any
Subsidiary is bound or to which any of the property or assets of the Company or any Subsidiary is subject; or (iii) in violation of any
law or statute or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory authority, except,
in the case of each of clauses (ii) and (iii) above, for any such violation or default that would not, individually or in the aggregate,
have a Material Adverse Effect. To the Company’s knowledge, no other party under any material contract or other material agreement
to which it or any Subsidiary is a party is in default in any respect thereunder where such default would have a Material Adverse Effect.
h.
No Material Adverse Effect. Since the date of the most recent balance sheet of the Company included or incorporated by reference
in the Registration Statement and Prospectus, there has not been (i) any Material Adverse Effect, or any development that would reasonably
be expected to result in a Material Adverse Effect, (ii) any transaction entered into by the Company and its Subsidiaries, which is material
to the Company and the Subsidiaries taken as a whole, (iii) any obligation or liability, direct or contingent (including any off-balance
sheet obligations), incurred by the Company or the Subsidiaries, which is material to the Company and the Subsidiaries taken as a whole,
(iv) any material change in the Company’s capital stock (other than (A) the grant of additional options or other equity awards under
the Company’s existing equity compensation plans or the issuance of shares of Common Stock of the Company upon exercise or settlement
thereof, (B) changes in the number of outstanding shares of Common Stock of the Company due to the issuance of shares upon the exercise
or conversion of securities exercisable for, or convertible into, Common Stock outstanding on the date hereof, (C) as a result of the
issuance of Placement Shares, (D) any repurchases of capital stock of the Company, (E) as described in a proxy statement filed on Schedule
14A or a Registration Statement on Form S-4, or (F) otherwise publicly announced) or outstanding long-term indebtedness of the Company
or the Subsidiaries or (v) any dividend or distribution of any kind declared, paid or made on the capital stock of the Company or any
Subsidiary, other than in each case above in the ordinary course of business.
i.
Capitalization. The issued and outstanding shares of capital stock of the Company have been validly issued, are fully paid
and non-assessable and are not subject to any preemptive rights, rights of first refusal or similar rights. The authorized capital stock
of the Company conforms to the description thereof set forth in the Registration Statement and the Prospectus. The description of the
Common Stock in the Registration Statement and the Prospectus is complete and accurate in all material respects. The Company does not
have outstanding any rights (other than stock options or other equity awards under the Company’s equity incentive and stock purchase
plans) or warrants to subscribe for, or any securities or obligations convertible into, or exchangeable for, or any contracts or commitments
to issue or sell, any shares of capital stock or other securities.
j.
S-3 Eligibility. (i) At the time of filing the Registration Statement and (ii) at the time of the most recent amendment
thereto for the purposes of complying with Section 10(a)(3) of the Securities Act (whether such amendment was by post-effective amendment,
incorporated report filed pursuant to Section 13 or 15(d) of the Exchange Act or form of prospectus), the Company met the then applicable
requirements for use of Form S-3 under the Securities Act, including compliance with General Instruction I.B.1 of Form S-3, as applicable.
The Company is not a shell company (as defined in Rule 405 under the Securities Act) and has not been a shell company for at least 12
calendar months previously and if it has been a shell company at any time previously, has filed current Form 10 information (as defined
in General Instruction I.B.6 of Form S-3) with the Commission at least 12 calendar months previously reflecting its status as an entity
that is not a shell company.
k.
Authorization. The Company has full legal right, power and authority to enter into this Agreement and perform the transactions
contemplated hereby. This Agreement has been duly authorized, executed and delivered by the Company.
l.
Authorization of Placement Shares. The Placement Shares, when issued and delivered pursuant to the terms approved by the
board of directors of the Company or a duly authorized committee thereof, or a duly authorized executive committee, against payment therefor
as provided herein, will be duly and validly authorized and issued and fully paid and nonassessable, free and clear of any pledge, lien,
encumbrance, security interest or other claim (other than any pledge, lien, encumbrance, security interest or other claim arising from
an act or omission of the Agent or a purchaser), including any statutory or contractual preemptive rights, resale rights, rights of first
refusal or other similar rights, and will be registered pursuant to Section 12 of the Exchange Act. The Placement Shares, when issued,
will conform in all material respects to the description thereof set forth in or incorporated into the Prospectus.
m.
No Consents Required. No consent, approval, authorization, order, registration or qualification of or with any court or
arbitrator or any governmental or regulatory authority having jurisdiction over the Company is required for the execution, delivery and
performance by the Company of this Agreement, and the issuance and sale by the Company of the Placement Shares as contemplated hereby,
except for such consents, approvals, authorizations, orders and registrations or qualifications (i) as may be required under applicable
state securities laws or by the by-laws and rules of the Financial Industry Regulatory Authority (“FINRA”) or Nasdaq,
including any notices that may be required by Nasdaq, in connection with the sale of the Placement Shares by the Agent, (ii) as may be
required under the Securities Act and (iii) as have been previously obtained by the Company.
n.
No Preferential Rights. (i) No person, as such term is defined in Rule 1-02 of Regulation S-X promulgated under the Securities
Act (each, a “Person”), 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 (other than upon the exercise of options or warrants
to purchase Common Stock or upon the exercise of options or other equity awards that may be granted from time to time under the Company’s
equity compensation plan), (ii) no Person has any preemptive 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 from the Company that have not been duly waived with respect to the offering contemplated hereby and (iii) no Person has
the right, contractual or otherwise, to require the Company to register under the Securities Act any 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, whether as a result of the filing or effectiveness of the Registration Statement or the sale of the Placement
Shares as contemplated thereby or otherwise, except in each case for such rights as have been waived on or prior to the date hereof.
o.
Independent Public Accountant. Whitley Penn LLP’s (the “Auditor”), whose report on the consolidated
financial statements of the Company is filed with the Commission as part of the Company’s most recent Annual Report on Form 10-K
filed with the Commission and incorporated into the Registration Statement, are and, during the periods covered by their report, were
independent public accountants within the meaning of the Securities Act and the Public Company Accounting Oversight Board (United States).
To the Company’s knowledge, the Auditor is not in violation of the auditor independence requirements of the Sarbanes-Oxley Act of
2002 (the “Sarbanes-Oxley Act”) with respect to the Company.
p.
Enforceability of Agreements. To the Company’s knowledge, all agreements between the Company and third parties expressly
referenced in the Prospectus, other than such agreements that have expired by their terms or whose termination is disclosed in documents
filed by the Company on EDGAR, are legal, valid and binding obligations of the Company and enforceable in accordance with their respective
terms, except to the extent that (i) enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting creditors’ rights generally and by general equitable principles and (ii) the indemnification provisions of certain
agreements may be limited by federal or state securities laws or public policy considerations in respect thereof, and except for any unenforceability
that, individually or in the aggregate, would not have a Material Adverse Effect.
q.
No Litigation. There are no legal, governmental or regulatory actions, suits or proceedings pending, nor, to the Company’s
knowledge, any legal, governmental or regulatory investigations, to which the Company or a Subsidiary is a party or to which any property
of the Company or any Subsidiary is the subject that, individually or in the aggregate, if determined adversely to the Company or any
Subsidiary, would have a Material Adverse Effect or materially and adversely affect the ability of the Company to perform its obligations
under this Agreement (collectively, the “Actions”); to the Company’s knowledge, no such Actions are threatened
by any governmental or regulatory authority or threatened by others that, individually or in the aggregate, if determined adversely to
the Company or any Subsidiary, would have a Material Adverse Effect; and there are no current or pending legal, governmental or regulatory
actions, suits or proceedings that are required under the Securities Act to be described in the Prospectus that are not described in the
Prospectus (including any Incorporated Documents).
r.
Licenses and Permits. The Company and the Subsidiaries possess or have obtained, all licenses, certificates, consents, orders,
approvals, permits and other authorizations issued by, and, to the Company’s knowledge, have made all declarations and filings with,
the appropriate federal, state, local or foreign governmental or regulatory authorities that are necessary for the ownership or lease
of their respective properties or the conduct of their respective businesses as currently conducted, as described in the Registration
Statement and the Prospectus (the “Permits”), except where the failure to possess, obtain or make the same would not,
individually or in the aggregate, have a Material Adverse Effect. Neither the Company nor any Subsidiary has received written notice of
any proceeding relating to revocation or modification of any such Permit, except where the failure to obtain any such renewal would not,
individually or in the aggregate, have a Material Adverse Effect.
s.
No Material Defaults. Neither the Company nor any Subsidiary 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, would 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, would have a Material Adverse Effect.
t.
Certain Market Activities. Neither the Company, nor any Subsidiary, nor, to the knowledge of the Company, any of their respective
directors, officers or controlling persons has taken, directly or indirectly, any unlawful action designed, or that has constituted or
would cause or result in, under the Exchange Act or otherwise, the stabilization or manipulation of the price of any security of the Company
to facilitate the sale or resale of the Placement Shares.
u.
Broker/Dealer Relationships. Neither the Company nor any Subsidiary or any related entities (i) is required to register
as a “broker” or “dealer” in accordance with the provisions of the Exchange Act or (ii) directly or indirectly
through one or more intermediaries, controls or is a “person associated with a member” or “associated person of a member”
(within the meaning set forth in the FINRA Manual).
v.
No Reliance. The Company has not relied upon the Agent or legal counsel for the Agent for any legal, tax or accounting advice
in connection with the offering and sale of the Placement Shares.
w.
Taxes. The Company and the Subsidiaries have filed all federal, state, local and foreign income tax returns that have been
required to be filed through the date hereof or have requested extensions thereof (except in any case in which the failure so to file
would not reasonably be likely to have a Material Adverse Effect) and paid or accrued all taxes shown thereon through the date hereof,
to the extent that such taxes have become due and are not being contested in good faith, except where the failure to do so would not have
a Material Adverse Effect. No tax deficiency has been determined adversely to the Company or any Subsidiary that has had, or would have,
individually or in the aggregate, a Material Adverse Effect. The Company has no knowledge of any federal, state or other governmental
tax deficiency, penalty or assessment that has been asserted or threatened against it that would have a Material Adverse Effect.
x.
Title to Real and Personal Property. The Company and the Subsidiaries have good and marketable title in fee simple to all
items of real property and good and valid title to all tangible personal property described in the Registration Statement or Prospectus
as being owned by them that are material to the businesses of the Company or such Subsidiary, taken on the whole, in each case free and
clear of all liens, encumbrances and claims, except those that (i) do not materially interfere with the use made and proposed to be made
of such property by the Company and the Subsidiaries or (ii) would not, individually or in the aggregate, have a Material Adverse Effect.
Any real property described in the Registration Statement or Prospectus as being leased by the Company and the Subsidiaries is held by
them under valid, existing and enforceable leases, except those that (A) do not materially interfere with the use made or proposed to
be made of such property by the Company or the Subsidiaries or (B) would not, individually or in the aggregate, have a Material Adverse
Effect.
y.
Intellectual Property. (i) The Company and the Subsidiaries own, possess, or can acquire on reasonable terms adequate enforceable
rights to use all patents, patent applications, trademarks (both registered and unregistered), trade names, trademark registrations, service
marks, service mark registrations, Internet domain names, copyrights, copyright registrations, licenses and know-how (including trade
secrets and other intellectual property) (collectively, the “Intellectual Property”), necessary for the conduct of
their respective businesses as conducted as of the date hereof or as described in the Registration Statement or Prospectus; (ii) neither
the Company nor, to the Company’s knowledge, the Subsidiaries have received any written notice of any claim of infringement or violation
that asserted Intellectual Property rights of others; and (iii) there are no pending or, to the Company’s knowledge, threatened
judicial proceedings or interference proceedings challenging the Company’s or any Subsidiary’s rights in or to or the validity
of the scope of any of the Company’s or its Subsidiaries’ patents, patent applications or proprietary information; except,
in the case of any of clauses (i)-(iii) above, as would not, individually or in the aggregate result in a Material Adverse Effect.
z.
Environmental Laws. The Company and the Subsidiaries (i) are in compliance with any and all applicable federal, state, local
and foreign laws, rules, regulations, decisions and orders relating to the protection of human health and safety, the environment or hazardous
or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”); (ii) have received
and are in compliance with all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their
respective businesses as described in the Registration Statement and the Prospectus; and (iii) have not received notice of any actual
or potential liability for the investigation or remediation of any disposal or release of hazardous or toxic substances or wastes, pollutants
or contaminants, except, in the case of any of clauses (i), (ii) or (iii) above, for any such failure to comply or failure to receive
required permits, licenses, other approvals or liability as would not, individually or in the aggregate, have a Material Adverse Effect.
aa.
Disclosure Controls. The Company established and maintains an effective system of disclosure controls and procedures (as
defined in Rule 13a-15(e) under the Exchange Act). The Company has carried out an evaluation of the effectiveness of its disclosure controls
and procedures as required by Rule 13a-15 of the Exchange Act; such disclosure controls and procedures are effective.
bb.
Sarbanes-Oxley Act. The Company is in compliance, in all material respects, with any applicable provisions of the Sarbanes-Oxley
Act of 2002 and the rules and regulations promulgated thereunder.
cc.
Finder’s Fees. Neither the Company nor any Subsidiary has incurred any liability for any finder’s fees, brokerage
commissions or similar payments in connection with the transactions herein contemplated, except as may otherwise exist with respect to
the Agent pursuant to this Agreement.
dd.
Labor Disputes. No labor disturbance by or dispute with employees of the Company or any Subsidiary exists or, to the knowledge
of the Company, is threatened that would result in a Material Adverse Effect.
ee.
Investment Company Act. The Company is not, nor, after giving effect to the offering and sale of the Placement Shares, will
it be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended
(the “Investment Company Act”).
ff.
Operations. The operations of the Company and the Subsidiaries are conducted in compliance with applicable financial record
keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes
of all jurisdictions to which the Company or the Subsidiaries are subject, the rules and regulations thereunder and any related or similar
rules, regulations or guidelines, issued, administered or enforced by any governmental agency having jurisdiction over the Company (collectively,
the “Money Laundering Laws”), except where the failure to be in such compliance would not result in a Material Adverse
Effect; 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 Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.
gg.
Off-Balance Sheet Arrangements. There are no transactions, arrangements and other relationships between and/or among the
Company, and/or, to the knowledge of the Company, any of its affiliates and any unconsolidated entity, including, but not limited to,
any structured finance, special purpose or limited purpose entity (each, an “Off Balance Sheet Transaction”) that would
affect materially the Company’s liquidity or the availability of or requirements for its capital resources, including those Off
Balance Sheet Transactions described in the Commission’s Statement about Management’s Discussion and Analysis of Financial
Conditions and Results of Operations (Release Nos. 33-8056; 34-45321; FR-61), required to be described in the Registration Statement or
the Prospectus that have not been described as required.
hh.
Underwriter Agreements. Other than with respect to this Agreement, the Company is not a party to any agreement with an agent
or underwriter for any other “at the market” or continuous equity transaction.
ii.
ERISA. To the knowledge of the Company, (i) each material employee benefit plan, within the meaning of Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”) that is maintained, administered or contributed
to by the Company or any of its affiliates for employees or former employees of the Company and the Subsidiaries has been maintained in
material compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including but not limited
to ERISA and the Internal Revenue Code of 1986, as amended (the “Code”); (ii) no prohibited transaction, within the
meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred that would result in a material liability to the Company with
respect to any such plan excluding transactions effected pursuant to a statutory or administrative exemption; and (iii) for each such
plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no “accumulated funding deficiency”
as defined in Section 412 of the Code has been incurred, whether or not waived, and the fair market value of the assets of each such plan
(excluding for these purposes accrued but unpaid contributions) equals or exceeds the present value of all benefits accrued under such
plan determined using reasonable actuarial assumptions, other than, in the case of clauses (i) through (iii) above, as would not have
a Material Adverse Effect.
jj.
Forward-Looking Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section
21E of the Exchange Act) (a “Forward-Looking Statement”) contained in the Registration Statement and the Prospectus
has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith.
kk.
Margin Rules. Neither the issuance, sale and delivery of the Placement 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.
ll.
Insurance. The Company and the Subsidiaries carry, or are covered by, insurance in such amounts and covering such risks
as the Company reasonably believes are adequate for the conduct of their business.
mm.
No Improper Practices. (i) Neither the Company nor, to the Company’s knowledge, the Subsidiaries, nor to the Company’s
knowledge, any of their respective executive officers has, in the past five years, made any unlawful contributions to any candidate for
any political office (or failed fully to disclose any contribution in violation of law) or made any contribution or other payment to any
official of, or candidate for, any federal, state, municipal, or foreign office or other person charged with similar public or quasi-public
duty in violation of any law or of the character required to be disclosed in the Prospectus; (ii) no relationship, direct or indirect,
exists between or among the Company or, to the Company’s knowledge, the Subsidiaries or any affiliate of any of them, on the one
hand, and, to the Company’s knowledge, the directors, officers and stockholders of the Company or, to the Company’s knowledge,
the Subsidiaries, on the other hand, that is required by the Securities Act to be described in the Registration Statement and the Prospectus
that is not so described; (iii) no relationship, direct or indirect, exists between or among the Company or, to the Company’s knowledge,
the Subsidiaries or any affiliate of them, on the one hand, and, to the Company’s knowledge, the directors, officers, stockholders
or directors of the Company or the Subsidiaries, on the other hand, that is required by the rules of FINRA to be described in the Registration
Statement and the Prospectus that is not so described; (iv) the Company has not offered, or caused any placement agent to offer, Common
Stock to any person with the intent to influence unlawfully (A) a customer or supplier of the Company or the Subsidiaries to alter the
customer’s or supplier’s level or type of business with the Company or the Subsidiaries or (B) a trade journalist or publication
to write or publish favorable information about the Company or the Subsidiaries or any of their respective products or services; and,
(v) neither the Company nor, to the Company’s knowledge, the Subsidiaries or any employee or agent of the Company or the Subsidiaries
has made any payment of funds of the Company or the Subsidiaries or received or retained any funds in violation of any law, rule or regulation
(including, without limitation, the Foreign Corrupt Practices Act of 1977), which payment, receipt or retention of funds is of a character
required to be disclosed in the Registration Statement or the Prospectus.
nn.
Status 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 Placement Shares.
oo.
No Misstatement or Omission in an Issuer Free Writing Prospectus. Each Issuer Free Writing Prospectus, if any, as of its
issue date and as of each Applicable Time (as defined in Section 25 below), did not, does not and will not, through the completion
of the Placement or Placements for which such Issuer Free Writing Prospectus is issued, include any material 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 statements in
or omissions from any Issuer Free Writing Prospectus based upon and in conformity with written information furnished to the Company by
the Agent specifically for use therein.
pp.
No Conflicts. Neither the execution of this Agreement, nor the issuance, offering or sale of the Placement Shares, nor the
consummation of any of the transactions contemplated herein, nor the compliance by the Company with the terms and provisions hereof will
conflict with, or will result in a breach of, any of the terms and provisions of, or has constituted or will constitute a default under,
or has resulted in or will result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the
Company pursuant to the terms of any contract or other agreement to which the Company may be bound or to which any of the property or
assets of the Company is subject, except (i) such conflicts, breaches or defaults as may have been waived and (ii) such conflicts,
breaches and defaults that would not have a Material Adverse Effect; nor will such action result (x) in any violation of the provisions
of the organizational or governing documents of the Company, or (y) in any material violation of the provisions of any statute or
any order, rule or regulation applicable to the Company or of any court or of any federal, state or other regulatory authority or other
government body having jurisdiction over the Company, except where such violation would not have a Material Adverse Effect.
qq.
Sanctions.
(i)
Neither the Company nor any Subsidiary (collectively, the “Entity”) nor, to the Company’s knowledge, any
director, officer, employee, agent, affiliate or representative of the Entity, is a government, individual, or entity (in this paragraph
(qq), “Person”) that is, or is owned or controlled by a Person that is:
(a)
the subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control
(“OFAC”), the United Nations Security Council (“UNSC”), the European Union (“EU”),
Her Majesty’s Treasury (“HMT”), or other relevant sanctions authority (collectively, “Sanctions”),
nor
(b)
located, organized or resident in a country or territory that is the subject of Sanctions.
(ii)
The Entity will not, directly or indirectly, knowingly use the proceeds of the offering, or lend, contribute or otherwise make
available such proceeds to any subsidiary, joint venture partner or other Person:
(a)
to fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such
funding or facilitation, is the subject of Sanctions; or
(b)
in any other manner that will result in a violation of Sanctions by any Person (including any Person participating in the offering,
whether as underwriter, advisor, investor or otherwise).
rr.
Stock Transfer Taxes. On each Settlement Date, all material stock transfer or other taxes (other than income taxes) that
are required to be paid in connection with the sale and transfer of the Placement Shares to be sold hereunder 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 by the Company
in all material respects.
ss.
IT Systems. (i)(x) To the knowledge of the Company, there has been no security breach or other compromise of any Company’s
information technology and computer systems, networks, hardware, software, data (including the data of their respective customers, employees,
suppliers, vendors and any third party data maintained by the Company by or on behalf of them), equipment or technology (collectively,
“IT Systems and Data”) and (y) the Company has not been notified of, and has no knowledge of any event or condition
that would reasonably be expected to result in, any security breach or other compromise to their IT Systems and Data; (ii) the Company
is presently in material compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any
court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and
security of IT Systems and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation or modification,
except as would not, in the case of each of clauses (i) and (ii) above, individually or in the aggregate, have a Material Adverse
Effect; and (iii) the Company has implemented backup and disaster recovery technology consistent with industry standards and practices.
Any certificate signed by
an officer of the Company and delivered to the Agents or to counsel for the Agents pursuant to or in connection with this Agreement shall
be deemed to be a representation and warranty by the Company, as applicable, to the Agents as to the matters set forth therein.
7.
Covenants of the Company. The Company covenants and agrees with the Agent that:
a.
Registration Statement Amendments. After the date of this Agreement and during any period in which a prospectus relating
to any Placement Shares is required to be delivered by the Agent under the Securities Act (including in circumstances where such requirement
may be satisfied pursuant to Rule 172 under the Securities Act) (the “Prospectus Delivery Period”) (i) the Company
will notify the Agent promptly of the time when any subsequent amendment to the Registration Statement, other than documents incorporated
by reference or amendments not related to any Placement, has been filed with the Commission and/or has become effective or any subsequent
supplement to the Prospectus, other than documents incorporated by reference, has been filed and of any request by the Commission for
any amendment or supplement to the Registration Statement or Prospectus related to the Placement or for additional information related
to the Placement, (ii) the Company will not file any amendment or supplement to the Registration Statement or Prospectus relating to the
Placement Shares or a security convertible into the Placement Shares (other than an Incorporated Document) unless a copy thereof has been
submitted to the Agent within a reasonable period of time before the filing and the Agent has not reasonably objected thereto (provided,
however, that (A) the failure of the Agent to make such objection shall not relieve the Company of any obligation or liability hereunder,
or affect the Agent’s right to rely on the representations and warranties made by the Company in this Agreement and (B) the Company
has no obligation to provide the Agent any advance copy of such filing or to provide the Agent an opportunity to object to such filing
if the filing does not name the Agent or does not relate to the transaction herein provided; and provided, further, that the only remedy
the Agent shall have with respect to the failure by the Company to obtain such consent shall be to cease making sales under this Agreement)
and the Company will furnish to the Agent 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 (iii) 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 or, in the case of any document to be incorporated therein by reference, 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 the Agent, 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, of the suspension of the qualification of the Placement Shares for offering or sale in any jurisdiction, or of
the initiation of any proceeding for any such purpose; and it will 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. The Company will advise the Agent promptly after it
receives any request by the Commission for any amendments to the Registration Statement or any amendment or supplements to the Prospectus
or any Issuer Free Writing Prospectus or for additional information related to the offering of the Placement Shares or for additional
information related to the Registration Statement, the Prospectus or any Issuer Free Writing Prospectus.
c.
Delivery of Prospectus; Subsequent Changes. During the Prospectus Delivery Period, the Company will use its commercially
reasonable efforts to comply 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 commercially reasonable
efforts to comply with the provisions of and make all requisite filings with the Commission pursuant to said Rule 430A and to notify the
Agent 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 Prospectus Delivery Period it is necessary
to amend or supplement the Registration Statement or Prospectus to comply with the Securities Act, the Company will promptly notify the
Agent 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 the filing of any amendment or supplement, if in the judgment of the Company, it is in the best
interest of the Company.
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 Nasdaq and to qualify the Placement Shares for sale under the securities laws of such jurisdictions
in the United States as the Agent reasonably designates and to continue such qualifications in effect so long as required for the distribution
of the Placement Shares; provided, however, that the Company shall not be required in connection therewith to qualify as a foreign
corporation or dealer in securities, file a general consent to service of process, or subject itself to taxation in any jurisdiction if
it is not otherwise so subject.
e.
Delivery of Registration Statement and Prospectus. The Company will furnish to the Agent and its counsel (at the reasonable
expense of the Company) copies of the Registration Statement, the Prospectus (including all documents incorporated by reference therein)
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 and in such quantities as the Agent may from time to time reasonably request
and, at the Agent’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 the Agent 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 15 months after the end of the Company’s current fiscal quarter, an earnings statement covering a 12-month
period that satisfies the provisions of Section 11(a) and Rule 158 of the Securities Act. The Company shall be deemed to satisfy this
Section 7(f) through public filings made by the Company using the EDGAR system.
g.
Use of Proceeds. The Company will use the Net Proceeds as described in the Prospectus in the section entitled “Use
of Proceeds.”
h.
Notice of Other Sales. During the period beginning on the date on which any Placement Notice is delivered to the Agent hereunder
and ending on the third (3rd) Trading Day immediately following the final Settlement Date with respect to Placement Shares sold pursuant
to such Placement Notice (or, if the Placement Notice has been terminated or suspended prior to the sale of all Placement Shares covered
by a Placement Notice, the date of such suspension or termination), the Company shall provide the Agent notice as promptly as reasonably
possible before it offers to sell, sells, contracts to sell, grants any option to sell or otherwise disposes of any Common Stock (other
than the Placement 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 termination of this Agreement; provided, however, that
such notice shall not be required in connection with the Company’s issuance or sale of (i) Common Stock, options to purchase Common
Stock or Common Stock issuable upon the exercise, vesting, or settlement of options, warrants, restricted stock units, or other equity
awards, pursuant to any equity incentive plan, 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 conversion of securities or the exercise 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 the Agent, (iii) Common Stock, or securities convertible
into or exercisable for Common Stock, offered and sold in a privately negotiated transaction to vendors, customers, strategic partners
or potential strategic partners or other investors conducted in a manner so as not to be integrated with the offering of Common Stock
hereby and (iv) Common Stock in connection with any acquisition, strategic investment or other similar transaction (including any joint
venture, strategic alliance or partnership). Notwithstanding the foregoing provisions, nothing herein shall be construed to restrict the
Company’s ability, or require the consent of the Agent, to file a registration statement under the Securities Act.
i.
Due Diligence Cooperation. During the term of this Agreement, the Company will cooperate with any reasonable due diligence
review conducted by the Agent or its representatives in connection with the transactions contemplated hereby, 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 the Agent may reasonably request.
j.
Required Filings Relating to Placement of Placement Shares. The Company agrees that on such dates as the Securities Act
shall require, the Company will (i) file a prospectus supplement with the Commission under the applicable paragraph of Rule 424(b) under
the Securities Act (each and every date a filing under Rule 424(b) is made, a “Filing Date”), which prospectus supplement
will set forth, within the relevant period, the amount of Placement Shares sold through the Agent, the Net Proceeds to the Company and
the compensation payable by the Company to the Agent with respect to such Placement Shares (provided that the Company may satisfy its
obligations under this Section 7(j)(i) by making a filing in accordance with the Exchange Act including such information), and
(ii) deliver such number of copies of each such prospectus supplement to each exchange or market on which such sales were effected as
may be required by the rules or regulations of such exchange or market.
k.
Representation Dates; Certificate. Each time during the term of this Agreement that the Company:
(i)
amends or supplements (other than a prospectus supplement relating solely to an offering of securities other than the Placement
Shares) the Registration Statement or the Prospectus relating to the Placement Shares by means of a post-effective amendment, sticker,
or supplement but not by means of incorporation of documents by reference into the Registration Statement or the Prospectus relating to
the Placement Shares;
(ii)
files an annual report on Form 10-K under the Exchange Act (including any Form 10-K/A containing amended audited financial information
or a material amendment to the previously filed Form 10-K); or
(iii)
files its quarterly reports on Form 10-Q under the Exchange Act;
(Each date of filing of one or more of the documents
referred to in clauses (i) through (iii) shall be a “Representation Date”)
the Company shall furnish the Agent with a certificate,
in the form attached hereto as Exhibit 7(k), within five (5) Trading Days of each Representation Date. The requirement to provide
a certificate under this Section 7(k) shall be waived for any Representation Date occurring at a time at which no Placement Notice
is pending, which waiver shall continue until the date the Company delivers a Placement Notice hereunder (which for such calendar quarter
shall be considered a Representation Date). Notwithstanding the foregoing, (i) upon the delivery of the first Placement Notice hereunder
and (ii) if the Company subsequently decides to sell Placement Shares following a Representation Date when the Company relied on such
waiver and did not provide the Agent with a certificate under this Section 7(k), then before the Agent sells any Placement Shares,
the Company shall provide the Agent with a certificate, in the form attached hereto as Exhibit 7(k), dated the date of the Placement
Notice.
l.
Legal Opinion. On or prior to the date of the first Placement Notice given hereunder the Company shall cause to be furnished
to the Agent a written opinion and a negative assurance letter of Wilson Sonsini Goodrich & Rosati, P.C. (“Company Counsel”),
or other counsel reasonably satisfactory to the Agent, each in form and substance reasonably satisfactory to the Agent. Thereafter, within
five (5) Trading Days of each Representation Date under Sections 7(k)(ii) and 7(k)(iii) with respect to which the Company is obligated
to deliver a certificate in the form attached hereto as Exhibit 7(k) for which no waiver is applicable, the Company shall
cause to be furnished to the Agent (i) a negative assurance letter of Company Counsel for each Representation Date under Sections 7(k)(ii)
and 7(k)(iii) and (ii) an opinion letter of Company Counsel for each Representation Date under Section 7(k)(ii), each in form and substance
reasonably acceptable to the Agent and its counsel, modified as necessary to relate to the Registration Statement and the Prospectus as
then amended or supplemented; provided, however, that in lieu of such opinions for subsequent periodic filings under the Exchange Act,
counsel may furnish the Agent with a letter (a “Reliance Letter”) to the effect that the Agent may rely on a prior
opinion delivered under this Section 7(l) to the same extent as if it were dated the date of such letter (except that statements in such
prior opinion shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented as of the date of
the Reliance Letter).
m.
Comfort Letter. On or prior to the date of the first Placement Notice given hereunder and within five (5) Trading Days
after each subsequent Representation Date under Section 7(k)(ii), the Company shall cause its independent accountants to furnish the Agents
letters (the “Comfort Letters”), dated the date the Comfort Letter is delivered, which shall meet the requirements
set forth in this Section 7(m). The Comfort Letter from the Company’s independent registered public accounting
firm shall be in a form and substance reasonably satisfactory to the Agents, (i) confirming that they are an independent registered
public accounting firm within the meaning of the Securities Act and the Public Company Accounting Oversight Board (the “PCAOB”),
(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 Comfort Letter.
n.
No Offer to Sell. Other than an Issuer Free Writing Prospectus approved in advance by the Company and the Agent in its capacity
as agent hereunder pursuant to Section 23, neither of the Agent nor the Company (including its agents and representatives,
other than the Agent in its capacity as such) will make, use, prepare, authorize, approve or refer to any written communication (as defined
in Rule 405), required to be filed with the Commission, that constitutes an offer to sell or solicitation of an offer to buy Placement
Shares hereunder.
8.
Representations and Covenants of the Agent. The Agent 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 the Agent is exempt from registration or such registration is not otherwise required. The Agent
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 such states in which it is exempt
from registration or such registration is not otherwise required, during the term of this Agreement. The Agent shall comply with all applicable
law and regulations in connection with the transactions contemplated by this Agreement, including the issuance and sale through the Agent
of the Placement Shares.
9.
Payment of Expenses. The Company will pay all expenses incident to the performance of its obligations under this Agreement
relating to (i) the preparation, filing, including any fees required by the Commission, and printing of the Registration Statement (including
financial statements and exhibits) as originally filed and of each amendment and supplement thereto and each Free Writing Prospectus,
in such number as the Agent shall deem reasonably necessary; (ii) the printing and delivery to the Agent of copies of the Prospectus and
any amendments or supplements thereto; (iii) the preparation, issuance and delivery of the Placement Shares; (iv) the fees and disbursements
of the counsel, accountants and other advisors to the Company; (v) the reasonable and documented out-of-pocket fees and disbursements
of counsel to the Agent incurred in connection with (a) entering into the transactions contemplated by this Agreement in an amount not
to exceed $40,000 in the aggregate, and (b) ongoing diligence arising from the transactions contemplated by this Agreement in an amount
not to exceed $3,000 in the aggregate per calendar quarter in connection with updates at the time of Representation Dates; (vi) the qualification
of the Placement Shares under securities laws in accordance with the provisions of Section 7(d), including filing fees; (vii) the
filing fees incident to any review by FINRA of the terms of the sale of the Placement Shares (if applicable), (viii) the fees and expenses
of the transfer agent and registrar for the Common Stock; and (ix) the fees and expenses incurred in connection with the listing of the
Placement Shares on Nasdaq.
10.
Conditions to the Agent’s Obligations. The obligations of the Agent hereunder with respect to a Placement will be
subject to the continuing accuracy and completeness of the representations and warranties made by the Company herein (other than those
representations and warranties made as of a specified date or time), to the due performance in all material respects by the Company of
its obligations hereunder, to the completion by the Agent of a due diligence review satisfactory to it in its reasonable judgment, and
to the continuing reasonable satisfaction (or waiver by the Agent in its sole discretion) of the following additional conditions:
a.
Registration Statement Effective. The Registration Statement shall remain effective and shall be available for the sale
of all Placement Shares contemplated to be issued by any Placement Notice.
b.
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 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 of, or, to the Company’s knowledge, a threat to initiate, 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
Incorporated Document untrue in any material respect or that requires the making of any changes in the Registration Statement, the Prospectus
or any material Incorporated Document 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 or any material Incorporated Document, 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.
c.
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 Effect, or any development that would cause a Material Adverse Effect, or a downgrading
in or withdrawal of the rating assigned to any of the Company’s securities (other than asset backed securities) by any “nationally
recognized statistical rating organization,” as such term is defined by the Commission for purposes of Rule 436(g)(2) under the
Securities Act (a “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 (other than asset backed securities), the effect of which, in the case of
any such action by a Rating Organization described above, in the reasonable judgment of the Agent (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 Placement Shares on the terms and in the manner contemplated in the Prospectus.
d.
Legal Opinion. The Agent shall have received the opinion and negative assurance letter of Company Counsel required to be
delivered pursuant to Section 7(l) on or before the date on which such delivery of such opinion and negative assurance letter
are required pursuant to Section 7(l).
e.
Comfort Letter. The Agent shall have received the Comfort Letter required to be delivered pursuant Section 7(m) on
or before the date on which such delivery of such letter is required pursuant to Section 7(m).
f.
Representation Certificate. The Agent shall have received the certificate required to be delivered pursuant to Section
7(k) on or before the date on which delivery of such certificate is required pursuant to Section 7(k).
g.
Secretary’s Certificate. On or prior to the first Representation Date, the Agent shall have received a certificate,
signed on behalf of the Company by its corporate Secretary, in form and substance satisfactory to the Agent and its counsel.
h.
No Suspension. Trading in the Common Stock shall not have been suspended on Nasdaq and the Common Stock shall not have been
delisted from Nasdaq.
i.
Other Materials. On each date on which the Company is required to deliver a certificate pursuant to Section 7(k),
the Company shall use its commercially reasonable efforts to furnish to the Agent such appropriate further information, certificates and
documents as the Agent may reasonably request and which are usually and customarily furnished by an issuer of securities in connection
with a securities offering of the type contemplated hereby. All such opinions, certificates, letters and other documents will be in compliance
with the provisions hereof.
j.
Securities Act Filings Made. All filings with the Commission required by Rule 424 under the Securities Act to have been
filed prior to the issuance of any Placement Notice hereunder shall have been made within the applicable time period prescribed for such
filing by Rule 424.
k.
Approval for Listing. The Placement Shares shall either have been approved for listing on Nasdaq, subject only to notice
of issuance, or the Company shall have filed an application for listing of the Placement Shares on Nasdaq at, or prior to, the issuance
of any Placement Notice.
l.
No Termination Event. There shall not have occurred any event that would permit the Agent to terminate this Agreement pursuant
to Section 13(a).
11.
Indemnification and Contribution.
(a) Company
Indemnification. The Company agrees to indemnify and hold harmless the Agent, its partners, members, directors, officers, employees
and agents and each person, if any, who controls the Agent within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act as follows:
(i)
against any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or several, arising out of
or based upon 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 related Issuer
Free Writing Prospectus 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 reasonable and documented expense whatsoever, as incurred, joint
or several, 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 referenced in Section 11(a)(i) above; provided that (subject to Section 11(d) below)
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, as reasonably incurred (including the reasonable and documented out-of-pocket fees and disbursements
of counsel), 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 solely in reliance upon and in conformity with written information furnished to the Company
by or on behalf of the Agent expressly for use in the Registration Statement (or any amendment thereto), or in any related Issuer Free
Writing Prospectus or the Prospectus (or any amendment or supplement thereto).
(b) Indemnification
by the Agent. The Agent agrees to indemnify and hold harmless the Company and its directors and officers, 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 loss, liability, claim, damage and expense described in the indemnity
contained in Section 11(a), as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements
or omissions, made in the Registration Statement (or any amendments thereto) or in any related Issuer Free Writing Prospectus or the Prospectus
(or any amendment or supplement thereto) in reliance upon and in conformity with information relating to the Agent and furnished to the
Company by or on behalf of the Agent for inclusion in any document in writing by the Agent expressly for use therein.
(c) Procedure.
Any party that proposes to assert the right to be indemnified under this Section 11 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
11, notify each such indemnifying party of the commencement of such action, enclosing a copy of all papers served, but the omission
or delay 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 11 and (ii) any liability that it may have to any indemnified party under the
foregoing provisions of this Section 11 unless, and only to the extent that, such omission or delay results in the forfeiture or
material impairment 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. 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) 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 of interest 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 and documented out-of-pocket 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 and documented out-of-pocket 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 reasonable
and documented out-of-pocket fees, disbursements and other charges will be reimbursed by the indemnifying party promptly after the indemnifying
party receives a written invoice relating to fees, disbursements and other charges in reasonable detail. 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 11 (whether or not any indemnified party is a
party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability
arising or that may arise out of such claim, action or proceeding.
(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 11 is applicable in accordance with its terms but for any reason is held to be unavailable from the Company or
the Agent, the Company and the Agent 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, but after deducting any contribution received by the Company from persons other than the Agent, such as persons
who control the Company within the meaning of the Securities Act or the Exchange Act, officers of the Company who signed the Registration
Statement and directors of the Company, who also may be liable for contribution) to which the Company and the Agent may be subject in
such proportion as shall be appropriate to reflect the relative benefits received by the Company on the one hand and the Agent on the
other hand. The relative benefits received by the Company on the one hand and the Agent on the other hand shall be deemed to be in the
same proportion as the total Net Proceeds from the sale of the Placement Shares (before deducting expenses) received by the Company bear
to the total compensation received by the Agent (before deducting expenses) from the sale of Placement 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 the Agent, on the other hand, 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 the Agent, 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 the Agent agree that it would not be just and equitable if contributions
pursuant to this Section 11(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 11(d) shall be deemed
to include, for the purpose of this Section 11(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 11(c) hereof. Notwithstanding
the foregoing provisions of this Section 11(d), the Agent 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 11(d), any person who controls a party to this Agreement within the meaning of the Securities Act or the Exchange
Act, and any officers, directors, partners, employees or agents of the Agent, will have the same rights to contribution as that party,
and each officer who signed the Registration Statement and director of the Company 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 11(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 11(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 11(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
11(c) hereof.
12.
Representations and Agreements to Survive Delivery. The indemnity and contribution agreements contained in Section 11
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 the Agent, 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.
13.
Termination.
a.
The Agent may terminate this Agreement, by notice to the Company, as hereinafter specified at any time (1) if there has been, since
the time of execution of this Agreement or since the date as of which information is given in the Prospectus, any Material Adverse Effect,
or any development that has actually occurred and that would have a Material Adverse Effect that, in the reasonable judgment of the Agent,
would make it impractical to market the Placement Shares or to enforce contracts for the sale of the Placement Shares, (2) the Company
shall have failed, refused or been unable to perform any agreement on its part to be performed hereunder; provided, however, in
the case of any failure of the Company to deliver (or cause another person to deliver) any certification, opinion or letter required under
Section 7(k), 7(l) or 7(m), the Agent’s right to terminate shall not arise unless (A) such failure to deliver
(or cause to be delivered) continues for more than thirty days from the date such delivery was required; (B) the Agent has not waived
such requirement; and (C) the Company has not completed performance prior to Agent’s communication to the Company of Agent’s
intent to terminate, or (iii) any suspension, or limitation of trading in the Placement Shares or in securities generally on Nasdaq shall
have occurred. Any such termination shall be without liability of any party to any other party except that the provisions of Section
9 (Payment of Expenses), Section 11 (Indemnification and Contribution), Section 12 (Representations and Agreements to
Survive Delivery), Section 18 (Governing Law and Time; Waiver of Jury Trial) and Section 19 (Consent to Jurisdiction) hereof
shall remain in full force and effect notwithstanding such termination. If the Agent elects to terminate this Agreement as provided in
this Section 13(a), the Agent shall provide the required notice as specified in Section 14.
b.
The Company shall have the right, by giving five (5) days’ notice as hereinafter specified 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 9 (Payment of Expenses), Section 11 (Indemnification and Contribution),
Section 12 (Representations and Agreements to Survive Delivery), Section 18 (Governing Law and Time; Waiver of Jury Trial)
and Section 19 (Consent to Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination.
c.
The Agent shall have the right, by giving five (5) days’ notice as hereinafter specified 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 9 (Payment of Expenses), Section 11 (Indemnification and Contribution),
Section 12 (Representations and Agreements to Survive Delivery), Section 18 (Governing Law and Time; Waiver of Jury Trial)
and Section 19 (Consent to Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination.
d.
Unless earlier terminated pursuant to this Section 13, this Agreement shall automatically terminate upon the issuance and
sale of all of the Placement Shares through the Agent on the terms and subject to the conditions set forth herein except that the provisions
of Section 9 (Payment of Expenses), Section 11 (Indemnification and Contribution), Section 12 (Representations and
Agreements to Survive Delivery), Section 18 (Governing Law and Time; Waiver of Jury Trial) and Section 19 (Consent to Jurisdiction)
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 Section 13(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 9 (Payment of Expenses), Section 11 (Indemnification and Contribution),
Section 12 (Representations and Agreements to Survive Delivery), Section 18 (Governing Law and Time; Waiver of Jury Trial)
and Section 19 (Consent to Jurisdiction) shall remain in full force and effect. Upon termination of this Agreement, the Company
shall not have any liability to the Agent for any discount, commission or other compensation with respect to any Placement Shares not
otherwise sold by the Agent under this Agreement.
f.
Any termination of this 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 the Agent or the Company,
as the case may be. If such termination shall occur prior to the Settlement Date for any sale of Placement Shares, such Placement Shares
shall settle in accordance with the provisions of this Agreement.
14.
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 shall be in writing, unless otherwise specified, and if sent to the Agent, shall be delivered to:
B. Riley Securities, Inc.
11100 Santa Monica Boulevard
Suite 800
Los Angeles, CA 90025
Attention: General Counsel
Telephone: (212) 457-9947
Email: atmdesk@brileyfin.com
with a copy to:
The NBD Group, Inc.
350 N. Glendale Avenue, Ste B522
Glendale, CA 91206
Attention: Sara L. Terheggen
Telephone: (310) 890-0110
Email: st@nbdpro.com
and if to the Company, shall be delivered to:
Intrusion Inc.
101 East Park Blvd., Suite 1200
Plano, Texas 75074
Attention: Chief Financial Officer
Telephone: (972) 301 3658
Email: franklin.byrd@intrusion.com
with a copy to:
Wilson Sonsini Goodrich & Rosati, P.C.
900 South Capital of Texas Hwy, Las Cimas IV, Fifth Floor
Austin, Texas 78746
Attention: J. Robert Suffoletta
Email: rsuffoletta@wsgr.com
Each party to this Agreement may change such address
for notices by sending to the parties 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, by email (upon affirmative acknowledgement of receipt), or by verifiable facsimile
transmission 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 Nasdaq and commercial banks in the City of New York are
open for business.
15.
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and the Agent and their
respective successors and the affiliates, controlling persons, officers and directors referred to in Section 11 hereof. 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, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors
and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement. Neither the Company nor the Agent may assign its rights or obligations under this Agreement without the prior written
consent of the other party.
16.
Adjustments for Stock Splits. The parties acknowledge and agree that all share-related numbers contained in this Agreement
shall be adjusted to take into account any share consolidation, stock split, stock dividend, corporate domestication or similar event
effected with respect to the Placement Shares.
17.
Entire Agreement; Amendment; Severability. This Agreement (including all schedules and exhibits attached hereto and Placement
Notices issued pursuant hereto) constitutes the entire agreement and supersedes all other prior and contemporaneous agreements and undertakings,
both written and oral, among the parties hereto with regard to the subject matter hereof. Neither this Agreement nor any term hereof may
be amended except pursuant to a written instrument executed by the Company and the Agent. In the event that any one or more of the 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 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.
18.
GOVERNING LAW AND TIME; WAIVER OF JURY TRIAL. THIS 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 THE AGENT 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 THE TRANSACTIONS CONTEMPLATED HEREBY.
19.
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 IN CONNECTION WITH ANY
TRANSACTION CONTEMPLATED HEREBY, 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 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.
20.
Use of Information. The Agent may not disclose to any third party and may not use any information gained in connection with
this Agreement and the transactions contemplated by this Agreement, including due diligence, to advise any party with respect to transactions
not expressly approved by the Company.
21.
Counterparts. This 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 by one party to the other may be
made by facsimile transmission or email of a .pdf attachment.
22.
Effect of Headings. The section, Schedule and Exhibit headings herein are for convenience only and shall not affect the
construction hereof.
23.
Permitted Free Writing Prospectuses. The Company represents, warrants and agrees that, unless it obtains the prior consent
of the Agent, which consent shall not be unreasonably withheld, conditioned or delayed, and the Agent represents, warrants and agrees
that, unless it obtains the prior consent of the Company, which consent shall not be unreasonably withheld, conditioned or delayed, it
has not made and will not make any offer relating to the Placement Shares that would constitute an Issuer Free Writing Prospectus, or
that would otherwise constitute a “free writing prospectus,” as defined in Rule 405, required to be filed with the Commission.
Any such free writing prospectus consented to by the Agent or by the Company, as the case may be, is hereinafter referred to as a “Permitted
Free Writing Prospectus.” The Company represents and warrants that it has treated and agrees that it will treat each Permitted Free
Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433, and has complied and will comply with the
requirements of Rule 433 applicable to any Permitted Free Writing Prospectus, including timely filing with the Commission where required,
legending and record keeping. For the purposes of clarity, the parties hereto agree that all free writing prospectuses, if any, listed
in Exhibit 23 hereto are Permitted Free Writing Prospectuses.
24.
Absence of Fiduciary Relationship. The Company acknowledges and agrees that:
a.
The Agent is acting solely as agent in connection with the public offering of the Placement Shares and in connection with each
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 affiliates, stockholders (or other equity holders), creditors or employees or any other party, on the one hand,
and the Agent, on the other hand, has been or will be created in respect of any of the transactions contemplated by this Agreement, irrespective
of whether or not the Agent has advised or is advising the Company on other matters, and the Agent has no obligation to the Company with
respect to the transactions contemplated by this Agreement except the obligations expressly set forth in this Agreement;
b.
it is capable of evaluating and understanding, and understands and accepts, the terms, risks and conditions of the transactions
contemplated by this Agreement;
c.
the Agent has not provided any legal, accounting, regulatory or tax advice with respect to the transactions contemplated by this
Agreement and it has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate;
d.
it is aware that the Agent and its affiliates are engaged in a broad range of transactions that may involve interests that differ
from those of the Company and the Agent 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.
it waives, to the fullest extent permitted by law, any claims it may have against the Agent for breach of fiduciary duty or alleged
breach of fiduciary duty in connection with the sale of Placement Shares under this Agreement and agrees that the Agent shall not have
any liability (whether direct or indirect, in contract, tort or otherwise) to it in respect of such a fiduciary duty claim or to any person
asserting a fiduciary duty claim on its behalf or in right of it or the Company, employees or creditors of Company, other than in respect
of the Agent’s obligations under this Agreement and to keep information provided by the Company to the Agent and its counsel confidential
to the extent not otherwise publicly-available.
25.
Definitions. As used in this Agreement, the following terms have the respective meanings set forth below:
“Applicable Time”
means (i) each Representation Date and (ii) the time of each sale of any Placement Shares pursuant to this Agreement.
“Issuer Free Writing
Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433, relating to the Placement Shares
that (1) is required to be filed with the Commission by the Company, (2) is a “road show” that is a “written communication”
within the meaning of Rule 433(d)(8)(i) whether or not required to be filed with the Commission, or (3) is exempt from filing pursuant
to Rule 433(d)(5)(i) because it contains a description of the Placement Shares or of the offering that does not reflect the final terms,
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) under the Securities Act.
“Rule 172,”
“Rule 405,” “Rule 415,” “Rule 424,” “Rule 424(b),” “Rule
430A,” “Rule 430B,” and “Rule 433” refer to such rules under the Securities Act.
All references in this Agreement
to financial statements and schedules and other information that is “contained,” “included” or “stated”
in the Registration Statement or the Prospectus (and all other references of like import) shall be deemed to mean and include all such
financial statements and schedules and other information that is incorporated by reference in the Registration Statement or the Prospectus,
as the case may be.
All references in this Agreement
to the Registration Statement, the Prospectus or any amendment or supplement to any of the foregoing shall be deemed to include the most
recent copy filed with the Commission pursuant to EDGAR; all references in this Agreement to any Issuer Free Writing Prospectus (other
than any Issuer Free Writing Prospectuses that, pursuant to Rule 433, are not required to be filed with the Commission) shall be deemed
to include the copy thereof filed with the Commission pursuant to EDGAR; and all references in this Agreement to “supplements”
to the Prospectus shall include, without limitation, any supplements, “wrappers” or similar materials prepared in connection
with any offering, sale or private placement of any Placement Shares by the Agent outside of the United States.
All references in this Agreement
to Sections or Exhibits are references to Sections or Exhibits, as applicable, of this Agreement unless otherwise specified.
[Remainder of the page intentionally left blank]
If the foregoing correctly sets forth the understanding
between the Company and the Agent, please so indicate in the space provided below for that purpose, whereupon this letter shall constitute
a binding agreement between the Company and the Agent.
Very truly yours,
INTRUSION INC.
By: /s/ Franklin Byrd
Name: Franklin
Byrd
Title: Chief Financial Officer
ACCEPTED as of the date first-above written:
B. RILEY SECURITIES,
INC.
By: /s/ Patrice
McNicoll
Name: Patrice McNicoll
Title: Co-Head of Investment Banking
[Signature Page to Sales Agreement]
SCHEDULE 1
From: Intrusion
Inc.
To: B. Riley Securities, Inc.
Attention: [•]
Subject: At Market Issuance - Placement
Notice
Ladies and Gentlemen:
Pursuant to the terms and
subject to the conditions contained in the At Market Issuance Sales Agreement between Intrusion Inc., a Delaware corporation (the “Company”),
and B. Riley Securities, Inc. (the “Agent”), dated August 5, 2021, the Company hereby requests that the Agent sell
up to [____] of the Company’s Common Stock, par value $0.01 per share, at a minimum market price of $ 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.]
SCHEDULE 2
________________________
Compensation
________________________
The Company shall pay to the
Agent in cash, upon each sale of Placement Shares pursuant to this Agreement, an amount equal to up to 3.0% of the aggregate gross proceeds
from each sale of Placement Shares and up to 5.0% of the gross proceeds from each block trade of Placement Shares.
SCHEDULE 3
________________________
Notice Parties
________________________
The Company
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Franklin Byrd
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franklin.byrd@intrusion.com
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Aina Ajayi
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aina.ajayi@intrusion.com
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B. Riley Securities
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Keith Pompliano
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kpompliano@brileyfin.com
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Scott Ammaturo
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sammaturo@brileyfin.com
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with a copy to ATMDESK@BRILEYFIN.COM
EXHIBIT 7(k)
Form of Representation Date Certificate
___________, 20___
This Representation Date
Certificate (this “Certificate”) is executed and delivered in connection with Section 7(k) of the At Market
Issuance Sales Agreement (the “Agreement”), dated August 5, 2021 and entered into between Intrusion Inc. (the “Company”)
and B. Riley Securities, Inc. All capitalized terms used but not defined herein shall have the meanings given to such terms in the Agreement.
The Company hereby certifies
as follows:
1.
Each of the representations and warranties of the Company contained in the Agreement were, when originally made, and are, as of
the date of this Certificate, true and correct in all material respects.
2.
Except as waived by the Agent in writing, each of the covenants required to be performed by the Company in the Agreement on or
prior to the date of the Agreement, this Representation Date, and each such other date prior to the date hereof as set forth in the Agreement,
has been duly, timely and fully performed in all material respects and each condition required to be complied with by the Company on or
prior to the date of the Agreement, this Representation Date, and each such other date prior to the date hereof as set forth in the Agreement
has been duly, timely and fully complied with in all material respects.
Company Counsel is entitled
to rely on this Certificate in connection with the opinion it is rendering pursuant to Section 7(l) of the Agreement.
The undersigned has executed
this Representation Date Certificate as of the date first written above.
INTRUSION INC.
By:____________________________________
Name:
__________________________________
Title:___________________________________
EXHIBIT 23
Permitted Issuer Free Writing Prospectuses.
[None.]
Exhibit 4.4
INTRUSION INC.,
ISSUER
AND
[TRUSTEE],
TRUSTEE
INDENTURE
DATED AS OF , 20
SENIOR DEBT SECURITIES
TABLE
OF CONTENTS
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Page
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ARTICLE I DEFINITIONS
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1
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Section 1.1.
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Definitions of Terms
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1
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ARTICLE
II ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES
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5
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Section 2.1.
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Designation and Terms of Securities
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5
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Section 2.2.
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Form of Securities and Trustee’s
Certificate
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7
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Section 2.3.
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Denominations; Provisions for
Payment
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8
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Section 2.4.
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Execution and Authentications
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9
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Section 2.5.
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Registration of Transfer and
Exchange
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10
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Section 2.6.
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Temporary Securities
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11
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Section 2.7.
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Mutilated, Destroyed, Lost or
Stolen Securities
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11
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Section 2.8.
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Cancellation
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12
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Section 2.9.
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Benefits of Indenture
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12
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Section 2.10.
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Authenticating Agent
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12
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Section 2.11.
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Global Securities
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13
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ARTICLE
III REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS
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14
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Section 3.1.
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Redemption
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14
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Section 3.2.
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Notice of Redemption
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14
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Section 3.3.
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Payment Upon Redemption
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15
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Section 3.4.
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Sinking Fund
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16
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Section 3.5.
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Satisfaction of Sinking Fund
Payments with Securities
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16
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Section 3.6.
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Redemption of Securities for
Sinking Fund
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16
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ARTICLE
IV COVENANTS
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17
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Section 4.1.
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Payment of Principal, Premium
and Interest
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17
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Section 4.2.
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Maintenance of Office or Agency
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17
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Section 4.3.
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Paying Agents
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17
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Section 4.4.
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Appointment to Fill Vacancy in
Office of Trustee
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18
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Section 4.5.
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Compliance with Consolidation
Provisions
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19
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ARTICLE
V SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
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19
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Section 5.1.
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Company to Furnish Trustee Names
and Addresses of Securityholders
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19
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Section 5.2.
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Preservation of Information;
Communications With Securityholders
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19
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Section 5.3.
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Reports by the Company
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19
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Section 5.4.
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Reports by the Trustee
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20
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TABLE
OF CONTENTS
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ARTICLE
VI REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
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20
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Section 6.1.
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Events of Default
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20
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Section 6.2.
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Collection of Indebtedness and
Suits for Enforcement by Trustee
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22
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Section 6.3.
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Application of Moneys Collected
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23
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Section 6.4.
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Limitation on Suits
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24
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Section 6.5.
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Rights and Remedies Cumulative;
Delay or Omission Not Waiver
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24
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Section 6.6.
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Control by Securityholders
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25
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Section 6.7.
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Undertaking to Pay Costs
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25
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ARTICLE
VII CONCERNING THE TRUSTEE
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26
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Section 7.1.
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Certain Duties and Responsibilities
of Trustee
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26
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Section 7.2.
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Certain Rights of Trustee
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27
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Section 7.3.
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Trustee Not Responsible for Recitals
or Issuance or Securities
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28
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Section 7.4.
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May Hold Securities
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28
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Section 7.5.
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Moneys Held in Trust
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28
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Section 7.6.
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Compensation and Reimbursement
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29
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Section 7.7.
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Reliance on Officer’s Certificate
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29
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Section 7.8.
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Disqualification; Conflicting
Interests
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29
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Section 7.9.
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Corporate Trustee Required; Eligibility
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29
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Section 7.10.
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Resignation and Removal; Appointment
of Successor
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30
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Section 7.11.
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Acceptance of Appointment By
Successor
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31
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Section 7.12.
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Merger, Conversion, Consolidation
or Succession to Business
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32
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Section 7.13.
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Preferential Collection of Claims
Against the Company
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33
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Section 7.14.
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Notice of Default
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33
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ARTICLE
VIII CONCERNING THE SECURITYHOLDERS
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33
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Section 8.1.
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Evidence of Action by Securityholders
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33
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Section 8.2.
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Proof of Execution by Securityholders
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34
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Section 8.3.
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Who May be Deemed Owners
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34
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Section 8.4.
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Certain Securities Owned by Company
Disregarded
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34
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Section 8.5.
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Actions Binding on Future Securityholders
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34
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ARTICLE
IX SUPPLEMENTAL INDENTURES
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35
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Section 9.1.
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Supplemental Indentures Without
the Consent of Securityholders
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35
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Section 9.2.
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Supplemental Indentures With
Consent of Securityholders
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36
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Section 9.3.
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Effect of Supplemental Indentures
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36
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Section 9.4.
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Securities Affected by Supplemental
Indentures
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37
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Section 9.5.
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Execution of Supplemental Indentures
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37
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ARTICLE
X SUCCESSOR ENTITY
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37
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Section 10.1.
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Company May Consolidate,
Etc.
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37
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Section 10.2.
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Successor Entity Substituted
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38
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Section 10.3.
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Evidence of Consolidation, Etc.
to Trustee
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39
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TABLE
OF CONTENTS
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ARTICLE
XI SATISFACTION AND DISCHARGE
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39
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Section 11.1.
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Satisfaction and Discharge of
Indenture
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39
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Section 11.2.
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Discharge of Obligations
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39
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Section 11.3.
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Deposited Moneys to be Held in
Trust
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40
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Section 11.4.
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Payment of Moneys Held by Paying
Agents
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40
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Section 11.5.
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Repayment to Company
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40
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ARTICLE
XII IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
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40
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Section 12.1.
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No Recourse
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40
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ARTICLE
XIII MISCELLANEOUS PROVISIONS
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41
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Section 13.1.
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Effect on Successors and Assigns
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41
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Section 13.2.
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Actions by Successor
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41
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Section 13.3.
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Surrender of Company Powers
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41
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Section 13.4.
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Notices
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41
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Section 13.5.
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Governing Law
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42
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Section 13.6.
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Treatment of Securities as Debt
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42
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Section 13.7.
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Certificates and Opinions as
to Conditions Precedent
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42
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Section 13.8.
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Payments on Business Days
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42
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Section 13.9.
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Conflict with Trust Indenture
Act
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42
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Section 13.10.
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Counterparts
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43
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Section 13.11.
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Separability
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43
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Section 13.12.
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Compliance Certificates
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43
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INDENTURE
INDENTURE, dated as of [·],
20[·], among INTRUSION INC., a Delaware corporation (the “Company”),
and [TRUSTEE], as trustee (the “Trustee”):
WHEREAS, for its lawful corporate purposes, the
Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of debt securities (hereinafter referred
to as the “Securities”), in an unlimited aggregate principal amount to be issued from time to time in one or more series as
in this Indenture provided, as registered Securities without coupons, to be authenticated by the certificate of the Trustee;
WHEREAS, to provide the terms and conditions upon
which the Securities are to be authenticated, issued and delivered, the Company has duly authorized the execution of this Indenture; and
WHEREAS, all things necessary to make this Indenture
a valid agreement of the Company, in accordance with its terms, have been done.
NOW, THEREFORE, in consideration of the premises
and the purchase of the Securities by the holders thereof, it is mutually covenanted and agreed as follows for the equal and ratable benefit
of the holders of Securities:
ARTICLE I
DEFINITIONS
Section 1.1.
Definitions of Terms. The terms defined in this Section (except as in this Indenture or any indenture supplemental hereto
otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture and of any indenture supplemental
hereto shall have the respective meanings specified in this Section and shall include the plural as well as the singular. All other
terms used in this Indenture that are defined in the Trust Indenture Act of 1939, as amended, or that are by reference in such Act defined
in the Securities Act of 1933, as amended (except as herein or any indenture supplemental hereto otherwise expressly provided or unless
the context otherwise 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 the execution of this instrument.
“Authenticating Agent” means an authenticating
agent with respect to all or any of the series of Securities appointed by the Trustee pursuant to Section 2.10.
“Bankruptcy Law” means Title 11,
U.S. Code, or any similar federal or state law for the relief of debtors.
“Board of Directors” means the Board
of Directors of the Company or any duly authorized committee of such Board.
“Board Resolution” means a copy of
a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and
to be in full force and effect on the date of such certification.
“Business Day” means, with respect
to any series of Securities, any day other than a day on which federal or state banking institutions in the Borough of Manhattan, the
City of New York, or in the city of the Corporate Trust Office of the Trustee, are authorized or obligated by law, executive order or
regulation to close.
“Certificate” means a certificate signed
by any Officer. The Certificate need not comply with the provisions of Section 13.7.
“Company” means Intrusion Inc., a corporation
duly organized and existing under the laws of the State of Delaware, and, subject to the provisions of Article X, shall also include its
successors and assigns.
“Corporate Trust Office” means the
office of the Trustee at which, at any particular time, its corporate trust business shall be principally administered, which office at
the date hereof is located at [·].
“Custodian” means any receiver, trustee,
assignee, liquidator or similar official under any Bankruptcy Law.
“Default” means any event, act or condition
that with notice or lapse of time, or both, would constitute an Event of Default.
“Defaulted Interest” has the meaning
set forth in Section 2.3.
“Depositary” means, with respect to
Securities of any series for which the Company shall determine that such Securities will be issued as a Global Security, The Depository
Trust Company, another clearing agency, or any successor registered as a clearing agency under the Exchange Act, or other applicable statute
or regulation, which, in each case, shall be designated by the Company pursuant to either Section 2.1 or 2.11.
“Event of Default” means, with respect
to Securities of a particular series, any event specified in Section 6.1, continued for the period of time, if any, therein designated.
“Exchange Act” means the Securities
and Exchange Act of 1934, as amended.
“Global Security” means, with respect
to any series of Securities, a Security executed by the Company and delivered by the Trustee to the Depositary or pursuant to the Depositary’s
instruction, all in accordance with the Indenture, which shall be registered in the name of the Depositary or its nominee.
“Governmental Obligations” means securities
that are (a) direct obligations of the United States of America for the payment of which its full faith and credit is pledged or
(b) obligations of a Person controlled or supervised by and acting as an agency or 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 that, in either
case, are not callable or redeemable at the option of the issuer thereof at any time prior to the stated maturity of the Securities, and
shall also include a depositary receipt issued by a bank or trust company as custodian with respect to any such Governmental Obligation
or a specific payment of principal of or interest on any such Governmental Obligation held by such custodian for the account of the holder
of such depositary receipt; provided, however, that (except as required by law) such custodian is not authorized to make any deduction
from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the Governmental
Obligation or the specific payment of principal of or interest on the Governmental Obligation evidenced by such depositary receipt.
“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.
“Indenture” means this instrument as
originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into
in accordance with the terms hereof.
“Interest Payment Date”, when used
with respect to any installment of interest on a Security of a particular series, means the date specified in such Security or in a Board
Resolution or in an indenture supplemental hereto with respect to such series as the fixed date on which an installment of interest with
respect to Securities of that series is due and payable.
“Officer” means, with respect to the
Company, the chairman of the Board of Directors, a chief executive officer, a president, a chief financial officer, a chief operating
officer, any executive vice president, any senior vice president, any vice president, the treasurer or any assistant treasurer, the controller
or any assistant controller or the secretary or any assistant secretary.
“Officer’s Certificate” means
a certificate signed by any Officer. Each such certificate shall include the statements provided for in Section 13.7, if and to the
extent required by the provisions thereof.
“Opinion of Counsel” means an opinion
in writing subject to customary exceptions of legal counsel, who may be an employee of or counsel for the Company, that is delivered to
the Trustee in accordance with the terms hereof. Each such opinion shall include the statements provided for in Section 13.7, if
and to the extent required by the provisions thereof.
“Outstanding”, when used with reference
to Securities of any series, means, subject to the provisions of Section 8.4, as of any particular time, all Securities of that series
theretofore authenticated and delivered by the Trustee under this Indenture, except (a) Securities theretofore canceled by the Trustee
or any paying agent, or delivered to the Trustee or any paying agent for cancellation or that have previously been canceled; (b) Securities
or portions thereof for the payment or redemption of which moneys or Governmental Obligations in the necessary amount shall have been
deposited in trust with the Trustee or with any paying agent (other than the Company) or shall have been set aside and segregated in trust
by the Company (if the Company shall act as its own paying agent); provided, however, that if such Securities or portions of such Securities
are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as provided in Article III, or provision
satisfactory to the Trustee shall have been made for giving such notice; and (c) Securities in lieu of or in substitution for which
other Securities shall have been authenticated and delivered pursuant to the terms of Section 2.7.
“Person” means any individual, corporation,
partnership, joint venture, joint-stock company, limited liability company, association, trust, unincorporated organization, any other
entity or organization, including a government or political subdivision or an agency or instrumentality thereof.
“Predecessor Security” of any particular
Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and,
for the purposes of this definition, any Security authenticated and delivered under Section 2.7 in lieu of a lost, destroyed or stolen
Security shall be deemed to evidence the same debt as the lost, destroyed or stolen Security.
“Responsible Officer” when used with
respect to the Trustee means the chairman of its board of directors, the chief executive officer, the president, any vice president, the
secretary, the treasurer, any trust officer, any corporate trust officer or any other officer or assistant officer of the Trustee customarily
performing 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 his or her knowledge of and familiarity with the particular subject.
“Securities” means the debt Securities
authenticated and delivered under this Indenture.
“Securityholder”, “holder of
Securities”, “registered holder”, or other similar term, means the Person or Persons in whose name or names a particular
Security shall be registered on the books of the Company kept for that purpose in accordance with the terms of this Indenture.
“Security Register” and “Security
Registrar” shall have the meanings as set forth in Section 2.5.
“Subsidiary” means, with respect to
any Person, (i) any corporation at least a majority of whose outstanding Voting Stock shall at the time be owned, directly or indirectly,
by such Person or by one or more of its Subsidiaries or by such Person and one or more of its Subsidiaries, (ii) any general partnership,
joint venture or similar entity, at least a majority of whose outstanding partnership or similar interests shall at the time be owned
by such Person, or by one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries and (iii) any limited
partnership of which such Person or any of its Subsidiaries is a general partner.
“Trustee” means , and, subject to the
provisions of Article VII, shall also include its successors and assigns, and, if at any time there is more than one Person acting in
such capacity hereunder, “Trustee” shall mean each such Person. The term “Trustee” as used with respect to a particular
series of the Securities shall mean the trustee with respect to that series.
“Trust Indenture Act” means the Trust
Indenture Act of 1939, as amended.
“Voting Stock”, as applied to stock
of any Person, means shares, interests, participations or other equivalents in the equity interest (however designated) in such Person
having ordinary voting power for the election of a majority of the directors (or the equivalent) of such Person, other than shares, interests,
participations or other equivalents having such power only by reason of the occurrence of a contingency.
ARTICLE II
ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION
AND EXCHANGE OF SECURITIES
Section 2.1.
Designation and Terms of Securities. The aggregate principal amount of Securities that may be authenticated and delivered
under this Indenture is unlimited. The Securities may be issued in one or more series up to the aggregate principal amount of Securities
of that series from time to time authorized by or pursuant to a Board Resolution or pursuant to one or more indentures supplemental hereto.
Prior to the initial issuance of Securities of any series, there shall be established in or pursuant to a Board Resolution, and set forth
in an Officer’s Certificate, or established in one or more indentures supplemental hereto:
(i)
the title of the Securities of the series (which shall distinguish the Securities of that series from all other Securities);
(ii)
any limit upon the aggregate principal amount of the Securities of that 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 that series);
(iii)
the date or dates on which the principal of the Securities of the series is payable, any original issue discount that may apply
to the Securities of that series upon their issuance, the principal amount due at maturity, and the place(s) of payment;
(iv)
the rate or rates at which the Securities of the series shall bear interest or the manner of calculation of such rate or rates,
if any;
(v)
the date or dates from which such interest shall accrue, the Interest Payment Dates on which such interest will be payable or the
manner of determination of such Interest Payment Dates, the place(s) of payment, and the record date for the determination of holders
to whom interest is payable on any such Interest Payment Dates or the manner of determination of such record dates;
(vi)
the right, if any, to extend the interest payment periods and the duration of such extension;
(vii)
the period or periods within which, the price or prices at 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 Company;
(viii)
the obligation, if any, of the Company to redeem or purchase Securities of the series pursuant to any sinking fund, mandatory redemption,
or analogous provisions (including payments made in cash in satisfaction of future sinking fund obligations) or at the option of a holder
thereof and the period or periods within which, the price or prices at which, and the terms and conditions upon which, Securities of the
series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;
(ix)
the form of the Securities of the series including the form of the Certificate of Authentication for such series;
(x)
if other than denominations of one thousand U.S. dollars ($1,000) or any integral multiple thereof, the denominations in which
the Securities of the series shall be issuable;
(xi)
any and all other terms (including terms, to the extent applicable, relating to any auction or remarketing of the Securities of
that series and any security for the obligations of the Company with respect to such Securities) with respect to such series (which terms
shall not be inconsistent with the terms of this Indenture, as amended by any supplemental indenture) including any terms which may be
required by or advisable under United States laws or regulations or advisable in connection with the marketing of Securities of that series;
(xii)
whether the Securities are issuable as a Global Security and, in such case, the terms and the identity of the Depositary for such
series;
(xiii)
whether the Securities will be convertible into or exchangeable for shares of common stock, preferred stock or other securities
of the Company or any other Person and, if so, the terms and conditions upon which such Securities will be so convertible or exchangeable,
including the conversion or exchange price, as applicable, or how it will be calculated and may be adjusted, any mandatory or optional
(at the Company’s option or the holders’ option) conversion or exchange features, and the applicable conversion or exchange
period;
(xiv)
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 6.1;
(xv)
any additional or different Events of Default or restrictive covenants (which may include, among other restrictions, restrictions
on the Company’s ability or the ability of the Company’s Subsidiaries to: incur additional indebtedness; issue additional
securities; create liens; pay dividends or make distributions in respect of the capital stock of the Company or the Company’s Subsidiaries;
redeem capital stock; place restrictions on the Company’s Subsidiaries’ ability to pay dividends, make distributions or transfer
assets; make investments or other restricted payments; sell or otherwise dispose of assets; enter into sale- leaseback transactions; engage
in transactions with stockholders or affiliates; issue or sell stock of the Company’s Subsidiaries; or effect a consolidation or
merger) or financial covenants (which may include, among other financial covenants, financial covenants that require the Company and its
Subsidiaries to maintain specified interest coverage, fixed charge, cash flow-based, asset-based or other financial ratios) provided for
with respect to the Securities of the series;
(xvi)
if other than dollars, the coin or currency in which the Securities of the series are denominated (including, but not limited to,
foreign currency);
(xvii)
the terms and conditions, if any, upon which the Company shall pay amounts in addition to the stated interest, premium, if any
and principal amounts of the Securities of the series to any Securityholder that is not a “United States person” for federal
tax purposes; and
(xviii)
any restrictions on transfer, sale or assignment of the Securities of the series.
All Securities of any one series shall be substantially
identical except as may otherwise be provided in or pursuant to any such Board Resolution or in any indentures supplemental hereto.
If any of the terms of the series are established
by action taken pursuant to a Board Resolution of the Company, a copy of an appropriate record of such action shall be certified by the
secretary or an assistant secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officer’s Certificate
of the Company setting forth the terms of the series.
Securities of any particular series may be issued
at various times, with different dates on which the principal or any installment of principal is payable, with different rates of interest,
if any, or different methods by which rates of interest may be determined, with different dates on which such interest may be payable
and with different redemption dates.
Section 2.2.
Form of Securities and Trustee’s Certificate. The Securities of any series and the Trustee’s certificate
of authentication to be borne by such Securities shall be substantially of the tenor and purport as set forth in one or more indentures
supplemental hereto or as provided in a Board Resolution, and set forth in an Officer’s Certificate, and they may have such letters,
numbers or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved thereon as
the Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or as may be required to comply with
any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange on which Securities
of that series may be listed, or to conform to usage.
Section 2.3.
Denominations; Provisions for Payment. The Securities shall be issuable as registered Securities and in the denominations
of one thousand U.S. dollars ($1,000) or any integral multiple thereof, subject to Section 2.1(x).
The Securities of a particular series shall bear
interest payable on the dates and at the rate specified with respect to that series. Subject to Section 2.1(xvi), the principal of
and the interest on the Securities of any series, as well as any premium thereon in case of redemption thereof prior to maturity, shall
be payable in the coin or currency of the United States of America that at the time is legal tender for public and private debt, at the
office or agency of the Company maintained for that purpose. Each Security shall be dated the date of its authentication. Interest on
the Securities shall be computed on the basis of a 360-day year composed of twelve 30-day months.
The interest installment on any Security that is
payable, and is punctually paid or duly provided for, on any Interest Payment Date for Securities of that series shall be paid to the
Person in whose name said Security (or one or more Predecessor Securities) is registered at the close of business on the regular record
date for such interest installment. In the event that any Security of a particular series or portion thereof is called for redemption
and the redemption date is subsequent to a regular record date with respect to any Interest Payment Date and prior to such Interest Payment
Date, interest on such Security will be paid upon presentation and surrender of such Security as provided in Section 3.3.
Any interest on any Security that is payable, but
is not punctually paid or duly provided for, on any Interest Payment Date for Securities of the same series (herein called “Defaulted
Interest”) shall forthwith cease to be payable to the registered holder on the relevant regular record date by virtue of having
been such holder; and such Defaulted Interest shall be paid by the Company, at its election, as provided in clause (i) or clause (ii)
below:
(i)
The Company may make payment of any Defaulted Interest on Securities to the Persons in whose names such Securities (or their respective
Predecessor Securities) are registered at the close of business on a special record date for the payment of such Defaulted Interest, which
shall be fixed in the following manner: the Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to
be paid on each such Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an
amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory
to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit
of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special record date for
the payment of such Defaulted Interest which shall not be more than 15 nor less than 10 days prior to the date of the proposed payment
and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the
Company of such special record date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of
such Defaulted Interest and the special record date therefor to be mailed, first class postage prepaid, to each Securityholder at his
or her address as it appears in the Security Register (as hereinafter defined), not less than 10 days prior to such special record date.
Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been mailed as aforesaid, such Defaulted
Interest shall be paid to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered on such
special record date.
(ii)
The Company may make payment of any Defaulted Interest on any Securities in any other lawful manner not inconsistent with the requirements
of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange, if, after
notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable
by the Trustee.
Unless otherwise set forth in a Board Resolution
or one or more indentures supplemental hereto establishing the terms of any series of Securities pursuant to Section 2.1 hereof,
the term “regular record date” as used in this Section with respect to a series of Securities and any Interest Payment
Date for such series shall mean either the fifteenth day of the month immediately preceding the month in which an Interest Payment Date
established for such series pursuant to Section 2.1 hereof shall occur, if such Interest Payment Date is the first day of a month,
or the first day of the month in which an Interest Payment Date established for such series pursuant to Section 2.1 hereof shall
occur, if such Interest Payment Date is the fifteenth day of a month, whether or not such date is a Business Day.
Subject to the foregoing provisions of this Section,
each Security of a series delivered under this Indenture upon transfer of or in exchange for or in lieu of any other Security of such
series shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Security.
Section 2.4.
Execution and Authentications. The Securities shall be signed on behalf of the Company by one of its Officers. Signatures
may be in the form of a manual or facsimile signature. The Company may use the facsimile signature of any Person who shall have been an
Officer, notwithstanding the fact that at the time the Securities shall be authenticated and delivered or disposed of such Person shall
have ceased to be such an officer of the Company. The Securities may contain such notations, legends or endorsements required by law,
stock exchange rule or usage. Each Security shall be dated the date of its authentication by the Trustee.
A Security shall not be valid until authenticated
manually by an authorized signatory of the Trustee, or by an Authenticating Agent. Such signature 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. At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of
any series executed by the Company to the Trustee for authentication, together with a written order of the Company for the authentication
and delivery of such Securities, signed by an Officer, and the Trustee in accordance with such written order shall authenticate and deliver
such Securities.
In authenticating such Securities and accepting
the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, if requested,
and (subject to Section 7.1) shall be fully protected in relying upon, an Opinion of Counsel stating that the form and terms thereof
have been established in conformity with the provisions of this Indenture.
The Trustee shall not be required to authenticate
such Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities
under the Securities and this Indenture or otherwise in a manner that is not reasonably acceptable to the Trustee.
Section 2.5.
Registration of Transfer and Exchange.
(a)
Securities of any series may be exchanged upon presentation thereof at the office or agency of the Company designated for such
purpose, for other Securities of such series of authorized denominations, and for a like aggregate principal amount, upon payment of a
sum sufficient to cover any tax or other governmental charge in relation thereto, all as provided in this Section. In respect of any Securities
so surrendered for exchange, the Company shall execute, the Trustee shall authenticate and such office or agency shall deliver in exchange
therefor the Security or Securities of the same series that the Securityholder making the exchange shall be entitled to receive, bearing
numbers not contemporaneously outstanding.
(b)
The Company shall keep, or cause to be kept, at its office or agency designated for such purpose a register or registers (herein
referred to as the “Security Register”) in which, subject to such reasonable regulations as it may prescribe, the Company
shall register the Securities and the transfers of Securities as in this Article provided and which at all reasonable times shall be open
for inspection by the Trustee. The registrar for the purpose of registering Securities and transfer of Securities as herein provided shall
be appointed as authorized by Board Resolution (the “Security Registrar”).
Upon surrender for transfer of any Security at
the office or agency of the Company designated for such purpose, the Company shall execute, the Trustee shall authenticate and such office
or agency shall deliver in the name of the transferee or transferees a new Security or Securities of the same series as the Security presented
for a like aggregate principal amount.
All Securities presented or surrendered for exchange
or registration of transfer, as provided in this Section, shall be accompanied (if so required by the Company or the Security Registrar)
by a written instrument or instruments of transfer, in form satisfactory to the Company or the Security Registrar, duly executed by the
registered holder or by such holder’s duly authorized attorney in writing.
(c)
Except as provided pursuant to Section 2.1 pursuant to a Board Resolution, and set forth in an Officer’s Certificate,
or established in one or more indentures supplemental to this Indenture, no service charge shall be made for any exchange or registration
of transfer of Securities, or issue of new Securities in case of partial redemption of any series, but the Company may require payment
of a sum sufficient to cover any tax or other governmental charge in relation thereto, other than exchanges pursuant to Section 2.6,
Section 3.3(b) and Section 9.4 not involving any transfer.
(d)
The Company shall not be required (i) to issue, exchange or register the transfer of any Securities during a period beginning
at the opening of business 15 days before the day of the mailing of a notice of redemption of less than all the Outstanding Securities
of the same series and ending at the close of business on the day of such mailing, nor (ii) to register the transfer of or exchange
any Securities of any series or portions thereof called for redemption, other than the unredeemed portion of any such Securities being
redeemed in part. The provisions of this Section 2.5 are, with respect to any Global Security, subject to Section 2.11 hereof.
Section 2.6.
Temporary Securities. Pending the preparation of definitive Securities of any series, the Company may execute, and the
Trustee shall authenticate and deliver, temporary Securities (printed, lithographed or typewritten) of any authorized denomination. Such
temporary Securities shall be substantially in the form of the definitive Securities in lieu of which they are issued, but with such omissions,
insertions and variations as may be appropriate for temporary Securities, all as may be determined by the Company. Every temporary Security
of any series shall be executed by the Company and be authenticated by the Trustee upon the same conditions and in substantially the same
manner, and with like effect, as the definitive Securities of such series. Without unnecessary delay the Company will execute and will
furnish definitive Securities of such series and thereupon any or all temporary Securities of such series may be surrendered in exchange
therefor (without charge to the holders), at the office or agency of the Company designated for the purpose, and the Trustee shall authenticate
and such office or agency shall deliver in exchange for such temporary Securities an equal aggregate principal amount of definitive Securities
of such series, unless the Company advises the Trustee to the effect that definitive Securities need not be executed and furnished until
further notice from the Company. Until so exchanged, the temporary Securities of such series shall be entitled to the same benefits under
this Indenture as definitive Securities of such series authenticated and delivered hereunder.
Section 2.7.
Mutilated, Destroyed, Lost or Stolen Securities. In case any temporary or definitive Security shall become mutilated
or be destroyed, lost or stolen, the Company (subject to the next succeeding sentence) shall execute, and upon the Company’s request
the Trustee (subject as aforesaid) shall authenticate and deliver, a new Security of the same series, bearing a number not contemporaneously
outstanding, in exchange and substitution for the mutilated Security, or in lieu of and in substitution for the Security so destroyed,
lost or stolen. In every case the applicant for a substituted Security shall furnish to the Company and the Trustee such security or indemnity
as may be required by them to save each of them harmless, and, in every case of destruction, loss or theft, the applicant shall also furnish
to the Company and the Trustee evidence to their satisfaction of the destruction, loss or theft of the applicant’s Security and
of the ownership thereof. The Trustee may authenticate any such substituted Security and deliver the same upon the written request or
authorization of any officer of the Company. Upon the issuance of any substituted Security, the Company 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) connected therewith.
In case any Security that has matured or is about
to mature shall become mutilated or be destroyed, lost or stolen, the Company 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 Security) if the applicant for such payment shall
furnish to the Company and the Trustee such security or indemnity as they may require to save them harmless, and, in case of destruction,
loss or theft, evidence to the satisfaction of the Company and the Trustee of the destruction, loss or theft of such Security and of the
ownership thereof.
Every replacement Security issued pursuant to the
provisions of this Section shall constitute an additional contractual obligation of the Company whether or not the mutilated, destroyed,
lost or stolen Security shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Indenture
equally and proportionately with any and all other Securities of the same series duly issued hereunder. All Securities shall be held and
owned upon the express condition that the foregoing provisions are exclusive with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities, and shall preclude (to the extent lawful) any and all other rights or remedies, notwithstanding
any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments
or other securities without their surrender.
Section 2.8.
Cancellation. All Securities surrendered for the purpose of payment, redemption, exchange or registration of transfer
shall, if surrendered to the Company or any paying agent, be delivered to the Trustee for cancellation, or, if surrendered to the Trustee,
shall be cancelled by it, and no Securities shall be issued in lieu thereof except as expressly required or permitted by any of the provisions
of this Indenture. On request of the Company at the time of such surrender, the Trustee shall deliver to the Company canceled Securities
held by the Trustee. In the absence of such request the Trustee may dispose of canceled Securities in accordance with its standard procedures
and deliver a certificate of disposition to the Company. If the Company shall otherwise acquire any of the Securities, however, 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 2.9.
Benefits of Indenture. Nothing in this Indenture or in the Securities, express or implied, shall give or be construed
to give to any Person, other than the parties hereto and the holders of the Securities any legal or equitable right, remedy or claim under
or in respect of this Indenture, or under any covenant, condition or provision herein contained; all such covenants, conditions and provisions
being for the sole benefit of the parties hereto and of the holders of the Securities.
Section 2.10.
Authenticating Agent. So long as any of the Securities of any series remain Outstanding there may be an Authenticating
Agent for any or all such series of Securities which the Trustee shall have the right to appoint. Said Authenticating Agent shall be authorized
to act on behalf of the Trustee to authenticate Securities of such series issued upon exchange, transfer or partial redemption thereof,
and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes
as if authenticated by the Trustee hereunder. All references in this Indenture to the authentication of Securities by the Trustee shall
be deemed to include authentication by an Authenticating Agent for such series. Each Authenticating Agent shall be acceptable to the Company
and shall be a corporation that has a combined capital and surplus, as most recently reported or determined by it, sufficient under the
laws of any jurisdiction under which it is organized or in which it is doing business to conduct a trust business, and that is otherwise
authorized under such laws to conduct such business and is subject to supervision or examination by federal or state authorities. If at
any time any Authenticating Agent shall cease to be eligible in accordance with these provisions, it shall resign immediately.
Any Authenticating Agent may at any time resign
by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time (and upon request by the Company
shall) terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent and to the
Company. Upon resignation, termination or cessation of eligibility of any Authenticating Agent, the Trustee may appoint an eligible successor
Authenticating Agent acceptable to the Company. Any successor Authenticating Agent, upon acceptance of its appointment hereunder, shall
become vested with all the rights, powers and duties of its predecessor hereunder as if originally named as an Authenticating Agent pursuant
hereto.
Section 2.11.
Global Securities.
(a)
If the Company shall establish pursuant to Section 2.1 that the Securities of a particular series are to be issued as a Global
Security, then the Company shall execute and the Trustee shall, in accordance with Section 2.4, authenticate and deliver, a Global
Security that (i) shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, all of the Outstanding
Securities of such series, (ii) shall be registered in the name of the Depositary or its nominee, (iii) shall be delivered by
the Trustee to the Depositary or pursuant to the Depositary’s instruction and (iv) shall bear a legend substantially to the
following effect: “Except as otherwise provided in Section 2.11 of the Indenture, this Security may be transferred, in whole
but not in part, only to another nominee of the Depositary or to a successor Depositary or to a nominee of such successor Depositary.”
(b)
Notwithstanding the provisions of Section 2.5, the Global Security of a series may be transferred, in whole but not in part
and in the manner provided in Section 2.5, only to another nominee of the Depositary for such series, or to a successor Depositary
for such series selected or approved by the Company or to a nominee of such successor Depositary.
(c)
If at any time the Depositary for a series of the Securities notifies the Company that it is unwilling or unable to continue as
Depositary for such series or if at any time the Depositary for such series shall no longer be registered or in good standing under the
Exchange Act, or other applicable statute or regulation, and a successor Depositary for such series is not appointed by the Company within
90 days after the Company receives such notice or becomes aware of such condition, as the case may be, or if an Event of Default has occurred
and is continuing and the Company has received a request from the Depositary or from the Trustee, this Section 2.11 shall no longer
be applicable to the Securities of such series and the Company will execute, and subject to Section 2.4, the Trustee will authenticate
and deliver the Securities of such series in definitive registered form without coupons, in authorized denominations, and in an aggregate
principal amount equal to the principal amount of the Global Security of such series in exchange for such Global Security. In addition,
the Company may at any time determine that the Securities of any series shall no longer be represented by a Global Security and that the
provisions of this Section 2.11 shall no longer apply to the Securities of such series. In such event the Company will execute and,
subject to Section 2.4, the Trustee, upon receipt of an Officer’s Certificate evidencing such determination by the Company,
will authenticate and deliver the Securities of such series in definitive registered form without coupons, in authorized denominations,
and in an aggregate principal amount equal to the principal amount of the Global Security of such series in exchange for such Global Security.
Upon the exchange of the Global Security for such Securities in definitive registered form without coupons, in authorized denominations,
the Global Security shall be canceled by the Trustee. Such Securities in definitive registered form issued in exchange for the Global
Security pursuant to this Section 2.11(c) shall be registered in such names and in such authorized denominations as the Depositary,
pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee. The Trustee shall deliver
such Securities to the Depositary for delivery to the Persons in whose names such Securities are so registered.
ARTICLE III
REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS
Section 3.1.
Redemption. The Company may redeem the Securities of any series issued hereunder on and after the dates and in accordance
with the terms established for such series pursuant to Section 2.1 hereof.
Section 3.2.
Notice of Redemption.
(a)
In case the Company shall desire to exercise such right to redeem all or, as the case may be, a portion of the Securities of any
series in accordance with any right the Company reserved for itself to do so pursuant to Section 2.1 hereof, the Company shall, or
shall cause the Trustee to, give notice of such redemption to holders of the Securities of such series to be redeemed by mailing, first
class postage prepaid, a notice of such redemption not less than 30 days and not more than 90 days before the date fixed for redemption
of that series to such holders at their last addresses as they shall appear upon the Security Register, unless a shorter period is specified
in the Securities to be redeemed. Any notice that is mailed in the manner herein provided shall be conclusively presumed to have been
duly given, whether or not the registered holder receives the notice. In any case, failure duly to give such notice to the holder of any
Security of any series designated for redemption in whole or in part, or any defect in the notice, shall not affect the validity of the
proceedings for the redemption of any other Securities of such series or any other series. In the case of any redemption of Securities
prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture,
the Company shall furnish the Trustee with an Officer’s Certificate evidencing compliance with any such restriction.
Each such notice of redemption shall specify the
date fixed for redemption and the redemption price at which Securities of that series are to be redeemed, and shall state that payment
of the redemption price of such Securities to be redeemed will be made at the office or agency of the Company, upon presentation and surrender
of such Securities, that interest accrued to the date fixed for redemption will be paid as specified in said notice, that from and after
said date interest will cease to accrue and that the redemption is from a sinking fund, if such is the case. If less than all the Securities
of a series are to be redeemed, the notice to the holders of Securities of that series to be redeemed in part shall specify the particular
Securities to be so redeemed.
In case any Security is to be redeemed in part
only, the notice that relates to such Security shall state the portion of the principal amount thereof to be redeemed, and shall state
that on and after the redemption date, 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.
(b)
If less than all the Securities of a series are to be redeemed, the Company shall give the Trustee at least 45 days’ notice
(unless a shorter notice shall be satisfactory to the Trustee) in advance of the date fixed for redemption as to the aggregate principal
amount of Securities of the series to be redeemed, and thereupon the Trustee shall select, by lot or in such other manner as it shall
deem appropriate and fair in its discretion and that may provide for the selection of a portion or portions (equal to one thousand U.S.
dollars ($1,000) or any integral multiple thereof) of the principal amount of such Securities of a denomination larger than $1,000, the
Securities to be redeemed and shall thereafter promptly notify the Company in writing of the numbers of the Securities to be redeemed,
in whole or in part. The Company may, if and whenever it shall so elect, by delivery of instructions signed on its behalf by an Officer,
instruct the Trustee or any paying agent to call all or any part of the Securities of a particular series for redemption and to give notice
of redemption in the manner set forth in this Section, such notice to be in the name of the Company or its own name as the Trustee or
such paying agent may deem advisable. In any case in which notice of redemption is to be given by the Trustee or any such paying agent,
the Company shall deliver or cause to be delivered to, or permit to remain with, the Trustee or such paying agent, as the case may be,
such Security Register, transfer books or other records, or suitable copies or extracts therefrom, sufficient to enable the Trustee or
such paying agent to give any notice by mail that may be required under the provisions of this Section.
Section 3.3.
Payment Upon Redemption.
(a)
If the giving of notice of redemption shall have been completed as above provided, the Securities or portions of Securities of
the series to be redeemed 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 interest on such Securities or portions
of Securities shall cease to accrue on and after the date fixed for redemption, unless the Company shall default in the payment of such
redemption price and accrued interest with respect to any such Security or portion thereof. On presentation and surrender of such Securities
on or after the date fixed for redemption at the place of payment specified in the notice, said Securities shall be paid and redeemed
at the applicable redemption price for such series, together with interest accrued thereon to the date fixed for redemption (but if the
date fixed for redemption is an interest payment date, the interest installment payable on such date shall be payable to the registered
holder at the close of business on the applicable record date pursuant to Section 2.3).
(b)
Upon presentation of any Security of such series that is to be redeemed in part only, the Company shall execute and the Trustee
shall authenticate and the office or agency where the Security is presented shall deliver to the holder thereof, at the expense of the
Company, a new Security of the same series of authorized denominations in principal amount equal to the unredeemed portion of the Security
so presented.
Section 3.4.
Sinking Fund. The provisions of Sections 3.4, 3.5 and 3.6 shall be applicable to any sinking fund for the retirement
of Securities of a series, except as otherwise specified as contemplated by Section 2.1 for Securities of such series.
The minimum amount of any sinking fund payment
provided for by the terms of Securities of any series is herein referred to as a “mandatory sinking fund payment,” and any
payment in excess of such minimum amount provided for by the terms of Securities of any series is herein referred to as an “optional
sinking fund payment”. If provided for by the terms of Securities of any series, the cash amount of any sinking fund payment may
be subject to reduction as provided in Section 3.5. Each sinking fund payment shall be applied to the redemption of Securities of
any series as provided for by the terms of Securities of such series.
Section 3.5.
Satisfaction of Sinking Fund Payments with Securities. The Company (i) may deliver Outstanding Securities of a series
and (ii) may apply as a credit Securities of a series that have been redeemed either at the election of the Company pursuant to the
terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities,
in each case in satisfaction of all or any part of any sinking fund payment with respect to the Securities of such series required to
be made pursuant to the terms of such Securities as provided for by the terms of such series, provided that such Securities have not been
previously so credited. Such Securities shall be received and credited for such purpose by the Trustee at the redemption price specified
in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.
Section 3.6.
Redemption of Securities for Sinking Fund. Not less than 45 days prior to each sinking fund payment date for any series
of Securities (unless a shorter period shall be satisfactory to the Trustee), the Company will deliver to the Trustee an Officer’s
Certificate specifying the amount of the next ensuing sinking fund payment for that series pursuant to the terms of the series, the portion
thereof, if any, that is to be satisfied by delivering and crediting Securities of that series pursuant to Section 3.5 and the basis
for such credit and will, together with such Officer’s Certificate, deliver to the Trustee any Securities to be so delivered. Not
less than 30 days before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking
fund payment date in the manner specified in Section 3.2 and cause notice of the redemption thereof to be given in the name of and
at the expense of the Company in the manner provided in Section 3.2. Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Section 3.3.
ARTICLE IV
COVENANTS
Section 4.1.
Payment of Principal, Premium and Interest. The Company will duly and punctually pay or cause to be paid the principal
of (and premium, if any) and interest on the Securities of that series at the time and place and in the manner provided herein and established
with respect to such Securities. Payments of principal on the Securities may be made at the time provided herein and established with
respect to such Securities by U.S. dollar check drawn on and mailed to the address of the Securityholder entitled thereto as such address
shall appear in the Security Register, or U.S. dollar wire transfer to, a U.S. dollar account (such wire transfer to be made only to a
Securityholder of an aggregate principal amount of Securities of the applicable series in excess of U.S. $2,000,000 and only if such Securityholder
shall have furnished wire instructions to the Trustee no later than 15 days prior to the relevant payment date). Payments of interest
on the Securities may be made at the time provided herein and established with respect to such Securities by U.S. dollar check mailed
to the address of the Securityholder entitled thereto as such address shall appear in the Security Register, or U.S. dollar wire transfer
to, a U.S. dollar account (such a wire transfer to be made only to a Securityholder of an aggregate principal amount of Securities of
the applicable series in excess of U.S. $2,000,000 and only if such Securityholder shall have furnished wire instructions in writing to
the Security Registrar and the Trustee no later than 15 days prior to the relevant payment date.
Section 4.2.
Maintenance of Office or Agency. So long as any series of the Securities remain Outstanding, the Company agrees to maintain
an office or agency with respect to each such series and at such other location or locations as may be designated as provided in this
Section 4.2, where (i) Securities of that series may be presented for payment, (ii) Securities of that series may be presented
as herein above authorized for registration of transfer and exchange, and (iii) notices and demands to or upon the Company in respect
of the Securities of that series and this Indenture may be given or served, such designation to continue with respect to such office or
agency until the Company shall, by written notice signed by any officer authorized to sign an Officer’s Certificate and delivered
to the Trustee, designate some other office or agency for such purposes or any of them. If at any time the Company shall fail to maintain
any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, notices and demands
may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive
all such presentations, notices and demands. The Company initially appoints the Corporate Trust Office of the Trustee as its paying agent
with respect to the Securities.
Section 4.3.
Paying Agents.
(a)
If the Company shall appoint one or more paying agents for all or any series of the Securities, other than the Trustee, the Company
will cause each 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:
(i)
that it will hold all sums held by it as such agent for the payment of the principal of (and premium, if any) or interest on the
Securities of that series (whether such sums have been paid to it by the Company or by any other obligor of such Securities) in trust
for the benefit of the Persons entitled thereto;
(ii)
that it will give the Trustee notice of any failure by the Company (or by any other obligor of such Securities) to make any payment
of the principal of (and premium, if any) or interest on the Securities of that series when the same shall be due and payable;
(iii)
that it will, at any time during the continuance of any failure referred to in the preceding paragraph (a)(ii) above, upon the
written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such paying agent; and
(iv)
that it will perform all other duties of paying agent as set forth in this Indenture.
(b)
If the Company shall act as its own paying agent with respect to any series of the Securities, it will on or before each due date
of the principal of (and premium, if any) or interest on Securities of that series, set aside, segregate and hold in trust for the benefit
of the Persons entitled thereto a sum sufficient to pay such principal (and premium, if any) or interest so becoming due on Securities
of that series until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the
Trustee of such action, or any failure (by it or any other obligor on such Securities) to take such action. Whenever the Company shall
have one or more paying agents for any series of Securities, it will, prior to each due date of the principal of (and premium, if any)
or interest on any Securities of that series, deposit with the paying agent a sum sufficient to pay the principal (and premium, if any)
or interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest,
and (unless such paying agent is the Trustee) the Company will promptly notify the Trustee of this action or failure so to act.
(c)
Notwithstanding anything in this Section to the contrary, (i) the agreement to hold sums in trust as provided in this
Section is subject to the provisions of Section 11.5, and (ii) the Company may at any time, for the purpose of obtaining
the satisfaction and discharge of this Indenture or for any other purpose, pay, or direct any paying agent to pay, to the Trustee all
sums held in trust by the Company or such paying agent, such sums to be held by the Trustee upon the same terms and conditions as those
upon which such sums were held by the Company or such paying agent; and, upon such payment by the Company or any paying agent to the Trustee,
the Company or such paying agent shall be released from all further liability with respect to such money.
Section 4.4.
Appointment to Fill Vacancy in Office of Trustee. The Company, whenever necessary to avoid or fill a vacancy in the office
of Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so that there shall at all times be a Trustee hereunder.
Section 4.5.
Compliance with Consolidation Provisions. The Company will not, while any of the Securities remain Outstanding, consolidate
with or merge into any other Person, in either case where the Company is not the survivor of such transaction, or sell or convey all or
substantially all of its property to any other Person unless the provisions of Article X hereof are complied with.
ARTICLE V
SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
Section 5.1.
Company to Furnish Trustee Names and Addresses of Securityholders. The Company will furnish or cause to be furnished
to the Trustee (a) within 15 days after each regular record date (as defined in Section 2.3) a list, in such form as the Trustee
may reasonably require, of the names and addresses of the holders of each series of Securities as of such regular record date, provided
that the Company shall not be obligated to furnish or cause to furnish such list at any time that the list shall not differ in any respect
from the most recent list furnished to the Trustee by the Company and (b) at such other times as the Trustee may request in writing
within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15
days prior to the time such list is furnished; provided, however, that, in either case, no such list need be furnished for any series
for which the Trustee shall be the Security Registrar.
Section 5.2.
Preservation of Information; Communications With Securityholders.
(a)
The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of
the holders of Securities contained in the most recent list furnished to it as provided in Section 5.1 and as to the names and addresses
of holders of Securities received by the Trustee in its capacity as Security Registrar (if acting in such capacity).
(b)
The Trustee may destroy any list furnished to it as provided in Section 5.1 upon receipt of a new list so furnished.
(c)
Securityholders may communicate as provided in Section 312(b) of the Trust Indenture Act with other Securityholders with respect
to their rights under this Indenture or under the Securities, and, in connection with any such communications, the Trustee shall satisfy
its obligations under Section 312(b) of the Trust Indenture Act in accordance with the provisions of Section 312(b) of the Trust
Indenture Act.
Section 5.3.
Reports by the Company. The Company covenants and agrees to provide (which delivery may be via electronic mail) to the
Trustee, after the Company files the same with the Securities and Exchange Commission, copies of the annual reports and of the information,
documents and other reports (or copies of such portions of any of the foregoing as the Securities and Exchange Commission may from time
to time by rules and regulations prescribe) that the Company files with the Securities and Exchange Commission pursuant to Section 13
or Section 15(d) of the Exchange Act; provided, however, the Company shall not be required to deliver to the Trustee any materials
for which the Company has sought and received confidential treatment by the Securities and Exchange Commission; and provided further,
so long as such filings by the Company are available on the Securities and Exchange Commission’s Electronic Data Gathering, Analysis
and Retrieval System (EDGAR), such filings shall be deemed to have been filed with the Trustee for purposes of this Section 5.3 without
any further action required by the Company.
Section 5.4.
Reports by the Trustee.
(a)
If required by Section 313(a) of the Trust Indenture Act, the Trustee, within 60 days after each May 1, shall transmit
by mail, first class postage prepaid, to the Securityholders, as their names and addresses appear upon the Security Register, a brief
report dated as of such May 1, which complies with Section 313(a) of the Trust Indenture Act.
(b)
The Trustee shall comply with Section 313(b) and 313(c) of the Trust Indenture Act.
(c)
A copy of each such report shall, at the time of such transmission to Securityholders, be filed by the Trustee with the Company,
with each securities exchange upon which any Securities are listed (if so listed) and also with the Securities and Exchange Commission.
The Company agrees to notify the Trustee when any Securities become listed on any securities exchange.
ARTICLE VI
REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
Section 6.1.
Events of Default.
(a)
Whenever used herein with respect to Securities of a particular series, “Event of Default” means any one or more of
the following events that has occurred and is continuing:
(i)
the Company defaults in the payment of any installment of interest upon any of the Securities of that series, as and when the same
shall become due and payable, and such default continues for a period of 90 days; provided, however, that a valid extension of an interest
payment period by the Company in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the
payment of interest for this purpose;
(ii)
the Company defaults in the payment of the principal of (or premium, if any, on) any of the Securities of that series as and when
the same shall become due and payable whether at maturity, upon redemption, by declaration or otherwise, or in any payment required by
any sinking or analogous fund established with respect to that series; provided, however, that a valid extension of the maturity of such
Securities in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the payment of principal
or premium, if any;
(iii)
the Company fails to observe or perform any other of its covenants or agreements with respect to that series contained in this
Indenture or otherwise established with respect to that series of Securities pursuant to Section 2.1 hereof (other than a covenant
or agreement that has been expressly included in this Indenture solely for the benefit of one or more series of Securities other than
such series) for a period of 90 days after the date on which written notice of such failure, requiring the same to be remedied and stating
that such notice is a “Notice of Default” hereunder, shall have been given to the Company by the Trustee, by registered or
certified mail, or to the Company and the Trustee by the holders of at least 25% in principal amount of the Securities of that series
at the time Outstanding;
(iv)
the Company pursuant to or within the meaning of any Bankruptcy Law (i) commences a voluntary case, (ii) consents to
the entry of an order for relief against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for
all or substantially all of its property or (iv) makes a general assignment for the benefit of its creditors; or
(v)
a court of competent jurisdiction enters an order under any Bankruptcy Law that (i) is for relief against the Company in an
involuntary case, (ii) appoints a Custodian of the Company for all or substantially all of its property or (iii) orders the
liquidation of the Company, and the order or decree remains unstayed and in effect for 90 days.
(b)
In each and every such case (other than an Event of Default specified in clause (iv) or clause (v) above), unless the
principal of all the Securities of that 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 that series then Outstanding hereunder, by notice in writing to the Company
(and to the Trustee if given by such Securityholders), may declare the principal of (and premium, if any, on) and accrued and unpaid interest
on all the Securities of that series to be due and payable immediately, and upon any such declaration the same shall become and shall
be immediately due and payable. If an Event of Default specified in clause (iv) or clause (v) above occurs, the principal of and accrued
and unpaid interest on all the Securities of that series shall automatically be immediately due and payable without any declaration or
other act on the part of the Trustee or the holders of the Securities.
(c)
At any time after the principal of (and premium, if any, on) and accrued and unpaid interest on the Securities of that series shall
have been so declared due and payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or
entered as hereinafter provided, the holders of a majority in aggregate principal amount of the Securities of that series then Outstanding
hereunder, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if: (i) the
Company has paid or deposited with the Trustee a sum sufficient to pay all matured installments of interest upon all the Securities of
that series and the principal of (and premium, if any, on) any and all Securities of that series that shall have become due otherwise
than by acceleration (with interest upon such principal and premium, if any, and, to the extent that such payment is enforceable under
applicable law, upon overdue installments of interest, at the rate per annum expressed in the Securities of that series to the date of
such payment or deposit) and the amount payable to the Trustee under Section 7.6, and (ii) any and all Events of Default under
the Indenture with respect to such series, other than the nonpayment of principal on (and premium, if any, on) and accrued and unpaid
interest on Securities of that series that shall not have become due by their terms, shall have been remedied or waived as provided in
Section 6.6.
No such rescission and annulment shall extend to
or shall affect any subsequent default or impair any right consequent thereon.
(d)
In case the Trustee shall have proceeded to enforce any right with respect to Securities of that series under this Indenture and
such proceedings shall have been discontinued or abandoned because of such rescission or annulment or for any other reason or shall have
been determined adversely to the Trustee, then and in every such case, subject to any determination in such proceedings, the Company and
the Trustee shall be restored respectively to their former positions and rights hereunder, and all rights, remedies and powers of the
Company and the Trustee shall continue as though no such proceedings had been taken.
Section 6.2.
Collection of Indebtedness and Suits for Enforcement by Trustee.
(a)
The Company covenants that (i) in case it shall default in the payment of any installment of interest on any of the Securities
of a series, or in any payment required by any sinking or analogous fund established with respect to that series as and when the same
shall have become due and payable, and such default shall have continued for a period of 90 days, or (ii) in case it shall default
in the payment of the principal of (or premium, if any, on) any of the Securities of a series when the same shall have become due and
payable, whether upon maturity of the Securities of a series or upon redemption or upon declaration or otherwise then, upon demand of
the Trustee, the Company will pay to the Trustee, for the benefit of the holders of the Securities of that series, the whole amount that
then shall have been become due and payable on all such Securities for principal (and premium, if any) or interest, or both, as the case
may be, with interest upon the overdue principal (and premium, if any) and (to the extent that payment of such interest is enforceable
under applicable law) upon overdue installments of interest at the rate per annum expressed in the Securities of that series; and, in
addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, and the amount payable to
the Trustee under Section 7.6.
(b)
If the Company shall fail to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express
trust, 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 proceeding to judgment or final decree, and may enforce any such judgment or final decree
against the Company or other obligor upon the Securities of that series and collect the moneys adjudged or decreed to be payable in the
manner provided by law or equity out of the property of the Company or other obligor upon the Securities of that series, wherever situated.
(c)
In case of any receivership, insolvency, liquidation, bankruptcy, reorganization, readjustment, arrangement, composition or judicial
proceedings affecting the Company, or its creditors or property, the Trustee shall have power to intervene in such proceedings and take
any action therein that may be permitted by the court and shall (except as may be otherwise provided by law) be entitled to file such
proofs of claim and other papers and documents as may be necessary or advisable in order to have the claims of the Trustee and of the
holders of Securities of such series allowed for the entire amount due and payable by the Company under the Indenture at the date of institution
of such proceedings and for any additional amount that may become due and payable by the Company after such date, and to collect and receive
any moneys or other property payable or deliverable on any such claim, and to distribute the same after the deduction of the amount payable
to the Trustee under Section 7.6; and any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each
of the holders of Securities of such series to make such payments to the Trustee, and, in the event that the Trustee shall consent to
the making of such payments directly to such Securityholders, to pay to the Trustee any amount due it under Section 7.6.
(d)
All rights of action and of asserting claims under this Indenture, or under any of the terms established with respect to Securities
of that series, may be enforced by the Trustee without the possession of any of such Securities, or the production thereof at any trial
or other proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its own name as trustee
of an express trust, and any recovery of judgment shall, after provision for payment to the Trustee of any amounts due under Section 7.6,
be for the ratable benefit of the holders of the Securities of such series.
In case of an Event of Default hereunder, the Trustee
may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings
as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise,
whether for the specific enforcement of any covenant or agreement contained in the 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.
Nothing contained herein shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any Securityholder any plan of reorganization, arrangement, adjustment
or composition affecting the Securities of that 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.
Section 6.3.
Application of Moneys Collected. Any moneys collected by the Trustee pursuant to this Article with respect to a particular
series of Securities shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution
of such moneys on account of principal (or premium, if any) or interest, upon presentation of the Securities of that series, and notation
thereon of the payment, if only partially paid, and upon surrender thereof if fully paid:
FIRST: To the payment of reasonable costs and expenses
of collection and of all amounts payable to the Trustee under Section 7.6;
SECOND: To the payment of the amounts then due
and unpaid upon Securities of such series for principal (and premium, if any) and interest, in respect of which or for the benefit of
which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on
such Securities for principal (and premium, if any) and interest, respectively; and
THIRD: To the payment of the remainder,
if any, to the Company or any other Person lawfully entitled thereto.
Section 6.4.
Limitation on Suits. 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 suit, action or proceeding in equity or at law upon or under or with respect to this Indenture or for
the appointment of a receiver or trustee, or for any other remedy hereunder, unless (i) such holder previously shall have given to
the Trustee written notice of an Event of Default and of the continuance thereof with respect to the Securities of such series specifying
such Event of Default, as hereinbefore provided; (ii) 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, suit or proceeding in its own
name as Trustee hereunder; (iii) such holder or holders shall have offered to the Trustee such reasonable indemnity as it may require
against the costs, expenses and liabilities to be incurred therein or thereby; (iv) the Trustee for 90 days after its receipt of
such notice, request and offer of indemnity, shall have failed to institute any such action, suit or proceeding and (v) during such
90 day period, the holders of a majority in principal amount of the Securities of that series do not give the Trustee a direction inconsistent
with the request.
Notwithstanding anything contained herein to the
contrary or any other provisions of this Indenture, the right of any holder of any Security to receive payment of the principal of (and
premium, if any) and interest on such Security, as therein provided, on or after the respective due dates expressed in such Security (or
in the case of redemption, on the redemption date), or to institute suit for the enforcement of any such payment on or after such respective
dates or redemption date, shall not be impaired or affected without the consent of such holder and by accepting a Security hereunder it
is expressly understood, intended and covenanted by the taker and holder of every Security of such series with every other such taker
and holder and the Trustee, that no one or more holders of Securities of such series shall have any right in any manner whatsoever by
virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of the holders of any other of such
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 such 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 6.5.
Rights and Remedies Cumulative; Delay or Omission Not Waiver.
(a)
Except as otherwise provided in Section 2.7, all powers and remedies given by this Article to the Trustee or to the Securityholders
shall, to the extent permitted by law, be deemed cumulative and not exclusive of any other powers and remedies available to the Trustee
or the holders of the Securities, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and
agreements contained in this Indenture or otherwise established with respect to such Securities.
(b)
No delay or omission of the Trustee or of any holder of any of the Securities 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 default or an acquiescence therein; and, subject to the provisions of Section 6.4, every power and remedy given by this Article
or by law to the Trustee or 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 6.6.
Control by Securityholders. The holders of a majority in aggregate principal amount of the Securities of any series at
the time Outstanding, determined in accordance with Section 8.4, 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 such
series; provided, however, that such direction shall not be in conflict with any rule of law or with this Indenture. Subject to the provisions
of Section 7.1, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a
Responsible Officer or officers of the Trustee, determine that the proceeding so directed, subject to the Trustee’s duties under
the Trust Indenture Act, would involve the Trustee in personal liability or might be unduly prejudicial to the Securityholders not involved
in the proceeding. The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding affected
thereby, determined in accordance with Section 8.4, may on behalf of the holders of all of the Securities of such series waive any
past default in the performance of any of the covenants contained herein or established pursuant to Section 2.1 with respect to such
series and its consequences, except a default in the payment of the principal of, or premium, if any, or interest on, any of the Securities
of that series as and when the same shall become due by the terms of such Securities otherwise than by acceleration (unless such default
has been cured and a sum sufficient to pay all matured installments of interest and principal and any premium has been deposited with
the Trustee (in accordance with Section 6.1(c)). Upon any such waiver, the default covered thereby shall be deemed to be cured for
all purposes of this Indenture and the Company, the Trustee and the holders of the Securities of such series shall be restored to their
former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other default or impair any
right consequent thereon.
Section 6.7.
Undertaking to Pay Costs. All parties to this Indenture agree, and each holder of any Securities by such holder’s
acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing
by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable
costs, including reasonable attorneys’ fees, 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; but the provisions of this Section shall not apply to any suit instituted
by the Trustee, to any suit instituted by any Securityholder, or group of Securityholders, holding more than 10% in aggregate principal
amount of the Outstanding Securities of any series, or to any suit instituted by any Securityholder for the enforcement of the payment
of the principal of (or premium, if any) or interest on any Security of such series, on or after the respective due dates expressed in
such Security or established pursuant to this Indenture.
ARTICLE VII
CONCERNING THE TRUSTEE
Section 7.1.
Certain Duties and Responsibilities of Trustee.
(a)
The Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing of
all Events of Default with respect to the Securities of that series that may have occurred, shall undertake to perform with respect to
the Securities of such series such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants
shall be read into this Indenture against the Trustee. In case an Event of Default with respect to the Securities of a series has occurred
(that has not been cured or waived), the Trustee shall exercise with respect to Securities of that series 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 man would exercise or use under
the circumstances in the conduct of his own affairs.
(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)
prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing or waiving of all
such Events of Default with respect to that series that may have occurred: (x) the duties and obligations of the Trustee shall with
respect to the Securities of such series be determined solely by the express provisions of this Indenture, and the Trustee shall not be
liable with respect to the Securities of such series 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 (y) in
the absence of bad faith on the part of the Trustee, the Trustee may with respect to the Securities of such series conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to
the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions that by any 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;
(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;
(iii)
the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with
the direction of the holders of not less than a majority in principal amount of the Securities of any series at the time Outstanding 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 with respect to the Securities of that series; and
(iv)
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 is reasonable
ground for believing that the repayment of such funds or liability is not reasonably assured to it under the terms of this Indenture or
adequate indemnity against such risk is not reasonably assured to it.
Section 7.2.
Certain Rights of Trustee. Except as otherwise provided in Section 7.1:
(a)
The Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, 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 Company mentioned herein shall be sufficiently evidenced by a Board Resolution or
an instrument signed in the name of the Company by any authorized officer of the Company (unless other evidence in respect thereof is
specifically prescribed herein);
(c)
The Trustee may consult with counsel and the written advice of such counsel or, if requested, any Opinion of Counsel shall be full
and complete authorization and protection in respect of any action taken or suffered or omitted hereunder in good faith and in reliance
thereon;
(d)
The Trustee shall be under no obligation to exercise any of the rights 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 that may be incurred therein or thereby;
nothing contained herein shall, however, relieve the Trustee of the obligation, upon the occurrence of an Event of Default with respect
to a series of the Securities (that has not been cured or waived), to exercise with respect to Securities of that series such of the rights
and powers vested in it by this Indenture, and to use the same degree of care and skill in their exercise, as a prudent man would exercise
or use under the circumstances in the conduct of his own affairs;
(e)
The Trustee shall not be liable for any action taken or omitted to be taken by it in good faith and believed by it to be authorized
or within the discretion or rights or powers conferred upon it by this Indenture;
(f)
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, bond, security, or other papers or documents, unless requested
in writing so to do by the holders of not less than a majority in principal amount of the Outstanding Securities of the particular series
affected thereby (determined as provided in Section 8.4); provided, however, 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
reasonable indemnity against such costs, expenses or liabilities as a condition to so proceeding. The reasonable expense of every such
examination shall be paid by the Company or, if paid by the Trustee, shall be repaid by the Company upon demand; and
(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 and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed
with due care by it hereunder.
In addition, the Trustee shall not be deemed to
have knowledge of any Default or Event of Default except (i) any Event of Default occurring pursuant to clause (i) or (ii) of Section 6.1(a)
or (ii) any Default or Event of Default of which the Trustee shall have received written notification in the manner set forth in
this Indenture or a Responsible Officer of the Trustee shall have obtained actual knowledge. Delivery of reports, information and documents
to the Trustee under Section 5.3 is for informational purposes only and the information and the Trustee’s receipt of the foregoing
shall not constitute constructive notice of any information contained therein, or determinable from information contained therein including
the Company’s compliance with any of their covenants thereunder (as to which the Trustee is entitled to rely exclusively on an Officer’s
Certificate).
Section 7.3.
Trustee Not Responsible for Recitals or Issuance or Securities.
(a)
The recitals contained herein and in the Securities shall be taken as the statements of the Company, and the Trustee assumes no
responsibility for the correctness of the same.
(b)
The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities.
(c)
The Trustee shall not be accountable for the use or application by the Company of any of the Securities or of the proceeds of such
Securities, or for the use or application of any moneys paid over by the Trustee in accordance with any provision of this Indenture or
established pursuant to Section 2.1, or for the use or application of any moneys received by any paying agent other than the Trustee.
Section 7.4.
May Hold Securities. The Trustee or any paying agent or Security Registrar, 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 Trustee, paying agent or Security Registrar.
Section 7.5.
Moneys Held in Trust. Subject to the provisions of Section 11.5, all moneys received by the Trustee shall, until
used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be segregated from other
funds except to the extent required by law. The Trustee shall be under no liability for interest on any moneys received by it hereunder
except such as it may agree with the Company to pay thereon.
Section 7.6.
Compensation and Reimbursement.
(a)
The Company covenants and agrees to pay to the Trustee, and the Trustee shall be entitled to, such reasonable compensation (which
shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust) as the Company and the Trustee
may from time to time agree in writing, for all services rendered by it in the execution of the trusts hereby created and in the exercise
and performance of any of the powers and duties hereunder of the Trustee, and, except as otherwise expressly provided herein, the Company
will pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee
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 Persons not regularly in its employ), except any such expense, disbursement or advance as may arise from its negligence
or bad faith and except as the Company and Trustee may from time to time agree in writing. The Company also covenants to indemnify the
Trustee (and its officers, agents, directors and employees) for, and to hold it harmless against, any loss, liability or expense incurred
without negligence or bad faith on the part of the Trustee and arising out of or in connection with the acceptance or administration of
this trust, including the reasonable costs and expenses of defending itself against any claim of liability in the premises.
(b)
The obligations of the Company under this Section to compensate and indemnify the Trustee and to pay or reimburse the Trustee
for reasonable expenses, disbursements and advances shall constitute additional indebtedness hereunder. Such additional indebtedness shall
be secured by a lien prior 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.
Section 7.7.
Reliance on Officer’s Certificate. Except as otherwise provided in Section 7.1, whenever in the administration
of the provisions of this Indenture the Trustee shall deem it reasonably necessary or desirable that a matter be proved or established
prior to taking or suffering or omitting to take 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 Officer’s 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 to be taken by it under the
provisions of this Indenture upon the faith thereof.
Section 7.8.
Disqualification; Conflicting Interests. If the Trustee has or shall acquire any “conflicting interest” within
the meaning of Section 310(b) of the Trust Indenture Act, the Trustee and the Company shall in all respects comply with the provisions
of Section 310(b) of the Trust Indenture Act.
Section 7.9.
Corporate Trustee Required; Eligibility. There shall at all times be a Trustee with respect to the Securities issued
hereunder which shall at all times be a corporation organized and doing business under the laws of the United States of America or any
state or territory thereof or of the District of Columbia, or a corporation or other Person permitted to act as trustee by the Securities
and Exchange Commission, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least
fifty million U.S. dollars ($50,000,000), and subject to supervision or examination by federal, state, territorial, or District of
Columbia authority.
If such corporation or other Person publishes reports
of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such corporation or other Person shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published. The Company may not, nor may any Person directly or indirectly
controlling, controlled by, or under common control with the Company, serve as Trustee. In case at any time the Trustee shall cease to
be eligible in accordance with the provisions of this Section, the Trustee shall resign immediately in the manner and with the effect
specified in Section 7.10.
Section 7.10.
Resignation and Removal; Appointment of Successor.
(a)
The Trustee or any successor hereafter appointed may at any time resign with respect to the Securities of one or more series by
giving written notice thereof to the Company and by transmitting notice of resignation by mail, first class postage prepaid, to the Securityholders
of such series, as their names and addresses appear upon the Security Register. Upon receiving such notice of resignation, the Company
shall promptly appoint a successor trustee with respect to Securities of such series by written instrument, in duplicate, executed by
order of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor
trustee. If no successor trustee shall have been so appointed and have accepted appointment within 30 days after the mailing of such notice
of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor trustee with
respect to Securities of such series, or any Securityholder of that series who has been a bona fide holder of a Security or Securities
for at least six months may 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 one of the following shall occur:
(i)
the Trustee shall fail to comply with the provisions of Section 7.8 after written request therefor by the Company or by any
Securityholder who has been a bona fide holder of a Security or Securities for at least six months; or
(ii)
the Trustee shall cease to be eligible in accordance with the provisions of Section 7.9 and shall fail to resign after written
request therefor by the Company or by any such Securityholder; or
(iii)
the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy
proceeding, or a receiver of the Trustee or of its property shall be appointed or consented to, 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 Company may remove the Trustee with respect to all Securities and appoint a successor trustee by written instrument, in duplicate,
executed by order of the Board of Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy to
the successor trustee, or any Securityholder who has been a bona fide holder of a Security or Securities for at least six months may,
on behalf of that holder and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor trustee. Such court may thereupon after such notice, if any, as it may deem proper and prescribe, remove
the Trustee and appoint a successor trustee.
(c)
The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding may at any time
remove the Trustee with respect to such series by so notifying the Trustee and the Company and may appoint a successor Trustee for such
series with the consent of the Company.
(d)
Any resignation or removal of the Trustee and appointment of a successor trustee with respect to the Securities of a series pursuant
to any of the provisions of this Section shall become effective upon acceptance of appointment by the successor trustee as provided
in Section 7.11.
(e)
Any successor trustee appointed pursuant to this Section may be appointed with respect to the Securities of one or more series
or all of such series, and at any time there shall be only one Trustee with respect to the Securities of any particular series.
Section 7.11.
Acceptance of Appointment By Successor.
(a)
In case of the appointment hereunder of a successor trustee with respect to all Securities, every such successor trustee so appointed
shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon
the resignation or removal of the retiring Trustee shall become effective and such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company
or the successor trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to
such successor trustee all the rights, powers, and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such
successor trustee all property and money held by such retiring Trustee hereunder.
(b)
In case of the appointment hereunder of a successor trustee with respect to the Securities of one or more (but not all) series,
the Company, the retiring Trustee and each successor trustee with respect to the Securities of one or more series shall execute and deliver
an indenture supplemental hereto wherein each successor trustee shall accept such appointment and which (i) shall contain such provisions
as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor trustee all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor trustee
relates, (ii) shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts
and duties of the retiring Trustee with respect to the Securities of that or those series as to which the retiring Trustee is not retiring
shall continue to be vested in the retiring Trustee, and (iii) 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, that each such Trustee
shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee
and that no Trustee shall be responsible for any act or failure to act on the part of any other Trustee hereunder; and upon the execution
and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent provided
therein, such retiring Trustee shall with respect to the Securities of that or those series to which the appointment of such successor
trustee relates have no further responsibility for the exercise of rights and powers or for the performance of the duties and obligations
vested in the Trustee under this Indenture, and each such successor trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to
which the appointment of such successor trustee relates; but, on request of the Company or any successor trustee, such retiring Trustee
shall duly assign, transfer and deliver to such successor trustee, to the extent contemplated by such supplemental indenture, the property
and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment of such
successor trustee relates.
(c)
Upon request of any such successor trustee, the Company shall execute any and all instruments for more fully and certainly vesting
in and confirming to such successor trustee all such rights, powers and trusts referred to in paragraph (a) or (b) of this Section,
as the case may be.
(d)
No successor trustee shall accept its appointment unless at the time of such acceptance such successor trustee shall be qualified
and eligible under this Article.
(e)
Upon acceptance of appointment by a successor trustee as provided in this Section, the Company shall transmit notice of the succession
of such trustee hereunder by mail, first class postage prepaid, to the Securityholders, as their names and addresses appear upon the Security
Register. If the Company fails to transmit such notice within ten days after acceptance of appointment by the successor trustee, the successor
trustee shall cause such notice to be transmitted at the expense of the Company.
Section 7.12.
Merger, Conversion, Consolidation or Succession to Business. 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 the corporate trust business of the Trustee, including the administration of
the trust created by this Indenture, shall be the successor of the Trustee hereunder, provided that such corporation shall be qualified
under the provisions of Section 7.8 and eligible under the provisions of Section 7.9, 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 any Securities
shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation
to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.
Section 7.13.
Preferential Collection of Claims Against the Company. The Trustee shall comply with Section 311(a) of the Trust
Indenture Act, excluding any creditor relationship described in Section 311(b) of the Trust Indenture Act. A Trustee who has resigned
or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the extent included therein.
Section 7.14.
Notice of Default. If any Default or any Event of Default occurs and is continuing and if such Default or Event of Default
is known to a Responsible Officer of the Trustee, the Trustee shall mail to each Securityholder in the manner and to the extent provided
in Section 313(c) of the Trust Indenture Act notice of the Default or Event of Default within the earlier of 90 days after it occurs
and 30 days after it is known to a Responsible Officer of the Trustee or written notice of it is received by the Trustee, unless such
Default or Event of Default has been cured; provided, however, that, except in the case of a default in the payment of the principal of
(or premium, if any) or interest on any Security, 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 and/or Responsible Officers of the Trustee in good faith determine
that the withholding of such notice is in the interest of the Securityholders.
ARTICLE VIII
CONCERNING THE SECURITYHOLDERS
Section 8.1.
Evidence of Action by Securityholders. Whenever in this Indenture it is provided that the holders of a majority or specified
percentage in aggregate principal amount of the Securities of a particular series may take any action (including the making of any demand
or request, the giving of any notice, consent or waiver or the taking of any other action), the fact that at the time of taking any such
action the holders of such majority or specified percentage of that series have joined therein may be evidenced by any instrument or any
number of instruments of similar tenor executed by such holders of Securities of that series in person or by agent or proxy appointed
in writing.
If the Company shall solicit from the Securityholders
of any series any request, demand, authorization, direction, notice, consent, waiver or other action, the Company may, at its option,
as evidenced by an Officer’s Certificate, fix in advance a record date for such series for the determination of Securityholders
entitled to give such request, demand, authorization, direction, notice, consent, waiver or other action, but the Company shall have no
obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other
action may be given before or after the record date, but only the Securityholders of record at the close of business on the record date
shall be deemed to be Securityholders for the purposes of determining whether Securityholders of the requisite proportion of Outstanding
Securities of that series have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver
or other action, and for that purpose the Outstanding Securities of that series shall be computed as of the record date; provided, however,
that no such authorization, agreement or consent by such Securityholders on the record date shall be deemed effective unless it shall
become effective pursuant to the provisions of this Indenture not later than six months after the record date.
Section 8.2.
Proof of Execution by Securityholders. Subject to the provisions of Section 7.1, proof of the execution of any instrument
by a Securityholder (such proof will not require notarization) or his agent or proxy and proof of the holding by any Person of any of
the Securities shall be sufficient if made in the following manner:
(a)
The fact and date of the execution by any such Person of any instrument may be proved in any reasonable manner acceptable to the
Trustee.
(b)
The ownership of Securities shall be proved by the Security Register of such Securities or by a certificate of the Security Registrar
thereof.
The Trustee may require such additional proof of
any matter referred to in this Section as it shall deem necessary.
Section 8.3.
Who May be Deemed Owners. Prior to the due presentment for registration of transfer of any Security, the Company,
the Trustee, any paying agent and any Security Registrar may deem and treat the Person in whose name such Security shall be registered
upon the books of the Company as the absolute owner of such Security (whether or not such Security shall be overdue and notwithstanding
any notice of ownership or writing thereon made by anyone other than the Security Registrar) for the purpose of receiving payment of or
on account of the principal of, premium, if any, and (subject to Section 2.3) interest on such Security and for all other purposes;
and neither the Company nor the Trustee nor any paying agent nor any Security Registrar shall be affected by any notice to the contrary.
Section 8.4.
Certain Securities Owned by Company Disregarded. In determining whether the holders of the requisite aggregate principal
amount of Securities of a particular series have concurred in any direction, consent or waiver under this Indenture, the Securities of
that series that are owned by the Company or any other obligor on the Securities of that series or by any Person directly or indirectly
controlling or controlled by or under common control with the Company or any other obligor on the Securities of that series 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 of such series that the Trustee actually knows
are so owned shall be so disregarded. The Securities so owned that have been pledged in good faith may be regarded as Outstanding for
the purposes of this Section, if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s right so to act with
respect to such Securities and that the pledgee is not a Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company or any such other obligor. In case of a dispute as to such right, any decision by the Trustee
taken upon the advice of counsel shall be full protection to the Trustee.
Section 8.5.
Actions Binding on Future Securityholders. At any time prior to (but not after) the evidencing to the Trustee, as provided
in Section 8.1, of the taking of any action by the holders of the majority or percentage in aggregate principal amount of the Securities
of a particular series specified in this Indenture in connection with such action, any holder of a Security of that series that is shown
by the evidence to be included in the Securities the holders of which have consented to such action may, by filing written notice with
the Trustee, and upon proof of holding as provided in Section 8.2, 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 Security issued in exchange therefor, on registration of transfer thereof or in place thereof,
irrespective of whether or not any notation in regard thereto is made upon such Security. Any action taken by the holders of the majority
or percentage in aggregate principal amount of the Securities of a particular series specified in this Indenture in connection with such
action shall be conclusively binding upon the Company, the Trustee and the holders of all the Securities of that series.
ARTICLE IX
SUPPLEMENTAL INDENTURES
Section 9.1.
Supplemental Indentures Without the Consent of Securityholders. In addition to any supplemental indenture otherwise authorized
by this Indenture, the Company and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental
hereto (which shall conform to the provisions of the Trust Indenture Act as then in effect), without the consent of the Securityholders,
for one or more of the following purposes:
(a)
to cure any ambiguity, defect, or inconsistency herein or in the Securities of any series;
(b)
to comply with Article X;
(c)
to provide for uncertificated Securities in addition to or in place of certificated Securities;
(d)
to add to the covenants, restrictions, conditions or provisions relating to the Company for the benefit of the holders of all or
any series of Securities (and if such covenants, restrictions, conditions or provisions are to be for the benefit of less than all series
of Securities, stating that such covenants, restrictions, conditions or provisions are expressly being included solely for the benefit
of such series), to make the occurrence, or the occurrence and the continuance, of a default in any such additional covenants, restrictions,
conditions or provisions an Event of Default, or to surrender any right or power herein conferred upon the Company;
(e)
to add to, delete from, or revise the conditions, limitations, and restrictions on the authorized amount, terms, or purposes of
issue, authentication, and delivery of Securities, as herein set forth;
(f)
to make any change that does not adversely affect the rights of any Securityholder in any material respect;
(g)
to provide for the issuance of and establish the form and terms and conditions of the Securities of any series as provided in Section 2.1,
to establish the form of any certifications required to be furnished pursuant to the terms of this Indenture or any series of Securities,
or to add to the rights of the holders of any series of Securities;
(h)
to evidence and provide for the acceptance of appointment hereunder by a successor trustee; or
(i)
to comply with any requirements of the Securities and Exchange Commission or any successor in connection with the qualification
of this Indenture under the Trust Indenture Act.
The Trustee is hereby authorized to join with the
Company in the execution of any such supplemental indenture, and to make any further appropriate agreements and stipulations that may
be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that 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 by the Company and the Trustee without the consent of the holders of any of the Securities at the
time Outstanding, notwithstanding any of the provisions of Section 9.2.
Section 9.2.
Supplemental Indentures With Consent of Securityholders. With the consent (evidenced as provided in Section 8.1)
of the holders of not less than a majority in aggregate principal amount of the Securities of each series affected by such supplemental
indenture or indentures at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee may from time to
time and at any time enter into an indenture or indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture
Act as then in effect) 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 not covered by Section 9.1 the rights of the holders of
the Securities of such series under this Indenture; provided, however, that no such supplemental indenture shall, without the consent
of the holders of each Security then Outstanding and affected thereby, (a) extend the fixed maturity of any Securities of any series,
or reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, or reduce any premium payable
upon the redemption thereof or (b) reduce the aforesaid percentage of Securities, the holders of which are required to consent to
any such supplemental indenture.
It shall not be necessary for the consent of the
Securityholders of any series affected thereby 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.
Section 9.3.
Effect of Supplemental Indentures. Upon the execution of any supplemental indenture pursuant to the provisions of this
Article or of Section 10.1, this Indenture shall, with respect to such series, 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
Company and the holders of Securities of the 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 9.4.
Securities Affected by Supplemental Indentures. Securities of any series affected by a supplemental indenture, authenticated
and delivered after the execution of such supplemental indenture pursuant to the provisions of this Article or of Section 10.1, may
bear a notation in form approved by the Company, provided such form meets the requirements of any securities exchange upon which such
series may be listed, as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Securities
of that series so modified as to conform, in the opinion of the Board of Directors, to any modification of this Indenture contained in
any such supplemental indenture may be prepared by the Company, authenticated by the Trustee and delivered in exchange for the Securities
of that series then Outstanding.
Section 9.5.
Execution of Supplemental Indentures. Upon the request of the Company, accompanied by its Board Resolutions authorizing
the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of Securityholders required
to consent thereto as aforesaid, the Trustee shall join with the Company in the execution of such supplemental indenture unless such supplemental
indenture affects the Trustee’s own rights, duties 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. The Trustee, subject to the provisions of Section 7.1,
may receive an Officer’s Certificate or, if requested, an Opinion of Counsel as conclusive evidence that any supplemental indenture
executed pursuant to this Article is authorized or permitted by, and conforms to, the terms of this Article and that it is proper for
the Trustee under the provisions of this Article to join in the execution thereof; provided, however, that such Officer’s Certificate
or Opinion of Counsel need not be provided in connection with the execution of a supplemental indenture that establishes the terms of
a series of Securities pursuant to Section 2.1 hereof.
Promptly after the execution by the Company and
the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Trustee shall transmit by mail, first class
postage prepaid, a notice, setting forth in general terms the substance of such supplemental indenture, to the Securityholders of all
series affected thereby as their names and addresses appear upon the Security Register. Any failure of the Trustee to mail such notice,
or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.
ARTICLE X
SUCCESSOR ENTITY
Section 10.1.
Company May Consolidate, Etc. Except as provided pursuant to Section 2.1 pursuant to a Board Resolution, and
set forth in an Officer’s Certificate, or established in one or more indentures supplemental to this Indenture, nothing contained
in this Indenture shall prevent any consolidation or merger of the Company with or into any other Person (whether or not affiliated with
the Company) or successive consolidations or mergers in which the Company or its successor or successors shall be a party or parties,
or shall prevent any sale, conveyance, transfer or other disposition of the property of the Company or its successor or successors as
an entirety, or substantially as an entirety, to any other corporation (whether or not affiliated with the Company or its successor or
successors) authorized to acquire and operate the same; provided, however, (a) the Company hereby covenants and agrees that, upon
any such consolidation or merger (in each case, if the Company is not the survivor of such transaction), sale, conveyance, transfer or
other disposition, the due and punctual payment of the principal of (premium, if any) and interest on all of the Securities of all series
in accordance with the terms of each series, according to their tenor, and the due and punctual performance and observance of all the
covenants and conditions of this Indenture with respect to each series or established with respect to such series pursuant to Section 2.1
to be kept or performed by the Company shall be expressly assumed, by supplemental indenture (which shall conform to the provisions of
the Trust Indenture Act, as then in effect) reasonably satisfactory in form to the Trustee executed and delivered to the Trustee by the
entity formed by such consolidation, or into which the Company shall have been merged, or by the entity which shall have acquired such
property and (b) in the event that the Securities of any series then Outstanding are convertible into or exchangeable for shares
of common stock or other securities of the Company, such entity shall, by such supplemental indenture, make provision so that the Securityholders
of Securities of that series shall thereafter be entitled to receive upon conversion or exchange of such Securities the number of securities
or property to which a holder of the number of shares of common stock or other securities of the Company deliverable upon conversion or
exchange of those Securities would have been entitled had such conversion or exchange occurred immediately prior to such consolidation,
merger, sale, conveyance, transfer or other disposition.
Section 10.2.
Successor Entity Substituted.
(a)
In case of any such consolidation, merger, sale, conveyance, transfer or other disposition and upon the assumption by the successor
entity by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the obligations set
forth under Section 10.1 on all of the Securities of all series Outstanding, such successor entity shall succeed to and be substituted
for the Company with the same effect as if it had been named as the Company herein, and thereupon the predecessor corporation shall be
relieved of all obligations and covenants under this Indenture and the Securities.
(b)
In case of any such consolidation, merger, sale, conveyance, transfer 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.
(c)
Nothing contained in this Article shall require any action by the Company in the case of a consolidation or merger of any Person
into the Company where the Company is the survivor of such transaction, or the acquisition by the Company, by purchase or otherwise, of
all or any part of the property of any other Person (whether or not affiliated with the Company).
Section 10.3.
Evidence of Consolidation, Etc. to Trustee. The Trustee, subject to the provisions of Section 7.1, may receive an
Officer’s Certificate and, if requested, an Opinion of Counsel as conclusive evidence that any such consolidation, merger, sale,
conveyance, transfer or other disposition, and any such assumption, comply with the provisions of this Article.
ARTICLE XI
SATISFACTION AND DISCHARGE
Section 11.1.
Satisfaction and Discharge of Indenture. If at any time: (a) the Company shall have delivered to the Trustee for
cancellation all Securities of a series theretofore authenticated and not delivered to the Trustee for cancellation (other than any Securities
that shall have been destroyed, lost or stolen and that shall have been replaced or paid as provided in Section 2.7 and Securities
for whose payment money or Governmental Obligations have theretofore been deposited in trust or segregated and held in trust by the Company
and thereupon repaid to the Company or discharged from such trust, as provided in Section 11.5); or (b) all such Securities
of a particular series not theretofore delivered to the Trustee for cancellation shall have become due and payable, or are by their terms
to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee
for the giving of notice of redemption, and the Company shall deposit or cause to be deposited with the Trustee as trust funds the entire
amount in moneys or Governmental Obligations or a combination thereof, sufficient in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to the Trustee, to pay at maturity or upon redemption all Securities
of that series not theretofore delivered to the Trustee for cancellation, including principal (and premium, if any) and interest due or
to become due to such date of maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or cause to
be paid all other sums payable hereunder with respect to such series by the Company then this Indenture shall thereupon cease to be of
further effect with respect to such series except for the provisions of Sections 2.3, 2.5, 2.7, 4.1, 4.2, 4.3 and 7.10, that shall
survive until the date of maturity or redemption date, as the case may be, and Sections 7.6 and 11.5, that shall survive to such
date and thereafter, and the Trustee, on demand of the Company and at the cost and expense of the Company shall execute proper instruments
acknowledging satisfaction of and discharging this Indenture with respect to such series.
Section 11.2.
Discharge of Obligations. If at any time all such Securities of a particular series not heretofore delivered to the Trustee
for cancellation or that have not become due and payable as described in Section 11.1 shall have been paid by the Company by depositing
irrevocably with the Trustee as trust funds moneys or an amount of Governmental Obligations sufficient to pay at maturity or upon redemption
all such Securities of that series not theretofore delivered to the Trustee for cancellation, including principal (and premium, if any)
and interest due or to become due to such date of maturity or date fixed for redemption, as the case may be, and if the Company shall
also pay or cause to be paid all other sums payable hereunder by the Company with respect to such series, then after the date such moneys
or Governmental Obligations, as the case may be, are deposited with the Trustee the obligations of the Company under this Indenture with
respect to such series shall cease to be of further effect except for the provisions of Sections 2.3, 2.5, 2.7, 4.1, 4.2, 4.3, 7.6,
7.10 and 11.5 hereof that shall survive until such Securities shall mature and be paid.
Thereafter, Sections 7.6 and 11.5 shall survive.
Section 11.3.
Deposited Moneys to be Held in Trust. All moneys or Governmental Obligations deposited with the Trustee pursuant to Section 11.1
or 11.2 shall be held in trust and shall be available for payment as due, either directly or through any paying agent (including the Company
acting as its own paying agent), to the holders of the particular series of Securities for the payment or redemption of which such moneys
or Governmental Obligations have been deposited with the Trustee.
Section 11.4.
Payment of Moneys Held by Paying Agents. In connection with the satisfaction and discharge of this Indenture all moneys
or Governmental Obligations then held by any paying agent under the provisions of this Indenture shall, upon demand of the Company, be
paid to the Trustee and thereupon such paying agent shall be released from all further liability with respect to such moneys or Governmental
Obligations.
Section 11.5.
Repayment to Company. Any moneys or Governmental Obligations deposited with any paying agent or the Trustee, or then
held by the Company, in trust for payment of principal of or premium, if any, or interest on the Securities of a particular series that
are not applied but remain unclaimed by the holders of such Securities for at least two years after the date upon which the principal
of (and premium, if any) or interest on such Securities shall have respectively become due and payable, or such other shorter period set
forth in applicable escheat or abandoned or unclaimed property law, shall be repaid to the Company on May 31 of each year or upon
the Company’s request or (if then held by the Company) shall be discharged from such trust; and thereupon the paying agent and the
Trustee shall be released from all further liability with respect to such moneys or Governmental Obligations, and the holder of any of
the Securities entitled to receive such payment shall thereafter, as a general creditor, look only to the Company for the payment thereof.
ARTICLE XII
IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
Section 12.1.
No Recourse. No recourse under or upon any obligation, covenant or agreement of this Indenture, or of any Security, or
for any claim based thereon or otherwise in respect thereof, shall be had against any incorporator, stockholder, officer or director,
past, present or future as such, of the Company or of any predecessor or successor corporation, either directly or through the Company
or any such predecessor or successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement
of any assessment or penalty or otherwise; it being expressly understood that this Indenture and the obligations issued hereunder are
solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the incorporators,
stockholders, officers or directors as such, of the Company or of any predecessor or successor corporation, or any of them, because of
the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this
Indenture or in any of the Securities or implied therefrom; and that any and all such personal liability of every name and nature, either
at common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator,
stockholder, officer or director as such, because of the creation of the indebtedness hereby authorized, or under or by reason of the
obligations, covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom, are hereby expressly
waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issuance of such Securities.
ARTICLE XIII
MISCELLANEOUS PROVISIONS
Section 13.1.
Effect on Successors and Assigns. All the covenants, stipulations, promises and agreements in this Indenture made by
or on behalf of the Company shall bind its successors and assigns, whether so expressed or not.
Section 13.2.
Actions by Successor. Any act or proceeding by any provision of this Indenture authorized or required to be done or performed
by any board, committee or officer of the Company shall and may be done and performed with like force and effect by the corresponding
board, committee or officer of any corporation that shall at the time be the lawful successor of the Company.
Section 13.3.
Surrender of Company Powers. The Company by instrument in writing executed by authority of its Board of Directors and
delivered to the Trustee may surrender any of the powers reserved to the Company, and thereupon such power so surrendered shall terminate
both as to the Company and as to any successor corporation.
Section 13.4.
Notices. Except as otherwise expressly provided herein, any notice, request or demand that by any provision of this Indenture
is required or permitted to be given, made or served by the Trustee or by the holders of Securities or by any other Person pursuant to
this Indenture to or on the Company may be given or served by being deposited in first class mail, postage prepaid, addressed (until another
address is filed in writing by the Company with the Trustee), as follows:
___________________________________
___________________________________
___________________________________
Any notice, election, request or demand by the
Company or any Securityholder or by any other Person pursuant to this Indenture to or upon the Trustee shall be deemed to have been sufficiently
given or made, for all purposes, if given or made in writing at the Corporate Trust Office of the Trustee.
Section 13.5.
Governing Law. This Indenture and each Security shall be deemed to be a contract made under the internal laws of the
State of New York, and for all purposes shall be construed in accordance with the laws of said State, except to the extent that the Trust
Indenture Act is applicable.
Section 13.6.
Treatment of Securities as Debt. It is intended that the Securities will be treated as indebtedness and not as equity
for federal income tax purposes. The provisions of this Indenture shall be interpreted to further this intention.
Section 13.7.
Certificates and Opinions as to Conditions Precedent.
(a)
Upon any application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture,
the Company shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent provided for in this Indenture
(other than the certificate to be delivered pursuant to Section 13.12) relating to the proposed action have been complied with and,
if requested, 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.
(b)
Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition
or covenant in this Indenture shall include (i) a statement that the Person making such certificate or opinion has read such covenant
or condition; (ii) 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; (iii) a statement that, in the opinion of such Person, he has made such
examination or investigation as is reasonably necessary to enable him to express an informed opinion as to whether or not such covenant
or condition has been complied with; and (iv) a statement as to whether or not, in the opinion of such Person, such condition or
covenant has been complied with.
Section 13.8.
Payments on Business Days. Except as provided pursuant to Section 2.1 pursuant to a Board Resolution, and set forth
in an Officer’s Certificate, or established in one or more indentures supplemental to this Indenture, in any case where the date
of maturity of interest or principal of any Security or the date of redemption of any Security shall not be a Business Day, then payment
of interest or principal (and premium, if any) may be made on the next succeeding Business Day with the same force and effect as if made
on the nominal date of maturity or redemption, and no interest shall accrue for the period after such nominal date.
Section 13.9.
Conflict with Trust Indenture Act. If and to the extent that any provision of this Indenture limits, qualifies or conflicts
with the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall control.
Section 13.10. 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 13.11. Separability. In case
any one or more of the provisions contained in this Indenture or in the Securities of any series shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this
Indenture or of such Securities, but this Indenture and such Securities shall be construed as if such invalid or illegal or unenforceable
provision had never been contained herein or therein.
Section 13.12. Compliance Certificates.
The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year during which any Securities of any series
were outstanding, an officer’s certificate stating whether or not the signers know of any Default or Event of Default that occurred
during such fiscal year. Such certificate shall contain a certification from the principal executive officer, principal financial officer
or principal accounting officer of the Company that a review has been conducted of the activities of the Company and the Company’s
performance under this Indenture and that the Company has complied with all conditions and covenants under this Indenture. For purposes
of this Section 13.12, such compliance shall be determined without regard to any period of grace or requirement of notice provided
under this Indenture. If the officer of the Company signing such certificate has knowledge of such a Default or Event of Default, the
certificate shall describe any such Default or Event of Default and its status.
IN WITNESS WHEREOF, the parties hereto have caused
this Indenture to be duly executed all as of the day and year first above written.
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INTRUSION INC.
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By: ______________________________
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Name: ____________________________
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Title: _____________________________
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[TRUSTEE], as Trustee
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By: ______________________________
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Name: ____________________________
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Title: _____________________________
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Exhibit 4.5
INTRUSION INC.,
ISSUER
AND
[TRUSTEE],
TRUSTEE
INDENTURE
DATED AS OF , 20
SUBORDINATED DEBT SECURITIES
TABLE
OF CONTENTS
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Page
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ARTICLE 1
DEFINITIONS
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1
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Section 1.1
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Definitions of Terms
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1
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ARTICLE
2 ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES
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5
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Section 2.1
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Designation and Terms of Securities
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5
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Section 2.2
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Form of Securities and Trustee’s
Certificate
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7
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Section 2.3
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Denominations; Provisions for
Payment
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8
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Section 2.4
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Execution and Authentications
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9
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Section 2.5
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Registration of Transfer and
Exchange
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10
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Section 2.6
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Temporary Securities
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11
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Section 2.7
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Mutilated, Destroyed, Lost or
Stolen Securities
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11
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Section 2.8
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Cancellation
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12
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Section 2.9
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Benefits of Indenture
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12
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Section 2.10
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Authenticating Agent
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12
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Section 2.11
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Global Securities
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13
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ARTICLE
3 REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS
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14
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Section 3.1
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Redemption
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14
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Section 3.2
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Notice of Redemption
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14
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Section 3.3
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Payment Upon Redemption
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15
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Section 3.4
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Sinking Fund
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16
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Section 3.5
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Satisfaction of Sinking Fund
Payments with Securities
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16
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Section 3.6
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Redemption of Securities for
Sinking Fund
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16
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ARTICLE
4 COVENANTS
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17
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Section 4.1
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Payment of Principal, Premium
and Interest
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17
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Section 4.2
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Maintenance of Office or Agency
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17
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Section 4.3
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Paying Agents
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17
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Section 4.4
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Appointment to Fill Vacancy in
Office of Trustee
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18
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Section 4.5
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Compliance with Consolidation
Provisions
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19
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ARTICLE 5
SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
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19
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Section 5.1
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Company to Furnish Trustee Names
and Addresses of Securityholders
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19
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Section 5.2
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Preservation of Information;
Communications With Securityholders
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19
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Section 5.3
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Reports by the Company
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19
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Section 5.4
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Reports by the Trustee
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20
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TABLE
OF CONTENTS
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ARTICLE 6
REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
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20
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Section 6.1
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Events of Default
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20
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Section 6.2
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Collection of Indebtedness and
Suits for Enforcement by Trustee
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22
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Section 6.3
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Application of Moneys Collected
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23
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Section 6.4
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Limitation on Suits
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24
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Section 6.5
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Rights and Remedies Cumulative;
Delay or Omission Not Waiver
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24
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Section 6.6
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Control by Securityholders
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25
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Section 6.7
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Undertaking to Pay Costs
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25
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ARTICLE 7
CONCERNING THE TRUSTEE
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26
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Section 7.1
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Certain Duties and Responsibilities
of Trustee
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26
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Section 7.2
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Certain Rights of Trustee
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27
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Section 7.3
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Trustee Not Responsible for Recitals
or Issuance or Securities
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28
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Section 7.4
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May Hold Securities
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28
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Section 7.5
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Moneys Held in Trust
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28
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Section 7.6
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Compensation and Reimbursement
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29
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Section 7.7
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Reliance on Officer’s Certificate
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29
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Section 7.8
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Disqualification; Conflicting
Interests
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29
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Section 7.9
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Corporate Trustee Required; Eligibility
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29
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Section 7.10
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Resignation and Removal; Appointment
of Successor
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30
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Section 7.11
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Acceptance of Appointment By
Successor
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31
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Section 7.12
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Merger, Conversion, Consolidation
or Succession to Business
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32
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Section 7.13
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Preferential Collection of Claims
Against the Company
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33
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Section 7.14
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Notice of Default
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33
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ARTICLE
8 CONCERNING THE SECURITYHOLDERS
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Section 8.1
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Evidence of Action by Securityholders
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Section 8.2
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Proof of Execution by Securityholders
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34
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Section 8.3
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Who May be Deemed Owners
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34
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Section 8.4
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Certain Securities Owned by Company
Disregarded
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34
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Section 8.5
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Actions Binding on Future Securityholders
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34
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ARTICLE
9 SUPPLEMENTAL INDENTURES
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35
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Section 9.1
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Supplemental Indentures Without
the Consent of Securityholders
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35
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Section 9.2
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Supplemental Indentures With
Consent of Securityholders
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36
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Section 9.3
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Effect of Supplemental Indentures
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36
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Section 9.4
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Securities Affected by Supplemental
Indentures
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37
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Section 9.5
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Execution of Supplemental Indentures
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37
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ARTICLE
10 SUCCESSOR ENTITY
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37
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Section 10.1
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Company May Consolidate,
Etc.
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37
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Section 10.2
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Successor Entity Substituted
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38
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Section 10.3
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Evidence of Consolidation, Etc.
to Trustee
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TABLE
OF CONTENTS
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ARTICLE
11 SATISFACTION AND DISCHARGE
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39
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Section 11.1
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Satisfaction and Discharge of
Indenture
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Section 11.2
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Discharge of Obligations
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39
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Section 11.3
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Deposited Moneys to be Held in
Trust
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Section 11.4
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Payment of Moneys Held by Paying
Agents
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Section 11.5
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Repayment to Company
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40
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ARTICLE
12 IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
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Section 12.1
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No Recourse
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40
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ARTICLE
13 MISCELLANEOUS PROVISIONS
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41
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Section 13.1
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Effect on Successors and Assigns
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41
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Section 13.2
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Actions by Successor
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41
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Section 13.3
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Surrender of Company Powers
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41
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Section 13.4
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Notices
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41
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Section 13.5
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Governing Law
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42
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Section 13.6
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Treatment of Securities as Debt
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42
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Section 13.7
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Certificates and Opinions as
to Conditions Precedent
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42
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Section 13.8
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Payments on Business Days
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42
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Section 13.9
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Conflict with Trust Indenture
Act
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42
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Section 13.1.
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Counterparts
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43
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Section 13.1.
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Separability
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43
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Section 13.12
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Compliance Certificates
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43
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ARTICLE 14 SUBORDINATION OF SECURITIES
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43
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Section 14.1
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Subordination Terms
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43
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INDENTURE
INDENTURE,
dated as of [·], 20[·], among INTRUSION
INC., a Delaware corporation (the “Company”), and [TRUSTEE], as trustee (the “Trustee”):
WHEREAS, for its lawful corporate purposes, the
Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of subordinated debt securities (hereinafter
referred to as the “Securities”), in an unlimited aggregate principal amount to be issued from time to time in one or more
series as in this Indenture provided, as registered Securities without coupons, to be authenticated by the certificate of the Trustee;
WHEREAS, to provide the terms and conditions upon
which the Securities are to be authenticated, issued and delivered, the Company has duly authorized the execution of this Indenture; and
WHEREAS, all things necessary to make this Indenture
a valid agreement of the Company, in accordance with its terms, have been done.
NOW, THEREFORE, in consideration of the premises
and the purchase of the Securities by the holders thereof, it is mutually covenanted and agreed as follows for the equal and ratable benefit
of the holders of Securities:
ARTICLE
1
DEFINITIONS
Section
1.1 Definitions of Terms.
The terms defined in this Section (except as in this Indenture or any indenture supplemental hereto otherwise expressly provided
or unless the context otherwise requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective
meanings specified in this Section and shall include the plural as well as the singular. All other terms used in this Indenture that
are defined in the Trust Indenture Act of 1939, as amended, or that are by reference in such Act defined in the Securities Act of 1933,
as amended (except as herein or any indenture supplemental hereto otherwise expressly provided or unless the context otherwise 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 the execution
of this instrument.
“Authenticating Agent” means an authenticating
agent with respect to all or any of the series of Securities appointed by the Trustee pursuant to Section 2.10.
“Bankruptcy Law” means Title 11,
U.S. Code, or any similar federal or state law for the relief of debtors.
“Board of Directors” means the Board
of Directors of the Company or any duly authorized committee of such Board.
“Board Resolution” means a copy of
a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and
to be in full force and effect on the date of such certification.
“Business Day” means, with respect
to any series of Securities, any day other than a day on which federal or state banking institutions in the Borough of Manhattan, the
City of New York, or in the city of the Corporate Trust Office of the Trustee, are authorized or obligated by law, executive order or
regulation to close.
“Certificate” means a certificate signed
by any Officer. The Certificate need not comply with the provisions of Section 13.7.
“Company” means Intrusion Inc., a corporation
duly organized and existing under the laws of the State of Delaware, and, subject to the provisions of Article Ten, shall also include
its successors and assigns.
“Corporate
Trust Office” means the office of the Trustee at which, at any particular time, its corporate trust business shall be principally
administered, which office at the date hereof is located at [·].
“Custodian” means any receiver, trustee,
assignee, liquidator or similar official under any Bankruptcy Law.
“Default” means any event, act or condition
that with notice or lapse of time, or both, would constitute an Event of Default.
“Defaulted Interest” has the meaning
set forth in Section 2.3.
“Depositary” means, with respect to
Securities of any series for which the Company shall determine that such Securities will be issued as a Global Security, The Depository
Trust Company, another clearing agency, or any successor registered as a clearing agency under the Exchange Act, or other applicable statute
or regulation, which, in each case, shall be designated by the Company pursuant to either Section 2.1 or 2.11.
“Event of Default” means, with respect
to Securities of a particular series, any event specified in Section 6.1, continued for the period of time, if any, therein designated.
“Exchange Act” means the Securities
and Exchange Act of 1934, as amended.
“Global Security” means, with respect
to any series of Securities, a Security executed by the Company and delivered by the Trustee to the Depositary or pursuant to the Depositary’s
instruction, all in accordance with the Indenture, which shall be registered in the name of the Depositary or its nominee.
“Governmental Obligations” means securities
that are (a) direct obligations of the United States of America for the payment of which its full faith and credit is pledged or
(b) obligations of a Person controlled or supervised by and acting as an agency or 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 that, in either
case, are not callable or redeemable at the option of the issuer thereof at any time prior to the stated maturity of the Securities, and
shall also include a depositary receipt issued by a bank or trust company as custodian with respect to any such Governmental Obligation
or a specific payment of principal of or interest on any such Governmental Obligation held by such custodian for the account of the holder
of such depositary receipt; provided, however, that (except as required by law) such custodian is not authorized to make any deduction
from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the Governmental
Obligation or the specific payment of principal of or interest on the Governmental Obligation evidenced by such depositary receipt.
“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.
“Indenture” means this instrument as
originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into
in accordance with the terms hereof.
“Interest Payment Date”, when used
with respect to any installment of interest on a Security of a particular series, means the date specified in such Security or in a Board
Resolution or in an indenture supplemental hereto with respect to such series as the fixed date on which an installment of interest with
respect to Securities of that series is due and payable.
“Officer” means, with respect to the
Company, the chairman of the Board of Directors, a chief executive officer, a president, a chief financial officer, a chief operating
officer, any executive vice president, any senior vice president, any vice president, the treasurer or any assistant treasurer, the controller
or any assistant controller or the secretary or any assistant secretary.
“Officer’s Certificate” means
a certificate signed by any Officer. Each such certificate shall include the statements provided for in Section 13.7, if and to the
extent required by the provisions thereof.
“Opinion of Counsel” means an opinion
in writing subject to customary exceptions of legal counsel, who may be an employee of or counsel for the Company, that is delivered to
the Trustee in accordance with the terms hereof. Each such opinion shall include the statements provided for in Section 13.7, if
and to the extent required by the provisions thereof.
“Outstanding”, when used with reference
to Securities of any series, means, subject to the provisions of Section 8.4, as of any particular time, all Securities of that series
theretofore authenticated and delivered by the Trustee under this Indenture, except (a) Securities theretofore canceled by the Trustee
or any paying agent, or delivered to the Trustee or any paying agent for cancellation or that have previously been canceled; (b) Securities
or portions thereof for the payment or redemption of which moneys or Governmental Obligations in the necessary amount shall have been
deposited in trust with the Trustee or with any paying agent (other than the Company) or shall have been set aside and segregated in trust
by the Company (if the Company shall act as its own paying agent); provided, however, that if such Securities or portions of such Securities
are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as provided in Article Three, or provision
satisfactory to the Trustee shall have been made for giving such notice; and (c) Securities in lieu of or in substitution for which
other Securities shall have been authenticated and delivered pursuant to the terms of Section 2.7.
“Person” means any individual, corporation,
partnership, joint venture, joint-stock company, limited liability company, association, trust, unincorporated organization, any other
entity or organization, including a government or political subdivision or an agency or instrumentality thereof.
“Predecessor Security” of any particular
Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and,
for the purposes of this definition, any Security authenticated and delivered under Section 2.7 in lieu of a lost, destroyed or stolen
Security shall be deemed to evidence the same debt as the lost, destroyed or stolen Security.
“Responsible Officer” when used with
respect to the Trustee means the chairman of its board of directors, the chief executive officer, the president, any vice president, the
secretary, the treasurer, any trust officer, any corporate trust officer or any other officer or assistant officer of the Trustee customarily
performing 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 his or her knowledge of and familiarity with the particular subject.
“Securities” means the debt Securities
authenticated and delivered under this Indenture.
“Securityholder”, “holder of
Securities”, “registered holder”, or other similar term, means the Person or Persons in whose name or names a particular
Security shall be registered on the books of the Company kept for that purpose in accordance with the terms of this Indenture.
“Security Register” and “Security
Registrar” shall have the meanings as set forth in Section 2.5.
“Subsidiary” means, with respect to
any Person, (i) any corporation at least a majority of whose outstanding Voting Stock shall at the time be owned, directly or indirectly,
by such Person or by one or more of its Subsidiaries or by such Person and one or more of its Subsidiaries, (ii) any general partnership,
joint venture or similar entity, at least a majority of whose outstanding partnership or similar interests shall at the time be owned
by such Person, or by one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries and (iii) any limited
partnership of which such Person or any of its Subsidiaries is a general partner.
“Trustee” means , and, subject
to the provisions of Article Seven, shall also include its successors and assigns, and, if at any time there is more than one Person acting
in such capacity hereunder, “Trustee” shall mean each such Person. The term “Trustee” as used with respect to
a particular series of the Securities shall mean the trustee with respect to that series.
“Trust Indenture Act” means the Trust
Indenture Act of 1939, as amended.
“Voting Stock”, as applied to stock
of any Person, means shares, interests, participations or other equivalents in the equity interest (however designated) in such Person
having ordinary voting power for the election of a majority of the directors (or the equivalent) of such Person, other than shares, interests,
participations or other equivalents having such power only by reason of the occurrence of a contingency.
ARTICLE
2
ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES
Section
2.1 Designation and Terms of Securities (a)
The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited. The Securities
may be issued in one or more series up to the aggregate principal amount of Securities of that series from time to time authorized by
or pursuant to a Board Resolution or pursuant to one or more indentures supplemental hereto. Prior to the initial issuance of Securities
of any series, there shall be established in or pursuant to a Board Resolution, and set forth in an Officer’s Certificate, or established
in one or more indentures supplemental hereto:
(i)
the title of the Securities of the series (which shall distinguish the Securities of that series from all other Securities);
(ii)
any limit upon the aggregate principal amount of the Securities of that 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 that series);
(iii)
the date or dates on which the principal of the Securities of the series is payable, any original issue discount that may apply
to the Securities of that series upon their issuance, the principal amount due at maturity, and the place(s) of payment;
(iv)
the rate or rates at which the Securities of the series shall bear interest or the manner of calculation of such rate or rates,
if any;
(v)
the date or dates from which such interest shall accrue, the Interest Payment Dates on which such interest will be payable or the
manner of determination of such Interest Payment Dates, the place(s) of payment, and the record date for the determination of holders
to whom interest is payable on any such Interest Payment Dates or the manner of determination of such record dates;
(vi)
the right, if any, to extend the interest payment periods and the duration of such extension;
(vii)
the period or periods within which, the price or prices at 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 Company;
(viii)
the obligation, if any, of the Company to redeem or purchase Securities of the series pursuant to any sinking fund, mandatory redemption,
or analogous provisions (including payments made in cash in satisfaction of future sinking fund obligations) or at the option of a holder
thereof and the period or periods within which, the price or prices at which, and the terms and conditions upon which, Securities of the
series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;
(ix)
the form of the Securities of the series including the form of the Certificate of Authentication for such series;
(x)
if other than denominations of one thousand U.S. dollars ($1,000) or any integral multiple thereof, the denominations in which
the Securities of the series shall be issuable;
(xi)
any and all other terms (including terms, to the extent applicable, relating to any auction or remarketing of the Securities of
that series and any security for the obligations of the Company with respect to such Securities) with respect to such series (which terms
shall not be inconsistent with the terms of this Indenture, as amended by any supplemental indenture) including any terms which may be
required by or advisable under United States laws or regulations or advisable in connection with the marketing of Securities of that series;
(xii)
whether the Securities are issuable as a Global Security and, in such case, the terms and the identity of the Depositary for such
series;
(xiii)
whether the Securities will be convertible into or exchangeable for shares of common stock, preferred stock or other securities
of the Company or any other Person and, if so, the terms and conditions upon which such Securities will be so convertible or exchangeable,
including the conversion or exchange price, as applicable, or how it will be calculated and may be adjusted, any mandatory or optional
(at the Company’s option or the holders’ option) conversion or exchange features, and the applicable conversion or exchange
period;
(xiv)
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 6.1;
(xv)
any additional or different Events of Default or restrictive covenants (which may include, among other restrictions, restrictions
on the Company’s ability or the ability of the Company’s Subsidiaries to: incur additional indebtedness; issue additional
securities; create liens; pay dividends or make distributions in respect of the capital stock of the Company or the Company’s Subsidiaries;
redeem capital stock; place restrictions on the Company’s Subsidiaries’ ability to pay dividends, make distributions or transfer
assets; make investments or other restricted payments; sell or otherwise dispose of assets; enter into sale- leaseback transactions; engage
in transactions with stockholders or affiliates; issue or sell stock of the Company’s Subsidiaries; or effect a consolidation or
merger) or financial covenants (which may include, among other financial covenants, financial covenants that require the Company and its
Subsidiaries to maintain specified interest coverage, fixed charge, cash flow-based, asset-based or other financial ratios) provided for
with respect to the Securities of the series;
(xvi)
if other than dollars, the coin or currency in which the Securities of the series are denominated (including, but not limited to,
foreign currency);
(xvii)
the terms and conditions, if any, upon which the Company shall pay amounts in addition to the stated interest, premium, if any
and principal amounts of the Securities of the series to any Securityholder that is not a “United States person” for federal
tax purposes;
(xviii)
any restrictions on transfer, sale or assignment of the Securities of the series; and
(xix)
the subordination terms of the Securities of the series.
All Securities of any one series shall be substantially
identical except as may otherwise be provided in or pursuant to any such Board Resolution or in any indentures supplemental hereto.
If any of the terms of the series are established
by action taken pursuant to a Board Resolution of the Company, a copy of an appropriate record of such action shall be certified by the
secretary or an assistant secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officer’s Certificate
of the Company setting forth the terms of the series.
Securities of any particular series may be issued
at various times, with different dates on which the principal or any installment of principal is payable, with different rates of interest,
if any, or different methods by which rates of interest may be determined, with different dates on which such interest may be payable
and with different redemption dates.
Section
2.2 Form of Securities and Trustee’s Certificate.
The Securities of any series and the Trustee’s certificate of authentication to be borne by such Securities shall be substantially
of the tenor and purport as set forth in one or more indentures supplemental hereto or as provided in a Board Resolution, and set forth
in an Officer’s Certificate, and they may have such letters, numbers or other marks of identification or designation and such legends
or endorsements printed, lithographed or engraved thereon as the Company may deem appropriate and as are not inconsistent with the provisions
of this Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule
or regulation of any securities exchange on which Securities of that series may be listed, or to conform to usage.
Section
2.3 Denominations: Provisions for Payment.
The Securities shall be issuable as registered Securities and in the denominations of one thousand U.S. dollars ($1,000) or any integral
multiple thereof, subject to Section 2.1(x).
The Securities of a particular series shall bear
interest payable on the dates and at the rate specified with respect to that series. Subject to Section 2.1(xvi), the principal of
and the interest on the Securities of any series, as well as any premium thereon in case of redemption thereof prior to maturity, shall
be payable in the coin or currency of the United States of America that at the time is legal tender for public and private debt, at the
office or agency of the Company maintained for that purpose. Each Security shall be dated the date of its authentication. Interest on
the Securities shall be computed on the basis of a 360-day year composed of twelve 30-day months.
The interest installment on any Security that is
payable, and is punctually paid or duly provided for, on any Interest Payment Date for Securities of that series shall be paid to the
Person in whose name said Security (or one or more Predecessor Securities) is registered at the close of business on the regular record
date for such interest installment. In the event that any Security of a particular series or portion thereof is called for redemption
and the redemption date is subsequent to a regular record date with respect to any Interest Payment Date and prior to such Interest Payment
Date, interest on such Security will be paid upon presentation and surrender of such Security as provided in Section 3.3.
Any interest on any Security that is payable, but
is not punctually paid or duly provided for, on any Interest Payment Date for Securities of the same series (herein called “Defaulted
Interest”) shall forthwith cease to be payable to the registered holder on the relevant regular record date by virtue of having
been such holder; and such Defaulted Interest shall be paid by the Company, at its election, as provided in clause (1) or clause (2) below:
(i)
The Company may make payment of any Defaulted Interest on Securities to the Persons in whose names such Securities (or their respective
Predecessor Securities) are registered at the close of business on a special record date for the payment of such Defaulted Interest, which
shall be fixed in the following manner: the Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to
be paid on each such Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an
amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory
to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit
of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special record date for
the payment of such Defaulted Interest which shall not be more than 15 nor less than 10 days prior to the date of the proposed payment
and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the
Company of such special record date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of
such Defaulted Interest and the special record date therefor to be mailed, first class postage prepaid, to each Securityholder at his
or her address as it appears in the Security Register (as hereinafter defined), not less than 10 days prior to such special record date.
Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been mailed as aforesaid, such Defaulted
Interest shall be paid to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered on such
special record date.
(ii)
The Company may make payment of any Defaulted Interest on any Securities in any other lawful manner not inconsistent with the requirements
of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange, if, after
notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable
by the Trustee.
Unless otherwise set forth in a Board Resolution
or one or more indentures supplemental hereto establishing the terms of any series of Securities pursuant to Section 2.1 hereof,
the term “regular record date” as used in this Section with respect to a series of Securities and any Interest Payment
Date for such series shall mean either the fifteenth day of the month immediately preceding the month in which an Interest Payment Date
established for such series pursuant to Section 2.1 hereof shall occur, if such Interest Payment Date is the first day of a month,
or the first day of the month in which an Interest Payment Date established for such series pursuant to Section 2.1 hereof shall
occur, if such Interest Payment Date is the fifteenth day of a month, whether or not such date is a Business Day.
Subject to the foregoing provisions of this Section,
each Security of a series delivered under this Indenture upon transfer of or in exchange for or in lieu of any other Security of such
series shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Security.
Section
2.4 Execution and Authentications.
The Securities shall be signed on behalf of the Company by one of its Officers. Signatures may be in the form of a manual or facsimile
signature. The Company may use the facsimile signature of any Person who shall have been an Officer, notwithstanding the fact that at
the time the Securities shall be authenticated and delivered or disposed of such Person shall have ceased to be such an officer of the
Company. The Securities may contain such notations, legends or endorsements required by law, stock exchange rule or usage. Each Security
shall be dated the date of its authentication by the Trustee.
A Security shall not be valid until authenticated
manually by an authorized signatory of the Trustee, or by an Authenticating Agent. Such signature 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. At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of
any series executed by the Company to the Trustee for authentication, together with a written order of the Company for the authentication
and delivery of such Securities, signed by an Officer, and the Trustee in accordance with such written order shall authenticate and deliver
such Securities.
In authenticating such Securities and accepting
the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, if requested,
and (subject to Section 7.1) shall be fully protected in relying upon, an Opinion of Counsel stating that the form and terms thereof
have been established in conformity with the provisions of this Indenture.
The Trustee shall not be required to authenticate
such Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities
under the Securities and this Indenture or otherwise in a manner that is not reasonably acceptable to the Trustee.
Section
2.5 Registration of Transfer and Exchange.
(a)
Securities of any series may be exchanged upon presentation thereof at the office or agency of the Company designated for such
purpose, for other Securities of such series of authorized denominations, and for a like aggregate principal amount, upon payment of a
sum sufficient to cover any tax or other governmental charge in relation thereto, all as provided in this Section. In respect of any Securities
so surrendered for exchange, the Company shall execute, the Trustee shall authenticate and such office or agency shall deliver in exchange
therefor the Security or Securities of the same series that the Securityholder making the exchange shall be entitled to receive, bearing
numbers not contemporaneously outstanding.
(b)
The Company shall keep, or cause to be kept, at its office or agency designated for such purpose a register or registers (herein
referred to as the “Security Register”) in which, subject to such reasonable regulations as it may prescribe, the Company
shall register the Securities and the transfers of Securities as in this Article provided and which at all reasonable times shall be open
for inspection by the Trustee. The registrar for the purpose of registering Securities and transfer of Securities as herein provided shall
be appointed as authorized by Board Resolution (the “Security Registrar”).
Upon surrender for transfer of any Security at
the office or agency of the Company designated for such purpose, the Company shall execute, the Trustee shall authenticate and such office
or agency shall deliver in the name of the transferee or transferees a new Security or Securities of the same series as the Security presented
for a like aggregate principal amount.
All Securities presented or surrendered for exchange
or registration of transfer, as provided in this Section, shall be accompanied (if so required by the Company or the Security Registrar)
by a written instrument or instruments of transfer, in form satisfactory to the Company or the Security Registrar, duly executed by the
registered holder or by such holder’s duly authorized attorney in writing.
(c)
Except as provided pursuant to Section 2.1 pursuant to a Board Resolution, and set forth in an Officer’s Certificate,
or established in one or more indentures supplemental to this Indenture, no service charge shall be made for any exchange or registration
of transfer of Securities, or issue of new Securities in case of partial redemption of any series, but the Company may require payment
of a sum sufficient to cover any tax or other governmental charge in relation thereto, other than exchanges pursuant to Section 2.6,
Section 3.3(b) and Section 9.4 not involving any transfer.
(d)
The Company shall not be required (i) to issue, exchange or register the transfer of any Securities during a period beginning
at the opening of business 15 days before the day of the mailing of a notice of redemption of less than all the Outstanding Securities
of the same series and ending at the close of business on the day of such mailing, nor (ii) to register the transfer of or exchange
any Securities of any series or portions thereof called for redemption, other than the unredeemed portion of any such Securities being
redeemed in part. The provisions of this Section 2.5 are, with respect to any Global Security, subject to Section 2.11 hereof.
Section
2.6 Temporary Securities.
Pending the preparation of definitive Securities of any series, the Company may execute, and the Trustee shall authenticate and deliver,
temporary Securities (printed, lithographed or typewritten) of any authorized denomination. Such temporary Securities shall be substantially
in the form of the definitive Securities in lieu of which they are issued, but with such omissions, insertions and variations as may be
appropriate for temporary Securities, all as may be determined by the Company. Every temporary Security of any series shall be executed
by the Company and be authenticated by the Trustee upon the same conditions and in substantially the same manner, and with like effect,
as the definitive Securities of such series. Without unnecessary delay the Company will execute and will furnish definitive Securities
of such series and thereupon any or all temporary Securities of such series may be surrendered in exchange therefor (without charge to
the holders), at the office or agency of the Company designated for the purpose, and the Trustee shall authenticate and such office or
agency shall deliver in exchange for such temporary Securities an equal aggregate principal amount of definitive Securities of such series,
unless the Company advises the Trustee to the effect that definitive Securities need not be executed and furnished until further notice
from the Company. Until so exchanged, the temporary Securities of such series shall be entitled to the same benefits under this Indenture
as definitive Securities of such series authenticated and delivered hereunder.
Section
2.7 Mutilated, Destroyed, Lost or Stolen Securities.
In case any temporary or definitive Security shall become mutilated or be destroyed, lost or stolen, the Company (subject to the next
succeeding sentence) shall execute, and upon the Company’s request the Trustee (subject as aforesaid) shall authenticate and deliver,
a new Security of the same series, bearing a number not contemporaneously outstanding, in exchange and substitution for the mutilated
Security, or in lieu of and in substitution for the Security so destroyed, lost or stolen. In every case the applicant for a substituted
Security shall furnish to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless,
and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company and the Trustee evidence to their satisfaction
of the destruction, loss or theft of the applicant’s Security and of the ownership thereof. The Trustee may authenticate any such
substituted Security and deliver the same upon the written request or authorization of any officer of the Company. Upon the issuance of
any substituted Security, the Company 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) connected therewith.
In case any Security that has matured or is about
to mature shall become mutilated or be destroyed, lost or stolen, the Company 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 Security) if the applicant for such payment shall
furnish to the Company and the Trustee such security or indemnity as they may require to save them harmless, and, in case of destruction,
loss or theft, evidence to the satisfaction of the Company and the Trustee of the destruction, loss or theft of such Security and of the
ownership thereof.
Every replacement Security issued pursuant to the
provisions of this Section shall constitute an additional contractual obligation of the Company whether or not the mutilated, destroyed,
lost or stolen Security shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Indenture
equally and proportionately with any and all other Securities of the same series duly issued hereunder. All Securities shall be held and
owned upon the express condition that the foregoing provisions are exclusive with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities, and shall preclude (to the extent lawful) any and all other rights or remedies, notwithstanding
any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments
or other securities without their surrender.
Section
2.8 Cancellation.
All Securities surrendered for the purpose of payment, redemption, exchange or registration of transfer shall, if surrendered to the Company
or any paying agent, be delivered to the Trustee for cancellation, or, if surrendered to the Trustee, shall be cancelled by it, and no
Securities shall be issued in lieu thereof except as expressly required or permitted by any of the provisions of this Indenture. On request
of the Company at the time of such surrender, the Trustee shall deliver to the Company canceled Securities held by the Trustee. In the
absence of such request the Trustee may dispose of canceled Securities in accordance with its standard procedures and deliver a certificate
of disposition to the Company. If the Company shall otherwise acquire any of the Securities, however, 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
2.9 Benefits of Indenture.
Nothing in this Indenture or in the Securities, express or implied, shall give or be construed to give to any Person, other than the parties
hereto and the holders of the Securities (and, with respect to the provisions of Article Fourteen, the holders of any indebtedness of
the Company to which the Securities of any series are subordinated) any legal or equitable right, remedy or claim under or in respect
of this Indenture, or under any covenant, condition or provision herein contained; all such covenants, conditions and provisions being
for the sole benefit of the parties hereto and of the holders of the Securities (and, with respect to the provisions of Article Fourteen,
the holders of any indebtedness of the Company to which the Securities of any series are subordinated).
Section
2.10 Authenticating Agent.
So long as any of the Securities of any series remain Outstanding there may be an Authenticating Agent for any or all such series of Securities
which the Trustee shall have the right to appoint. Said Authenticating Agent shall be authorized to act on behalf of the Trustee to authenticate
Securities of such series issued upon exchange, transfer or partial redemption thereof, and Securities so authenticated shall be entitled
to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. All
references in this Indenture to the authentication of Securities by the Trustee shall be deemed to include authentication by an Authenticating
Agent for such series. Each Authenticating Agent shall be acceptable to the Company and shall be a corporation that has a combined capital
and surplus, as most recently reported or determined by it, sufficient under the laws of any jurisdiction under which it is organized
or in which it is doing business to conduct a trust business, and that is otherwise authorized under such laws to conduct such business
and is subject to supervision or examination by federal or state authorities. If at any time any Authenticating Agent shall cease to be
eligible in accordance with these provisions, it shall resign immediately.
Any Authenticating Agent may at any time
resign by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time (and upon request by the
Company shall) terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent
and to the Company. Upon resignation, termination or cessation of eligibility of any Authenticating Agent, the Trustee may appoint an
eligible successor Authenticating Agent acceptable to the Company. Any successor Authenticating Agent, upon acceptance of its appointment
hereunder, shall become vested with all the rights, powers and duties of its predecessor hereunder as if originally named as an Authenticating
Agent pursuant hereto.
Section
2.11 Global Securities.
(a)
If the Company shall establish pursuant to Section 2.1 that the Securities of a particular series are to be issued as a Global
Security, then the Company shall execute and the Trustee shall, in accordance with Section 2.4, authenticate and deliver, a Global
Security that (i) shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, all of the Outstanding
Securities of such series, (ii) shall be registered in the name of the Depositary or its nominee, (iii) shall be delivered by
the Trustee to the Depositary or pursuant to the Depositary’s instruction and (iv) shall bear a legend substantially to the
following effect: “Except as otherwise provided in Section 2.11 of the Indenture, this Security may be transferred, in whole
but not in part, only to another nominee of the Depositary or to a successor Depositary or to a nominee of such successor Depositary.”
(b)
Notwithstanding the provisions of Section 2.5, the Global Security of a series may be transferred, in whole but not in part
and in the manner provided in Section 2.5, only to another nominee of the Depositary for such series, or to a successor Depositary
for such series selected or approved by the Company or to a nominee of such successor Depositary.
(c)
If at any time the Depositary for a series of the Securities notifies the Company that it is unwilling or unable to continue as
Depositary for such series or if at any time the Depositary for such series shall no longer be registered or in good standing under the
Exchange Act, or other applicable statute or regulation, and a successor Depositary for such series is not appointed by the Company within
90 days after the Company receives such notice or becomes aware of such condition, as the case may be, or if an Event of Default has occurred
and is continuing and the Company has received a request from the Depositary or from the Trustee, this Section 2.11 shall no longer
be applicable to the Securities of such series and the Company will execute, and subject to Section 2.4, the Trustee will authenticate
and deliver the Securities of such series in definitive registered form without coupons, in authorized denominations, and in an aggregate
principal amount equal to the principal amount of the Global Security of such series in exchange for such Global Security. In addition,
the Company may at any time determine that the Securities of any series shall no longer be represented by a Global Security and that the
provisions of this Section 2.11 shall no longer apply to the Securities of such series. In such event the Company will execute and,
subject to Section 2.4, the Trustee, upon receipt of an Officer’s Certificate evidencing such determination by the Company,
will authenticate and deliver the Securities of such series in definitive registered form without coupons, in authorized denominations,
and in an aggregate principal amount equal to the principal amount of the Global Security of such series in exchange for such Global Security.
Upon the exchange of the Global Security for such Securities in definitive registered form without coupons, in authorized denominations,
the Global Security shall be canceled by the Trustee. Such Securities in definitive registered form issued in exchange for the Global
Security pursuant to this Section 2.11(c) shall be registered in such names and in such authorized denominations as the Depositary,
pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee. The Trustee shall deliver
such Securities to the Depositary for delivery to the Persons in whose names such Securities are so registered.
ARTICLE
3
REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS
Section
3.1 Redemption.
The Company may redeem the Securities of any series issued hereunder on and after the dates and in accordance with the terms established
for such series pursuant to Section 2.1 hereof.
Section
3.2 Notice of Redemption.
(a)
In case the Company shall desire to exercise such right to redeem all or, as the case may be, a portion of the Securities of any
series in accordance with any right the Company reserved for itself to do so pursuant to Section 2.1 hereof, the Company shall, or
shall cause the Trustee to, give notice of such redemption to holders of the Securities of such series to be redeemed by mailing, first
class postage prepaid, a notice of such redemption not less than 30 days and not more than 90 days before the date fixed for redemption
of that series to such holders at their last addresses as they shall appear upon the Security Register, unless a shorter period is specified
in the Securities to be redeemed. Any notice that is mailed in the manner herein provided shall be conclusively presumed to have been
duly given, whether or not the registered holder receives the notice. In any case, failure duly to give such notice to the holder of any
Security of any series designated for redemption in whole or in part, or any defect in the notice, shall not affect the validity of the
proceedings for the redemption of any other Securities of such series or any other series. In the case of any redemption of Securities
prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture,
the Company shall furnish the Trustee with an Officer’s Certificate evidencing compliance with any such restriction.
Each such notice of redemption shall specify the
date fixed for redemption and the redemption price at which Securities of that series are to be redeemed, and shall state that payment
of the redemption price of such Securities to be redeemed will be made at the office or agency of the Company, upon presentation and surrender
of such Securities, that interest accrued to the date fixed for redemption will be paid as specified in said notice, that from and after
said date interest will cease to accrue and that the redemption is from a sinking fund, if such is the case. If less than all the Securities
of a series are to be redeemed, the notice to the holders of Securities of that series to be redeemed in part shall specify the particular
Securities to be so redeemed.
In case any Security is to be redeemed in part
only, the notice that relates to such Security shall state the portion of the principal amount thereof to be redeemed, and shall state
that on and after the redemption date, 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.
(b)
If less than all the Securities of a series are to be redeemed, the Company shall give the Trustee at least 45 days’ notice
(unless a shorter notice shall be satisfactory to the Trustee) in advance of the date fixed for redemption as to the aggregate principal
amount of Securities of the series to be redeemed, and thereupon the Trustee shall select, by lot or in such other manner as it shall
deem appropriate and fair in its discretion and that may provide for the selection of a portion or portions (equal to one thousand U.S.
dollars ($1,000) or any integral multiple thereof) of the principal amount of such Securities of a denomination larger than $1,000, the
Securities to be redeemed and shall thereafter promptly notify the Company in writing of the numbers of the Securities to be redeemed,
in whole or in part. The Company may, if and whenever it shall so elect, by delivery of instructions signed on its behalf by an Officer,
instruct the Trustee or any paying agent to call all or any part of the Securities of a particular series for redemption and to give notice
of redemption in the manner set forth in this Section, such notice to be in the name of the Company or its own name as the Trustee or
such paying agent may deem advisable. In any case in which notice of redemption is to be given by the Trustee or any such paying agent,
the Company shall deliver or cause to be delivered to, or permit to remain with, the Trustee or such paying agent, as the case may be,
such Security Register, transfer books or other records, or suitable copies or extracts therefrom, sufficient to enable the Trustee or
such paying agent to give any notice by mail that may be required under the provisions of this Section.
Section
3.3 Payment Upon Redemption.
(a)
If the giving of notice of redemption shall have been completed as above provided, the Securities or portions of Securities of
the series to be redeemed 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 interest on such Securities or portions
of Securities shall cease to accrue on and after the date fixed for redemption, unless the Company shall default in the payment of such
redemption price and accrued interest with respect to any such Security or portion thereof. On presentation and surrender of such Securities
on or after the date fixed for redemption at the place of payment specified in the notice, said Securities shall be paid and redeemed
at the applicable redemption price for such series, together with interest accrued thereon to the date fixed for redemption (but if the
date fixed for redemption is an interest payment date, the interest installment payable on such date shall be payable to the registered
holder at the close of business on the applicable record date pursuant to Section 2.3).
(b)
Upon presentation of any Security of such series that is to be redeemed in part only, the Company shall execute and the Trustee
shall authenticate and the office or agency where the Security is presented shall deliver to the holder thereof, at the expense of the
Company, a new Security of the same series of authorized denominations in principal amount equal to the unredeemed portion of the Security
so presented.
Section
3.4 Sinking Fund.
The provisions of Sections 3.4, 3.5 and 3.6 shall be applicable to any sinking fund for the retirement of Securities of a series,
except as otherwise specified as contemplated by Section 2.1 for Securities of such series.
The minimum amount of any sinking fund payment
provided for by the terms of Securities of any series is herein referred to as a “mandatory sinking fund payment,” and any
payment in excess of such minimum amount provided for by the terms of Securities of any series is herein referred to as an “optional
sinking fund payment”. If provided for by the terms of Securities of any series, the cash amount of any sinking fund payment may
be subject to reduction as provided in Section 3.5. Each sinking fund payment shall be applied to the redemption of Securities of
any series as provided for by the terms of Securities of such series.
Section
3.5 Satisfaction of Sinking Fund Payments with Securities.
The Company (i) may deliver Outstanding Securities of a series and (ii) may apply as a credit Securities of a series that have
been redeemed either at the election of the Company pursuant to the terms of such Securities or through the application of permitted optional
sinking fund payments pursuant to the terms of such Securities, in each case in satisfaction of all or any part of any sinking fund payment
with respect to the Securities of such series required to be made pursuant to the terms of such Securities as provided for by the terms
of such series, provided that such Securities have not been previously so credited. Such Securities shall be received and credited for
such purpose by the Trustee at the redemption price specified in such Securities for redemption through operation of the sinking fund
and the amount of such sinking fund payment shall be reduced accordingly.
Section
3.6 Redemption of Securities for Sinking Fund.
Not less than 45 days prior to each sinking fund payment date for any series of Securities (unless a shorter period shall be satisfactory
to the Trustee), the Company will deliver to the Trustee an Officer’s Certificate specifying the amount of the next ensuing sinking
fund payment for that series pursuant to the terms of the series, the portion thereof, if any, that is to be satisfied by delivering and
crediting Securities of that series pursuant to Section 3.5 and the basis for such credit and will, together with such Officer’s
Certificate, deliver to the Trustee any Securities to be so delivered. Not less than 30 days before each such sinking fund payment date
the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.2
and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.2.
Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Section 3.3.
ARTICLE
4
COVENANTS
Section
4.1 Payment of Principal, Premium and Interest.
The Company will duly and punctually pay or cause to be paid the principal of (and premium, if any) and interest on the Securities of
that series at the time and place and in the manner provided herein and established with respect to such Securities. Payments of principal
on the Securities may be made at the time provided herein and established with respect to such Securities by U.S. dollar check drawn on
and mailed to the address of the Securityholder entitled thereto as such address shall appear in the Security Register, or U.S. dollar
wire transfer to, a U.S. dollar account (such wire transfer to be made only to a Securityholder of an aggregate principal amount of Securities
of the applicable series in excess of U.S. $2,000,000 and only if such Securityholder shall have furnished wire instructions to the Trustee
no later than 15 days prior to the relevant payment date). Payments of interest on the Securities may be made at the time provided herein
and established with respect to such Securities by U.S. dollar check mailed to the address of the Securityholder entitled thereto as such
address shall appear in the Security Register, or U.S. dollar wire transfer to, a U.S. dollar account (such a wire transfer to be made
only to a Securityholder of an aggregate principal amount of Securities of the applicable series in excess of U.S. $2,000,000 and only
if such Securityholder shall have furnished wire instructions in writing to the Security Registrar and the Trustee no later than 15 days
prior to the relevant payment date.
Section
4.2 Maintenance of Office or Agency.
So long as any series of the Securities remain Outstanding, the Company agrees to maintain an office or agency with respect to each such
series and at such other location or locations as may be designated as provided in this Section 4.2, where (i) Securities of
that series may be presented for payment, (ii) Securities of that series may be presented as herein above authorized for registration
of transfer and exchange, and (iii) notices and demands to or upon the Company in respect of the Securities of that series and this
Indenture may be given or served, such designation to continue with respect to such office or agency until the Company shall, by written
notice signed by any officer authorized to sign an Officer’s Certificate and delivered to the Trustee, designate some other office
or agency for such purposes or any of them. If at any time the Company shall fail to maintain any such required office or agency or shall
fail to furnish the Trustee with the address thereof, such presentations, notices and demands may be made or served at the Corporate Trust
Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, notices and demands.
The Company initially appoints the Corporate Trust Office of the Trustee as its paying agent with respect to the Securities.
Section
4.3 Paying Agents.
(a)
If the Company shall appoint one or more paying agents for all or any series of the Securities, other than the Trustee, the Company
will cause each 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:
(i)
that it will hold all sums held by it as such agent for the payment of the principal of (and premium, if any) or interest on the
Securities of that series (whether such sums have been paid to it by the Company or by any other obligor of such Securities) in trust
for the benefit of the Persons entitled thereto;
(ii)
that it will give the Trustee notice of any failure by the Company (or by any other obligor of such Securities) to make any payment
of the principal of (and premium, if any) or interest on the Securities of that series when the same shall be due and payable;
(iii)
that it will, at any time during the continuance of any failure referred to in the preceding paragraph (a)(ii) above, upon the
written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such paying agent; and
(iv)
that it will perform all other duties of paying agent as set forth in this Indenture.
(b)
If the Company shall act as its own paying agent with respect to any series of the Securities, it will on or before each due date
of the principal of (and premium, if any) or interest on Securities of that series, set aside, segregate and hold in trust for the benefit
of the Persons entitled thereto a sum sufficient to pay such principal (and premium, if any) or interest so becoming due on Securities
of that series until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the
Trustee of such action, or any failure (by it or any other obligor on such Securities) to take such action. Whenever the Company shall
have one or more paying agents for any series of Securities, it will, prior to each due date of the principal of (and premium, if any)
or interest on any Securities of that series, deposit with the paying agent a sum sufficient to pay the principal (and premium, if any)
or interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest,
and (unless such paying agent is the Trustee) the Company will promptly notify the Trustee of this action or failure so to act.
(c)
Notwithstanding anything in this Section to the contrary, (i) the agreement to hold sums in trust as provided in this
Section is subject to the provisions of Section 11.5, and (ii) the Company may at any time, for the purpose of obtaining
the satisfaction and discharge of this Indenture or for any other purpose, pay, or direct any paying agent to pay, to the Trustee all
sums held in trust by the Company or such paying agent, such sums to be held by the Trustee upon the same terms and conditions as those
upon which such sums were held by the Company or such paying agent; and, upon such payment by the Company or any paying agent to the Trustee,
the Company or such paying agent shall be released from all further liability with respect to such money.
Section
4.4 Appointment to Fill Vacancy in Office of Trustee.
The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.10,
a Trustee, so that there shall at all times be a Trustee hereunder.
Section
4.5 Compliance with Consolidation Provisions.
The Company will not, while any of the Securities remain Outstanding, consolidate with or merge into any other Person, in either case
where the Company is not the survivor of such transaction, or sell or convey all or substantially all of its property to any other Person
unless the provisions of Article Ten hereof are complied with.
ARTICLE
5
SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
Section
5.1 Company to Furnish Trustee Names and Addresses of Securityholders.
The Company will furnish or cause to be furnished to the Trustee (a) within 15 days after each regular record date (as defined in
Section 2.3) a list, in such form as the Trustee may reasonably require, of the names and addresses of the holders of each series
of Securities as of such regular record date, provided that the Company shall not be obligated to furnish or cause to furnish such list
at any time that the list shall not differ in any respect from the most recent list furnished to the Trustee by the Company and (b) at
such other times as the Trustee may request in writing within 30 days after the receipt by the Company of any such request, a list of
similar form and content as of a date not more than 15 days prior to the time such list is furnished; provided, however, that, in either
case, no such list need be furnished for any series for which the Trustee shall be the Security Registrar.
Section
5.2 Preservation of Information; Communications With Securityholders.
(a)
The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of
the holders of Securities contained in the most recent list furnished to it as provided in Section 5.1 and as to the names and addresses
of holders of Securities received by the Trustee in its capacity as Security Registrar (if acting in such capacity).
(b)
The Trustee may destroy any list furnished to it as provided in Section 5.1 upon receipt of a new list so furnished.
(c)
Securityholders may communicate as provided in Section 312(b) of the Trust Indenture Act with other Securityholders with respect
to their rights under this Indenture or under the Securities, and, in connection with any such communications, the Trustee shall satisfy
its obligations under Section 312(b) of the Trust Indenture Act in accordance with the provisions of Section 312(b) of the Trust
Indenture Act.
Section
5.3 Reports by the Company.
The Company covenants and agrees to provide (which delivery may be via electronic mail) to the Trustee, after the Company files the same
with the Securities and Exchange Commission, copies of the annual reports and of the information, documents and other reports (or copies
of such portions of any of the foregoing as the Securities and Exchange Commission may from time to time by rules and regulations prescribe)
that the Company files with the Securities and Exchange Commission pursuant to Section 13 or Section 15(d) of the Exchange Act;
provided, however, the Company shall not be required to deliver to the Trustee any materials for which the Company has sought and received
confidential treatment by the Securities and Exchange Commission; and provided further, so long as such filings by the Company are available
on the Securities and Exchange Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR), such filings shall
be deemed to have been filed with the Trustee for purposes of this Section 5.3 without any further action required by the Company.
Section
5.4 Reports by the Trustee.
(a)
If required by Section 313(a) of the Trust Indenture Act, the Trustee, within 60 days after each May 1, shall transmit
by mail, first class postage prepaid, to the Securityholders, as their names and addresses appear upon the Security Register, a brief
report dated as of such May 1, which complies with Section 313(a) of the Trust Indenture Act.
(b)
The Trustee shall comply with Section 313(b) and 313(c) of the Trust Indenture Act.
(c)
A copy of each such report shall, at the time of such transmission to Securityholders, be filed by the Trustee with the Company,
with each securities exchange upon which any Securities are listed (if so listed) and also with the Securities and Exchange Commission.
The Company agrees to notify the Trustee when any Securities become listed on any securities exchange.
ARTICLE
6
REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
Section
6.1 Events of Default.
(a)
Whenever used herein with respect to Securities of a particular series, “Event of Default” means any one or more of
the following events that has occurred and is continuing:
(i)
the Company defaults in the payment of any installment of interest upon any of the Securities of that series, as and when the same
shall become due and payable, and such default continues for a period of 90 days; provided, however, that a valid extension of an interest
payment period by the Company in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the
payment of interest for this purpose;
(ii)
the Company defaults in the payment of the principal of (or premium, if any, on) any of the Securities of that series as and when
the same shall become due and payable whether at maturity, upon redemption, by declaration or otherwise, or in any payment required by
any sinking or analogous fund established with respect to that series; provided, however, that a valid extension of the maturity of such
Securities in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the payment of principal
or premium, if any;
(iii)
the Company fails to observe or perform any other of its covenants or agreements with respect to that series contained in this
Indenture or otherwise established with respect to that series of Securities pursuant to Section 2.1 hereof (other than a covenant
or agreement that has been expressly included in this Indenture solely for the benefit of one or more series of Securities other than
such series) for a period of 90 days after the date on which written notice of such failure, requiring the same to be remedied and stating
that such notice is a “Notice of Default” hereunder, shall have been given to the Company by the Trustee, by registered or
certified mail, or to the Company and the Trustee by the holders of at least 25% in principal amount of the Securities of that series
at the time Outstanding;
(iv)
the Company pursuant to or within the meaning of any Bankruptcy Law (i) commences a voluntary case, (ii) consents to
the entry of an order for relief against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for
all or substantially all of its property or (iv) makes a general assignment for the benefit of its creditors; or
(v)
a court of competent jurisdiction enters an order under any Bankruptcy Law that (i) is for relief against the Company in an
involuntary case, (ii) appoints a Custodian of the Company for all or substantially all of its property or (iii) orders the
liquidation of the Company, and the order or decree remains unstayed and in effect for 90 days.
(b)
In each and every such case (other than an Event of Default specified in clause (iv) or clause (v) above), unless the
principal of all the Securities of that 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 that series then Outstanding hereunder, by notice in writing to the Company
(and to the Trustee if given by such Securityholders), may declare the principal of (and premium, if any, on) and accrued and unpaid interest
on all the Securities of that series to be due and payable immediately, and upon any such declaration the same shall become and shall
be immediately due and payable. If an Event of Default specified in clause (iv) or clause (v) above occurs, the principal of and accrued
and unpaid interest on all the Securities of that series shall automatically be immediately due and payable without any declaration or
other act on the part of the Trustee or the holders of the Securities.
(c)
At any time after the principal of (and premium, if any, on) and accrued and unpaid interest on the Securities of that series shall
have been so declared due and payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or
entered as hereinafter provided, the holders of a majority in aggregate principal amount of the Securities of that series then Outstanding
hereunder, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if: (i) the
Company has paid or deposited with the Trustee a sum sufficient to pay all matured installments of interest upon all the Securities of
that series and the principal of (and premium, if any, on) any and all Securities of that series that shall have become due otherwise
than by acceleration (with interest upon such principal and premium, if any, and, to the extent that such payment is enforceable under
applicable law, upon overdue installments of interest, at the rate per annum expressed in the Securities of that series to the date of
such payment or deposit) and the amount payable to the Trustee under Section 7.6, and (ii) any and all Events of Default under
the Indenture with respect to such series, other than the nonpayment of principal on (and premium, if any, on) and accrued and unpaid
interest on Securities of that series that shall not have become due by their terms, shall have been remedied or waived as provided in
Section 6.6.
No such rescission and annulment shall extend to
or shall affect any subsequent default or impair any right consequent thereon.
(d)
In case the Trustee shall have proceeded to enforce any right with respect to Securities of that series under this Indenture and
such proceedings shall have been discontinued or abandoned because of such rescission or annulment or for any other reason or shall have
been determined adversely to the Trustee, then and in every such case, subject to any determination in such proceedings, the Company and
the Trustee shall be restored respectively to their former positions and rights hereunder, and all rights, remedies and powers of the
Company and the Trustee shall continue as though no such proceedings had been taken.
Section
6.2 Collection of Indebtedness and Suits for Enforcement by
Trustee.
(a)
The Company covenants that (i) in case it shall default in the payment of any installment of interest on any of the Securities
of a series, or in any payment required by any sinking or analogous fund established with respect to that series as and when the same
shall have become due and payable, and such default shall have continued for a period of 90 days, or (ii) in case it shall default
in the payment of the principal of (or premium, if any, on) any of the Securities of a series when the same shall have become due and
payable, whether upon maturity of the Securities of a series or upon redemption or upon declaration or otherwise then, upon demand of
the Trustee, the Company will pay to the Trustee, for the benefit of the holders of the Securities of that series, the whole amount that
then shall have been become due and payable on all such Securities for principal (and premium, if any) or interest, or both, as the case
may be, with interest upon the overdue principal (and premium, if any) and (to the extent that payment of such interest is enforceable
under applicable law) upon overdue installments of interest at the rate per annum expressed in the Securities of that series; and, in
addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, and the amount payable to
the Trustee under Section 7.6.
(b)
If the Company shall fail to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express
trust, 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 proceeding to judgment or final decree, and may enforce any such judgment or final decree
against the Company or other obligor upon the Securities of that series and collect the moneys adjudged or decreed to be payable in the
manner provided by law or equity out of the property of the Company or other obligor upon the Securities of that series, wherever situated.
(c)
In case of any receivership, insolvency, liquidation, bankruptcy, reorganization, readjustment, arrangement, composition or judicial
proceedings affecting the Company, or its creditors or property, the Trustee shall have power to intervene in such proceedings and take
any action therein that may be permitted by the court and shall (except as may be otherwise provided by law) be entitled to file such
proofs of claim and other papers and documents as may be necessary or advisable in order to have the claims of the Trustee and of the
holders of Securities of such series allowed for the entire amount due and payable by the Company under the Indenture at the date of institution
of such proceedings and for any additional amount that may become due and payable by the Company after such date, and to collect and receive
any moneys or other property payable or deliverable on any such claim, and to distribute the same after the deduction of the amount payable
to the Trustee under Section 7.6; and any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each
of the holders of Securities of such series to make such payments to the Trustee, and, in the event that the Trustee shall consent to
the making of such payments directly to such Securityholders, to pay to the Trustee any amount due it under Section 7.6.
(d)
All rights of action and of asserting claims under this Indenture, or under any of the terms established with respect to Securities
of that series, may be enforced by the Trustee without the possession of any of such Securities, or the production thereof at any trial
or other proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its own name as trustee
of an express trust, and any recovery of judgment shall, after provision for payment to the Trustee of any amounts due under Section 7.6,
be for the ratable benefit of the holders of the Securities of such series.
In case of an Event of Default hereunder, the Trustee
may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings
as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise,
whether for the specific enforcement of any covenant or agreement contained in the 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.
Nothing contained herein shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any Securityholder any plan of reorganization, arrangement, adjustment
or composition affecting the Securities of that 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.
Section
6.3 Application of Moneys Collected.
Any moneys collected by the Trustee pursuant to this Article with respect to a particular series of Securities shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the distribution of such moneys on account of principal (or
premium, if any) or interest, upon presentation of the Securities of that series, and notation thereon of the payment, if only partially
paid, and upon surrender thereof if fully paid:
FIRST: To the payment of all indebtedness of the
Company to which such series of Securities is subordinated to the extent required by Section 7.6 and Article Fourteen;
SECOND: To the payment of the amounts then due
and unpaid upon Securities of such series for principal (and premium, if any) and interest, in respect of which or for the benefit of
which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on
such Securities for principal (and premium, if any) and interest, respectively; and
THIRD: To the payment of the remainder, if any,
to the Company or any other Person lawfully entitled thereto.
Section
6.4 Limitation on Suits.
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 suit, action or proceeding in equity or at law upon or under or with respect to this Indenture or for the appointment of a receiver
or trustee, or for any other remedy hereunder, unless (i) such holder previously shall have given to the Trustee written notice of
an Event of Default and of the continuance thereof with respect to the Securities of such series specifying such Event of Default, as
hereinbefore provided; (ii) 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, suit or proceeding in its own name as Trustee hereunder;
(iii) such holder or holders shall have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby; (iv) the Trustee for 90 days after its receipt of such notice, request and offer
of indemnity, shall have failed to institute any such action, suit or proceeding and (v) during such 90 day period, the holders of
a majority in principal amount of the Securities of that series do not give the Trustee a direction inconsistent with the request.
Notwithstanding anything contained herein to the
contrary or any other provisions of this Indenture, the right of any holder of any Security to receive payment of the principal of (and
premium, if any) and interest on such Security, as therein provided, on or after the respective due dates expressed in such Security (or
in the case of redemption, on the redemption date), or to institute suit for the enforcement of any such payment on or after such respective
dates or redemption date, shall not be impaired or affected without the consent of such holder and by accepting a Security hereunder it
is expressly understood, intended and covenanted by the taker and holder of every Security of such series with every other such taker
and holder and the Trustee, that no one or more holders of Securities of such series shall have any right in any manner whatsoever by
virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of the holders of any other of such
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 such 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
6.5 Rights and Remedies Cumulative; Delay or Omission Not Waiver.
(a)
Except as otherwise provided in Section 2.7, all powers and remedies given by this Article to the Trustee or to the Securityholders
shall, to the extent permitted by law, be deemed cumulative and not exclusive of any other powers and remedies available to the Trustee
or the holders of the Securities, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and
agreements contained in this Indenture or otherwise established with respect to such Securities.
(b)
No delay or omission of the Trustee or of any holder of any of the Securities 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 default or an acquiescence therein; and, subject to the provisions of Section 6.4, every power and remedy given by this Article
or by law to the Trustee or 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
6.6 Control by Securityholders.
The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding, determined in accordance
with Section 8.4, 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 such series; provided, however, that such direction
shall not be in conflict with any rule of law or with this Indenture. Subject to the provisions of Section 7.1, the Trustee shall
have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer or officers of the
Trustee, determine that the proceeding so directed, subject to the Trustee’s duties under the Trust Indenture Act, would involve
the Trustee in personal liability or might be unduly prejudicial to the Securityholders not involved in the proceeding. The holders of
a majority in aggregate principal amount of the Securities of any series at the time Outstanding affected thereby, determined in accordance
with Section 8.4, may on behalf of the holders of all of the Securities of such series waive any past default in the performance
of any of the covenants contained herein or established pursuant to Section 2.1 with respect to such series and its consequences,
except a default in the payment of the principal of, or premium, if any, or interest on, any of the Securities of that series as and when
the same shall become due by the terms of such Securities otherwise than by acceleration (unless such default has been cured and a sum
sufficient to pay all matured installments of interest and principal and any premium has been deposited with the Trustee (in accordance
with Section 6.1(c)). Upon any such waiver, the default covered thereby shall be deemed to be cured for all purposes of this Indenture
and the Company, the Trustee and the holders of the Securities of such series shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.
Section
6.7 Undertaking to Pay Costs.
All parties to this Indenture agree, and each holder of any Securities by such holder’s acceptance thereof shall be deemed to have
agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or
in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’
fees, 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; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any
Securityholder, or group of Securityholders, holding more than 10% in aggregate principal amount of the Outstanding Securities of any
series, or to any suit instituted by any Securityholder for the enforcement of the payment of the principal of (or premium, if any) or
interest on any Security of such series, on or after the respective due dates expressed in such Security or established pursuant to this
Indenture.
ARTICLE
7
CONCERNING THE TRUSTEE
Section
7.1 Certain Duties and Responsibilities of Trustee.
(a)
The Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing of
all Events of Default with respect to the Securities of that series that may have occurred, shall undertake to perform with respect to
the Securities of such series such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants
shall be read into this Indenture against the Trustee. In case an Event of Default with respect to the Securities of a series has occurred
(that has not been cured or waived), the Trustee shall exercise with respect to Securities of that series 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 man would exercise or use under
the circumstances in the conduct of his own affairs.
(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)
prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing or waiving of all
such Events of Default with respect to that series that may have occurred: (x) the duties and obligations of the Trustee shall with
respect to the Securities of such series be determined solely by the express provisions of this Indenture, and the Trustee shall not be
liable with respect to the Securities of such series 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 (y) in
the absence of bad faith on the part of the Trustee, the Trustee may with respect to the Securities of such series conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to
the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions that by any 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;
(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;
(iii)
the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with
the direction of the holders of not less than a majority in principal amount of the Securities of any series at the time Outstanding 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 with respect to the Securities of that series; and
(iv)
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 is reasonable
ground for believing that the repayment of such funds or liability is not reasonably assured to it under the terms of this Indenture or
adequate indemnity against such risk is not reasonably assured to it.
Section
7.2 Certain Rights of Trustee.
Except as otherwise provided in Section 7.1:
(a)
The Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, 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 Company mentioned herein shall be sufficiently evidenced by a Board Resolution or
an instrument signed in the name of the Company by any authorized officer of the Company (unless other evidence in respect thereof is
specifically prescribed herein);
(c)
The Trustee may consult with counsel and the written advice of such counsel or, if requested, any Opinion of Counsel shall be full
and complete authorization and protection in respect of any action taken or suffered or omitted hereunder in good faith and in reliance
thereon;
(d)
The Trustee shall be under no obligation to exercise any of the rights 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 that may be incurred therein or thereby;
nothing contained herein shall, however, relieve the Trustee of the obligation, upon the occurrence of an Event of Default with respect
to a series of the Securities (that has not been cured or waived), to exercise with respect to Securities of that series such of the rights
and powers vested in it by this Indenture, and to use the same degree of care and skill in their exercise, as a prudent man would exercise
or use under the circumstances in the conduct of his own affairs;
(e)
The Trustee shall not be liable for any action taken or omitted to be taken by it in good faith and believed by it to be authorized
or within the discretion or rights or powers conferred upon it by this Indenture;
(f)
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, bond, security, or other papers or documents, unless requested
in writing so to do by the holders of not less than a majority in principal amount of the Outstanding Securities of the particular series
affected thereby (determined as provided in Section 8.4); provided, however, 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
reasonable indemnity against such costs, expenses or liabilities as a condition to so proceeding. The reasonable expense of every such
examination shall be paid by the Company or, if paid by the Trustee, shall be repaid by the Company upon demand; and
(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 and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed
with due care by it hereunder.
In
addition, the Trustee shall not be deemed to have knowledge of any Default or Event of Default except (i) any Event of Default occurring
pursuant to clause (i) or (ii) of Section 6.1(a) or (ii) any Default or Event of Default of which the Trustee shall
have received written notification in the manner set forth in this Indenture or a Responsible Officer of the Trustee shall have obtained
actual knowledge. Delivery of reports, information and documents to the Trustee under Section 5.3 is for informational purposes only
and the information and the Trustee’s receipt of the foregoing shall not constitute constructive notice of any information contained
therein, or determinable from information contained therein including the Company’s compliance with any of their covenants thereunder
(as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate).
Section
7.3 Trustee Not Responsible for Recitals or Issuance or Securities.
(a)
The recitals contained herein and in the Securities shall be taken as the statements of the Company, and the Trustee assumes no
responsibility for the correctness of the same.
(b)
The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities.
(c)
The Trustee shall not be accountable for the use or application by the Company of any of the Securities or of the proceeds of such
Securities, or for the use or application of any moneys paid over by the Trustee in accordance with any provision of this Indenture or
established pursuant to Section 2.1, or for the use or application of any moneys received by any paying agent other than the Trustee.
Section
7.4 May Hold Securities.
The Trustee or any paying agent or Security Registrar, 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 Trustee, paying agent or Security Registrar.
Section
7.5 Moneys Held in Trust. Subject
to the provisions of Section 11.5, all moneys received by the Trustee shall, until used or applied as herein provided, be held in
trust for the purposes for which they were received, but need not be segregated from other funds except to the extent required by law.
The Trustee shall be under no liability for interest on any moneys received by it hereunder except such as it may agree with the Company
to pay thereon.
Section
7.6 Compensation and Reimbursement.
(a)
The Company covenants and agrees to pay to the Trustee, and the Trustee shall be entitled to, such reasonable compensation (which
shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust) as the Company and the Trustee
may from time to time agree in writing, for all services rendered by it in the execution of the trusts hereby created and in the exercise
and performance of any of the powers and duties hereunder of the Trustee, and, except as otherwise expressly provided herein, the Company
will pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee
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 Persons not regularly in its employ), except any such expense, disbursement or advance as may arise from its negligence
or bad faith and except as the Company and Trustee may from time to time agree in writing. The Company also covenants to indemnify the
Trustee (and its officers, agents, directors and employees) for, and to hold it harmless against, any loss, liability or expense incurred
without negligence or bad faith on the part of the Trustee and arising out of or in connection with the acceptance or administration of
this trust, including the reasonable costs and expenses of defending itself against any claim of liability in the premises.
(b)
The obligations of the Company under this Section to compensate and indemnify the Trustee and to pay or reimburse the Trustee
for reasonable expenses, disbursements and advances shall constitute indebtedness of the Company to which the Securities are subordinated.
Such additional indebtedness shall be secured by a lien prior 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.
Section
7.7 Reliance on Officer’s Certificate.
Except as otherwise provided in Section 7.1, whenever in the administration of the provisions of this Indenture the Trustee shall
deem it reasonably necessary or desirable that a matter be proved or established prior to taking or suffering or omitting to take 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 Officer’s 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 to be taken by it under the provisions of this Indenture upon the faith thereof.
Section
7.8 Disqualification; Conflicting Interests.
If the Trustee has or shall acquire any “conflicting interest” within the meaning of Section 310(b) of the Trust Indenture
Act, the Trustee and the Company shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act.
Section
7.9 Corporate Trustee Required; Eligibility.
There shall at all times be a Trustee with respect to the Securities issued hereunder which shall at all times be a corporation organized
and doing business under the laws of the United States of America or any state or territory thereof or of the District of Columbia, or
a corporation or other Person permitted to act as trustee by the Securities and Exchange Commission, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least fifty million U.S. dollars ($50,000,000), and subject to supervision
or examination by federal, state, territorial, or District of Columbia authority.
If such corporation or other Person publishes reports
of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such corporation or other Person shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published. The Company may not, nor may any Person directly or indirectly
controlling, controlled by, or under common control with the Company, serve as Trustee. In case at any time the Trustee shall cease to
be eligible in accordance with the provisions of this Section, the Trustee shall resign immediately in the manner and with the effect
specified in Section 7.10.
Section
7.10 Resignation and Removal; Appointment of Successor.
(a)
The Trustee or any successor hereafter appointed may at any time resign with respect to the Securities of one or more series by
giving written notice thereof to the Company and by transmitting notice of resignation by mail, first class postage prepaid, to the Securityholders
of such series, as their names and addresses appear upon the Security Register. Upon receiving such notice of resignation, the Company
shall promptly appoint a successor trustee with respect to Securities of such series by written instrument, in duplicate, executed by
order of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor
trustee. If no successor trustee shall have been so appointed and have accepted appointment within 30 days after the mailing of such notice
of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor trustee with
respect to Securities of such series, or any Securityholder of that series who has been a bona fide holder of a Security or Securities
for at least six months may 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 one of the following shall occur:
(i)
the Trustee shall fail to comply with the provisions of Section 7.8 after written request therefor by the Company or by any
Securityholder who has been a bona fide holder of a Security or Securities for at least six months; or
(ii)
the Trustee shall cease to be eligible in accordance with the provisions of Section 7.9 and shall fail to resign after written
request therefor by the Company or by any such Securityholder; or
(iii)
the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy
proceeding, or a receiver of the Trustee or of its property shall be appointed or consented to, 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 Company may remove the Trustee with respect to all Securities and appoint a successor trustee by written instrument, in duplicate,
executed by order of the Board of Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy to
the successor trustee, or any Securityholder who has been a bona fide holder of a Security or Securities for at least six months may,
on behalf of that holder and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor trustee. Such court may thereupon after such notice, if any, as it may deem proper and prescribe, remove
the Trustee and appoint a successor trustee.
(c)
The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding may at any time
remove the Trustee with respect to such series by so notifying the Trustee and the Company and may appoint a successor Trustee for such
series with the consent of the Company.
(d)
Any resignation or removal of the Trustee and appointment of a successor trustee with respect to the Securities of a series pursuant
to any of the provisions of this Section shall become effective upon acceptance of appointment by the successor trustee as provided
in Section 7.11.
(e)
Any successor trustee appointed pursuant to this Section may be appointed with respect to the Securities of one or more series
or all of such series, and at any time there shall be only one Trustee with respect to the Securities of any particular series.
Section
7.11 Acceptance of Appointment By Successor.
(a)
In case of the appointment hereunder of a successor trustee with respect to all Securities, every such successor trustee so appointed
shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon
the resignation or removal of the retiring Trustee shall become effective and such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company
or the successor trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to
such successor trustee all the rights, powers, and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such
successor trustee all property and money held by such retiring Trustee hereunder.
(b)
In case of the appointment hereunder of a successor trustee with respect to the Securities of one or more (but not all) series,
the Company, the retiring Trustee and each successor trustee with respect to the Securities of one or more series shall execute and deliver
an indenture supplemental hereto wherein each successor trustee shall accept such appointment and which (i) shall contain such provisions
as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor trustee all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor trustee
relates, (ii) shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts
and duties of the retiring Trustee with respect to the Securities of that or those series as to which the retiring Trustee is not retiring
shall continue to be vested in the retiring Trustee, and (iii) 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, that each such Trustee
shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee
and that no Trustee shall be responsible for any act or failure to act on the part of any other Trustee hereunder; and upon the execution
and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent provided
therein, such retiring Trustee shall with respect to the Securities of that or those series to which the appointment of such successor
trustee relates have no further responsibility for the exercise of rights and powers or for the performance of the duties and obligations
vested in the Trustee under this Indenture, and each such successor trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to
which the appointment of such successor trustee relates; but, on request of the Company or any successor trustee, such retiring Trustee
shall duly assign, transfer and deliver to such successor trustee, to the extent contemplated by such supplemental indenture, the property
and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment of such
successor trustee relates.
(c)
Upon request of any such successor trustee, the Company shall execute any and all instruments for more fully and certainly vesting
in and confirming to such successor trustee all such rights, powers and trusts referred to in paragraph (a) or (b) of this Section,
as the case may be.
(d)
No successor trustee shall accept its appointment unless at the time of such acceptance such successor trustee shall be qualified
and eligible under this Article.
(e)
Upon acceptance of appointment by a successor trustee as provided in this Section, the Company shall transmit notice of the succession
of such trustee hereunder by mail, first class postage prepaid, to the Securityholders, as their names and addresses appear upon the Security
Register. If the Company fails to transmit such notice within ten days after acceptance of appointment by the successor trustee, the successor
trustee shall cause such notice to be transmitted at the expense of the Company.
Section
7.12 Merger, Conversion, Consolidation or Succession to Business.
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 the corporate trust business
of the Trustee, including the administration of the trust created by this Indenture, shall be the successor of the Trustee hereunder,
provided that such corporation shall be qualified under the provisions of Section 7.8 and eligible under the provisions of Section 7.9,
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 any Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated
with the same effect as if such successor Trustee had itself authenticated such Securities.
Section
7.13 Preferential Collection of Claims Against the Company.
The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any creditor relationship described in Section 311(b)
of the Trust Indenture Act. A Trustee who has resigned or been removed shall be subject to Section 311(a) of the Trust Indenture
Act to the extent included therein.
Section
7.14 Notice of Default.
If any Default or any Event of Default occurs and is continuing and if such Default or Event of Default is known to a Responsible Officer
of the Trustee, the Trustee shall mail to each Securityholder in the manner and to the extent provided in Section 313(c) of the Trust
Indenture Act notice of the Default or Event of Default within the earlier of 90 days after it occurs and 30 days after it is known to
a Responsible Officer of the Trustee or written notice of it is received by the Trustee, unless such Default or Event of Default has been
cured; provided, however, that, except in the case of a default in the payment of the principal of (or premium, if any) or interest on
any Security, 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 and/or Responsible Officers of the Trustee in good faith determine that the withholding of such notice
is in the interest of the Securityholders.
ARTICLE
8
CONCERNING THE SECURITYHOLDERS
Section
8.1 Evidence of Action by Securityholders.
Whenever in this Indenture it is provided that the holders of a majority or specified percentage in aggregate principal amount of the
Securities of a particular series may take any action (including the making of any demand or request, the giving of any notice, consent
or waiver or the taking of any other action), the fact that at the time of taking any such action the holders of such majority or specified
percentage of that series have joined therein may be evidenced by any instrument or any number of instruments of similar tenor executed
by such holders of Securities of that series in person or by agent or proxy appointed in writing.
If the Company shall solicit from the Securityholders
of any series any request, demand, authorization, direction, notice, consent, waiver or other action, the Company may, at its option,
as evidenced by an Officer’s Certificate, fix in advance a record date for such series for the determination of Securityholders
entitled to give such request, demand, authorization, direction, notice, consent, waiver or other action, but the Company shall have no
obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other
action may be given before or after the record date, but only the Securityholders of record at the close of business on the record date
shall be deemed to be Securityholders for the purposes of determining whether Securityholders of the requisite proportion of Outstanding
Securities of that series have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver
or other action, and for that purpose the Outstanding Securities of that series shall be computed as of the record date; provided, however,
that no such authorization, agreement or consent by such Securityholders on the record date shall be deemed effective unless it shall
become effective pursuant to the provisions of this Indenture not later than six months after the record date.
Section
8.2 Proof of Execution by Securityholders.
Subject to the provisions of Section 7.1, proof of the execution of any instrument by a Securityholder (such proof will not require
notarization) or his agent or proxy and proof of the holding by any Person of any of the Securities shall be sufficient if made in the
following manner:
(a)
The fact and date of the execution by any such Person of any instrument may be proved in any reasonable manner acceptable to the
Trustee.
(b)
The ownership of Securities shall be proved by the Security Register of such Securities or by a certificate of the Security Registrar
thereof.
The Trustee may require such additional proof of
any matter referred to in this Section as it shall deem necessary.
Section
8.3 Who May be Deemed Owners.
Prior to the due presentment for registration of transfer of any Security, the Company, the Trustee, any paying agent and any Security
Registrar may deem and treat the Person in whose name such Security shall be registered upon the books of the Company as the absolute
owner of such Security (whether or not such Security shall be overdue and notwithstanding any notice of ownership or writing thereon made
by anyone other than the Security Registrar) for the purpose of receiving payment of or on account of the principal of, premium, if any,
and (subject to Section 2.3) interest on such Security and for all other purposes; and neither the Company nor the Trustee nor any
paying agent nor any Security Registrar shall be affected by any notice to the contrary.
Section
8.4 Certain Securities Owned by Company Disregarded.
In determining whether the holders of the requisite aggregate principal amount of Securities of a particular series have concurred in
any direction, consent or waiver under this Indenture, the Securities of that series that are owned by the Company or any other obligor
on the Securities of that series or by any Person directly or indirectly controlling or controlled by or under common control with the
Company or any other obligor on the Securities of that series 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 of such series that the Trustee actually knows are so owned shall be so disregarded. The Securities
so owned that have been pledged in good faith may be regarded as Outstanding for the purposes of this Section, if the pledgee shall establish
to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not a Person
directly or indirectly controlling or controlled by or under direct or indirect common control with the Company or any such other obligor.
In case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee.
Section
8.5 Actions Binding on Future Securityholders.
At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 8.1, of the taking of any action by the
holders of the majority or percentage in aggregate principal amount of the Securities of a particular series specified in this Indenture
in connection with such action, any holder of a Security of that series that is shown by the evidence to be included in the Securities
the holders of which have consented to such action may, by filing written notice with the Trustee, and upon proof of holding as provided
in Section 8.2, 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 Security
issued in exchange therefor, on registration of transfer thereof or in place thereof, irrespective of whether or not any notation in regard
thereto is made upon such Security. Any action taken by the holders of the majority or percentage in aggregate principal amount of the
Securities of a particular series specified in this Indenture in connection with such action shall be conclusively binding upon the Company,
the Trustee and the holders of all the Securities of that series.
ARTICLE
9
SUPPLEMENTAL INDENTURES
Section
9.1 Supplemental Indentures Without the Consent of Securityholders.
In addition to any supplemental indenture otherwise authorized by this Indenture, the Company and the Trustee may from time to time and
at any time enter into an indenture or indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act
as then in effect), without the consent of the Securityholders, for one or more of the following purposes:
(a)
to cure any ambiguity, defect, or inconsistency herein or in the Securities of any series;
(b)
to comply with Article Ten;
(c)
to provide for uncertificated Securities in addition to or in place of certificated Securities;
(d)
to add to the covenants, restrictions, conditions or provisions relating to the Company for the benefit of the holders of all or
any series of Securities (and if such covenants, restrictions, conditions or provisions are to be for the benefit of less than all series
of Securities, stating that such covenants, restrictions, conditions or provisions are expressly being included solely for the benefit
of such series), to make the occurrence, or the occurrence and the continuance, of a default in any such additional covenants, restrictions,
conditions or provisions an Event of Default, or to surrender any right or power herein conferred upon the Company;
(e)
to add to, delete from, or revise the conditions, limitations, and restrictions on the authorized amount, terms, or purposes of
issue, authentication, and delivery of Securities, as herein set forth;
(f)
to make any change that does not adversely affect the rights of any Securityholder in any material respect;
(g)
to provide for the issuance of and establish the form and terms and conditions of the Securities of any series as provided in Section 2.1,
to establish the form of any certifications required to be furnished pursuant to the terms of this Indenture or any series of Securities,
or to add to the rights of the holders of any series of Securities;
(h)
to evidence and provide for the acceptance of appointment hereunder by a successor trustee; or
(i)
to comply with any requirements of the Securities and Exchange Commission or any successor in connection with the qualification
of this Indenture under the Trust Indenture Act.
The Trustee is hereby authorized to join with the
Company in the execution of any such supplemental indenture, and to make any further appropriate agreements and stipulations that may
be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that 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 by the Company and the Trustee without the consent of the holders of any of the Securities at the
time Outstanding, notwithstanding any of the provisions of Section 9.2.
Section
9.2 Supplemental Indentures With Consent of Securityholders.
With the consent (evidenced as provided in Section 8.1) of the holders of not less than a majority in aggregate principal amount
of the Securities of each series affected by such supplemental indenture or indentures at the time Outstanding, the Company, when authorized
by a Board Resolution, and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto
(which shall conform to the provisions of the Trust Indenture Act as then in effect) 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 not
covered by Section 9.1 the rights of the holders of the Securities of such series under this Indenture; provided, however, that no
such supplemental indenture shall, without the consent of the holders of each Security then Outstanding and affected thereby, (a) extend
the fixed maturity of any Securities of any series, or reduce the principal amount thereof, or reduce the rate or extend the time of payment
of interest thereon, or reduce any premium payable upon the redemption thereof or (b) reduce the aforesaid percentage of Securities,
the holders of which are required to consent to any such supplemental indenture.
It shall not be necessary for the consent of the
Securityholders of any series affected thereby 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.
Section
9.3 Effect of Supplemental Indentures.
Upon the execution of any supplemental indenture pursuant to the provisions of this Article or of Section 10.1, this Indenture shall,
with respect to such series, 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 Company and the holders of Securities of the 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
9.4 Securities Affected by Supplemental Indentures.
Securities of any series affected by a supplemental indenture, authenticated and delivered after the execution of such supplemental indenture
pursuant to the provisions of this Article or of Section 10.1, may bear a notation in form approved by the Company, provided such
form meets the requirements of any securities exchange upon which such series may be listed, as to any matter provided for in such supplemental
indenture. If the Company shall so determine, new Securities of that series so modified as to conform, in the opinion of the Board of
Directors, to any modification of this Indenture contained in any such supplemental indenture may be prepared by the Company, authenticated
by the Trustee and delivered in exchange for the Securities of that series then Outstanding.
Section
9.5 Execution of Supplemental Indentures.
Upon the request of the Company, accompanied by its Board Resolutions authorizing the execution of any such supplemental indenture, and
upon the filing with the Trustee of evidence of the consent of Securityholders required to consent thereto as aforesaid, the Trustee shall
join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own
rights, duties 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. The Trustee, subject to the provisions of Section 7.1, may receive an Officer’s
Certificate or, if requested, an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant to this Article
is authorized or permitted by, and conforms to, the terms of this Article and that it is proper for the Trustee under the provisions of
this Article to join in the execution thereof; provided, however, that such Officer’s Certificate or Opinion of Counsel need not
be provided in connection with the execution of a supplemental indenture that establishes the terms of a series of Securities pursuant
to Section 2.1 hereof.
Promptly after the execution by the Company and
the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Trustee shall transmit by mail, first class
postage prepaid, a notice, setting forth in general terms the substance of such supplemental indenture, to the Securityholders of all
series affected thereby as their names and addresses appear upon the Security Register. Any failure of the Trustee to mail such notice,
or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.
ARTICLE
10
SUCCESSOR ENTITY
Section
10.1 Company May Consolidate, Etc.
Except as provided pursuant to Section 2.1 pursuant to a Board Resolution, and set forth in an Officer’s Certificate, or established
in one or more indentures supplemental to this Indenture, nothing contained in this Indenture shall prevent any consolidation or merger
of the Company with or into any other Person (whether or not affiliated with the Company) or successive consolidations or mergers in which
the Company or its successor or successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or other disposition
of the property of the Company or its successor or successors as an entirety, or substantially as an entirety, to any other corporation
(whether or not affiliated with the Company or its successor or successors) authorized to acquire and operate the same; provided, however,
(a) the Company hereby covenants and agrees that, upon any such consolidation or merger (in each case, if the Company is not the
survivor of such transaction), sale, conveyance, transfer or other disposition, the due and punctual payment of the principal of (premium,
if any) and interest on all of the Securities of all series in accordance with the terms of each series, according to their tenor, and
the due and punctual performance and observance of all the covenants and conditions of this Indenture with respect to each series or established
with respect to such series pursuant to Section 2.1 to be kept or performed by the Company shall be expressly assumed, by supplemental
indenture (which shall conform to the provisions of the Trust Indenture Act, as then in effect) reasonably satisfactory in form to the
Trustee executed and delivered to the Trustee by the entity formed by such consolidation, or into which the Company shall have been merged,
or by the entity which shall have acquired such property and (b) in the event that the Securities of any series then Outstanding
are convertible into or exchangeable for shares of common stock or other securities of the Company, such entity shall, by such supplemental
indenture, make provision so that the Securityholders of Securities of that series shall thereafter be entitled to receive upon conversion
or exchange of such Securities the number of securities or property to which a holder of the number of shares of common stock or other
securities of the Company deliverable upon conversion or exchange of those Securities would have been entitled had such conversion or
exchange occurred immediately prior to such consolidation, merger, sale, conveyance, transfer or other disposition.
Section
10.2 Successor Entity Substituted.
(a)
In case of any such consolidation, merger, sale, conveyance, transfer or other disposition and upon the assumption by the successor
entity by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the obligations set
forth under Section 10.1 on all of the Securities of all series Outstanding, such successor entity shall succeed to and be substituted
for the Company with the same effect as if it had been named as the Company herein, and thereupon the predecessor corporation shall be
relieved of all obligations and covenants under this Indenture and the Securities.
(b)
In case of any such consolidation, merger, sale, conveyance, transfer 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.
(c)
Nothing contained in this Article shall require any action by the Company in the case of a consolidation or merger of any Person
into the Company where the Company is the survivor of such transaction, or the acquisition by the Company, by purchase or otherwise, of
all or any part of the property of any other Person (whether or not affiliated with the Company).
Section
10.3 Evidence of Consolidation, Etc. to Trustee.
The Trustee, subject to the provisions of Section 7.1, may receive an Officer’s Certificate and, if requested, an Opinion
of Counsel as conclusive evidence that any such consolidation, merger, sale, conveyance, transfer or other disposition, and any such
assumption, comply with the provisions of this Article.
ARTICLE 11
SATISFACTION AND DISCHARGE
Section
11.1 Satisfaction and Discharge of Indenture.
If at any time: (a) the Company shall have delivered to the Trustee for cancellation all Securities of a series theretofore authenticated
and not delivered to the Trustee for cancellation (other than any Securities that shall have been destroyed, lost or stolen and that shall
have been replaced or paid as provided in Section 2.7 and Securities for whose payment money or Governmental Obligations have theretofore
been deposited in trust or segregated and held in trust by the Company and thereupon repaid to the Company or discharged from such trust,
as provided in Section 11.5); or (b) all such Securities of a particular series not theretofore delivered to the Trustee for
cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for
redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and the Company shall
deposit or cause to be deposited with the Trustee as trust funds the entire amount in moneys or Governmental Obligations or a combination
thereof, sufficient in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, to pay at maturity or upon redemption all Securities of that series not theretofore delivered to the
Trustee for cancellation, including principal (and premium, if any) and interest due or to become due to such date of maturity or date
fixed for redemption, as the case may be, and if the Company shall also pay or cause to be paid all other sums payable hereunder with
respect to such series by the Company then this Indenture shall thereupon cease to be of further effect with respect to such series except
for the provisions of Sections 2.3, 2.5, 2.7, 4.1, 4.2, 4.3 and 7.10, that shall survive until the date of maturity or redemption
date, as the case may be, and Sections 7.6 and 11.5, that shall survive to such date and thereafter, and the Trustee, on demand of
the Company and at the cost and expense of the Company shall execute proper instruments acknowledging satisfaction of and discharging
this Indenture with respect to such series.
Section
11.2 Discharge of Obligations.
If at any time all such Securities of a particular series not heretofore delivered to the Trustee for cancellation or that have not become
due and payable as described in Section 11.1 shall have been paid by the Company by depositing irrevocably with the Trustee as trust
funds moneys or an amount of Governmental Obligations sufficient to pay at maturity or upon redemption all such Securities of that series
not theretofore delivered to the Trustee for cancellation, including principal (and premium, if any) and interest due or to become due
to such date of maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or cause to be paid all other
sums payable hereunder by the Company with respect to such series, then after the date such moneys or Governmental Obligations, as the
case may be, are deposited with the Trustee the obligations of the Company under this Indenture with respect to such series shall cease
to be of further effect except for the provisions of Sections 2.3, 2.5, 2.7, 4.1, 4.2, 4.3, 7.6, 7.10 and 11.5 hereof that shall
survive until such Securities shall mature and be paid.
Thereafter, Sections 7.6 and 11.5 shall survive.
Section
11.3 Deposited Moneys to be Held in Trust.
All moneys or Governmental Obligations deposited with the Trustee pursuant to Section 11.1 or 11.2 shall be held in trust and shall
be available for payment as due, either directly or through any paying agent (including the Company acting as its own paying agent), to
the holders of the particular series of Securities for the payment or redemption of which such moneys or Governmental Obligations have
been deposited with the Trustee.
Section
11.4 Payment of Moneys Held by Paying Agents.
In connection with the satisfaction and discharge of this Indenture all moneys or Governmental Obligations then held by any paying agent
under the provisions of this Indenture shall, upon demand of the Company, be paid to the Trustee and thereupon such paying agent shall
be released from all further liability with respect to such moneys or Governmental Obligations.
Section
11.5 Repayment to Company.
Any moneys or Governmental Obligations deposited with any paying agent or the Trustee, or then held by the Company, in trust for payment
of principal of or premium, if any, or interest on the Securities of a particular series that are not applied but remain unclaimed by
the holders of such Securities for at least two years after the date upon which the principal of (and premium, if any) or interest on
such Securities shall have respectively become due and payable, or such other shorter period set forth in applicable escheat or abandoned
or unclaimed property law, shall be repaid to the Company on May 31 of each year or upon the Company’s request or (if then
held by the Company) shall be discharged from such trust; and thereupon the paying agent and the Trustee shall be released from all further
liability with respect to such moneys or Governmental Obligations, and the holder of any of the Securities entitled to receive such payment
shall thereafter, as a general creditor, look only to the Company for the payment thereof.
ARTICLE
12
IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
Section
12.1 No Recourse.
No recourse under or upon any obligation, covenant or agreement of this Indenture, or of any Security, or for any claim based thereon
or otherwise in respect thereof, shall be had against any incorporator, stockholder, officer or director, past, present or future as such,
of the Company or of any predecessor or successor corporation, either directly or through the Company or any such predecessor or successor
corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise;
it being expressly understood that this Indenture and the obligations issued hereunder are solely corporate obligations, and that no such
personal liability whatever shall attach to, or is or shall be incurred by, the incorporators, stockholders, officers or directors as
such, of the Company or of any predecessor or successor corporation, or any of them, because of the creation of the indebtedness hereby
authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities
or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in equity or by constitution
or statute, of, and any and all such rights and claims against, every such incorporator, stockholder, officer or director as such, because
of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in
this Indenture or in any of the Securities or implied therefrom, are hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issuance of such Securities.
ARTICLE
13
MISCELLANEOUS PROVISIONS
Section
13.1 Effect on Successors and Assigns.
All the covenants, stipulations, promises and agreements in this Indenture made by or on behalf of the Company shall bind its successors
and assigns, whether so expressed or not.
Section
13.2 Actions by Successor.
Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer
of the Company shall and may be done and performed with like force and effect by the corresponding board, committee or officer of any
corporation that shall at the time be the lawful successor of the Company.
Section
13.3 Surrender of Company Powers.
The Company by instrument in writing executed by authority of its Board of Directors and delivered to the Trustee may surrender any of
the powers reserved to the Company, and thereupon such power so surrendered shall terminate both as to the Company and as to any successor
corporation.
Section
13.4 Notices.
Except as otherwise expressly provided herein, any notice, request or demand that by any provision of this Indenture is required or permitted
to be given, made or served by the Trustee or by the holders of Securities or by any other Person pursuant to this Indenture to or on
the Company may be given or served by being deposited in first class mail, postage prepaid, addressed (until another address is filed
in writing by the Company with the Trustee), as follows:
Any notice, election, request or demand by the
Company or any Securityholder or by any other Person pursuant to this Indenture to or upon the Trustee shall be deemed to have been sufficiently
given or made, for all purposes, if given or made in writing at the Corporate Trust Office of the Trustee.
Section
13.5 Governing Law.
This Indenture and each Security shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes
shall be construed in accordance with the laws of said State, except to the extent that the Trust Indenture Act is applicable.
Section
13.6 Treatment of Securities as Debt.
It is intended that the Securities will be treated as indebtedness and not as equity for federal income tax purposes. The provisions of
this Indenture shall be interpreted to further this intention.
Section
13.7 Certificates and Opinions as to Conditions Precedent.
(a)
Upon any application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture,
the Company shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent provided for in this Indenture
(other than the certificate to be delivered pursuant to Section 13.12) relating to the proposed action have been complied with and,
if requested, 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.
(b)
Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition
or covenant in this Indenture shall include (i) a statement that the Person making such certificate or opinion has read such covenant
or condition; (ii) 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; (iii) a statement that, in the opinion of such Person, he has made such
examination or investigation as is reasonably necessary to enable him to express an informed opinion as to whether or not such covenant
or condition has been complied with; and (iv) a statement as to whether or not, in the opinion of such Person, such condition or
covenant has been complied with.
Section
13.8 Payments on Business Days.
Except as provided pursuant to Section 2.1 pursuant to a Board Resolution, and set forth in an Officer’s Certificate, or established
in one or more indentures supplemental to this Indenture, in any case where the date of maturity of interest or principal of any Security
or the date of redemption of any Security shall not be a Business Day, then payment of interest or principal (and premium, if any) may
be made on the next succeeding Business Day with the same force and effect as if made on the nominal date of maturity or redemption, and
no interest shall accrue for the period after such nominal date.
Section
13.9 Conflict with Trust Indenture Act.
If and to the extent that any provision of this Indenture limits, qualifies or conflicts with the duties imposed by Sections 310
to 317, inclusive, of the Trust Indenture Act, such imposed duties shall control.
Section
13.10 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
13.11 Separability. In case
any one or more of the provisions contained in this Indenture or in the Securities of any series shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this
Indenture or of such Securities, but this Indenture and such Securities shall be construed as if such invalid or illegal or unenforceable
provision had never been contained herein or therein.
Section
13.12 Compliance Certificates.
The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year during which any Securities of any series
were outstanding, an officer’s certificate stating whether or not the signers know of any Default or Event of Default that occurred
during such fiscal year. Such certificate shall contain a certification from the principal executive officer, principal financial officer
or principal accounting officer of the Company that a review has been conducted of the activities of the Company and the Company’s
performance under this Indenture and that the Company has complied with all conditions and covenants under this Indenture. For purposes
of this Section 13.12, such compliance shall be determined without regard to any period of grace or requirement of notice provided
under this Indenture. If the officer of the Company signing such certificate has knowledge of such a Default or Event of Default, the
certificate shall describe any such Default or Event of Default and its status.
ARTICLE
14
SUBORDINATION OF SECURITIES
Section
14.1 Subordination Terms.
The payment by the Company of the principal of, premium, if any, and interest on any series of Securities issued hereunder shall be subordinated
to the extent set forth in an indenture supplemental hereto relating to such series.
IN WITNESS WHEREOF, the parties hereto have caused
this Indenture to be duly executed all as of the day and year first above written.
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INTRUSION INC.
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By: ______________________________
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Name: ____________________________
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Title: _____________________________
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[TRUSTEE], as Trustee
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By: ______________________________
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Name: ____________________________
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Title: _____________________________
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Exhibit 5.1
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Wilson Sonsini Goodrich
& Rosati
Professional Corporation
900 S. Capital of
Texas Highway
Las Cimas IV, 5th
Floor
Austin, TX 78746
o:
(512) 338-5400
f: (512) 338-5499
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August 5, 2021
Intrusion Inc.
101 East Park Blvd, Suite 1300
Plano, Texas 75074
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Re:
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Registration Statement on Form S-3
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Ladies and Gentlemen:
We have acted as counsel to Intrusion Inc., a Delaware
corporation (the “Company”), in connection with the preparation of a Registration Statement on Form S-3 (the “Registration
Statement”), to be filed on the date hereof by the Company with the United States Securities and Exchange Commission (the “Commission”),
for the purpose of registering under the Securities Act of 1933, as amended (the “Securities Act”), (i) shares of common
stock, par value $0.01 per share (the “Common Stock”), of the Company; (ii) shares of preferred stock, par value $0.01
per share (the “Preferred Stock”) of the Company; (iii) debt securities of the Company (together, the “Debt
Securities”), which Debt Securities may be issued pursuant to one or more senior or subordinated indentures (the “Indentures”),
between the Company and a trustee to be named therein (the “Trustee”); (iv) warrants of the Company (the “Warrants”),
which may be issued pursuant to a warrant agreement (the “Warrant Agreement”) between the Company and the warrant agent
to be named therein; and (v) units comprised of one or more shares of Common Stock, shares of Preferred Stock, Debt Securities or Warrants
in any combination (the “Units”) to be issued under one or more unit agreements to be entered into among the Company,
a bank or trust company, as unit agent (the “Unit Agent”), and the holders from time to time of the Units (each such
unit agreement, a “Unit Agreement”). The Common Stock, the Preferred Stock, the Debt Securities, the Warrants and the
Units are referred to herein collectively as the “Shelf Securities”; all of which may be offered from time to time
on a delayed or continuous basis pursuant to Rule 415 under the Securities Act at an aggregate offering price not to exceed $100,000,000.
The terms “Common Stock,” “Preferred Stock,” “Debt Securities,” “Warrants” and “Units”
shall include any additional amounts of such securities registered by the Company pursuant to Rule 462(b) under the Act in connection
with the offering contemplated by the Registration Statement.
We have also acted as counsel to the Company in
connection with an offering of up to $50,000,000 of shares of Common Stock that may be issued and sold (the “Sales Agreement
Shares”) under a Sales Agreement entered into by the Company with B. Riley Securities, Inc. on August 5, 2021 (as may be amended
or supplemented, the “Sales Agreement”) to be effective upon effectiveness of the Registration Statement. The prospectus
supplement for the offer and sale of the Sales Agreement Shares is included in the Registration Statement (as may be amended or supplemented,
the “Sales Agreement Prospectus Supplement”).
austin
beijing boston brussels hong kong london los angeles new york palo alto
san diego san francisco seattle shanghai washington, dc wilmington, de
Intrusion Inc.
August 5, 2021
Page 2
We, as your counsel, have examined originals or
copies, certified or otherwise identified to our satisfaction, of such documents, corporate records, certificates of public officials
and other instruments as we have deemed necessary or advisable for the purpose of rendering this opinion, including, without limitation,
the Registration Statement, the Sales Agreement Prospectus Supplement, the Indentures and the Sales Agreement. We are opining herein as
to the internal laws of the State of New York, and, the general corporation law of the State of Delaware (including the statutory provisions,
all applicable provisions of the Delaware Constitution and reported judicial decisions interpreting the foregoing), and we express no
opinion with respect to the applicability thereto, or the effect thereon, of the laws of any other jurisdiction or, in the case of Delaware,
any other laws, or as to any matters of municipal law or the laws of any local agencies within any state.
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 of all natural persons. 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. In making our examination of documents executed or to be executed, we have assumed
that the counterparties thereto, excluding the Company, have been duly incorporated or organized and are, and will continue to be, validly
existing and in good standing, and have or will have the requisite legal status and legal capacity under the laws of their respective
jurisdictions of incorporation or organization and had or will have the power, corporate or other, to enter into and perform all obligations
thereunder and have also assumed the due authorization by all requisite action, corporate or other, and execution and delivery by such
parties of such documents and, except as expressly set forth in the paragraphs below, the validity and binding effect thereof on such
parties.
Based upon the foregoing, we advise you that, in
our opinion:
1.
When the necessary corporate action on the part of the Company has been taken to authorize the issuance and sale of such shares
of Common Stock proposed to be sold by the Company, and when such shares of Common Stock are issued and delivered in accordance with the
applicable underwriting or other agreement against payment therefor (in excess of par value thereof) or upon conversion or exercise of
any security offered under the Registration Statement (the “Offered Security”), in accordance with terms of such Offered
Security or the instrument governing such Offered Security providing for such conversion or exercise as approved by the Board of Directors
of the Company (the “Board”), for the consideration approved by the Board (which consideration is not less than the
par value of the Common Stock), such shares of Common Stock will be validly issued, fully-paid and non-assessable.
2.
Upon designation of the relative rights, preferences and limitations of any series of Preferred Stock by the Board and the proper
filing with the Secretary of State of the State of Delaware of a Certificate of Designation relating to such series of Preferred Stock,
all necessary corporate action on the part of the Company will have been taken to authorize the issuance and sale of such series of Preferred
Stock proposed to be sold by the Company, and when such shares of Preferred Stock are issued and delivered in accordance with the applicable
underwriting or other agreement against payment therefor (in excess of par value thereof), such shares of Preferred Stock will be validly
issued, fully paid and non-assessable.
Intrusion Inc.
August 5, 2021
Page
3
3.
With respect to Debt Securities to be issued under the Indentures, when (a) the Trustee has duly executed and delivered the applicable
Indenture; (b) the applicable Indenture has been duly authorized and validly executed and delivered by the Company to the Trustee; (c)
the applicable Indenture has been duly qualified under the Trust Indenture Act of 1939, as amended; (d) the Board has taken all necessary
corporate action to approve the issuance and terms of such Debt Securities, the terms of the offering thereof and related matters; and
(e) such Debt Securities have been duly authorized, executed, authenticated, issued and delivered in accordance with the provisions of
the applicable Indenture, and the applicable definitive purchase, underwriting or other agreement against payment therefor, such Debt
Securities will be validly issued and will constitute valid and binding obligations of the Company, enforceable against the Company in
accordance with their terms.
4.
When the Warrant Agreement to be entered into in connection with the issuance of any Warrants has been duly authorized, executed
and delivered by the Warrant Agent and the Company, the specific terms of the Warrants have been duly authorized and established in accordance
with the Warrant Agreement and such Warrants have been duly authorized, executed, issued and delivered in accordance with the Warrant
Agreement and the applicable underwriting or other agreement against payment therefor, such Warrants will constitute valid and binding
obligations of the Company, enforceable in accordance with their terms.
5.
With respect to any Units to be issued pursuant to the Registration Statement, when (a) the Unit Agreement to be entered into in
connection with the issuance of any Units has been duly authorized, executed and delivered by the Unit Agent and the Company; (b) the
specific terms of the Units have been duly authorized and established in accordance with the Unit Agreement; and (c) such Units have been
duly authorized, executed, issued and delivered in accordance with the Unit Agreement and the applicable underwriting or other agreement
against payment therefor, such Units will constitute valid and binding obligations of the Company, enforceable in accordance with their
terms.
6.
With respect to the offering of the Sales Agreement Shares pursuant to the Sales Agreement Prospectus Supplement, the Sales Agreement
Shares are duly authorized, and when issued against receipt of the consideration therefor in accordance with the provisions of the Sales
Agreement, will be validly issued, fully paid and nonassessable.
In connection with the opinions expressed above,
we have assumed that (a)(i) each of the Debt Securities, Warrants, Units, and the respective indentures, warrant agreements and unit agreements
governing such securities will be governed by the internal laws of the State of New York, (ii) that the choice of New York law to govern
the Debt Securities and each Indenture and any supplemental indenture thereto is a valid and legal provision, and that (b) at or prior
to the time of the delivery of any Security, (i) the Board shall have duly established the terms of such Security and duly authorized
the issuance and sale of such Security and such authorization shall not have been modified or rescinded; (ii) the Company shall remain
validly existing as a corporation in good standing under the laws of the State of Delaware; (iii) the Registration Statement, and any
further amendments thereto (including post-effective amendments) shall comply with all applicable laws and shall have become effective
under the Securities Act and such effectiveness shall not have been terminated or rescinded; (iv) a prospectus supplement (including the
Sales Agreement Prospectus Supplement related to the Sales Agreement Shares) has been or will have been prepared and filed with the Commission
describing the Securities offered thereby; (v) all Securities will be issued and sold in compliance with applicable U.S. federal and state
securities laws and in the manner stated in the Registration Statement and in the manner stated in the Sales Agreement Prospectus Supplement
or the applicable prospectus supplement (vi) a definitive purchase, underwriting or similar agreement with respect to any Securities (including
the Sales Agreement with respect to the Sales Agreement Shares) offered will have been duly authorized and validly executed and delivered
by the Company and the other parties thereto; (vii) the Company will have reserved from its authorized but unissued and unreserved shares
of stock a number sufficient to issue all Securities pursuant to the Registration Statement, the Sales Agreement Prospectus Supplement
and any additional prospectus supplement; (viii) any Securities issuable upon conversion, exchange, redemption or exercise of any Securities
being offered will be duly authorized, created and, if appropriate, reserved for issuance upon such conversion, exchange, redemption or
exercise; (ix) the certificates representing the Securities will be duly executed and delivered, as applicable; (x) the Indentures, the
Debt Securities, the Warrant Agreement, the Warrants, the Unit Agreement and the Units are each valid, binding and enforceable agreements
of each party thereto (other than as expressly covered above in respect of the Company); and (xi) there shall not have occurred any change
in law affecting the validity or enforceability of such Security. We have also assumed that none of the terms of any Security to be established
subsequent to the date hereof, the issuance and delivery of such Security or the compliance by the Company with the terms of such Security
will violate any applicable law or public policy or will result in a violation of any provision of any instrument or agreement then binding
upon the Company, or any restriction imposed by any court or governmental body having jurisdiction over the Company.
Intrusion Inc.
August 5, 2021
Page 4
Our opinion that any document is legal, valid and
binding is qualified as to:
(a)
limitations imposed by bankruptcy, insolvency, reorganization, arrangement, fraudulent transfer, moratorium or other similar laws
relating to or affecting the rights of creditors generally;
(b)
rights to indemnification and contribution, which may be limited by applicable law or equitable principles; and
(c)
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 and limitation of rights of acceleration, regardless
of whether such enforceability is considered in a proceeding in equity or at law.
* * *
Intrusion Inc.
August 5, 2021
Page
5
We hereby consent to the filing of this opinion
as an exhibit to the Registration Statement referred to above and further consent to the reference to our name under the caption “Legal
Matters” in each of the prospectus and the Sales Agreement Prospectus Supplement, each of which is a part of the Registration Statement.
In giving this consent, we do not admit that we are in the category of persons whose consent is required under Section 7 of the Securities
Act.
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Very truly yours,
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WILSON SONSINI GOODRICH & ROSATI
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Professional Corporation
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/s/ Wilson Sonsini Goodrich & Rosati, P.C.
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Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
We consent to the incorporation by reference in
this Registration Statement on Form S-3 of Intrusion Inc. and subsidiaries (the “Company”) of our report dated March
9, 2021, related to our audit of the consolidated balance sheets of Intrusion Inc. and subsidiaries as of December 31, 2020 and 2019,
and the related consolidated statements of operations, changes in stockholders’ equity, and cash flows for the years then ended,
which report appears in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. We also consent to the reference
to our firm under the heading “Experts” in this Registration Statement on Form S-3.
/s/ Whitley Penn LLP
Plano, Texas
August 5, 2021