Form 8-K
8-K — Assertio Holdings, Inc.
Accession: 0001104659-26-059856
Filed: 2026-05-13
Period: 2026-05-13
CIK: 0001808665
SIC: 2834 (PHARMACEUTICAL PREPARATIONS)
Item: Entry into a Material Definitive Agreement
Item: Termination of a Material Definitive Agreement
Item: Regulation FD Disclosure
Item: Financial Statements and Exhibits
Documents
8-K — tm2611405d26_8k.htm (Primary)
EX-2.1 — EXHIBIT 2.1 (tm2611405d26_ex2-1.htm)
EX-99.1 — EXHIBIT 99.1 (tm2611405d26_ex99-1.htm)
XML — IDEA: XBRL DOCUMENT (R1.htm)
8-K — FORM 8-K
8-K (Primary)
Filename: tm2611405d26_8k.htm · Sequence: 1
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0001808665
0001808665
2026-05-13
2026-05-13
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 13, 2026
ASSERTIO HOLDINGS, INC.
(Exact name of registrant as specified in its
charter)
Delaware
001-39294
85-0598378
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
100 South Saunders Rd., Suite 300
Lake Forest, IL
60045
(Address of Principal Executive Offices)
(Zip Code)
Registrant’s telephone number, including
area code: (224) 419-7106
Not Applicable
(Former Name or Former Address, if Changed Since
Last Report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to
Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
x
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.0001 par value per share
ASRT
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange
Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
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 13(a) of the Exchange Act. ¨
Item 1.01. Entry into a Material Definitive
Agreement.
Agreement and Plan of Merger
On May 13, 2026, Assertio Holdings, Inc. (the
“Company” or “Assertio”) entered into an Agreement and Plan of Merger (the “Merger
Agreement”) with Zydus Worldwide DMCC, a limited liability company incorporated under the laws of the United Arab Emirates
(“Parent”), Zara Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of Parent (“Purchaser”)
and, solely for purposes of Section 9.20 of the Merger Agreement, Zydus Pharmaceuticals (USA) Inc., a New Jersey corporation (“Guarantor”).
The Merger Agreement provides for, among other things, (i) the acquisition of the Company by Parent through a cash tender offer (the “Offer”)
by Purchaser for all of the Company’s outstanding shares of common stock (the “Common Stock”), for $23.50
per share of Common Stock in cash (the “Offer Price”) and (ii) following the completion of the Offer, the merger
of Purchaser with and into the Company (the “Merger”) with the Company surviving the Merger as a wholly owned
subsidiary of Parent (the “Surviving Corporation”).
The Company’s Board of Directors (the “Board”)
has unanimously approved the Merger and the Merger Agreement and recommended that the stockholders of the Company accept the Offer and
tender their shares of Common Stock pursuant to the Offer. Under the Merger Agreement, Purchaser is required to commence the Offer within
five (5) business days after the date of the Merger Agreement. The Offer will initially expire at one minute after 11:59 p.m., Eastern
Time on the date that is twenty (20) business days following the commencement of the Offer, subject to extension under certain circumstances.
Pursuant to the terms of the Merger Agreement,
at the effective time of the Merger (the “Effective Time”), by virtue of the Merger and without any action on
the part of the holders, (i) each outstanding share of Common Stock of the Company, other than any shares of Common Stock held in the
treasury of the Company or owned, directly or indirectly, by Parent or Purchaser, or by any stockholders who are entitled to and who properly
exercise appraisal rights under Delaware law, will be converted into the right to receive the Offer Price, without interest, less any
required withholding taxes (the “Merger Consideration”); (ii) each option to purchase shares of Common Stock
(a “Company Stock Option”) under any employee, director, or consultant stock option, stock purchase or equity
compensation plan, arrangement, or agreement of the Company (the “Company Stock Plans”), including the Company’s
Amended and Restated 2014 Omnibus Incentive Plan, the Company’s Inducement Incentive Plan, the Company’s Second Amended and
Restated 2004 Equity Incentive Plan and the Zyla Life Sciences Amended and Restated 2019 Stock-Based Incentive Compensation Plan, in accordance
with the terms thereof, whether vested or unvested, that is outstanding immediately prior to the Effective Time shall be canceled and,
in exchange therefor, the Surviving Corporation shall pay to each former holder of any such canceled Company Stock Option as soon as practicable
following the Effective Time (and in no event later than ten (10) business days after the Effective Time) an amount in cash (without interest,
and subject to deduction for any required withholding tax) equal to the product of (a) the excess of the Merger Consideration over the
exercise price per share under such Company Stock Option and (b) the number of shares subject to such Company Stock Option; provided,
that if the exercise price per share (as adjusted for the conversion described above) of any such Company Stock Option is equal to or
greater than the Merger Consideration, such Company Stock Option shall be canceled without any cash payment being made in respect thereof;
and (iii) each restricted stock unit settleable in shares of Common Stock granted under the Company Stock Plans (each, a “Company
RSU”) that is outstanding and unvested as of immediately prior to the Effective Time will vest in full and will automatically
be cancelled and converted into the right to receive an amount in cash equal to the Merger Consideration per Company RSU.
Purchaser’s obligation to accept
shares of Common Stock tendered in the Offer is subject to certain customary conditions for a transaction of this type, including:
(i) that the number of shares of Common Stock validly tendered and not validly withdrawn in accordance with the terms of the Offer,
together with any shares of Common Stock beneficially owned by Purchaser or any affiliate of Purchaser, equals at least one share
more than fifty percent (50%) of all shares of Common Stock then issued and outstanding; (ii) the Company shall have Closing Net
Cash (as defined in the Merger Agreement) of at least $95,000,000; and (iii) the absence of any law that makes illegal the Offer,
the Merger or any of the other transactions contemplated by the Merger Agreement (the “Transactions”),
prohibits or limits Parent’s ownership of the Company or the Company’s, Parent’s or any of their respective
subsidiaries’ businesses or assets, or imposes limitations on Parent’s rights of ownership of the Common Stock. The
obligations of Parent and Purchaser to consummate the Offer and the Merger under the Merger Agreement are not subject to a financing
condition.
Following the completion of the Offer, upon the
terms and conditions set forth in the Merger Agreement and in accordance with Section 251(h) of the Delaware General Corporation Law,
Purchaser will merge with and into the Company, with the Company surviving as a wholly owned subsidiary of Parent. The Merger will be
effected as soon as practicable following the time of purchase by Purchaser of shares of Common Stock validly tendered and not withdrawn
in the Offer.
The Company, Parent, Purchaser and Guarantor have
each made customary representations, warranties and covenants in the Merger Agreement, including covenants of the Company regarding the
operation of the Company’s business prior to the Effective Time, as well as representations and warranties of Parent and Purchaser
with respect to, among other things, Parent having sufficient cash, available lines of credit or other sources of immediately available
funds to consummate the Transactions.
In addition, pursuant to the Merger Agreement,
the Company has agreed to customary “no shop” restrictions on its ability to, among other things, initiate, solicit or knowingly
encourage alternative acquisition proposals from third parties and engage in discussions or negotiations with third parties regarding
alternative acquisition proposals, subject to certain customary exceptions.
The Merger Agreement contains customary termination
rights for both Parent and Purchaser, on the one hand, and the Company, on the other hand, including if the Acceptance Time shall not
have occurred on or before July 12, 2026. If the Merger Agreement is terminated under certain circumstances specified in the Merger Agreement,
including in connection with the Company’s entry into an agreement with respect to a Superior Proposal (as defined in the Merger
Agreement), the Company will be required to pay Parent a termination fee of $6,263,180 (the “Company Termination Fee”).
In addition, upon the termination of the Merger Agreement in certain circumstances specified in the Merger Agreement, the Company will,
in addition to the Company Termination Fee, be obligated to reimburse Parent for the Garda Termination Fee (as defined below).
The Merger Agreement also contains a guarantee
by Guarantor of the full and complete performance by Parent, Purchaser and the Surviving Corporation, as applicable, of their respective
obligations under the Merger Agreement. In addition, pursuant to the terms of the Merger Agreement, Guarantor has agreed to take all action
necessary to cause each of Parent and Purchaser or the Surviving Corporation, as applicable, to perform all if its respective obligations
under the Merger Agreement.
The foregoing description of the Merger Agreement
does not purport to be complete and is qualified in its entirety by reference to the Merger Agreement, a copy of which is filed as Exhibit
2.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The Merger Agreement has been included to provide
investors with information regarding its terms. It is not intended to provide any other factual information about the Company, Parent,
Purchaser, Guarantor or their respective subsidiaries or affiliates. The representations, warranties and covenants contained in the Merger
Agreement were made only for purposes of the Merger Agreement and as of specific dates, were made solely for the benefit of the parties
to the Merger Agreement, may be subject to limitations agreed upon by the parties, including being qualified by confidential disclosures
made for the purpose of allocating contractual risk among the parties rather than establishing matters as facts, and may be subject to
standards of materiality applicable to the contracting parties that differ from those applicable to investors.
Support Agreements
Concurrently with the execution of the
Merger Agreement, certain beneficial owners of Common Stock entered into tender and support agreements (the “Support
Agreements”) with Parent and Purchaser pursuant to which such parties agreed, among other things, to irrevocably
tender the shares of Common Stock held by them and certain of their affiliates in the Offer, upon the terms and subject to the
conditions of such agreements. The Support Agreements will terminate upon certain circumstances, including upon termination of the
Merger Agreement or if the Company’s Board of Directors votes to approve a Superior Proposal (as defined in the Merger
Agreement).
Convertible Notes Tender Offer
As of the date of the Merger Agreement, an aggregate
principal amount of $40,000,000 of the Company’s 6.50% Convertible Notes due 2027 (the “Convertible Notes”)
issued pursuant to the Indenture, dated as of August 25, 2022, between the Company and U.S. Bank Trust Company, National Association,
as Trustee (the “Indenture”), were outstanding. Pursuant to the Merger Agreement, the Company is required to
comply in all material respects with its obligations under the terms of the Indenture, including taking all actions required by it to
be taken prior to the Effective Time as a result of the consummation of the Merger. In addition, after the date of the Merger Agreement
and substantially concurrently with the Offer, the Company or the Surviving Corporation, as applicable, will use commercially reasonable
efforts to make an offer and consent solicitation (the “Note Offer”) to purchase the Convertible Notes at a
purchase price approved by Purchaser and Parent, contingent upon the occurrence of a “Fundamental Change” (as defined in the
Indenture) as a result of the Merger (which purchase price will equal 100% of the principal amount of the Convertible Notes plus accrued
and unpaid interest thereon through the stated maturity date), and to purchase, after the Acceptance Time and prior to or concurrently
with the occurrence of the Closing, any Convertible Notes tendered and not withdrawn as of the expiration date of the Note Offer. The
consent solicitation will seek consent to remove Section 4.11 of the Indenture, and holders who tender Convertible Notes pursuant to the
Note Offer will be required to deliver consents with respect to such proposed amendment and may not deliver consents without tendering
their Convertible Notes. Following consummation of the Merger, Parent and Purchaser will, or will cause the Company to, comply with the
provisions of Article 15 of the Indenture with respect to any Convertible Notes that remain outstanding after the consummation of the
Note Offer.
Item 1.02. Termination of a Material Definitive
Agreement.
As previously disclosed, the Company entered into
an Amended and Restated Agreement and Plan of Merger on May 1, 2026 (the “Garda Merger Agreement”) with Garda
Therapeutics, Inc., a Delaware corporation (“Garda”) and Audi Merger Sub, Inc., a Delaware corporation and a
wholly-owned subsidiary of Garda.
Following the Board’s determination, after
consultation with its outside legal counsel and its financial advisors, that it had received a “Superior Proposal” (as defined
in the Garda Merger Agreement) from Parent, and the expiration of the time period allowed for Garda to propose revisions to the Garda
Merger Agreement, on May 13, 2026, prior to entering into the Merger Agreement, the Company delivered to Garda a written notice terminating
the Garda Merger Agreement in connection with entering into the Merger Agreement. In connection with the termination of the Garda Merger
Agreement, Parent, on behalf of the Company, paid Garda a termination fee of $5,810,000 in cash as required by the terms of the Garda
Merger Agreement (the “Garda Termination Fee”). Parent’s payment of the Garda Termination Fee is in addition
to the Merger Consideration to be paid by Parent pursuant to the Merger Agreement.
Item 7.01. Regulation FD Disclosure.
On May 13, 2026, the Company issued a press release
announcing the Merger Agreement, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information contained in this Item 7.01, including
Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange
Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall
it be deemed incorporated by reference into any filing under the Securities Act, or the Exchange Act, except as expressly set forth by
specific reference in such filing.
Cautionary Note Regarding Forward-Looking Statements
This Current Report
on Form 8-K (this “Current Report”) contains forward-looking statements within the meaning of the federal securities
laws. Forward-looking statements may discuss goals, intentions and expectations as to future plans, trends, events, results of
operations or financial condition, or otherwise, based on current beliefs. Forward-looking statements speak only as of the date they
are made and should not be relied upon as predictions of future events, as there can be no assurance that the events or
circumstances reflected in these statements will be achieved or will occur. In particular, this Current Report contains
forward-looking statements regarding the Company, the proposed tender offer by Purchaser to acquire all outstanding shares of the
Company’s common stock and the subsequent merger pursuant to which the Company would become a wholly owned subsidiary of
Parent, including, without limitation, statements regarding the expected timing and completion of these transactions and the
parties’ ability to satisfy the conditions to consummation. Forward-looking statements can often, but not always, be
identified by the use of forward-looking terminology such as “anticipate,” “believe,” “could,”
“estimate,” “expect,” “goal,” “intend,” “may,” “might,”
“opportunity,” “plan,” “potential,” “project,” “seek,”
“should,” “strategy,” “target,” “will,” or the negative of these words and phrases,
other variations of these words and phrases or comparable terminology. These forward-looking statements are based upon current
estimates and assumptions and are subject to various risks and uncertainties, many of which are beyond the Company’s control
and subject to change. Actual results could differ materially from those expressed or implied by these forward-looking statements.
Important factors that could cause actual results to differ materially include, among others: risks associated with the timing of
the closing of the Transactions, including the risks that a condition to closing would not be satisfied within the expected
timeframe or at all or that the closing of the Transactions will not occur in which case Rolvedon would be the Company’s only
product; uncertainties as to how many of the Company’s stockholders will tender their shares in the Offer; the possibility
that competing offers will be made; the possibility that a governmental entity may prohibit, delay or refuse to grant approval for
the consummation of the Transactions; the occurrence of any event, change or other circumstance that could give rise to the
termination of the Transactions; the outcome of any legal proceedings that may be instituted against the parties and others related
to the Transactions; unanticipated difficulties or expenditures relating to the Transactions; the effect of the announcement or
pendency of the Transactions on the Company’s business and operating results (including the response of business partners and
competitors and potential difficulties in employee retention as a result of the announcement and pendency of the Transactions);
risks related to the diverting of management’s attention from the Company’s ongoing business operations; general
economic and market conditions; and other risks and uncertainties identified in the Company’s filings with the U.S. Securities
and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings. Many of these
risks and uncertainties may be exacerbated by public health emergencies and general macroeconomic conditions. The foregoing list of
factors is not exhaustive. You should not place undue reliance on any forward-looking statements. The Company does not assume, and
hereby disclaims, any obligation to update or revise any forward-looking statements, except as required by law.
Additional Information
and Where to Find It
The tender offer for
the outstanding shares of the Company referenced in this communication has not yet commenced. This communication is for informational
purposes only and is neither an offer to purchase nor a solicitation of an offer to sell shares, nor is it a substitute for the tender
offer materials that Parent and its subsidiary will file with the SEC. At the time the tender offer is commenced, Parent and its subsidiary
will file tender offer materials on Schedule TO, and, thereafter, the Company will file a Solicitation/Recommendation Statement on Schedule
14D-9 with the SEC with respect to the tender offer.
THE TENDER OFFER MATERIALS
(INCLUDING AN OFFER TO PURCHASE, A RELATED LETTER OF TRANSMITTAL AND CERTAIN OTHER TENDER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION
STATEMENT WILL CONTAIN IMPORTANT INFORMATION. HOLDERS OF SHARES OF THE COMPANY’S COMMON STOCK ARE URGED TO READ THESE DOCUMENTS
CAREFULLY WHEN THEY BECOME AVAILABLE (AS EACH MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME) BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION
THAT HOLDERS OF SHARES OF THE COMPANY’S COMMON STOCK SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING TENDERING THEIR SHARES.
The Offer to Purchase,
the related Letter of Transmittal and certain other tender offer documents, as well as the Solicitation/Recommendation Statement, will
be made available to all holders of shares of the Company’s Common Stock at no expense to them. The tender offer materials and the
Solicitation/Recommendation Statement will be made available for free at the SEC’s website at www.sec.gov or by accessing
the Investor Relations section of the Company’s website at https://investor.assertiotx.com.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit No.
Description
2.1*
Agreement and Plan of Merger between the Company, Parent, Purchaser and, solely for purposes of Section 9.20 of the Merger Agreement, Guarantor, dated May 13, 2026.
99.1
Press Release of the Company, dated May 13, 2026.
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).
* Certain annexes, schedules and exhibits have been omitted pursuant
to Item 601(a)(5) of Regulation S-K. The registrant agrees to furnish supplementally a copy of any omitted attachment to the SEC on a
confidential basis upon request.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ASSERTIO HOLDINGS, INC.
Date: May 13, 2026
By:
/s/ Sam Schlessinger
Sam Schlessinger
Executive Vice President, General Counsel
EX-2.1 — EXHIBIT 2.1
EX-2.1
Filename: tm2611405d26_ex2-1.htm · Sequence: 2
Exhibit 2.1
STRICTLY CONFIDENTIAL
EXECUTION VERSION
AGREEMENT AND PLAN OF MERGER
by and among
Zydus
Worldwide DMCC
as Parent
ZARA MERGER SUB INC.
as Purchaser,
ASSERTIO HOLDINGS, INC.
as the Company, and
Zydus
Pharmaceuticals (USA) Inc., for the limited purposes set forth herein
Dated as of May 13, 2026
TABLE OF CONTENTS
Page
Article I
THE OFFER
2
Section 1.1
The Offer
2
Section 1.2
Offer Documents
4
Section 1.3
Company Actions
4
Article II
THE MERGER
5
Section 2.1
The Merger
5
Section 2.2
Closing
5
Section 2.3
Effective Time
6
Section 2.4
Effects of the Merger
6
Section 2.5
Merger Without Meeting of Stockholders
6
Section 2.6
Certificate of Incorporation; Bylaws
6
Section 2.7
Directors
6
Section 2.8
Officers
6
Article III
EFFECT ON THE CAPITAL STOCK OF THE CONSTITUENT CORPORATIONS; EXCHANGE OF CERTIFICATES
7
Section 3.1
Conversion of Capital Stock
7
Section 3.2
Treatment of Options and Other Equity-Based Awards
7
Section 3.3
Exchange and Payment
8
Section 3.4
Other Closing Payments
11
Section 3.5
Dissenting Shares
11
Section 3.6
Withholding Rights
11
Article IV
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
11
Section 4.1
Organization, Standing and Power
12
Section 4.2
Capital Stock
13
Section 4.3
Authority
14
Section 4.4
No Conflict; Consents and Approvals
15
Section 4.5
SEC Reports; Financial Statements
16
Section 4.6
No Undisclosed Liabilities
17
Section 4.7
Certain Information
17
Section 4.8
Absence of Certain Changes or Events
17
Section 4.9
Litigation; Orders
18
Section 4.10
Compliance with Laws
18
i
Section 4.11
Benefit Plans
18
Section 4.12
Labor Matters
20
Section 4.13
Environmental Matters
20
Section 4.14
Taxes
21
Section 4.15
Contracts
21
Section 4.16
FDA and Regulatory Matters
22
Section 4.17
Insurance
24
Section 4.18
Properties
24
Section 4.19
Intellectual Property
25
Section 4.20
Data Privacy
26
Section 4.21
State Takeover Statutes; Anti-Takeover Provisions
26
Section 4.22
Section 251(h)
27
Section 4.23
Affiliate Transactions
27
Section 4.24
Brokers
27
Section 4.25
Opinion of Financial Advisor
27
Section 4.26
International Trade Laws; Anti-Bribery
27
Section 4.27
Termination of Garda Agreement
29
Section 4.28
No Other Representations or Warranties
29
Article V
REPRESENTATIONS AND WARRANTIES OF PARENT AND PURCHASER
29
Section 5.1
Organization, Standing and Power
30
Section 5.2
Authority
30
Section 5.3
No Conflict; Consents and Approvals
30
Section 5.4
Certain Information
31
Section 5.5
Litigation
31
Section 5.6
Ownership and Operations of Purchaser
32
Section 5.7
Sufficient Funds
32
Section 5.8
Vote/Approval Required
32
Section 5.9
Ownership of Shares
32
Section 5.10
Brokers
32
Section 5.11
No Other Representations or Warranties
32
Section 5.12
Access to Information
33
Section 5.13
Termination of Garda Agreement
33
Article VI
COVENANTS
33
Section 6.1
Conduct of Business of the Company
33
ii
Section 6.2
Conduct of Business of Parent and
Purchaser Pending the Merger
36
Section 6.3
No Control of Other Party’s Business
36
Section 6.4
Company Board Recommendation; Acquisition Proposals
36
Section 6.5
Access to Information; Confidentiality
40
Section 6.6
Regulatory Approvals; Consents
41
Section 6.7
Employment and Employee Benefits Matters; Other Plans
44
Section 6.8
Takeover Laws
45
Section 6.9
Notification of Certain Matters
45
Section 6.10
Directors’ and Officers’ Indemnification,
Exculpation and Insurance
46
Section 6.11
Rule 16b-3
47
Section 6.12
Public Announcements
48
Section 6.13
Obligations of Purchaser
48
Section 6.14
Convertible Notes
48
Article VII
CONDITIONS PRECEDENT
49
Section 7.1
Conditions
to Each Party’s Obligation to Effect the Merger
49
Section 7.2
Frustration of Closing Conditions
49
Article VIII
TERMINATION, AMENDMENT AND WAIVER
49
Section 8.1
Termination
49
Section 8.2
Effect of Termination
51
Section 8.3
Fees and Expenses
51
Article IX
MISCELLANEOUS
53
Section 9.1
Non-Survival of Representation and Warranties
53
Section 9.2
Amendment or Supplement
53
Section 9.3
Extension of Time; Waiver
53
Section 9.4
Notices
54
Section 9.5
Certain Definitions
55
Section 9.6
Interpretation
57
Section 9.7
Entire Agreement
58
Section 9.8
Parties in Interest
58
Section 9.9
Governing Law
58
Section 9.10
Submission to Jurisdiction
58
Section 9.11
Assignment; Successors
59
Section 9.12
Specific Performance
59
Section 9.13
Currency
59
iii
Section 9.14
Severability
59
Section 9.15
Waiver of Jury Trial
60
Section 9.16
Counterparts
60
Section 9.17
Electronic Signature
60
Section 9.18
No Presumption Against Drafting Party
60
Section 9.19
Parent Guarantee
60
Section 9.20
Further Guarantee
60
iv
Exhibit List
Exhibit A
Form of Tender and Support Agreement
Exhibit B
Offer Conditions
Exhibit C
Amended and Restated Certificate of Incorporation of the Surviving Corporation
Exhibit D
Amended and Restated Bylaws of the Surviving Corporation
INDEX OF DEFINED TERMS
Term
Section
Acceptance Time
1.1(c)
Action
4.9
Agreement
Preamble
Alternative Acquisition Agreement
6.4(b)(iii)
Anti-Corruption Laws
4.26(c)
Antitrust Law
6.6(j)
Asset Purchase Agreement
Recitals
Asset Purchaser
Recitals
Balance Sheet Date
4.8
Book-Entry Shares
3.3(b)
Certificate of Merger
2.3
Certificates
3.3(b)
Change of Recommendation Notice
6.4(a)(iii)
Closing
2.2
Closing Date
2.2
Code
4.11(b)(i)
Company
Preamble
Company Board
4.3(b)
Company Board Recommendation
6.4(a)(i)
Company Board Recommendation Change
6.4(a)(ii)
Company Disclosure Letter
IV
Company Employee
6.7(a)
Company Equity Awards
3.2(b)
Company Plans
4.11(a)
Company Registered IP
4.19(a)
Company RSU
3.2(b)
Company RSU Cash Consideration
3.2(b)
Company SEC Documents
4.5(a)
Company Stock Option
3.2(a)
Company Stock Option Cash Consideration
3.2(a)
Company Stock Plans
3.2(a)
Company Termination Fee
8.3(b)
Confidentiality Agreement
6.5(b)
Contract
4.4(a)
DGCL
Recitals
Dissenting Shares
3.5
DTC
3.3(e)
DTC Payment
3.3(e)
Effect
4.1(a)
Effective Time
2.3
Effects
4.1(a)
Equity Award Holders
3.4
2
Term
Section
ERISA
4.11(a)
Exchange Act
1.1(a)
Expiration Date
1.1(b)
FDA
4.16(a)
FDA Laws
4.16(a)
FDA Permits
4.16(a)
Foreign Antitrust Laws
4.4(b)
GAAP
4.5(b)
Governmental Entity
4.4(b)
HSR Act
4.4(b)
Indemnified Parties
6.10(a)
Initial Expiration Date
1.1(b)
Intellectual Property
4.19(c)
IRS
4.11(a)
Law
4.4(a)
Liens
4.2
Material Contract
4.15
Measurement Date
4.2
Merger
Recitals
Merger Consideration
3.1(a)
NASDAQ
1.1(e)
Note Offer
6.14
Offer
Recitals
Offer Conditions
1.1(a)
Offer Documents
1.2
Offer Price
Recitals
Offer to Purchase
1.2
Outside Date
8.1(b)(i)
Parent
Preamble
Parent Disclosure Letter
V
Parent Material Adverse Effect
5.1(a)
Parent Plan
6.7(c)
Paying Agent
3.3(a)
Payment Fund
3.3(a)
Permits
4.10
Personal Information
4.20(a)
Pre-Consummation Warning Letter
6.6(h)
Privacy Requirements
4.20(a)
Products
4.16(h)(i)
Purchaser
Preamble
Representatives
6.4(b)(i)
Schedule 14D-9
1.3(b)
Schedule TO
1.2
SEC
1.1(e)
Securities Act
4.5(a)
3
Term
Section
Security Incident
4.20(c)
Shares
Recitals
Support Agreement
Recitals
Surviving Corporation
Recitals
Takeover Laws
4.21
WARN
6.7(e)
Willful Breach
8.2
4
AGREEMENT AND PLAN OF MERGER
This AGREEMENT AND PLAN OF
MERGER (this “Agreement”), dated as of May 13, 2026, is by and among (i) Zydus Worldwide DMCC, a limited
liability company incorporated under the laws of the United Arab Emirates (“Parent”), (ii) Zara Merger Sub Inc.,
a Delaware corporation and a wholly-owned Subsidiary of Parent (“Purchaser”), (iii) Zydus Pharmaceuticals (USA)
Inc., a New Jersey corporation (“Guarantor”) solely for purposes of Section 9.20 and (iii) Assertio
Holdings, Inc., a Delaware corporation (the “Company”).
RECITALS
WHEREAS, it is proposed that
Purchaser shall commence a tender offer (the “Offer”) to purchase all of the outstanding shares of common stock, par
value $0.0001 per share, of the Company (the “Shares”) at a price per Share of $23.50, payable in cash, without interest
(the “Offer Price”), on the terms and subject to the conditions set forth herein;
WHEREAS, the parties intend
(i) that the Merger shall be effected in accordance with Section 251(h) of the General Corporation Law of the State of
Delaware (the “DGCL”) if the conditions of Section 251(h) can be satisfied, and shall be consummated as
soon as practicable following the completion of the Offer, and (ii) at the Effective Time, Purchaser shall be merged with and into
the Company (the “Merger”) and, following the Merger, the separate corporate existence of Purchaser shall cease and
the Company shall continue as the surviving corporation in the Merger (the “Surviving Corporation”) and a wholly-owned
subsidiary of Parent;
WHEREAS, concurrently with
the execution of this Agreement, and as a condition and inducement to the willingness of Parent and Purchaser to enter into this Agreement,
certain of the Company’s stockholders are entering into tender and support agreements with Parent and Purchaser, substantially
in the form attached hereto as Exhibit A (each, a “Support Agreement”) pursuant to which, among other
things, such stockholders have agreed to tender their Shares to Purchaser in the Offer;
WHEREAS, the Boards of Directors
of Parent, Purchaser and the Company have each (i) determined that the Merger is in the best interests of their respective companies
and stockholders, (ii) approved and declared advisable this Agreement and the transactions contemplated hereby (including the Offer
and the Merger) on the terms and subject to the conditions set forth in this Agreement and (iii) resolved and agreed to recommend
that the Company’s stockholders accept the Offer and tender their Shares pursuant to the Offer;
WHEREAS, the Board of Directors
of the Company has resolved to recommend that the Company’s stockholders approve this Agreement and the transactions contemplated
hereby;
WHEREAS, prior to the execution
of this Agreement, the Company and certain of its Subsidiaries have entered into an asset purchase agreement, dated as of April 8,
2026 (the “Asset Purchase Agreement”), with Cosette Pharmaceuticals, Inc. (“Asset Purchaser”)
pursuant to which, among other things, Asset Purchaser has acquired certain assets, properties, and businesses of the Company;
WHEREAS, as a material inducement
to the Company entering into this Agreement, the Guarantor has agreed to execute this Agreement solely for the purposes set forth in
Section 9.20; and
WHEREAS, that certain Amended
and Restated Agreement and Plan of Merger, dated as of May 1, 2026 (the “Garda Agreement”), by and among Garda
Therapeutics, Inc., a Delaware corporation (“Garda”), Audi Merger Sub, Inc., a Delaware corporation and
a wholly-owned subsidiary of Garda (“Garda Merger Sub”), and the Company, has been validly terminated in accordance
with its terms and, substantially concurrent with the execution and delivery of this Agreement, Parent has paid to Garda, on behalf of
the Company, a termination fee of $5,810,000 (such fee, the “Garda Agreement Termination Fee”) by wire transfer of
immediately available funds, in full satisfaction of all of the Company’s remaining obligations under the Garda Agreement and without
any further liability of the Company thereunder.
WHEREAS, Parent, Purchaser
and the Company desire to make certain representations, warranties, covenants and agreements in connection with the Offer and the Merger
and also to prescribe certain conditions to the Merger as specified herein.
AGREEMENT
NOW, THEREFORE, in consideration
of the premises, and of the representations, warranties, covenants and agreements contained herein, and intending to be legally bound
hereby, Parent, Purchaser and the Company hereby agree as follows:
Article I
THE OFFER
Section 1.1 The
Offer.
(a) Provided
that this Agreement shall not have been terminated in accordance with Article VIII, as promptly as reasonably practicable, and in
any event within five (5) Business Days after the date of this Agreement, Purchaser shall, and Parent shall cause Purchaser to,
commence (within the meaning of Rule 14d-2 under the Securities Exchange Act of 1934, as amended (including the rules and regulations
promulgated thereunder, the “Exchange Act”)) the Offer. The obligations of Purchaser, and of Parent to cause Purchaser,
to accept for payment and pay for any Shares tendered pursuant to the Offer shall be subject to (i) the satisfaction of the Minimum
Condition (as defined in Exhibit B hereto) and (ii) the satisfaction (or waiver by Parent or Purchaser) of each of the
other conditions set forth in Exhibit B hereto (together with the Minimum Condition, the “Offer Conditions”)
and the terms and conditions hereof. Purchaser expressly reserves the right, in its sole discretion, to (A) increase the Offer Price,
(B) waive any Offer Condition or (C) modify any of the other terms or conditions of the Offer, except that, unless otherwise
provided by this Agreement, without the consent of the Company, Purchaser shall not (1) reduce the Offer Price, (2) change
the form of consideration payable in the Offer (other than by adding consideration), (3) reduce the number of Shares sought to be
purchased in the Offer, (4) waive or change the Minimum Condition or the condition set forth in clause (b)(iv) in Exhibit B,
(5) add to the Offer Conditions, (6) extend the expiration of the Offer other than in accordance with Section 1.1(e),
(7) provide for any “subsequent offering period” within the meaning of Rule 14d-11 promulgated under the Exchange
Act or (8) modify any Offer Condition or any term of the Offer set forth in this Agreement in a manner adverse to the holders of
Shares or that would, individually or in the aggregate, reasonably be expected to prevent or materially delay or impair the consummation
of the Offer or prevent, materially delay or impair the ability of the Parent or Purchaser to consummate the Offer, the Merger or the
other transactions contemplated hereby.
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(b) The
Offer shall initially be scheduled to expire at one minute after 11:59 pm Eastern Time on the date that is twenty (20) Business Days
(for this purpose calculated in accordance with Rule 14d-1(g)(3) under the Exchange Act) after the commencement of the Offer
(the “Initial Expiration Date”) or, in the event the Initial Expiration Date has been extended pursuant to and in
accordance with this Agreement, the date and time to which the Offer has been so extended (the Initial Expiration Date, or such later
date and time to which the Initial Expiration Date has been so extended, the “Expiration Date”).
(c) Subject
to the terms of the Offer and this Agreement and the satisfaction of all of the Offer Conditions, Purchaser will accept for payment (the
date and time of such acceptance, the “Acceptance Time”) and thereafter pay for all Shares validly tendered and not
validly withdrawn pursuant to the Offer as soon as practicable after the Expiration Date. The Offer will not permit Shares to be tendered
pursuant to guaranteed delivery procedures.
(d) Unless
this Agreement is validly terminated pursuant to Section 8.1, Purchaser shall not terminate or withdraw the Offer prior
to any scheduled expiration date without the prior written consent of the Company in its sole and absolute discretion. In the event this
Agreement is validly terminated pursuant to Section 8.1, Purchaser shall promptly (and in any event within one (1) Business
Day) following such termination terminate the Offer and shall not acquire any Shares pursuant thereto. If the Offer is terminated in
accordance with this Agreement prior to the Acceptance Time, Purchaser shall promptly return, or cause any depositary acting on behalf
of Purchaser to return, all tendered Shares to the tendering stockholders.
(e) Unless
this Agreement shall have previously been validly terminated in accordance with Article VIII, Purchaser shall extend the Offer from
time to time as follows: (i) if on the then-scheduled Expiration Date, the Minimum Condition has not been satisfied or any of the
other Offer Conditions has not been satisfied (and, in the case of any Offer Condition that by its nature is to be satisfied at the Acceptance
Time, is not then capable of being satisfied) or waived by Parent or Purchaser if permitted hereunder, then Purchaser shall extend the
Offer for one (1) or more occasions in consecutive increments of ten (10) Business Days each (or such longer period as may
be agreed by the Company and Parent) in order to permit the satisfaction of such Offer Conditions (subject to the right of Parent or
Purchaser to waive any Offer Condition to the extent permitted hereunder); (ii) Purchaser shall extend the Offer from time to time
in consecutive increments of ten (10) Business Days until any waiting period (and any extension thereof) applicable to the consummation
of the Offer under the HSR Act shall have expired or been terminated; and (iii) Purchaser shall extend the Offer for the minimum
period required by applicable Law, interpretation or position of the Securities and Exchange Commission (the “SEC”)
or its staff or the Nasdaq Stock Market LLC (“NASDAQ”) or its staff; provided, however, that Purchaser
shall not extend the Offer or the Expiration Date to a date later than the Outside Date without the prior written consent of the Company.
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Section 1.2 Offer
Documents. As promptly as reasonably practicable on the date of commencement of the Offer, and in any event no later than five (5) Business
Days after the date of this Agreement, Parent and Purchaser shall (a) file a Schedule TO (together with all exhibits, amendments
and supplements thereto, the “Schedule TO”) with respect to the Offer, which shall contain or shall incorporate
by reference an offer to purchase (the “Offer to Purchase”) and forms of the related letter of transmittal and form
of summary advertisement (the Schedule TO, the Offer to Purchase and such other documents, together with all exhibits, amendments
and supplements thereto, the “Offer Documents”) and (b) cause the Offer Documents to be disseminated to holders
of Shares, in each case as and to the extent required by applicable federal securities Law. The Company shall promptly supply Parent
and Purchaser in writing, for inclusion in the Offer Documents, all information concerning the Company required under the Exchange Act
to be included in the Offer Documents. Each of Parent, Purchaser and the Company agrees promptly to correct any information provided
by them for use in the Offer Documents if and to the extent that such information shall have become false or misleading in any material
respect, and each of Parent and Purchaser further agrees to take all steps necessary to cause the Offer Documents as so corrected to
be filed with the SEC and to be disseminated to the holders of Shares, in each case as and to the extent required by applicable federal
securities Law. The Company and its counsel shall be given a reasonable opportunity to review and comment on the Offer Documents and
any amendments thereto prior to the filing thereof with the SEC, and Parent shall give due consideration to all reasonable additions,
deletions or changes suggested thereto by the Company and its counsel. In addition, Parent agrees to provide the Company and its counsel
any comments, whether written or oral, that Parent may receive from the SEC or its staff with respect to the Offer Documents promptly
after the receipt of such comments, and any written or oral responses thereto. The Company and its counsel shall be given a reasonable
opportunity to review and comment upon such responses and shall use reasonable best efforts to respond promptly to Parent, and Parent
shall give due consideration to all reasonable additions, deletions or changes suggested thereto by the Company and its counsel.
Section 1.3 Company
Actions.
(a) The
Company hereby consents to the Offer and to the inclusion in the Offer Documents of the recommendation of the Company Board described
in Section 4.3(b).
(b) As
promptly as reasonably practicable on the date of filing by Parent and Purchaser of the Offer Documents, and in any event no later than
ten (10) Business Days after the date of this Agreement, the Company shall file with the SEC a Solicitation/Recommendation Statement
on Schedule 14D-9 (such Schedule 14D-9, together with all exhibits, amendments and supplements thereto, the “Schedule 14D-9”),
which shall reflect that the Merger is governed by Section 251(h) of the DGCL and shall contain the recommendation of the Company
Board described in Section 4.3(b). Parent and Purchaser shall promptly supply to the Company in writing, for inclusion
in the Schedule 14D-9, all information concerning Parent and Purchaser required under applicable U.S. federal securities laws to
be included in the Schedule 14D-9. The Company, or at the request of the Company, Purchaser, shall cause the Schedule 14D-9
to be disseminated to the holders of Shares, as and to the extent required by applicable federal securities Law. Each of the Company,
Parent and Purchaser agrees promptly to correct any information provided by it for use in the Schedule 14D-9 if and to the extent
that such information shall have become false or misleading in any material respect, and the Company further agrees to take all steps
necessary to cause the Schedule 14D-9 as so corrected to be filed with the SEC and to be disseminated to the holders of Shares,
in each case, as and to the extent required by applicable federal securities Law. Parent, Purchaser and their counsel shall be given
a reasonable opportunity to review and comment on the Schedule 14D-9 and any amendments thereto prior to the filing thereof with
the SEC and the Company shall give due consideration to all reasonable additions, deletions or changes suggested thereto by Parent, Purchaser
and their counsel. In addition, the Company agrees to provide Parent, Purchaser and their counsel any comments, whether written or oral,
that the Company or its counsel may receive from the SEC or its staff with respect to the Schedule 14D-9 promptly after the receipt
of such comments, and any written or oral responses thereto. Parent, Purchaser and their counsel shall be given a reasonable opportunity
to review and comment upon such responses and the Company shall give due consideration to all reasonable additions, deletions or changes
suggested thereto by Parent, Purchaser and their counsel.
4
(c) In
connection with the Offer, the Company shall instruct its transfer agent to, and use commercially reasonable efforts to cause its transfer
agent to, promptly furnish Parent and Purchaser with mailing labels, security position listings, any non-objecting beneficial owner lists
and any available listings or computer files containing the names and addresses of the record holders of Shares as of the most recent
practicable date and shall furnish Parent and Purchaser with such additional available information (including, but not limited to, periodic
updates of such information) and such other assistance as Parent, Purchaser or their Representatives may reasonably request in communicating
the Offer to the record and beneficial holders of Shares. Subject to the requirements of applicable Law and except for such steps as
are necessary to disseminate the Offer Documents and any other documents necessary to consummate the Offer, the Merger and the transactions
contemplated hereby, Parent and Purchaser shall, until consummation of the Offer, hold in confidence the information contained in any
of such labels and lists in accordance with the Confidentiality Agreement, use such information only in connection with the Offer, the
Merger or the other the transactions contemplated hereby and, if this Agreement shall be terminated in accordance with Section 8.1,
destroy all electronic copies of such information and destroy or deliver to the Company all other copies of such information then in
their possession or under their control.
Article II
THE MERGER
Section 2.1 The
Merger. Upon the terms and subject to the conditions set forth in this Agreement and in accordance with the DGCL, at the Effective
Time, Purchaser shall be merged with and into the Company. Following the Merger, the separate corporate existence of Purchaser shall
cease, and the Company shall continue as the Surviving Corporation and a wholly-owned subsidiary of Parent.
Section 2.2 Closing.
The closing of the Merger (the “Closing”) shall occur remotely via electronic exchange of documentation and consideration
required to be delivered at Closing, at 10:00 a.m. (Chicago time) on the second Business Day following the satisfaction or, to the
extent permitted by applicable Law, waiver of the conditions set forth in Article VII (other than those conditions to be satisfied
at the Closing itself, but subject to the satisfaction or, to the extent permitted by applicable Law, waiver of such conditions at such
time), or at such other date, time or place as Parent and the Company mutually may agree in writing. The date on which the Closing actually
occurs is referred to in this Agreement as the “Closing Date.”
5
Section 2.3 Effective
Time. Upon the terms and subject to the provisions of this Agreement, as soon as practicable on the Closing Date, the parties shall
file a certificate of merger (the “Certificate of Merger”) with the Secretary of State of the State of Delaware, executed
in accordance with the relevant provisions of the DGCL, and, as soon as practicable on or after the Closing Date, shall make any and
all other filings or recordings required under the DGCL. The Merger shall become effective at such time as the Certificate of Merger
is duly filed with the Secretary of State of the State of Delaware or at such other date or time as Parent and the Company shall agree
in writing and shall specify in the Certificate of Merger (the time the Merger becomes effective being the “Effective Time”).
Section 2.4 Effects
of the Merger. The Merger shall have the effects set forth in this Agreement and in the relevant provisions of the DGCL. Without
limiting the generality of the foregoing, and subject thereto, at the Effective Time, all the property, rights, privileges, powers and
franchises of the Company and Purchaser shall vest in the Surviving Corporation, and all debts, liabilities and duties of the Company
and Purchaser shall become the debts, liabilities and duties of the Surviving Corporation.
Section 2.5 Merger
Without Meeting of Stockholders. The Merger shall be governed by Section 251(h) of the DGCL. The parties hereto agree to
take all necessary and appropriate action to cause the Merger to become effective as soon as practicable following the consummation of
the Offer without a vote by the holders of the Shares, in accordance with Section 251(h) of the DGCL.
Section 2.6 Certificate
of Incorporation; Bylaws.
(a) At
the Effective Time, the certificate of incorporation of the Company shall be amended and restated so that it reads in its entirety as
set forth in Exhibit C hereto, and, as so amended and restated, shall be the certificate of incorporation of the Surviving
Corporation until thereafter amended in accordance with its terms and as provided by applicable Law.
(b) At
the Effective Time, and without any further action on the part of the Company and Purchaser, the bylaws of the Company shall be amended
and restated so that they read in their entirety as set forth in Exhibit D hereto, and, as so amended and restated, shall
be the bylaws of the Surviving Corporation until thereafter amended in accordance with their terms, the certificate of incorporation
of the Surviving Corporation and as provided by applicable Law.
Section 2.7 Directors.
The directors of Purchaser immediately prior to the Effective Time shall be the directors of the Surviving Corporation until the earlier
of their resignation or removal or until their respective successors are duly elected and qualified.
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Section 2.8 Officers.
The officers of the Company immediately prior to the Effective Time shall be the officers of the Surviving Corporation until the earlier
of their resignation or removal or until their respective successors are duly elected and qualified.
Article III
EFFECT ON THE CAPITAL STOCK OF THE CONSTITUENT CORPORATIONS; EXCHANGE OF CERTIFICATES
Section 3.1 Conversion
of Capital Stock. At the Effective Time, by virtue of the Merger and without any action on the part of the Company, Parent, Purchaser
or the holders of any shares of capital stock of the Company, Parent or Purchaser:
(a) Each
Share issued and outstanding immediately prior to the Effective Time (other than (i) Shares to be canceled in accordance with Section 3.1(b) and
(ii) any Dissenting Shares) shall thereupon be converted automatically into and shall thereafter represent the right to receive
the Offer Price (the “Merger Consideration”). As of the Effective Time, all Shares shall no longer be outstanding
and shall automatically be cancelled and shall cease to exist, and shall thereafter only represent the right to receive the Merger Consideration
to be issued or paid in accordance with Section 3.3, without interest.
(b) Each
Share held in the treasury of the Company or owned, directly or indirectly, by Parent or Purchaser immediately prior to the Effective
Time shall automatically be canceled and shall cease to exist, and no consideration shall be delivered in exchange therefor.
(c) Each
share of common stock, par value $0.001 per share, of Purchaser issued and outstanding immediately prior to the Effective Time shall
be converted into and become one validly issued, fully paid and non-assessable share of common stock, par value $0.00001 per share, of
the Surviving Corporation.
(d) If
at any time during the period between the date of this Agreement and the Effective Time, any change in the outstanding shares of capital
stock of the Company, or securities convertible into or exchangeable into or exercisable for shares of such capital stock, shall occur
as a result of any reclassification, recapitalization, stock split (including a reverse stock split) or subdivision or combination, exchange
or readjustment of shares, or any stock dividend or stock distribution with a record date during such period (excluding, in each case,
normal quarterly cash dividends), merger or other similar transaction, the Merger Consideration shall be equitably adjusted, without
duplication, to reflect such change.
Section 3.2 Treatment
of Options and Other Equity-Based Awards.
(a) At
the Effective Time, each option (each, a “Company Stock Option”) to purchase Shares granted under any employee, director,
or consultant stock option, stock purchase or equity compensation plan, arrangement, or agreement of the Company (the “Company
Stock Plans”), including the Company’s Amended and Restated 2014 Omnibus Incentive Plan, the Company’s Inducement
Incentive Plan, the Company’s Second Amended and Restated 2004 Equity Incentive Plan and the Zyla Life Sciences Amended and Restated
2019 Stock-Based Incentive Compensation Plan, in accordance with the terms thereof, whether vested or unvested, that is outstanding immediately
prior to the Effective Time shall be cancelled and, in exchange therefor, the former holder of any such cancelled Company Stock Option
shall be entitled to receive as soon as practicable following the Effective Time an amount in cash (without interest, and subject to
deduction for any required withholding Tax) equal to the product of (A) the excess, if any, of the Offer Price over the exercise
price per Share under such Company Stock Option and (B) the number of Shares subject to such Company Stock Option (such amount,
the “Company Stock Option Cash Consideration”). Notwithstanding the foregoing, if the exercise price per Share of
any Company Stock Option is equal to or greater than the Offer Price, such Company Stock Option shall be canceled without any cash payment
being made in respect thereof. Parent shall cause the Surviving Corporation to pay the Company Stock Option Cash Consideration as promptly
as reasonably possible after the Effective Time (but in no event later than ten (10) Business Days after the Effective Time).
7
(b) As
of immediately prior to the Effective Time, each restricted stock unit of the Company (each, a “Company RSU” and,
together with the Company Stock Options, the “Company Equity Awards”) that is then outstanding but not then vested
shall become immediately vested in full. At the Effective Time, each Company RSU that is then outstanding shall be canceled and the holder
thereof shall be entitled to receive an amount in cash without interest, less any applicable tax withholding, equal to the Offer Price
(the “Company RSU Cash Consideration”). Parent shall cause the Surviving Corporation to pay the Company RSU Cash Consideration
as promptly as reasonably possible after the Effective Time (but in no event later than ten (10) Business Days after the Effective
Time).
(c) Prior
to the Effective Time, the Company Board (or, if appropriate, any committee thereof administering any Company Stock Plan) shall adopt
such resolutions or take such action by written consent in lieu of a meeting, providing for the transactions contemplated by this Section 3.2,
without the consent of any other Person unless required by applicable Law. The Company shall provide that, on and following the Effective
Time, no holder of any Company Equity Award shall have the right to acquire any equity interest in the Company or the Surviving Corporation
in respect thereof and each Company Stock Plan shall terminate as of the Effective Time.
Section 3.3 Exchange
and Payment.
(a) At
or prior to the Acceptance Time, Parent shall (i) select a bank, trust company or nationally recognized stockholder services provider
reasonably acceptable to the Company to act as the paying agent for the equityholders of the Company in connection with the Merger (the
“Paying Agent”) and to receive the Merger Consideration to which equityholders of the Company shall become entitled
pursuant to this Article III and (ii) enter into a paying agent agreement with the Paying Agent, in form and substance reasonably
acceptable to the Company. At or prior to the Acceptance Time, Parent shall deposit (or cause to be deposited) with the Paying Agent
cash in an amount sufficient to pay the aggregate Merger Consideration in accordance with Section 3.1 (such cash being
hereinafter referred to as the “Payment Fund”). The Payment Fund shall not be used for any purpose other than to fund
payments due pursuant to Section 3.1, except as provided in this Agreement. Parent, on behalf of the Surviving Corporation,
shall pay all charges and expenses, including those of the Paying Agent, incurred by it in connection with the exchange of Shares for
the Merger Consideration and other amounts contemplated by this Article III.
8
(b) As
soon as reasonably practicable after the Effective Time and in any event not later than the second Business Day following the Effective
Time, Parent shall cause the Paying Agent to mail to each holder of record of an outstanding certificate or outstanding certificates
(“Certificates”) that immediately prior to the Effective Time represented outstanding Shares that were converted into
the right to receive the Merger Consideration with respect thereto pursuant to Section 3.1(a), (i) a form of letter
of transmittal in customary form and reasonably acceptable to each of Parent and the Company (which shall specify that delivery shall
be effected, and risk of loss and title to the Certificates held by such Person shall pass, only upon proper delivery of the Certificates
to the Paying Agent) and (ii) instructions for use in effecting the surrender of such Certificates in exchange for the Merger Consideration
payable with respect thereto pursuant to Section 3.1(a). Upon surrender of a Certificate to the Paying Agent, together
with such letter of transmittal, duly completed and validly executed in accordance with the instructions thereto, the holder of such
Certificate shall be entitled to receive in exchange therefor the Merger Consideration for each Share formerly represented by such Certificate,
and the Certificate so surrendered shall forthwith be cancelled. Promptly after the Effective Time and in any event not later than the
second Business Day following the Effective Time, Parent shall cause the Paying Agent to issue and deliver to each holder of uncertificated
Shares represented by book entry (“Book-Entry Shares”) a check or wire transfer for the amount of cash that such holder
is entitled to receive pursuant to Section 3.1(a) in respect of such Book-Entry Shares, without such holder being
required to deliver a Certificate or an executed letter of transmittal to the Paying Agent, and such Book-Entry Shares shall then be
canceled. No interest will be paid or accrued for the benefit of holders of Certificates or Book-Entry Shares on the Merger Consideration
payable in respect of such Certificates or Book-Entry Shares.
(c) If
payment of the Merger Consideration is to be made to a Person other than the Person in whose name the surrendered Certificate or Book-Entry
Share is registered, it shall be a condition of payment that such Certificate so surrendered shall be properly endorsed or shall be otherwise
in proper form for transfer or such Book-Entry Share shall be properly transferred and that the Person requesting such payment shall
have paid any transfer and other Taxes required by reason of the payment of the Merger Consideration to a Person other than the registered
holder of the Certificate or Book-Entry Share surrendered or shall have established to the satisfaction of Parent that such tax either
has been paid or is not applicable.
(d) Until
surrendered as contemplated by this Section 3.3, each Certificate or Book-Entry Share shall be deemed at any time after
the Effective Time to represent only the right to receive the Merger Consideration payable in respect of Shares theretofore represented
by such Certificate or Book-Entry Shares, as applicable, pursuant to Section 3.1(a), without any interest thereon.
(e) Prior
to the Effective Time, Parent and the Company shall cooperate to establish procedures with the Paying Agent and the Depository Trust
Company (“DTC”) to ensure that (i) if the Closing occurs at or prior to 8:30 a.m. (Chicago time) on the
Closing Date, the Paying Agent will transmit to DTC or its nominees on the Closing Date an amount in cash in immediately available funds
equal to the number of Shares held of record by DTC or such nominee immediately prior to the Effective Time multiplied by the Merger
Consideration (such amount, the “DTC Payment”), and (ii) if the Closing occurs after 8:30 a.m. (Chicago
time) on the Closing Date, the Paying Agent will transmit to DTC or its nominee on the first Business Day after the Closing Date an amount
in cash in immediately available funds equal to the DTC Payment.
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(f) All
cash paid upon the surrender for exchange of Certificates or Book-Entry Shares in accordance with the terms of this Article III
shall be deemed to have been paid in full satisfaction of all rights pertaining to the Shares formerly represented by such Certificates
or Book-Entry Shares. At the Effective Time, the stock transfer books of the Company shall be closed and there shall be no further registration
of transfers on the stock transfer books of the Surviving Corporation of the Shares that were outstanding immediately prior to the Effective
Time. If, after the Effective Time, Certificates are presented to the Surviving Corporation or the Paying Agent for transfer or transfer
is sought for Book-Entry Shares, such Certificates or Book-Entry Shares shall be canceled and exchanged as provided in this Article III,
subject to applicable Law in the case of Dissenting Shares.
(g) The
Paying Agent shall invest any cash included in the Payment Fund as directed by Parent; provided, that any investment of such cash shall
in all events be in short-term obligations of the United States of America with maturities of no more than thirty (30) days or guaranteed
by the United States of American and backed by the full faith and credit of the United States of America or in commercial paper obligations
rated A-1 or P-1 or better by Moody’s Investors Service, Inc. or Standard & Poor’s Corporation, respectively.
If for any reason (including investment losses) the cash in the Payment Fund is insufficient to fully satisfy all of the payment obligations
to be made in cash by the Paying Agent hereunder (but subject to Section 3.4), Parent shall promptly deposit cash into
the Payment Fund in an amount which is equal to the deficiency in the amount of cash required to fully satisfy such cash payment obligations.
Any interest and other income resulting from such investments shall be payable to Parent. Nothing contained in this Section 3.3(g) and
no investment losses resulting from the investment of the Payment Fund shall diminish the rights of the Company equityholders entitled
to payment of the Merger Consideration to receive the Merger Consideration.
(h) At
any time following the date that is twelve (12) months after the Effective Time, Parent shall be entitled to require the Paying Agent
to deliver to it any funds (including any interest received with respect thereto) which have been made available to the Paying Agent
and which have not been disbursed to holders of Certificates or Book-Entry Shares, and thereafter such holders shall be entitled to look
to Parent and the Surviving Corporation (subject to abandoned property, escheat or other similar laws) only as general creditors thereof
with respect to the Merger Consideration payable upon due surrender of their Certificate or Book-Entry Shares.
(i) If
any Certificate shall have been lost, stolen or destroyed, upon the holder’s compliance with the replacement requirements established
by the Paying Agent, including, if necessary, the posting by such Person of a bond in customary amount as indemnity against any claim
that may be made against it or the Surviving Corporation with respect to such Certificate, the Paying Agent will deliver in exchange
for such lost, stolen or destroyed Certificate the Merger Consideration payable in respect thereof pursuant to this Agreement.
10
Section 3.4 Other
Closing Payments. Concurrently with the Effective Time, Parent shall pay or deposit, or cause to be paid or deposited with the Company,
for the benefit of each holder of Company Equity Awards (collectively, the “Equity Award Holders”), an amount computed
by the Company and Parent in reasonable detail using the treasury method and which is necessary to make payment of the aggregate amounts
due to the Equity Award Holders pursuant to Section 3.2.
Section 3.5 Dissenting
Shares. Notwithstanding anything in this Agreement to the contrary, Shares issued and outstanding immediately prior to the Effective
Time that are held by any holder who is entitled to demand and properly demands appraisal of such Shares pursuant to Section 262
of the DGCL (“Dissenting Shares”) shall not be converted into the right to receive the Merger Consideration, unless
and until such holder shall have failed to perfect, or shall have effectively withdrawn or lost, such holder’s right to appraisal
under the DGCL. Dissenting Shares shall be treated in accordance with Section 262 of the DGCL. If any such holder fails to perfect
or withdraws or loses any such right to appraisal, each such Share of such holder shall thereupon be converted into and become exchangeable
only for the right to receive, as of the later of the Effective Time and the time that such right to appraisal has been irrevocably lost,
withdrawn or expired, the Merger Consideration in accordance with Section 3.1(a). The Company shall serve prompt notice to
Parent of any demands received by the Company for appraisal of any Shares, and Parent shall have the right to participate in all negotiations
and proceedings with respect to such demands. The Company shall not, without the prior consent of Parent, make any payment with respect
to, or compromise or settle, any such demands.
Section 3.6 Withholding
Rights. Purchaser, Parent, the Surviving Corporation, the Company and the Paying Agent, as the case may be, shall be entitled to
deduct and withhold from any amounts otherwise payable pursuant to this Agreement, such amounts that Purchaser, Parent, the Surviving
Corporation, the Company or the Paying Agent is required to deduct and withhold with respect to the making of such payment under the
Code, the rules and regulations promulgated thereunder or any provision of applicable Tax Law as a result of the failure of any
holder of Shares to provide IRS Form W-9 or W-8, as applicable, demonstrating that such holder is exempt from withholding. To the
extent that amounts are so withheld and timely paid over to the applicable Governmental Entity, such amounts shall be treated for all
purposes of this Agreement as having been paid to the Person in respect of which such deduction and withholding was made.
Article IV
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
Except (a) as disclosed
or reflected in the Company SEC Documents filed prior to the date of this Agreement, or (b) as set forth in the disclosure letter
delivered by the Company to Parent prior to the execution of this Agreement (the “Company Disclosure Letter”) (it
being agreed that disclosure of any information in a particular section or subsection of the Company Disclosure Letter shall be deemed
disclosure with respect to any other section or subsection of this Agreement to which the relevance of such information is reasonably
apparent), the Company represents and warrants to Parent and Purchaser as follows:
11
Section 4.1 Organization,
Standing and Power.
(a) Except
as set forth in Section 4.1(a) of the Company Disclosure Letter, each of the Company and its Significant Subsidiaries (i) is
an entity duly organized, validly existing and in good standing (with respect to jurisdictions that recognize such concept) under the
Laws of the jurisdiction of its organization, (ii) has all requisite corporate or similar power and authority to own, lease and
operate its properties and to carry on its business as now being conducted and (iii) is duly qualified or licensed to do business
and is in good standing (with respect to jurisdictions that recognize such concept) in each jurisdiction in which the nature of its business
or the ownership, leasing or operation of its properties makes such qualification or licensing necessary, except, with respect to clauses
(ii) and (iii), for any such failures to be so organized, existing and in good standing, to have such power and authority or to
be so qualified or licensed or in good standing as would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. For purposes of this Agreement, “Material Adverse Effect” means any event, change, occurrence, effect,
circumstance or development (each an “Effect” and collectively, “Effects”) that would have a material
adverse effect on the business, financial condition or results of operations of the Company and its Subsidiaries, taken as a whole; provided
however, that no Effect directly or indirectly arising out of, attributable to or resulting from any of the following, alone or in
combination, shall be deemed to constitute, or be taken into account in determining whether there has been or would or could be, a Material
Adverse Effect: (1) any changes in general economic or business conditions or in the financial, debt, banking, capital, credit or
securities markets, or in interest or exchange rates, in each case, in the United States or elsewhere in the world, (2) any changes
or developments generally affecting the industries in which the Company or its Subsidiaries operate, (3) any actions required under
this Agreement to obtain any approval or authorization under applicable Antitrust Laws or Health Care Laws for the consummation of the
Merger or any of the other transactions contemplated hereby, (4) any adoption, implementation, modification, repeal, interpretation,
proposal of or other changes in any applicable Laws, decrees, orders or other directives of any Governmental Entity (including any actions
taken by any Governmental Entities in connection with any of the events set forth in clauses (7), (8), (9) or (10) of this
definition, including adoption of or changes in any Public Health Measures) or any changes in applicable accounting regulations or principles
(including GAAP), or in interpretations of any of the foregoing, (5) any change in the price or trading volume of the Company’s
stock or the credit rating of the Company, in and of itself (provided, that the facts or occurrences giving rise to or contributing
to such change that are not otherwise excluded from the definition of “Material Adverse Effect” may be taken into account
in determining whether there has been a Material Adverse Effect), (6) any failure by the Company to meet internal or published projections,
clinical trial targets, product pricing or reimbursement levels, forecasts or revenue or earnings predictions, in and of itself (provided,
that the facts or occurrences giving rise to or contributing to such failure that are not otherwise excluded from the definition of “Material
Adverse Effect” may be taken into account in determining whether there has been a Material Adverse Effect), (7) political,
geopolitical, social or regulatory conditions, including any outbreak, continuation or escalation of any military conflict, declared
or undeclared war, armed hostilities, civil unrest, public demonstrations, acts of sabotage, acts of foreign or domestic terrorism, governmental
shutdown or slowdown, or any escalation or worsening of any such conditions, (8) any natural or manmade disasters or calamities,
weather conditions including hurricanes, floods, tornados, tsunamis, earthquakes and wild fires, cyber outages, or other force majeure
events, or any escalation or worsening of such conditions, (9) any epidemic, pandemic or outbreak of disease (including, for the
avoidance of doubt, COVID-19), or any escalation or worsening of such conditions, (10) any other regional, national or international
calamity, crisis or emergency, whether or not caused by any Person, (11) the announcement of this Agreement and the transactions contemplated
hereby, including the initiation of litigation by any Person with respect to this Agreement, and including any termination of, reduction
in or similar negative impact on relationships, contractual or otherwise, with any customers, suppliers, distributors, partners, service
providers or any other party having business dealings with the Company and its Subsidiaries (including the exercise, or prospective exercise,
by any party of any rights that arise upon a change of control) due to the announcement and performance of this Agreement or the identity
of the parties to this Agreement, or the performance of this Agreement and the transactions contemplated hereby, including compliance
with the covenants set forth herein, (12) any action taken by the Company, or which the Company causes to be taken by any of its Subsidiaries,
in each case which is required or permitted by or resulting from or arising in connection with this Agreement, including any inaction
in compliance with Section 6.1 to the extent that such inaction is as a result of Parent unreasonably withholding its
consent under Section 6.1, (13) any matter set forth in the Company Disclosure Letter or (14) any actions taken (or
omitted to be taken) at the request or with the consent of Parent; provided, in the case of clauses (1), (2), (4), (9) and
(10), to the extent the impact of such Effect is not disproportionately adverse to the Company and its Subsidiaries, taken as a whole,
as compared to other participants in the industries in which the Company and its Subsidiaries operate (and provided further, that
in such event, only the incremental disproportionate adverse impact shall be taken into account when determining whether there has been
a “Material Adverse Effect”).
12
(b) The
Company has previously furnished or otherwise made available to Parent a true and complete copy of the Company’s Organizational
Documents, as amended to the date of this Agreement, and each as so delivered is in full force and effect. The Company is not in violation
of any provision of the Company’s Organizational Documents.
Section 4.2 Capital
Stock. The authorized capital stock of the Company consists of 200,000,000 Shares. As of May 11, 2026 (the “Measurement
Date”), (i) 6,462,180 Shares were issued and outstanding, all of which were validly issued, fully paid and nonassessable
and were free of preemptive rights, (ii) no Shares were held in treasury, (iii) no shares of preferred stock were outstanding,
and (iv) an aggregate of 1,085,790 Shares were subject to or otherwise deliverable in connection with outstanding equity-based awards
or the exercise or settlement of outstanding Company Equity Awards issued pursuant to the Company Stock Plans. As of the Measurement
Date, and without giving effect to the transactions contemplated by this Agreement, an aggregate principal amount of $40,000,000 of the
Convertible Notes, the number of unissued Shares that may from time to time be issuable upon conversion of the Convertible Notes reserved
for issuance by resolution of the Company Board, which number of Shares into which the outstanding Convertible Notes are convertible
as of the Measurement Date are set forth on Section 4.2 of the Company Disclosure Letter. Except as set forth above and except for
changes since the Measurement Date resulting from the exercise or settlement of Company Equity Awards outstanding on such date or Convertible
Notes outstanding on such date, as of the date of this Agreement, (A) there are not outstanding or authorized any (1) shares
of capital stock or other voting securities of the Company, (2) securities of the Company convertible into or exchangeable for shares
of capital stock or voting securities of the Company or (3) options or other rights to acquire from the Company, and no obligation
of the Company to issue, any capital stock, voting securities or securities convertible into or exchangeable for capital stock or voting
securities of the Company, (B) there are no outstanding obligations of the Company to repurchase, redeem or otherwise acquire any
capital stock, voting securities or securities convertible into or exchangeable for capital stock or voting securities of the Company
and (C) there are no other options, calls, warrants or other rights, agreements, arrangements or commitments of any character relating
to the issued or unissued capital stock of the Company or any of its Subsidiaries to which the Company or any of its Subsidiaries is
a party. Each of the outstanding shares of capital stock of each of the Company’s Subsidiaries is duly authorized, validly issued,
fully paid and nonassessable and all such shares are owned by the Company or another wholly-owned Subsidiary of the Company and are owned
free and clear of all security interests, liens, claims, pledges, agreements, limitations in voting rights, charges or other encumbrances
(collectively, “Liens”) of any nature whatsoever, except where any such failure to own any such shares free and clear
would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
13
Section 4.3 Authority.
(a) Assuming
the transactions contemplated by this Agreement are consummated in accordance with Section 251(h) of the DGCL, the Company
has all necessary corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate
the transactions contemplated hereby. The execution, delivery and performance of this Agreement by the Company and the consummation by
the Company of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Company
and no other corporate proceedings on the part of the Company are necessary to approve this Agreement or to consummate the transactions
contemplated hereby. This Agreement has been duly executed and delivered by the Company and, assuming the due authorization, execution
and delivery by Parent and Purchaser, constitutes a valid and binding obligation of the Company, enforceable against the Company in accordance
with its terms (except to the extent that enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization
or similar Laws affecting the enforcement of creditors’ rights generally or by general principles of equity).
(b) The
Board of Directors of the Company (the “Company Board”) duly adopted resolutions (i) determining that the terms
of this Agreement, the Offer, the Merger and the other transactions contemplated hereby are fair to and in the best interests of the
Company’s stockholders, (ii) approving and declaring advisable this Agreement and the transactions contemplated hereby, including
the Offer and the Merger, and resolving that the Merger is governed by Section 251(h) of the DGCL, (iii) resolving to
recommend that the Company’s stockholders accept the Offer, and tender their Shares pursuant to the Offer, and (iv) approving
the termination of the Garda Agreement, which resolutions have not been subsequently rescinded, modified or withdrawn in any way, except
in connection with a Superior Proposal.
(c) Assuming
the transactions contemplated by this Agreement are consummated in accordance with Section 251(h) of the DGCL, no vote or consent
of the holders of any class or series of the Company’s capital stock or other securities is required to authorize this Agreement
or to consummate the Offer, the Merger and the other transactions contemplated hereby.
14
Section 4.4 No
Conflict; Consents and Approvals.
(a) The
execution, delivery and performance of this Agreement by the Company, and the consummation by the Company of the transactions contemplated
hereby, do not and will not (i) conflict with or violate the Company’s Organizational Documents or the Organizational Documents
of any of the Company’s Significant Subsidiaries, (ii) assuming that all consents, approvals and authorizations contemplated
by clauses (i) through (vi) of subsection (b) below have been obtained and all filings described in such clauses have
been made, conflict with or violate any law, rule, regulation, order, judgment, injunction or decree (collectively, “Law”)
applicable to the Company or any of its Significant Subsidiaries or by which any of their respective properties are bound or (iii) result
in any breach or violation of, or constitute a default (or an event which with notice or lapse of time or both would become a default),
or result in the loss of a benefit under, or give rise to any right of termination, cancellation, amendment or acceleration of, any note,
bond, mortgage, indenture, contract, agreement, lease, license, permit or other instrument or obligation (each, a “Contract”)
to which the Company or any of its Significant Subsidiaries is a party or by which the Company or any of its Significant Subsidiaries
or any of their respective properties are bound, except, in the case of clauses (ii) and (iii), for any such conflict, breach, violation,
default, loss, right or other occurrence that would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.
(b) The
execution, delivery and performance of this Agreement by the Company, and the consummation by the Company of the transactions contemplated
hereby, do not and will not require any consent, approval, authorization or permit of, action by, filing with or notification to, any
governmental, regulatory (including stock exchange) or administrative authority, agency, division or commission or any judicial, arbitral,
or other governmental body of competent jurisdiction (each, a “Governmental Entity”), except for (i) such filings
as may be required under applicable requirements of the Exchange Act and the rules and regulations promulgated thereunder, and under
state securities, takeover and “blue sky” Laws, (ii) the filings required under the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended (the “HSR Act”) and any filings required under the applicable requirements of antitrust or
other competition Laws of jurisdictions other than the United States (“Foreign Antitrust Laws”), (iii) such filings
as necessary to comply with the applicable requirements of NASDAQ or Health Care Laws, (iv) the filing with the Secretary of State
of the State of Delaware of the Certificate of Merger as required by the DGCL and (v) any such consent, approval, authorization,
permit, action, filing or notification the failure of which to make or obtain would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect.
15
Section 4.5 SEC
Reports; Financial Statements.
(a) The
Company has filed or otherwise transmitted all forms, reports, statements, certifications and other documents (including all exhibits,
amendments and supplements thereto) required to be filed by it with the SEC since January 1, 2023 (all such forms, reports, statements,
certificates and other documents filed since January 1, 2023, and prior to the date hereof, collectively, the “Company
SEC Documents”). As of their respective dates, or, if amended, as of the date of the last such amendment, each of the Company
SEC Documents complied as to form in all material respects with the applicable requirements of the Securities Act of 1933, as amended
(the “Securities Act”) and the Exchange Act, and the applicable rules and regulations promulgated thereunder,
as the case may be, each as in effect on the date so filed. As of their respective filing dates (or, if amended or superseded by a subsequent
filing prior to the date hereof, as of the date of such amendment or superseding filing), none of the Company SEC Documents contained
any untrue statement of a material fact or omitted to state a material fact required to be stated or incorporated by reference therein
or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. Except
as set forth in Section 4.5(a) of the Company Disclosure Letter, no Subsidiary of the Company has been required to file any
forms, reports or other documents with the SEC at any time since January 1, 2023. Since January 1, 2023 no executive officer
of the Company has failed in any respect to make the certifications required of him or her under Section 302 or 906 of the Sarbanes-Oxley
Act. Neither the Company nor any of its executive officers has received notice from any Governmental Entity challenging or questioning
the accuracy, completeness, form or manner of filing of such certifications.
(b) The
audited consolidated financial statements of the Company (including any related notes thereto) included in the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2025, and December 31, 2024, filed with the SEC have been prepared
in accordance with United States generally accepted accounting principles (“GAAP”) applied on a consistent basis throughout
the periods involved (except as may be indicated in the notes thereto) and fairly present in all material respects the consolidated financial
position of the Company and its Subsidiaries at the respective dates thereof and the results of their operations and cash flows for the
periods indicated. The unaudited consolidated financial statements of the Company (including any related notes thereto) included in the
Company’s Quarterly Reports on Form 10-Q filed with the SEC since January 1, 2023, have been prepared in accordance with
GAAP applied on a consistent basis throughout the periods involved (except as may be indicated in the notes thereto or may be permitted
by the SEC under the Exchange Act) and fairly present in all material respects the consolidated financial position of the Company and
its Subsidiaries as of the respective dates thereof and the results of their operations and cash flows for the periods indicated (subject
to normal period-end adjustments).
(c) The
Company maintains disclosure controls and procedures required by Rule 13a-15 or 15d-15 under the Exchange Act. Such disclosure controls
and procedures are designed to ensure that information required to be disclosed by the Company in its filings with the SEC under the
Exchange Act is recorded and reported in all material respects on a timely basis to the individuals responsible for the preparation of
the Company’s filings with the SEC under the Exchange Act. The Company maintains internal control over financial reporting (as
defined in Rule 13a-15 or 15d-15, as applicable, under the Exchange Act). Such internal control over financial reporting is designed
to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with GAAP. The Company’s management has completed an assessment of the effectiveness of the Company’s
system of internal control over financial reporting in compliance with the requirements of Section 404 of the Sarbanes-Oxley Act
for the fiscal year ended December 31, 2025, and such assessment concluded that such controls were effective and the Company’s
independent registered accountant has issued a report concluding that the Company maintained, in all material respects, effective internal
control over financial reporting as of December 31, 2025. The Company has disclosed, based on the most recent evaluation of its
Chief Executive Officer and its Chief Financial Officer prior to the date of this Agreement, to the Company’s auditors and the
audit committee of the Company Board (i) any significant deficiencies and material weaknesses in the design or operation of its
internal controls over financial reporting that are reasonably likely to adversely affect the Company’s ability to record, process,
summarize and report financial information and (ii) any fraud, whether or not material, that involves management or other employees
who have a significant role in the Company’s internal control over financial reporting.
16
Section 4.6 No
Undisclosed Liabilities. Except as set forth in Section 4.6 of the Company Disclosure Letter, neither the Company nor any of
its Significant Subsidiaries has any liabilities or obligations of any nature, whether or not accrued, contingent or otherwise, that
would be required by GAAP to be reflected on a consolidated balance sheet (or the notes thereto) of the Company and its Significant Subsidiaries,
except for liabilities and obligations (a) reflected or reserved against in the Company’s consolidated balance sheet as of
the Balance Sheet Date (or the notes thereto) included in the Company SEC Documents, (b) incurred in the ordinary course of business
since the Balance Sheet Date, (c) which have been discharged or paid in full prior to the date of this Agreement, (d) incurred
pursuant to the transactions contemplated by this Agreement and (e) that would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect.
Section 4.7 Certain
Information. The Schedule 14D-9 will not, at the time it is first filed with the SEC, amended or supplemented or first published,
distributed or disseminated to the Company’s stockholders, contain any 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 light of the circumstances under which they
are made, not misleading. The Schedule 14D-9 will comply in all material respects with the requirements of the Exchange Act. Notwithstanding
the foregoing, the Company makes no representation or warranty with respect to statements included or incorporated by reference in the
Schedule 14D-9 based on information supplied in writing by or on behalf of Parent or Purchaser specifically for inclusion or incorporation
by reference therein.
Section 4.8 Absence
of Certain Changes or Events. Since December 31, 2025 (the “Balance Sheet Date”) through the date of this
Agreement, except as set forth in Section 4.8 of the Company Disclosure Letter or as otherwise contemplated or permitted by this
Agreement:
(a) the
businesses of the Company and its Significant Subsidiaries have been conducted in the ordinary course of business in all material respects
(for the avoidance of doubt, subject to Section 6.1(c)); and
(b) there
has not occurred any Material Adverse Effect.
17
Section 4.9 Litigation;
Orders. Except as set forth on Section 4.9 of the Company Disclosure Letter or as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, (a) there is no suit, claim, action, proceeding, arbitration, mediation
or investigation (each, an “Action”) pending or, to the knowledge of the Company, threatened against the Company or
any of its Significant Subsidiaries or any of their respective properties by or before any Governmental Entity and (b) neither the
Company nor any of its Significant Subsidiaries nor, to the knowledge of the Company, any of their respective properties is or are subject
to any judgment, order, injunction, rule or decree of any Governmental Entity.
Section 4.10 Compliance
with Laws. Except with respect to ERISA, Environmental Matters and Taxes (which are the subject of Section 4.11, Section 4.13
and Section 4.14, respectively), except as set forth in Section 4.10 of the Company Disclosure Letter, the Company and
each of its Significant Subsidiaries are in compliance with all Laws applicable to them or by which any of their respective properties
are bound, except where any non-compliance would not, individually or the aggregate, reasonably be expected to have a Material Adverse
Effect. Except with respect to Environmental Laws (which are the subject of Section 4.13), the Company and its Significant
Subsidiaries have in effect all permits, licenses, exemptions, authorizations, franchises, orders, clearances and approvals of all Governmental
Entities (collectively, “Permits”) necessary for them to own, lease or operate their properties and to carry on their
businesses as now conducted, except for any Permits the absence of which would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. All Permits are in full force and effect, except where the failure to be in full force and effect
would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
Section 4.11 Benefit
Plans.
(a) The
Company has provided to Parent a true and complete list of each material “employee benefit plan” (within the meaning of section
3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)), “multiemployer plans”
(within the meaning of ERISA section 3(37)), and each material stock purchase, stock option, severance, employment, change-in-control,
fringe benefit, bonus, incentive, deferred compensation and all other employee benefit plans, agreements, programs, policies or other
arrangements, whether or not subject to ERISA (including any funding mechanism therefor now in effect or required in the future as a
result of the transactions contemplated by this Agreement or otherwise), whether formal or informal, written, legally binding or not,
under which any employee or former employee of the Company or its Significant Subsidiaries has any present or future right to benefits
or the Company or its Significant Subsidiaries has had or has any present or future material liability. All such plans, agreements, programs,
policies and arrangements shall be collectively referred to as the “Company Plans.” With respect to each Company Plan,
to the extent requested by Parent prior to the date of this Agreement, the Company has furnished or made available to Parent a current,
accurate and complete copy thereof and, to the extent applicable: (i) any related trust agreement or other funding instrument, (ii) the
most recent determination or opinion letter from the Internal Revenue Service (the “IRS”), if applicable, (iii) any
summary plan description and other equivalent written communications by the Company or its Significant Subsidiaries to their employees
concerning the extent of the benefits provided under a Company Plan and (iv) if applicable, for the two most recent years (A) the
Form 5500 and attached schedules, (B) audited financial statements, (C) actuarial valuation reports and (D) attorney’s
response to an auditor’s request for information.
18
(b) With
respect to the Company Plans, except to the extent that the inaccuracy of any of the representations set forth in this Section 4.11
would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect:
(i) each
Company Plan has been established and administered in accordance with its terms and in compliance with the applicable provisions of ERISA
and the Internal Revenue Code of 1986, as amended (the “Code”), and no prohibited transaction, as described in Section 406
of ERISA or Section 4975 of the Code, has occurred with respect to any Company Plan, and all contributions required to be made under
the terms of any Company Plan have been timely made;
(ii) each
Company Plan intended to be qualified under Section 401(a) of the Code has received a favorable determination, advisory and/or
opinion letter, as applicable, from the IRS that it is so qualified (or the deadline for obtaining such a letter has not expired as of
the date of this Agreement) and, to the knowledge of the Company, nothing has occurred since the date of such letter that would reasonably
be expected to cause the loss of such qualified status of such Company Plan;
(iii) there
is no Action (including any investigation, audit or other administrative proceeding) by the Department of Labor, the Pension Benefit
Guaranty Corporation, the IRS or any other Governmental Entity or by any plan participant or beneficiary pending, or to the knowledge
of the Company, threatened, relating to the Company Plans, any fiduciaries thereof with respect to their duties to the Company Plans
or the assets of any of the trusts under any of the Company Plans (other than routine claims for benefits);
(iv) no
Company Plan is subject to Title IV of ERISA or subject to Section 412 of the Code;
(v) no
Company Plan is a “multiemployer plan” (within the meaning of Section 3(37) of ERISA); and
(vi) the
Company and its Subsidiaries do not maintain any Company Plan that is a “group health plan” (as such term is defined in Section 5000(b)(1) of
the Code) that has not been administered and operated in all respects in compliance with the applicable requirements of Section 601
of ERISA and Section 4980B(b) of the Code, and the Company and its Significant Subsidiaries are not subject to any material
liability, including additional contributions, fines, penalties or loss of tax deduction as a result of such administration and operation.
(c) Except
as set forth in Section 4.11(c) of the Company Disclosure Letter, none of the Company Plans provides for payment of a benefit,
the increase of a benefit amount, the payment of a contingent benefit or the acceleration of the payment or vesting of a benefit determined
or occasioned, in whole or in part, by reason of the execution of this Agreement or the consummation of the transactions contemplated
hereby, and no such payment will be nondeductible to the Company pursuant to Section 280(G) of the Code. The Company has no
obligation to indemnify any individual for any Tax incurred pursuant to Section 409A or 4999 of the Code.
19
Section 4.12 Labor
Matters. Neither the Company nor any of its Significant Subsidiaries is a party to, or is bound by, any collective bargaining agreement
with any labor union or labor organization. There is no labor dispute, strike, work stoppage or lockout, or, to the knowledge of
the Company, threat thereof, by or with respect to any employees of the Company or any of its Significant Subsidiaries, except as would
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
Section 4.13 Environmental
Matters.
(a) Except
as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect and except as set forth in the
applicable SEC filings and environmental assessments previously made available to Parent and Purchaser: (i) the Company and each
of its Significant Subsidiaries are in compliance in all material respects with all applicable Environmental Laws, and possess and are
in compliance with all applicable Environmental Permits required under such Environmental Laws to operate as they presently operate;
(ii) to the knowledge of the Company, there are no Materials of Environmental Concern at any property owned or operated by the Company
or any of its Significant Subsidiaries, except under circumstances that are not reasonably likely to result in material liability of
the Company or any of its Significant Subsidiaries under any applicable Environmental Law; (iii) neither the Company nor any of
its Significant Subsidiaries has received any written request for information pursuant to section 104(e) of the Comprehensive Environmental
Response, Compensation and Liability Act or similar state statute, concerning any release or threatened release of Materials of Environmental
Concern at any location except, with respect to any such request for information concerning any such release or threatened release, to
the extent such matter has been resolved with the appropriate foreign, federal, state or local regulatory authority or otherwise; and
(iv) neither the Company nor any of its Significant Subsidiaries has received any written notice, claim or complaint, or is presently
subject to any proceeding, relating to noncompliance with Environmental Laws or any other liabilities pursuant to Environmental Laws,
and to the knowledge of the Company, no such matter has been threatened in writing.
(b) Notwithstanding
any other representations and warranties in this Agreement, the representations and warranties in this Section 4.13
are the only representations and warranties in this Agreement with respect to Environmental Laws or Materials of Environmental Concern.
(c) For
purposes of this Agreement, the following terms shall have the meanings assigned below:
(i) “Environmental
Laws” means all foreign, federal, state, or local statutes, regulations, ordinances, codes, or decrees protecting the quality
of the ambient air, soil, surface water or groundwater, in effect as of the date of this Agreement.
(ii) “Environmental
Permits” means all permits, licenses, registrations, and other authorizations required under applicable Environmental Laws.
20
(iii) “Materials
of Environmental Concern” means any hazardous, acutely hazardous, or toxic substance or waste defined and regulated as such
under applicable Environmental Laws, including the federal Comprehensive Environmental Response, Compensation and Liability Act or the
federal Resource Conservation and Recovery Act.
Section 4.14 Taxes.
Except for failures, violations, inaccuracies, omissions or proceedings that would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect:
(a) all
material Tax Returns required by applicable Law to be filed by the Company or any of its Significant Subsidiaries have been filed in
accordance with all applicable Laws (after giving effect to any extensions of time in which to make such filings), and all such Tax Returns
were, at the time of filing, true and complete in all material respects;
(b) neither
the Company nor any of its Significant Subsidiaries is delinquent in the payment of any material Tax;
(c) no
material Liens for Taxes exist with respect to any assets or properties of the Company or any of its Significant Subsidiaries, except
for statutory Liens for Taxes not yet delinquent; and
(d) as
of the date of this Agreement, there are no proceedings now pending, or to the knowledge of the Company, threatened in writing against
the Company or any of its Significant Subsidiaries with respect to any material Tax.
(e) As
used in this Agreement:
(i) “Tax”
means federal, state, provincial, local or foreign taxes of whatever kind or nature imposed by a Governmental Entity, including all interest,
penalties and additions imposed with respect to such amounts.
(ii) “Tax
Returns” means all domestic or foreign (whether national, federal, state, provincial, local or otherwise) returns, declarations,
statements, reports, schedules, forms and information returns relating to Taxes, including any amended tax return.
Section 4.15 Contracts.
Except for this Agreement and except as filed with the SEC, as of the date hereof, neither the Company nor any of its Significant Subsidiaries
is a party to or is bound by any Contract that would be required to be filed by the Company as a “material contract” pursuant
to Item 601(b)(10) of Regulation S-K under the Securities Act (each such Contract as described in this Section 4.15, a
“Material Contract”). Each Material Contract is valid and binding on the Company and each of its Significant Subsidiaries
party thereto and, to the knowledge of the Company, any other party thereto, except for such failures to be valid and binding or to be
in full force and effect that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, there is no default
under any Material Contract by the Company or any of its Significant Subsidiaries party thereto or, to the knowledge of the Company,
any other party thereto, and no event has occurred that with the lapse of time or the giving of notice or both would constitute a default
thereunder by the Company or any of its Significant Subsidiaries party thereto or, to the knowledge of the Company, any other party thereto.
21
Section 4.16 FDA
and Regulatory Matters.
(a) The
Company and its Significant Subsidiaries hold, and have held at all times since January 1, 2023, all material Permits of all Governmental
Entities required under applicable requirements under the Federal Food, Drug and Cosmetic Act of 1938, 21 U.S.C. § 301
et seq., as amended, the Public Health Service Act, 42 U.S.C. § 201 et seq., as amended, and the regulations promulgated
thereunder by the U.S. Food and Drug Administration, or any successor agency thereto (the “FDA”) (collectively, “FDA
Laws”), including all such Permits required for the lawful operation of the businesses of the Company and its Significant Subsidiaries
as currently conducted or as have been conducted since January 1, 2023, under the FDA Laws (the “FDA Permits”),
and all such FDA Permits are valid and in full force and effect. Since January 1, 2023, there has not occurred any material violation
of, or default (with or without notice or lapse of time or both) under, any such FDA Permit. The Company and each of its Significant
Subsidiaries are in compliance in all material respects with the terms of all such FDA Permits required for the operation of the businesses
as currently conducted. Since January 1, 2023, neither the Company nor any of its Significant Subsidiaries has received written
notice of any pending or threatened claim, suit, proceeding, hearing, enforcement, audit, investigation, arbitration or other action
from any Governmental Entity alleging that any operation, activity, or Product of the Company or any of its Significant Subsidiaries
is in material violation of any FDA Law or FDA Permit.
(b) Since
January 1, 2023, the Products have been researched, manufactured, imported, exported, processed, developed, labeled, stored, tested,
marketed, promoted, advertised and distributed by or on behalf of the Company or any of its Significant Subsidiaries in compliance in
all material respects with all applicable requirements under any applicable FDA Permits and all applicable FDA Laws, including applicable
statutes and implementing regulations administered or enforced by the FDA or any comparable Governmental Entity. Since January 1,
2023, all applications, notifications, submissions, information, claims, reports and data utilized by the Company or its Significant
Subsidiaries as the basis for, or submitted by or, to the knowledge of the Company, on behalf of the Company or its Significant Subsidiaries
in connection with, any and all requests for the FDA Permits relating to the Company or any of its Significant Subsidiaries when submitted
to the FDA or other Governmental Entity, were true and correct in all material respects as of the date of submission, and any material
updates, changes, corrections or modification to such applications, notifications, submissions, information, claims, reports and data
required under applicable FDA Laws have been submitted to the FDA or other Governmental Entity.
(c) Except
as would not reasonably be expected, individually or in the aggregate, to be material to the Company and its Significant Subsidiaries,
neither the Company nor any Significant Subsidiary has (i) made an untrue statement of a material fact or fraudulent statement to
the FDA, (ii) failed to disclose a material fact required to be disclosed to the FDA or (iii) made any statement, failed to
make any statement or committed any other act, which statement, failure or act, in any such case of the foregoing clauses (i), (ii) and
(iii), establishes a reasonable basis for the FDA to invoke its Fraud, Untrue Statements of Material Facts, Bribery, and Illegal Gratuities
Final Policy, set forth in 56 Fed. Reg. 46191 (September 10, 1991) and any amendments thereto. Neither the Company nor any of its
Significant Subsidiaries nor, to the knowledge of the Company, any of their respective officers, directors, employees, or Representatives,
has received any written notification from the FDA that it is the subject of any pending or threatened investigation by the FDA pursuant
to its Fraud, Untrue Statements of Material Facts, Bribery, and Illegal Gratuities Final Policy.
22
(d) Since
January 1, 2023, the manufacture of Products by or on behalf of the Company and its Significant Subsidiaries has been and is being
conducted in material compliance with all applicable Laws. Since January 1, 2023, none of the Company, any of its Significant Subsidiaries,
or, to the knowledge of the Company, any of their respective contract manufacturers for Products, has received any (i) FDA Form 483
that would be adverse in any material respect to the Company or its Significant Subsidiaries, (ii) warning letter, (iii) untitled
letter, (iv) it has come to our attention (IHCTOA) letter, (v) requests or requirements to make changes to the Company’s
or any of its Significant Subsidiaries’ Products, manufacturing processes or procedures related to any Product that would be adverse
in any material respect to the Company or its Significant Subsidiaries, or (vi) other similar written correspondence or written
notice from the FDA or any other Governmental Entity alleging or asserting material noncompliance with any applicable FDA Laws or the
FDA Permits with respect to any Product. Since January 1, 2023, no manufacturing site owned by the Company, its Significant Subsidiaries,
or, to the knowledge of the Company, any of their respective contract manufacturers for Products, is or has been subject to a shutdown
or import or export prohibition imposed by FDA or another Governmental Entity with respect to the Company’s or its Significant
Subsidiaries’ Products.
(e) Since
January 1, 2023, except as would not reasonably be expected to have a Material Adverse Effect, (i) all studies, tests and preclinical
and clinical trials being conducted by or on behalf of the Company or its Significant Subsidiaries have been and are being conducted
in material compliance with applicable FDA Laws, including the requirements of Good Laboratory Practices or Good Clinical Practices,
as applicable, and (ii) the Company and its Significant Subsidiaries have not received any written notices, correspondence or communication
from any Institutional Review Board or similar body with oversight over clinical trials, the FDA or any other Governmental Entity, requiring
the termination, suspension or material adverse modification of any ongoing or planned clinical trials conducted by, or on behalf of,
the Company or its Significant Subsidiaries.
(f) Except
as would not reasonably be expected, individually or in the aggregate, to be material to the Company and its Significant Subsidiaries,
neither the Company nor any Significant Subsidiary nor, to the knowledge of the Company, any of their respective officers, directors,
employees or Representatives is debarred, or has been convicted of any crime or has engaged in any conduct that would reasonably be expected
to result in (i) debarment, under 21 U.S.C. § 335a or any similar Law, or (ii) exclusion, under 42 U.S.C.
Section 1320a-7b or any similar Law.
23
(g) Except
as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, since January 1, 2023,
the Company and each of its Significant Subsidiaries have been in compliance with all Health Care Laws applicable to the operation of
their respective businesses as then conducted. None of the Company, any of its Significant Subsidiaries or, to the knowledge of the Company,
any director, officer, employee or Representative of the Company or any of its Significant Subsidiaries (in each case, acting in the
capacity of an employee or Representative of the Company or such Significant Subsidiary), is subject to any enforcement, regulatory or
administrative proceedings against or affecting the Company or any of its Significant Subsidiaries relating to or arising under the Health
Care Laws, except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(i) None
of the Company, any of its Significant Subsidiaries, or, to the knowledge of the Company, any of its or their directors, officers, employees
or Representatives (in each case, acting in the capacity of an employee or Representative of the Company or any Significant Subsidiary)
is a party to any corporate integrity agreement, deferred prosecution agreement, consent decree, settlement order or similar agreement
with or imposed by any Governmental Entity, and no such Action is pending as of the date hereof.
(h) As
used in this Agreement:
(i) “Products”
means Rolvedon.
Section 4.17 Insurance.
Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (a) all insurance
policies of the Company and its Significant Subsidiaries (other than those which have expired in accordance with their terms) are in
full force and effect and provide insurance in such amounts and against such risks as management has determined to be prudent in accordance
with industry practices and (b) neither the Company nor any of its Significant Subsidiaries is in breach or default, and neither
the Company nor any of its Significant Subsidiaries has taken any action or failed to take any action which, with notice or the lapse
of time, would constitute such a breach or default, or permit termination or modification of, any of such insurance policies.
Section 4.18 Properties.
Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, the Company or one of
its Subsidiaries has good title to all the properties and assets reflected in the audited balance sheet of the Company included in the
Company SEC Documents as being owned by the Company or one of its Subsidiaries or acquired after the date thereof that are material to
the Company’s business on a consolidated basis (except properties sold or otherwise disposed of since the date thereof in the ordinary
course of business), free and clear of all Liens, except (a) statutory Liens securing payments not yet due or the amount or validity
of which is being contested in good faith by appropriate proceedings, (b) Liens arising under worker’s compensation, unemployment
insurance, social security, retirement and similar legislation, (c) Liens permissible under any applicable loan agreements and indentures
and (d) such imperfections or irregularities or title, easements, rights of way and other Liens, whether or not of record, that
do not materially affect the use of the properties or assets subject thereto for the purposes for which they are currently being used.
Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, the Company or one of
its Subsidiaries is the lessee of all leasehold estates reflected in the audited balance sheet of the Company as at the Measurement Date
included in the Company SEC Documents or acquired after the date thereof that are material to the Company’s business on a consolidated
basis (except for leases that have expired by their terms since the date thereof or been assigned, terminated or otherwise disposed of
in the ordinary course of business) and is in possession of the properties purported to be leased thereunder, and each such lease is
valid without default thereunder by the lessee or, to the Company’s knowledge, the lessor. No representation is made under this
Section 4.18 with respect to any intellectual property or intellectual property rights, which are the subject of Section 4.19.
24
Section 4.19 Intellectual
Property.
(a) Section 4.19(a) of
the Company Disclosure Letter sets forth a true and complete list of all registered trademarks, service marks or tradenames, patents,
patent applications, registered copyrights, applications to register copyright and domain names owned or licensed by the Company or any
of its Significant Subsidiaries on the date hereof and that are material to the businesses of the Company and its Significant Subsidiaries,
taken as a whole (collectively, “Company Registered IP”). No Company Registered IP is involved in any interference,
reissue, reexamination, opposition, cancellation or similar proceeding and, to the knowledge of the Company, no such action is or has
been threatened with respect to any of the Company Registered IP. Except as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect, all Company Registered IP is owned by the Company or one its Subsidiaries free and clear
of all Liens. Neither the Company nor any of its Significant Subsidiaries has received any written notice or claim in the year prior
to the date hereof challenging the validity or enforceability of any Company Registered IP that remains pending or unresolved.
(b) Except
as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, each of the Company and its
Significant Subsidiaries has taken commercially reasonable steps to maintain the confidentiality of all information of the Company or
its Significant Subsidiaries that derives economic value (actual or potential) from not being generally known to other Persons who can
obtain economic value from its disclosure or use, including taking commercially reasonable steps to safeguard any such information that
is accessible through computer systems or networks.
(c) Except
as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, to the knowledge of the Company,
(i) the Company and its Significant Subsidiaries are not infringing upon or misappropriating any patents, copyrights, trademarks,
trade secrets, internet domain names or other intellectual property (“Intellectual Property”) of any third party in
connection with the conduct of their respective businesses, and neither the Company nor any of its Significant Subsidiaries has received
in the year prior to the date hereof any written notice or claim asserting that any such infringement or misappropriation is occurring,
which notice or claim remains pending or unresolved, (ii) no third party is misappropriating or infringing any Intellectual Property
owned by the Company or any of its Significant Subsidiaries and (iii) no Intellectual Property owned or licensed by the Company
or any of its Significant Subsidiaries is subject to any outstanding order, judgment, decree or stipulation restricting or limiting in
any material respect the use or licensing thereof by the Company or any of its Significant Subsidiaries.
25
Section 4.20 Data
Privacy.
(a) The
Company and, to the knowledge of the Company, all vendors, processors, or other third parties processing, on behalf of the Company, information
or data, in any form, that is capable, directly or indirectly, of being associated with, related to or linked to a natural Person and/or
other data that is considered “personally identifiable information,” “personal information,” “personal
data,” or any substantially similar term by any applicable Privacy Requirements (“Personal Information”), comply
and have since January 1, 2023, complied in all material respects with (i) applicable Laws relating to the privacy, security,
or processing of Personal Information, data breach notification, website and mobile application privacy policies and practices, processing
and security of payment card information, and email, text message, or telephone communications, (ii) the Company’s public
policies, notices, and/or written statements related to Personal Information, and (iii) contractual commitments related to the processing
of Personal Information binding upon the Company (collectively, the “Privacy Requirements”).
(b) Following
the execution, delivery, and performance of this Agreement and the Merger, Purchaser and the Surviving Corporation will have the right
to process, on similar terms and conditions, all Personal Information that was processed by or on behalf of the Company prior to the
execution, delivery, and performance of this Agreement and the Merger.
(c) The
Company has implemented, maintained and complied with, commercially reasonable technical, physical, and organizational measures, plans,
procedures, controls, and programs, to (i) protect Personal Information against any accidental, unlawful or unauthorized access,
use, loss, disclosure, alteration, destruction, compromise, or cyberattack, including a ransomware attack or a denial-of-service attack
(each, a “Security Incident”), and (ii) identify and address internal and external risks to the privacy and security
of Personal Information. The Company has not experienced any material Security Incidents in the last three (3) years.
(d) In
relation to any Security Incident and/or alleged or actual violation of any Privacy Requirement, the Company has not (i) notified
or been required to notify any customer, consumer, employee, Governmental Entity, or other Person, or (ii) received any written
notice, inquiry, request, claim, complaint, correspondence or other communication from, or been the subject of any investigation or enforcement
action by, any Governmental Entity or other Person. To the knowledge of the Company, there are no facts or circumstances that could give
rise to the occurrence of (i) or (ii).
Section 4.21 State
Takeover Statutes; Anti-Takeover Provisions. Assuming the accuracy of the representations and warranties of Parent and Purchaser
set forth in Section 5.9, no “fair price,” “moratorium,” “control share acquisition” or
similar antitakeover Law (collectively, “Takeover Laws”) enacted under of any state Laws in the United States apply
to this Agreement or any of the transactions contemplated hereby. As of the date hereof, the Company is not party to a stockholder rights
agreement, “poison pill” or similar anti-takeover agreement or plan.
26
Section 4.22 Section 251(h).
The Company has not taken, or authorized or permitted any of its Representatives to take, any action that would reasonably be expected
to render Section 251(h) of the DGCL inapplicable to the Merger.
Section 4.23 Affiliate
Transactions. Except for directors’ and employment-related Material Contracts filed or incorporated by reference as an exhibit
to a Company SEC Document filed by the Company prior to the date hereof and for any intercompany agreements, as of the date hereof, no
executive officer or director of the Company is a party to any Material Contract with or binding upon the Company or any of its Significant
Subsidiaries or any of their respective properties or assets or has any material interest in any material property owned by the Company
or any of its Significant Subsidiaries or has engaged in any material transaction with any of the foregoing within the last 24 months.
Section 4.24 Brokers.
No broker, investment banker, financial advisor or other Person, other than Moelis & Company LLC is entitled to any broker’s,
finder’s, financial advisor’s or other similar fee or commission in connection with the transactions contemplated by this
Agreement or the Garda Agreement based upon arrangements made by or on behalf of the Company or any of its Subsidiaries.
Section 4.25 Opinion
of Financial Advisor. Moelis & Company LLC has delivered to the Company Board its written opinion (or oral opinion to be
confirmed in writing) to the effect that, as of the date thereof, the Offer Price to be received by the holders of Shares in the Offer
and the Merger is fair, from a financial point of view, to such holders.
Section 4.26 International
Trade Laws; Anti-Bribery.
(a) The
Company and its Significant Subsidiaries are and for the past five years have been in material compliance with International Trade Laws
and have not taken any action that violates, evades or avoids, or attempts to violate International Trade Laws. Neither the Company nor
any of its Significant Subsidiaries, nor to the knowledge of the Company, any of their respective directors, executives, employees or
Representatives acting on behalf of the Company or its Significant Subsidiaries, during the past five years: (i) is a Sanctioned
Person; or (ii) has unlawfully conducted any business or engaged in any transaction involving any contribution of funds, goods or
services to or for the benefit of any Sanctioned Person or unlawfully dealt in any property or interests in property of any Sanctioned
Person.
(b) To
the knowledge of the Company, during the past five years, no Action or notice has been filed or commenced against the Company or its
Significant Subsidiaries alleging any failure to comply with any International Trade Laws.
27
(c) Neither
the Company, any of its Significant Subsidiaries nor any of their respective directors, officers or employees, nor, to the knowledge
of the Company, any other Representative or other Person acting on behalf of the Company or any of its Significant Subsidiaries has since
January 1, 2023 (i) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, any applicable
Law enacted in any jurisdiction in connection with or arising under the OECD Convention Combating Bribery of Foreign Public Officials
in International Business Transactions, any provision of the UK Bribery Act of 2010 or any other applicable Law relating to bribery,
corruption, fraud or improper payments (the “Anti-Corruption Laws”); (ii) made, offered to make, promised to make, facilitated
or authorized the payment or giving of, directly or indirectly, any bribe, rebate, payoff, influence payment, kickback or other unlawful
advantage or payment or gift of money or anything of value, regardless of form or amount, to any Person for the purpose of securing an
unlawful advantage, inducing the recipient to violate an official or lawful duty, reward the recipient for an unlawful advantage already
given, or for any other improper purpose; (iii) requested, agreed to receive, or accepted a payment, gift or hospitality from a
Person if it is known or suspected that it is offered with the expectation that it will obtain an unlawful business advantage for them;
(iv) established or maintained, or is maintaining, any unlawful fund of corporate monies or other properties; (v) to the knowledge
of the Company, been or is, under administrative, civil, or criminal investigation, indictment, information, suspension, debarment, or
audit by any party, in connection with alleged or possible violations of any Anti-Corruption Laws; (vi) since January 1, 2023,
received written notice from, or made a voluntary disclosure to, any Governmental Entity with regard to any alleged or potential violations
of any Anti-Corruption Laws; or (vii) violated or is in violation of any other applicable Laws regarding use of funds for political
activity or commercial bribery. None of the Representatives of the Company are (A) an employee of any Governmental Entity, (B) an
employee of any commercial enterprise that is owned or controlled by a Governmental Entity, including any state-owned or controlled university
or medical facility, (C) an employee of any public international organization, such as the International Monetary Fund, the United
Nations or the World Bank, (D) a Person acting as the director of or in an official capacity for any Governmental Entity, enterprise,
or organization identified above, or (E) any official of a political party or candidate for political office.
(d) For
purposes of this Agreement, the following terms shall have the meanings assigned below:
(i) “International
Trade Laws” means all applicable U.S. and non-U.S. laws, statutes, rules, regulations, judgments, orders (including executive
orders), decrees or restrictive measures relating to economic, financial, or trade sanctions, export control, or anti-boycott measures
administered, enacted, or enforced by a relevant Sanctions Authority, as well as applicable customs laws.
(ii) “Sanctioned
Jurisdiction” means a country or territory which is, or during the past five years has been, the subject or target of comprehensive
U.S. sanctions (as of the date of this Agreement, Cuba, Iran, North Korea, Syria and the Crimea, Donetsk People’s Republic
and Luhansk People’s Republic regions of Ukraine).
(iii) “Sanctioned
Person” means a Person (i) identified on the United States’ Specially Designated Nationals and Blocked Persons List,
the United States’ Denied Persons List, Entity List or Debarred Parties List, the United Nations Security Council Sanctions List,
the European Union’s List of Persons, Groups and Entities Subject to Financial Sanctions, the United Kingdom’s Consolidated
List of Financial Sanctions Targets, or any other similar list maintained by any Sanctions Authority having jurisdiction over the parties
to this Agreement; (ii) located, organized or resident in a Sanctioned Jurisdiction or (iii) owned, 50% or more, individually
or in the aggregate by, controlled by, or acting on behalf of a Person described in clause (i) or (ii) above.
28
(iv) “Sanctions
Authority” means the United States government, the Office of Foreign Assets Control of the U.S. Department of the Treasury,
the U.S. Department of State, the Bureau of Industry and Security of the U.S. Department of Commerce, the United Nations Security Council,
the European Union, any Member State of the European Union and the competent national authorities thereof, the United Kingdom, the Office
of Financial Sanctions Implementation of His Majesty’s Treasury, the Export Control Joint Unit of the UK Department of International
Trade, and any other relevant governmental, intergovernmental or supranational body, agency or authority with jurisdiction over the parties
to this Agreement.
Section 4.27 Termination
of Garda Agreement. The Garda Agreement has been validly terminated in accordance with its terms and, assuming the accuracy of the
representations and warranties of Parent and Purchaser in Article V, the Company has no further liabilities thereunder and all of
the Company’s remaining obligations under the Garda Agreement are fully satisfied. Concurrently with the execution and delivery
of this Agreement, the Company has terminated all access granted to Garda or its representatives to any physical or electronic dataroom
and has instructed Garda to promptly return or destroy all confidential information concerning the Company and any of its Subsidiaries
in accordance with the terms of the Confidentiality Agreement, dated as of February 14, 2025, by and between the Company and Garda.
Section 4.28 No
Other Representations or Warranties. Except for the representations and warranties contained in this Article IV, each of Parent
and Purchaser acknowledges that neither the Company nor any other Person on behalf of the Company makes any other express or implied
representation or warranty with respect to the Company or any of its Subsidiaries with respect to any other information provided to Parent
or Purchaser in connection with the transactions contemplated by this Agreement. Neither the Company nor any other Person will have or
be subject to any liability to Parent, Purchaser or any other Person resulting from the distribution to Parent or Purchaser, or Parent’s
or Purchaser’s use of, any such information, including any information, documents, projections, forecasts or other material made
available to Parent or Purchaser in certain “data rooms” or management presentations in expectation of, or in connection
with, the transactions contemplated by this Agreement.
Article V
REPRESENTATIONS AND WARRANTIES OF PARENT AND PURCHASER
Except as set forth in the
disclosure letter delivered by Parent to the Company prior to the execution of this Agreement (the “Parent Disclosure Letter”)
(it being agreed that disclosure of any information in a particular section or subsection of the Parent Disclosure Letter shall be deemed
disclosure with respect to any other section or subsection of this Agreement to which the relevance of such information is reasonably
apparent), Parent and the Purchaser, jointly and severally, represent and warrant to the Company as follows:
29
Section 5.1 Organization,
Standing and Power.
(a) Each
of Parent and Purchaser (i) is a corporation duly organized, validly existing and in good standing under the Laws of the jurisdiction
of its incorporation, (ii) has all requisite corporate power and authority to own, lease and operate its properties and to carry
on its business as now being conducted and (iii) is duly qualified or licensed to do business and is in good standing in each jurisdiction
in which the nature of its business or the ownership, leasing or operation of its properties makes such qualification or licensing necessary,
except, with respect to clauses (ii) and (iii), for any such failures to have such power and authority or to be so qualified or
licensed or in good standing as would not, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse
Effect. For purposes of this Agreement, “Parent Material Adverse Effect” means any event, change, occurrence or effect
that would prevent, materially delay or materially impede the performance by Parent or Purchaser of its obligations under this Agreement
or the consummation of the Merger or any of the other transactions contemplated hereby.
(b) Parent
has previously furnished to the Company a true and complete copy of the certificate of incorporation and bylaws of each of Parent and
Purchaser, in each case as amended to the date of this Agreement, and each as so delivered is in full force and effect. Neither Parent
nor Purchaser is in violation of any provision of its certificate of incorporation or bylaws in any material respect.
Section 5.2 Authority.
Each of Parent and Purchaser has all necessary corporate power and authority to execute and deliver this Agreement, to perform its obligations
hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance
of this Agreement by Parent and Purchaser and the consummation by Parent and Purchaser of the transactions contemplated hereby have been
duly authorized by the Boards of Directors of Parent and Purchaser, and no other corporate proceedings on the part of Parent or Purchaser
are necessary to approve this Agreement or to consummate the transactions contemplated hereby, subject in the case of the consummation
of the Merger, to the filing of the Certificate of Merger with the Secretary of State of the State of Delaware as required by the DGCL.
This Agreement has been duly executed and delivered by Parent and Purchaser and, assuming the due authorization, execution and delivery
by the Company, constitutes a valid and binding obligation of Parent and Purchaser, enforceable against each of them in accordance with
its terms (except to the extent that enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or
similar Laws affecting the enforcement of creditors’ rights generally or by general principles of equity).
Section 5.3 No
Conflict; Consents and Approvals.
(a) The
execution, delivery and performance of this Agreement by Parent and Purchaser, and the consummation by Parent and Purchaser of the transactions
contemplated hereby, do not and will not (i) conflict with or violate the certificate of incorporation or bylaws of Parent or Purchaser,
(ii) assuming that all consents, approvals and authorizations contemplated by clauses (i) through (vi) of subsection (b) below
have been obtained and all filings described in such clauses have been made, conflict with or violate any Law applicable to Parent or
Purchaser or by which any of their respective properties are bound or (iii) result in any breach or violation of, or constitute
a default (or an event which with notice or lapse of time or both would become a default), or result in the loss of a benefit under,
or give rise to any right of termination, cancellation, amendment or acceleration of, any Contract to which Parent or Purchaser is a
party or by which Parent or Purchaser or any of their respective properties are bound, except, in the case of clauses (ii) and (iii),
for any such conflict, breach, violation, default, loss, right or other occurrence that would not, individually or in the aggregate,
reasonably be expected to have a Parent Material Adverse Effect.
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(b) The
execution, delivery and performance of this Agreement by Parent and Purchaser, and the consummation by Parent and Purchaser of the transactions
contemplated hereby, do not and will not require any consent, approval, authorization or permit of, action by, filing with or notification
to, any Governmental Entity, except for (i) such filings as may be required under applicable requirements of the Exchange Act and
the rules and regulations promulgated thereunder, and under state securities, takeover and “blue sky” Laws, (ii) the
filings required to be made under the HSR Act and any filings required under the applicable requirements of Foreign Antitrust Laws, (iii) such
filings as necessary to comply with the applicable requirements of NASDAQ, (iv) the filings required under any Health Care Laws,
(v) the filing with the Secretary of State of the State of Delaware of the Certificate of Merger as required by the DGCL and (vi) any
such consent, approval, authorization, permit, action, filing or notification the failure of which to make or obtain would not, individually
or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect.
Section 5.4 Certain
Information. The Offer Documents will not, at the respective times they are first filed with the SEC, amended or supplemented or
first published, distributed or disseminated to the Company’s stockholders, contain any 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 light of the circumstances
under which they are made, not misleading. The Offer Documents will comply in all material respects with the requirements of the Exchange
Act. Notwithstanding the foregoing, neither Parent nor Purchaser makes any representation or warranty with respect to statements included
or incorporated by reference in the Offer Documents based on information supplied in writing by or on behalf of the Company specifically
for inclusion or incorporation by reference therein. None of the information supplied or to be supplied by or on behalf of Parent or
Purchaser specifically for inclusion or incorporation by reference in the Schedule 14D-9 will, at the time it is first published,
distributed or disseminated to the Company’s stockholders, contain any 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 light of the circumstances under which they
are made, not misleading. Notwithstanding the foregoing, neither Parent nor Purchaser makes any representation or warranty with respect
to statements included or incorporated by reference in the Schedule 14D-9 based on information supplied in writing by or on behalf
of the Company specifically for inclusion or incorporation by reference therein.
Section 5.5 Litigation.
Except as would not, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect, (a) there
is no Action pending or, to the knowledge of Parent, threatened against Parent or any of its Subsidiaries or any of their respective
properties by or before any Governmental Entity and (b) neither Parent nor any of its Subsidiaries nor any of their respective properties
is or are subject to any judgment, order, injunction, rule or decree of any Governmental Entity.
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Section 5.6 Ownership
and Operations of Purchaser. Purchaser was formed solely for the purpose of engaging in the transactions contemplated hereby and
has engaged in no other business activities and will have incurred no liabilities or obligations other than as contemplated herein. The
authorized capital stock of Purchaser consists of 1,000 shares of common stock, par value $0.001 per share, all of which are validly
issued and outstanding. All of the issued and outstanding capital stock of Purchaser is, and at the Effective Time will be, owned directly
or indirectly by Parent.
Section 5.7 Sufficient
Funds. Parent and Purchaser have, and will at all times through and including the Acceptance Time have, sufficient cash, available
lines of credit or other sources of immediately available funds to consummate the transactions contemplated hereby, including payment
of all amounts required to be paid pursuant to Article III and amounts required to be paid in respect of the Convertible Notes,
and to pay all related fees and expenses.
Section 5.8 Vote/Approval
Required. No vote or consent of the holders of any class or series of capital stock of Parent is necessary to approve this Agreement
or the Merger or the other transactions contemplated hereby. The vote or consent of Parent as the sole stockholder of Purchaser (which
shall have occurred prior to the Effective Time) is the only vote or consent of the holders of any class or series of capital stock of
Purchaser necessary to approve this Agreement or the Merger or the other transactions contemplated hereby.
Section 5.9 Ownership
of Shares. Neither Parent nor Purchaser is, nor at any time for the past three years has been, an “interested stockholder”
of the Company as defined in Section 203 of the DGCL. As of the date of this Agreement, Parent or a Subsidiary of Parent do not
beneficially own any Shares, and no other Shares or instruments whose value is dependent upon the value of a Share. Parent and each of
its Subsidiaries are affiliates of Purchaser as such term is defined in Section 251(h) of the DGCL.
Section 5.10 Brokers.
Except as set forth in Section 5.10 of the Parent Disclosure Letter, no broker, investment banker, financial advisor or other Person
is entitled to any broker’s, finder’s, financial advisor’s or other similar fee or commission in connection with the
transactions contemplated by this Agreement based upon arrangements made by or on behalf of Parent or Purchaser.
Section 5.11 No
Other Representations or Warranties. Except for the representations and warranties contained in this Article V, the Company
acknowledges that none of Parent, Purchaser or any other Person on behalf of Parent or Purchaser makes any other express or implied representation
or warranty with respect to Parent or Purchaser or with respect to any other information provided to the Company.
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Section 5.12 Access
to Information. Each of Parent and Purchaser acknowledges and agrees that it (a) has had an opportunity to discuss and ask questions
regarding the business of the Company and its Subsidiaries with the management of the Company, (b) has had access to the books and
records of the Company, the “data room” maintained by the Company for purposes of the transactions contemplated by this Agreement
and such other information as it has desired or requested to review and (c) has conducted its own independent investigation of the
Company and its Subsidiaries and the transactions contemplated hereby, and has not relied on an representation or warranty by any Person
regarding the Company and its Subsidiaries, except as expressly set forth in Article IV. Without limiting the foregoing, except
for the representations and warranties set forth in Article IV of this Agreement or in any certificate delivered in connection with
this Agreement, each of Parent and Purchaser further acknowledges and agrees that none of the Company or any of its stockholders, directors,
officers, employees, Affiliates, advisors or other Representatives has made any representation or warranty concerning any estimates,
projections, forecasts, business plans or other forward-looking information regarding the Company, its Subsidiaries or their respective
businesses and operations. Each of Parent and Purchaser hereby acknowledges that there are uncertainties inherent in attempting to develop
such estimates, projections, forecasts, product roadmaps, business plans and other forward-looking information with which Parent and
Purchaser are familiar, that Parent and Purchaser are taking full responsibility for making their own evaluation of the adequacy and
accuracy of all estimates, projections, forecasts, product roadmaps, business plans and other forward-looking information furnished to
them (including the reasonableness of the assumptions underlying such estimates, projections, forecasts, product roadmaps, business plans
and other forward-looking information), and that Parent and Purchaser will have no claim against the Company or any of its stockholders,
directors, officers, employees, Affiliates, advisors or other Representatives with respect thereto.
Section 5.13 Termination
of Garda Agreement. Substantially concurrently with the execution and delivery of this Agreement, the Garda Agreement Termination
Fee was paid by Parent to Garda, on behalf of the Company, by wire transfer of immediately available funds.
Article VI
COVENANTS
Section 6.1 Conduct
of Business of the Company.
(a) The
Company covenants and agrees that, during the period from the date hereof until the Effective Time, except (i) as contemplated or
permitted by this Agreement, (ii) as disclosed in Section 6.1 of the Company Disclosure Letter, (iii) in accordance with
the Asset Purchase Agreement and ancillary agreements thereto (including the consummation of the transactions contemplated thereby),
(iv) as required by applicable Law or any decree, order, directive or guidelines issued by a Governmental Entity (including any
Public Health Measures), (v) in connection with actions taken (or omitted to be taken) in good faith to address any extraordinary
or unusual event occurring after the date hereof that is beyond the reasonable control of the Company or its Subsidiaries as would cause
a reasonably prudent Person to take commercially reasonable actions outside the ordinary course of business or (vi) with the prior
written consent of Parent (which consent shall not be unreasonably withheld, conditioned or delayed), the Company shall, and shall cause
each of its Subsidiaries to, use its commercially reasonable efforts to conduct its business in the ordinary course of business in all
material respects; provided, however, that no action by the Company or its Subsidiaries with respect to matters specifically
addressed by any provision of Section 6.1(b) shall be deemed a breach of this sentence unless such action constitutes
a breach of such provision of Section 6.1(b)(i).
33
(b) Between
the date of this Agreement and the Effective Time, except (1) as contemplated or permitted by this Agreement, (2) as disclosed
in Section 6.1 of the Company Disclosure Letter, (3) in accordance with the Asset Purchase Agreement and ancillary agreements
thereto (including the consummation of the transactions contemplated thereby), (4) as required by applicable Law or any decree,
order, directive or guideline issued by a Governmental Entity (including any Public Health Measures), (5) in connection with actions
taken (or omitted to be taken) in good faith to address any extraordinary or unusual event occurring after the date hereof that is beyond
the reasonable control of the Company or its Subsidiaries as would cause a reasonably prudent Person to take commercially reasonable
actions outside the ordinary course of business (provided that this clause (5) shall not apply to any actions described in Section 6.1(b)(i),
(ii), (iii) or (iv)) or (6) with the prior written consent of Parent (which consent shall not be unreasonably withheld, conditioned
or delayed), neither the Company nor any of its Subsidiaries shall:
(i) amend
or otherwise change its certificate of incorporation or bylaws or any similar governing instruments;
(ii) issue,
deliver, sell, pledge, dispose of or encumber any shares of capital stock, or grant to any Person any right to acquire any shares of
its capital stock, except (A) pursuant to (1) the exercise or settlement of Company Equity Awards outstanding as of the date
hereof (or permitted hereunder to be granted after the date hereof) or (2) the conversion of the Convertible Notes, in each case
in accordance with the terms of such instruments or (B) the grant of Company Equity Awards (and issuances of Shares pursuant thereto)
made in the ordinary course of business;
(iii) declare,
set aside, make or pay any dividend or other distribution, payable in cash, stock, property or otherwise, with respect to any of its
capital stock (except for (i) regular quarterly cash dividends on the Shares or (ii) any dividend or distribution by a Subsidiary
of the Company to the Company or to other Subsidiaries);
(iv) adjust,
split, combine, redeem, repurchase or otherwise acquire any shares of capital stock of the Company (except (A) in connection with
the cashless exercises or similar transactions pursuant to the exercise or settlement of Company Equity Awards or settlement of other
awards or obligations outstanding as of the date hereof or permitted to be granted after the date hereof or (B) as required pursuant
to the terms of the Convertible Notes and the Indenture), or reclassify, combine, split, subdivide or otherwise amend the terms of its
capital stock;
(v) (A) acquire
(whether by merger, consolidation or acquisition of stock or assets or otherwise) any corporation, partnership or other business organization
or division thereof or any assets, in each case, having a value in excess of $250,000 individually or $1,000,000 in the aggregate, other
than purchases of inventory and other assets in the ordinary course of business or pursuant to existing Contracts; (B) license,
sell or otherwise dispose of (whether by merger, consolidation or acquisition of stock or assets or otherwise) any corporation, partnership
or other business organization or division thereof or any assets, in each case, having a value in excess of $250,000 individually or
$1,000,000 in the aggregate, other than license, sales or dispositions of inventory and other assets in the ordinary course of business
or pursuant to existing Contracts;
(vi) other
than in the ordinary course of business, enter into, materially amend or terminate any Material Contract;
34
(vii) (A) make
any loans, advances or capital contributions to, or investments in, any other Person (other than a Subsidiary of the Company), (B) incur
any indebtedness for borrowed money or issue any debt securities or (C) assume, guarantee, endorse or otherwise become liable or
responsible for the indebtedness or other obligations of another Person (other than a guaranty by the Company on behalf of its Subsidiaries),
in each case, (1) in excess of $250,000 individually or $1,000,000 in the aggregate or (2) other than in the ordinary course
of business;
(viii) except
to the extent required by applicable Law (including Section 409A of the Code), any arrangement in effect as of the date hereof,
as contemplated by Section 6.7 or as consistent with past practice, (A) materially increase the compensation or benefits of
any director or executive officer of the Company or (B) amend or adopt any compensation or benefit plan including any pension, retirement,
profit-sharing, bonus or other employee benefit or welfare benefit plan (other than any such adoption or amendment that does not materially
increase the cost to the Company or any of its Subsidiaries of maintaining the applicable compensation or benefit plan) with or for the
benefit or its employees or directors;
(ix) implement
or adopt any material change in its methods of accounting, except as may be appropriate to conform to changes in statutory or regulatory
accounting rules or GAAP or regulatory requirements with respect thereto;
(x) compromise,
settle or agree to settle any Action (including any Action relating to this Agreement or the transactions contemplated hereby), or consent
to the same, other than compromises, settlements or agreements in the ordinary course of business that involve only the payment of money
damages (A) not in excess of $250,000 individually or $1,000,000 in the aggregate or (B) consistent with the reserves reflected
in the Company’s balance sheet at the Measurement Date; or
(xi) agree
to take any of the actions described in Section 6.1(b)(i) through Section 6.1(b)(x).
(c) In
making any determination as to whether the Company or its Subsidiaries have discharged their obligations to operate in the “ordinary
course of business” or used “commercially reasonable efforts” or similar covenants under this Agreement, any actions
or omissions shall be assessed based on what is practicable or reasonable, as determined by the Company or its Subsidiaries in their
reasonable discretion. Without limitation to the foregoing, actions taken (or omitted to be taken) in good faith in response to (i) any
unforeseen or atypical event that is beyond the reasonable control of the Company or its Subsidiaries as would cause a reasonably prudent
Person to take commercially reasonable actions that might otherwise be deemed outside the ordinary course of business or (ii) any
actions taken by any Governmental Entity in connection with the matters described clause (i) above (including any Public Health
Measures), shall be deemed to be in the ordinary course of business.
35
(d) Parent’s
prior written consent to any action restricted by this Section 6.1 shall be deemed granted on the earlier of (i) the
date of delivery of such consent to the Company by Parent and (ii) the fifth Business Day (unless a shorter time is reasonably required
by the circumstances and such shorter time is specified in the request delivered to Parent) after delivery by the Company to Parent of
such request for consent unless Parent notifies the Company to the contrary prior to such date.
Section 6.2 Conduct
of Business of Parent and Purchaser Pending the Merger. From and after the date hereof and prior to the Effective Time, and except
as may otherwise be required by applicable Law, each of Parent and Purchaser agree that it shall not, directly or indirectly, take any
action which is intended to or which would reasonably be expected to (a) materially adversely affect or materially delay the ability
of Parent or Purchaser from obtaining any necessary approvals of any Governmental Entity necessary for the consummation of the transactions
contemplated hereby, (b) materially adversely affect or materially delay the ability of Parent or Purchaser from performing its
covenants or agreements, (c) cause its representations and warranties set forth in Article V to be untrue in any material respect
or (d) otherwise, individually or in the aggregate, have a Parent Material Adverse Effect.
Section 6.3 No
Control of Other Party’s Business. Nothing contained in this Agreement shall give Parent, directly or indirectly, the right
to control or direct the Company’s or its Subsidiaries’ operations prior to the Effective Time, and nothing contained in
this Agreement shall give the Company, directly or indirectly, the right to control or direct Parent’s or its Subsidiaries’
operations prior to the Effective Time. Prior to the Effective Time, each of the Company and Parent shall exercise, consistent with the
terms and conditions of this Agreement, complete control and supervision over its and its Subsidiaries’ respective operations.
Section 6.4 Company
Board Recommendation; Acquisition Proposals.
(a) Company
Board Recommendation.
(i) Subject
to this Section 6.4(a), the Company Board (or a duly authorized committee thereof) shall recommend that the Company’s
stockholders accept the Offer and tender their Shares to Purchaser pursuant to the Offer (the “Company Board Recommendation”).
(ii) Subject
to Section 6.4(a)(iii), neither the Company Board nor a duly authorized committee thereof
shall (i) withdraw, amend, modify or qualify in a manner adverse to Parent or Purchaser, or publicly propose to withhold, withdraw,
amend, modify or qualify in a manner adverse to Parent or Purchaser, the Company Board Recommendation, (ii) publicly approve, adopt,
declare advisable or recommend an Acquisition Proposal, (iii) fail to include the Company Board Recommendation in the Schedule 14D-9
when disseminated to the Company stockholders or fail to publicly reaffirm the Company Board Recommendation upon written request of Parent
within the earlier of three (3) Business Days prior to the then-scheduled Expiration Date or five (5) Business Days after Parent
requests in writing such reaffirmation with respect to any Acquisition Proposal; provided that the Company Board shall not be
required to reaffirm the Company Board Recommendation more than three times, or (iv) (A) if any Acquisition Proposal has been
publicly disclosed, fail to publicly recommend against such Acquisition Proposal within ten (10) Business Days after a request from
Parent to do so, or (B) if any tender offer or exchange offer for the outstanding Company Shares is commenced pursuant to Rule 14d-2
under the Exchange Act (other than by Parent or an Affiliate of Parent), fail to recommend, within ten (10) Business Days after
such commencement, against acceptance of such tender offer or exchange offer by the Company stockholders (each of clauses (i), (ii),
(iii) and (iv), a “Company Board Recommendation Change”); provided, however, that, notwithstanding
anything herein to the contrary, a “stop, look and listen” communication by the Company Board or any committee thereof to
the Company stockholders pursuant to Rule 14d-9(f) of the Exchange Act shall not be deemed in and of itself to be a Company
Board Recommendation Change, provided that in such disclosure, the Company shall state that the Company Board Recommendation continues
to be in effect unless, prior to the time of such public disclosure, a Company Board Recommendation Change has been made in compliance
with this Section 6.4(a).
36
(iii) Notwithstanding
the foregoing or anything to the contrary set forth in this Agreement, at any time prior to the Acceptance Time, the Company Board (or
a duly authorized committee thereof) may in response to (A) the receipt of an Acquisition Proposal received after the date hereof
that did not result from a material breach of this Section 6.4(a) or (B) the occurrence of an Intervening
Event, effect a Company Board Recommendation Change, provided that (1) the Company Board (or a duly authorized committee
thereof) determines in good faith (after consultation with its outside legal counsel) that the failure to take such action would reasonably
be expected to be inconsistent with the directors’ fiduciary duties under applicable Law, (2) the Company Board (or a duly
authorized committee thereof) determines in good faith (after consultation with its outside legal counsel) that an Intervening Event
has occurred, (3) the Company provides written notice to Parent at least five (5) Business Days prior to effecting a Company
Board Recommendation Change specifying the reasons therefor (a “Change of Recommendation Notice”), (4) prior
to effecting such Company Board Recommendation Change, the Company shall, and shall cause its Representatives to be reasonably available
to negotiate with Parent in good faith (to the extent Parent desires to negotiate) during such five (5) Business Day period to make
such adjustments in the terms and conditions of this Agreement so that failure to make a Company Board Recommendation Change would not
be inconsistent with the directors’ fiduciary duties under applicable Law, and (5) no earlier than the end of such five (5) Business
Day period, the Company Board (or a duly authorized committee thereof) determines in good faith (after consultation with its financial
advisor(s) and outside legal counsel), after considering any amendments to the terms and conditions of this Agreement proposed by
Parent in a binding written offer during such five (5) Business Day period, that the failure to take such action would be inconsistent
with its fiduciary duties under applicable Law. Following delivery of a Change of Recommendation Notice, in the event of any material
change to such Intervening Event, the Company shall provide a new Change of Recommendation Notice to Parent, and any Company Board Recommendation
Change following delivery of such new Change of Recommendation Notice shall again be subject to clauses (3) through (5) of
the immediately preceding sentence (but the five (5) Business Day period shall instead be two (2) Business Days).
37
(b) Acquisition
Proposals.
(i) Except
as set forth in this Section 6.4(b), the Company agrees that it shall not, and shall use its reasonable best
efforts to cause its Subsidiaries, directors, officers and employees, its investment bankers, attorneys, accountants and other advisors
or representatives (collectively, “Representatives”) not to, directly or indirectly, (i) initiate, solicit or
knowingly encourage (including by providing information) any inquiries, proposals or offers with respect to, or the making or completion
of, an Acquisition Proposal or (ii) engage or participate in any negotiations or discussions (other than to state that they are
not permitted to have discussions) concerning, or provide or cause to be provided any non-public information or data relating to the
Company or any of its Subsidiaries in connection with, an Acquisition Proposal. The Company agrees that it will immediately cease and
cause to be terminated any existing activities, discussions or negotiations with any Persons conducted heretofore with respect to any
Acquisition Proposal; provided, that nothing in this Agreement shall restrict the Company from permitting a Person to request
the waiver of a “standstill” or similar obligation or from granting such a waiver, in each case, solely to the extent necessary
to comply with fiduciary duties under applicable Law.
(ii) Notwithstanding
anything to the contrary in Section 6.4(b)(i), the Company may, in response to an unsolicited bona fide written
Acquisition Proposal that did not result from a material breach of Section 6.4(b)(i) and that the Company
Board determines in good faith constitutes or could reasonably be expected to lead to a Superior Proposal, (i) furnish information
with respect to the Company and its Subsidiaries to the Person making such Acquisition Proposal pursuant to a customary confidentiality
agreement on terms substantially similar to those contained in the Confidentiality Agreement (except for such changes specifically necessary
in order for the Company to be able to comply with its obligations under this Agreement and it being understood that the Company may
enter into a confidentiality agreement without a standstill provision) and (ii) participate in discussions or negotiations with
such Person and its Representatives regarding such Acquisition Proposal; provided, however, that the Company shall concurrently
provide or make available to Parent any material non-public information concerning the Company or any of its Subsidiaries that is provided
to the Person making such Acquisition Proposal or its Representatives which was not previously provided or made available to Parent.
(iii) Subject
to the permitted actions contemplated by clause (iv) below, and Section 8.1(d)(ii), neither the Company
Board nor any committee thereof shall cause or permit the Company or any of its Subsidiaries to enter into any letter of intent, memorandum
of understanding, agreement in principle, acquisition agreement, merger agreement, or other similar agreement (other than a confidentiality
agreement referred to in Section 6.4(b)(ii) entered into in compliance with Section 6.4(b)(i)) (an
“Alternative Acquisition Agreement”) relating to any Acquisition Proposal.
38
(iv) Notwithstanding
anything to the contrary set forth in this Section 6.4(b), following receipt of a written Acquisition Proposal
by the Company after the date of this Agreement that did not result from a material breach of this Section 6.4(b) and
that the Company Board determines in good faith, after consultation with its outside legal counsel and financial advisors, constitutes
a Superior Proposal, the Company Board may terminate this Agreement to enter into an Alternative Acquisition Agreement with respect to
such Superior Proposal in accordance with Section 8.1(d)(ii), or authorize, resolve, agree or propose publicly
to take any such action, if all of the following conditions are met:
(1) (A) the
Company shall have provided to Parent five (5) Business Days’ prior written notice, which shall state expressly (1) that
it has received a written Acquisition Proposal that constitutes a Superior Proposal, (2) the material terms and conditions of the
Acquisition Proposal (including the consideration offered therein and the identity of the Person or group making the Acquisition Proposal)
and shall have contemporaneously provided an unredacted copy of the Alternative Acquisition Agreement and all other documents (other
than immaterial documents) related to the Superior Proposal (it being understood and agreed that any amendment to the financial terms
or any other material term or condition of such Superior Proposal shall require a new notice and an additional five (5) Business
Day period) and (3) that, subject to clause (B) below, the Company Board has determined to terminate this Agreement in
accordance with Section 8.1(d)(ii) in order to enter into the Alternative Acquisition Agreement, as applicable and (B) prior
to terminating this Agreement in accordance with Section 8.1(d)(ii), as applicable, (x) the Company shall have used commercially
reasonable efforts to engage in good faith with Parent (to the extent Parent wishes to engage) during such notice period, which may be
on a non-exclusive basis, to consider any adjustments proposed by Parent to the terms and conditions of this Agreement such that the
Alternative Acquisition Agreement ceases to constitute a Superior Proposal and (y) in determining whether to effect a termination
in accordance with Section 8.1(d)(ii), the Company Board shall have taken into account any changes to the terms of this Agreement
proposed by Parent and any other information provided by Parent in response to such notice; and
(2) the
Company Board shall have determined, in good faith, after consultation with its financial advisors and outside legal counsel, that, in
light of such Superior Proposal and taking into account any revised terms proposed by Parent, such Superior Proposal continues to constitute
a Superior Proposal and that the failure to so terminate this Agreement in accordance with Section 8.1(d)(ii), as applicable,
would reasonably be expected to constitute a breach of the directors’ fiduciary duties under applicable Law.
(3) The
Company promptly (and in any event within 24 hours) shall advise Parent orally and in writing of (i) any written Acquisition Proposal,
(ii) any written request for non-public information relating to the Company or its Subsidiaries, other than requests for information
not reasonably expected to be related to an Acquisition Proposal and (iii) any written inquiry or request for discussion or negotiation
regarding an Acquisition Proposal, including in each case the identity of the Person making any such Acquisition Proposal, inquiry or
request and the complete terms of any such Acquisition Proposal, inquiry or request and thereafter shall keep Parent informed, on a current
basis, of the status and terms of any such proposals or offers and the status of any such discussions or negotiations.
(4) Nothing
contained in this Section 6.4(b) shall prohibit the Company or the Company Board (or a duly authorized committee
thereof) from (i) taking and disclosing to the Company stockholders a position contemplated by Rule 14e-2(a) under the
Exchange Act or Item 1012(a) of Regulation M-A promulgated under the Exchange Act or complying with the provisions of Rule 14d-9
promulgated under the Exchange Act, and (ii) making any disclosure to the Company stockholders if the Company Board (or a duly authorized
committee thereof) determines in good faith (after consultation with its outside legal counsel) that the failure to make such disclosure
would be inconsistent with its fiduciary duties to the Company stockholders under applicable Law, provided, however, that
nothing in this Section 6.4(b)(iv)(D) shall permit the Company Board to make a Company Board Recommendation
Change other than in accordance with the provisions of Section 6.4(a)(iii) and, unless the Company Board has made
a Company Board Recommendation Change in accordance with the provisions of Section 6.4(a)(iii) that remain in effect
and has not been withdrawn, such disclosure shall state that the Company Board Recommendation continues to be in effect.
39
(c) As
used in this Agreement:
(i) “Acquisition
Proposal” means any inquiry, proposal or offer from any Person or group of Persons other than Parent or one of its Subsidiaries
for (A) a merger, reorganization, consolidation, share exchange, business combination, recapitalization, liquidation, dissolution
or similar transaction involving an acquisition of the Company (or any Subsidiary or Subsidiaries of the Company whose business constitutes
20% or more of the net revenues, net income or assets of the Company and its Subsidiaries, taken as a whole) or (B) the acquisition
in any manner, directly or indirectly, of over 20% of the equity securities or consolidated total assets of the Company and its Subsidiaries,
in each case other than the Offer, the Merger and the other transactions contemplated by this Agreement or the transactions contemplated
by the Asset Purchase Agreement.
(ii) “Superior
Proposal” means any Acquisition Proposal (A) on terms which the Company Board determines in good faith, after consultation
with the Company’s outside legal counsel and financial advisors, to be more favorable from a financial point of view to the holders
of Shares than the Merger and the other transactions contemplated by this Agreement, taking into account all the terms and conditions
of such proposal, and this Agreement and (B) that the Company Board believes is reasonably capable of being completed, taking into
account all financial, regulatory, legal and other aspects of such proposal; provided, that for purposes of the definition of
“Superior Proposal,” the references to “20%” in the definition of Acquisition Proposal shall be deemed to be
references to “50%.”
Section 6.5 Access
to Information; Confidentiality.
(a) From
the date hereof to the Effective Time or the earlier termination of this Agreement, upon reasonable prior written notice, the Company
shall, and shall use its reasonable best efforts to cause its Subsidiaries, officers, directors and representative to, afford to Parent
reasonable access during normal business hours, consistent with applicable Law (including any Public Health Measures), to its properties,
offices, other facilities and books and records, and shall furnish Parent with all financial, operating and other data and information
as Parent shall reasonably request in writing (it being agreed, however, that the foregoing shall not require the Company nor any of
its Subsidiaries to prepare, produce, compile or furnish any such data or information that is not already being prepared, produced or
compiled by the Company or such Subsidiary, as the case may be, in the ordinary course of business, and any such data or information
may be delivered in the form in which it is ordinarily maintained). Notwithstanding the foregoing, any such investigation or consultation
shall be conducted in such a manner as not to interfere unreasonably with the business or operations of the Company or its Subsidiaries
or otherwise result in any significant interference with the prompt and timely discharge by the employees of the Company or its Subsidiaries
of their normal duties. Neither the Company nor any of its Subsidiaries shall be required to provide access to or to disclose information
where such access or disclosure would (i) breach any agreement with any third-party, (ii) constitute a waiver of or jeopardize
the attorney-client or other privilege held by the Company or (iii) otherwise violate any applicable Law.
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(b) Each
of Parent and Purchaser will hold and treat and will cause its Representatives to hold and treat in confidence all documents and information
concerning the Company and its Subsidiaries furnished to Parent or Purchaser in connection with the transactions contemplated by this
Agreement in accordance with the Confidentiality Agreement, dated as of April 17, 2026, between Parent and the Company (the “Confidentiality
Agreement”), which Confidentiality Agreement shall remain in full force and effect in accordance with its terms.
Section 6.6 Regulatory
Approvals; Consents.
(a) Upon
the terms and subject to the conditions of this Agreement, each of the parties shall use its reasonable best efforts to take, or cause
to be taken, all actions and to do, or cause to be done, and cooperate with each other in order to do, all things necessary, proper or
advisable under applicable Law (including under any Antitrust Law) to consummate the transactions contemplated by this Agreement at the
earliest practicable date, including: (i) causing the preparation and filing of all forms, registrations and notices required to
be filed to consummate the Merger and the taking of such actions as are necessary to obtain any requisite consent or expiration of any
applicable waiting period under the HSR Act or any other Antitrust Law; (ii) using reasonable best efforts to defend all lawsuits
and other proceedings by or before any Governmental Entity challenging this Agreement or the consummation of the Merger; and (iii) using
reasonable best efforts to resolve any objection asserted with respect to the transactions contemplated under this Agreement under any
Antitrust Law raised by any Governmental Entity and to prevent the entry of any court order, and to have vacated, lifted, reversed or
overturned any injunction, decree, ruling, order or other action of any Governmental Entity that would prevent, prohibit, restrict or
delay the consummation of the transactions contemplated by this Agreement.
(b) In
furtherance and not in limitation of the provisions of Section 6.6(a), each of the parties, as applicable,
agrees to prepare and file as promptly as practicable, and in any event by no later than ten (10) Business Days from the date of
this Agreement an appropriate filing of a Notification and Report Form pursuant to the HSR Act. Parent shall not withdraw any such
filing pursuant to the HSR Act without the Company’s prior written consent. Parent shall pay all filing fees and other charges
for the filings required under the HSR Act by the Company and Parent.
(c) If
a party receives a request for information or documentary material from any Governmental Entity with respect to this Agreement or the
transactions contemplated hereby, including but not limited to a Second Request for Information under the HSR Act, then such party shall
in good faith make, or cause to be made, as soon as reasonably practicable and after consultation with the other party, a response which
is, at a minimum, in substantial compliance with such request.
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(d) The
parties shall keep each other apprised of status with respect to the matters set forth in this Section 6.6 and work
cooperatively in connection with obtaining the approvals of or clearances set forth in this Section 6.6 from each applicable
Governmental Entity, including:
(i) cooperating
with each other in connection with filings required to be made by any party under any Antitrust Law and liaising with each other in relation
to each step of the procedure before the relevant Governmental Entities and as to the contents of all communications with such Governmental
Entities. In particular, to the extent permitted by Law or Governmental Entity, no party will make any notification in relation to the
transactions contemplated hereunder without first providing the other party with a copy of such notification in draft form and giving
such other party a reasonable opportunity to discuss its content before it is filed with the relevant Governmental Entities, and such
first party shall consider and take account of all reasonable comments timely made by the other party in this respect;
(ii) furnishing
to the other party all information within its possession that is required for any application or other regulatory filing to be made by
the other party pursuant to the applicable Law in connection with the transactions contemplated by this Agreement;
(iii) promptly
notifying each other of any communications from or with any Governmental Entity with respect to the matters set forth in this Section 6.6
and ensuring to the extent permitted by Law or Governmental Entity that each of the parties is entitled to attend any meetings with or
other appearances before any Governmental Entity with respect thereto;
(iv) consulting
and cooperating with one another in connection with all analyses, appearances, presentations, memoranda, briefs, arguments, opinions
and proposals made or submitted by or on behalf of any party hereto in connection with proceedings under or relating to the Antitrust
Laws; and
(v) without
prejudice to any rights of the parties hereunder, consulting and cooperating in all respects with the other in defending all lawsuits
and other proceedings by or before any Governmental Entity challenging this Agreement or the consummation of the transactions contemplated
by this Agreement.
(e) In
addition, Parent shall take, or cause to be taken, all other action and to do, or cause to be done, all other things necessary, proper
or advisable under all Antitrust Laws to consummate the transactions contemplated by this Agreement at the earliest practicable date,
including using its reasonable best efforts to obtain the expiration of all waiting periods and obtain all other approvals and any other
consents required to be obtained in order for the parties to consummate the transactions contemplated by this Agreement.
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(f) Notwithstanding
anything to the contrary set forth in this Agreement, the obligations of Parent under this Section 6.6 shall include
Parent committing to: (i) sell, divest, or otherwise convey particular assets, categories, portions or parts of assets or businesses
of Parent and its Subsidiaries; (ii) agree to sell, divest, or otherwise convey any particular asset, category, portion or part
of an asset or business of the Company and its Subsidiaries contemporaneously with or subsequent to the Effective Time; (iii) permit
the Company to sell, divest, or otherwise convey any of the particular assets, categories, portions or parts of assets or business of
the Company or any of its Subsidiaries prior to the Effective Time; (iv) license, hold separate or enter into similar arrangements
with respect to its respective assets or the assets of the Company or conduct of business arrangements or terminate any and all existing
relationships and contractual rights and obligations and (v) obtain prior approval or other approval from a Governmental Entity,
or submit a notification or otherwise notify any Governmental Entity, prior to consummating any future transaction (other than the transactions
contemplated by this Agreement) as a condition to obtaining any and all expirations of waiting periods under the HSR Act or other Antitrust
Laws or consents from any Governmental Entity necessary to consummate the transactions contemplated hereby. All efforts described in
this Section 6.6(f) shall be unconditional and shall not be qualified by best efforts and no actions
taken pursuant to this Section 6.6 shall be considered for purposes of determining whether a Material Adverse Effect
has occurred.
(g) Notwithstanding
the foregoing, commercially and/or competitively sensitive information and materials of a party will be provided to the other party on
an outside counsel-only basis while, to the extent feasible, making a version in which the commercial and/or competitively sensitive
information has been redacted available to the other party.
(h) For
the avoidance of doubt, in the event either party receives a letter from any Governmental Entity stating that although the waiting period
under the HSR Act applicable to the transactions contemplated by this Agreement will soon expire, the Governmental Entity has not yet
completed any purported investigation of the proposed transaction (a “Pre-Consummation Warning Letter”), the parties
agree that the receipt by either or both of them of a Pre-Consummation Warning Letter or other verbal or written communications from
the Governmental Entity to the same effect shall not be a basis for asserting that any condition to closing under Article VII hereof
has not been satisfied.
(i) Except
as specifically required by this Agreement, Parent and the Company shall not, and Parent shall cause its Affiliates not to, knowingly
take any action, or knowingly refrain from taking any action, the effect of which would be to materially delay or impede the ability
of the parties to consummate the transactions contemplated by this Agreement. Without limiting the generality of the foregoing, Parent
shall not, and shall cause its Affiliates not to, acquire or agree to acquire (by merger, consolidation, purchase of equity interests
or assets, joint venture or otherwise) any Person or any business, division or portion thereof, if such acquisition or agreement would
reasonably be expected to (i) impose any material delay in the obtaining of, or increase the risk of not obtaining, any consent,
approval, authorization, qualification or order from a Governmental Entity necessary for the consummation of the transactions contemplated
by this Agreement or the expiration or termination of any applicable waiting period, (ii) materially increase the risk of any Governmental
Entity entering an order prohibiting or delaying the consummation of the transactions contemplated by this Agreement or (iii) materially
increase the risk of not being able to remove any such order on appeal or otherwise.
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(j) For
purposes of this Agreement, “Antitrust Law” means the Sherman Act, as amended, the Clayton Act, as amended, the HSR
Act, the Federal Trade Commission Act, as amended, Foreign Antitrust Laws and all other Laws that are designed or intended to prohibit,
restrict or regulate actions having the purpose or effect of monopolization or restraint of trade or lessening of competition through
merger or acquisition.
Section 6.7 Employment
and Employee Benefits Matters; Other Plans.
(a) Without
limiting any additional rights that any current or former employee of the Company or any of its Subsidiaries (each, a “Company
Employee”) may have under any Company Plan, except as otherwise agreed in writing between Parent and a Company Employee, Parent
shall cause the Surviving Corporation and each of its Subsidiaries, for a period commencing at the Effective Time and ending on the first
anniversary thereof, to maintain the severance-related provisions of existing Company Plans and to provide 100% of the severance payments
and benefits required thereunder to be provided any Company Employee terminated during that 12-month period.
(b) Without
limiting any additional rights that any Company Employee may have under any Company Plan, except as otherwise agreed in writing between
Parent and a Company Employee, Parent shall cause the Surviving Corporation and each of its Subsidiaries, for the period commencing at
the Effective Time and ending on the first anniversary thereof, to maintain for any Company Employee (i) subject to Section 6.7(a) above,
cash compensation levels (such term to include salary or wages, as applicable, bonus opportunities, commissions and severance) that are
each no less favorable than, and (ii) benefits (including the costs thereof to Company Plan participants) provided under Company
Plans that in the aggregate are no less favorable than, the overall cash compensation levels and benefits (including the costs thereof
to Company Plan participants) maintained for and provided to such Company Employees immediately prior to the Effective Time.
(c) As
of and after the Effective Time, Parent will, or will cause the Surviving Corporation to, give Company Employees full credit for purposes
of eligibility and vesting and benefit accruals (but not for purposes of benefit accruals under any defined benefit pension plans), under
any employee compensation, incentive, and benefit (including vacation) plans, programs, policies and arrangements maintained for the
benefit of Company Employees as of and after the Effective Time by Parent, its Subsidiaries or the Surviving Corporation for the Company
Employees’ service with the Company, its Subsidiaries and their predecessor entities (each, a “Parent Plan”)
to the same extent recognized by the Company immediately prior to the Effective Time. With respect to each Parent Plan that is a “welfare
benefit plan” (as defined in Section 3(1) of ERISA), Parent and its Subsidiaries shall (i) cause there to be waived
any pre-existing condition or eligibility limitations and (ii) give effect, in determining any deductible and maximum out-of-pocket
limitations, to claims incurred and amounts paid by, and amounts reimbursed to, Company Employees under similar plans maintained by the
Company and its Subsidiaries immediately prior to the Effective Time.
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(d) From
and after the Effective Time, except as otherwise agreed in writing between Parent and a Company Employee or as otherwise provided in
this Agreement, Parent will honor, and will cause its Subsidiaries to honor, in accordance with its terms, (i) each existing employment,
change in control, severance and termination protection plan, policy or agreement of or between the Company or any of its Subsidiaries
and any officer, director or employee of that company, (ii) all obligations in effect as of the Effective Time under any equity-based,
bonus or bonus deferral plans, programs or agreements of the Company or its Subsidiaries and (iii) all obligations in effect as
of the Effective Time pursuant to outstanding restoration or equity-based plans, programs or agreements, and all vested and accrued benefits
under any employee benefit, employment compensation or similar plans, programs, agreements or arrangements of the Company or its Subsidiaries.
(e) Parent
shall cause the Surviving Corporation and each of its Subsidiaries, for a period commencing at the Effective Time and ending 90 days
thereafter, not to effectuate a “plant closing” or “mass layoff” as those terms are defined in the Worker Adjustment
and Retraining Notification Act of 1988 (together with any similar state or local Law, “WARN”) affecting in whole
or in part any site of employment, facility, operating unit or Company Employee, and shall cause the Surviving Corporation and each of
its Subsidiaries not to take any such action after such 90-day period without complying with all provisions of WARN, or any similar provision
of applicable foreign Law.
(f) Notwithstanding
anything to the contrary contained in this Agreement, nothing contained in this Agreement shall (i) be treated as an amendment to
any Company Plan, (ii) obligate Parent or the Surviving Corporation to maintain any particular benefit plan or arrangement or (iii) prevent
Parent or the Surviving Corporation from amending or terminating any benefit plan or arrangement. Nothing herein is intended to provide
any Company Employee any third-party beneficiary rights under this Agreement.
Section 6.8 Takeover
Laws. If any Takeover Law is or becomes applicable to this Agreement, the Offer, the Merger or any of the other transactions contemplated
hereby, each of the Company and Parent and their respective Board of Directors shall take all action necessary to ensure that the Offer,
the Merger and the other transactions contemplated hereby may be consummated as promptly as practicable on the terms contemplated by
this Agreement and otherwise to eliminate or minimize the effect of such Takeover Law on this Agreement, the Offer, the Merger and the
other transactions contemplated hereby.
Section 6.9 Notification
of Certain Matters. The Company and Parent shall promptly notify each other of (a) any notice or other communication received
by such party from any Governmental Entity in connection with the Merger or the other transactions contemplated hereby or from any Person
alleging that the consent of such Person is or may be required in connection with the Merger or the other transactions contemplated hereby,
if the subject matter of such communication could be material to the Company, the Surviving Corporation or Parent, (b) any Action
commenced or, to such party’s knowledge, threatened against, relating to or involving or otherwise affecting such party or any
of its Subsidiaries which relate to the Merger or the other transactions contemplated hereby or (c) the discovery of any fact or
circumstance that, or the occurrence or non-occurrence of any event the occurrence or non-occurrence of which, would cause or result
in any of the conditions to the Merger set forth in Article VII or any of the Offer Conditions not being satisfied or satisfaction
of those conditions being materially delayed in violation of any provision of this Agreement; provided, however, that the
delivery of any notice pursuant to this Section 6.9 shall not (i) cure any breach of, or non-compliance with, any other
provision of this Agreement or (ii) limit the remedies available to the party receiving such notice; provided further, that
failure to give prompt notice pursuant to clause (c) shall not constitute a failure of a condition to the Merger set forth
in Article VII or any of the Offer Conditions, except to the extent that the underlying fact or circumstance not so notified would
standing alone constitute such a failure. The parties agree and acknowledge that the Company’s compliance or failure of compliance
with this Section 6.9 shall not be taken into account for purposes of determining whether the condition referred to in clause (b)(iii)(A) of
Exhibit B hereto shall have been satisfied.
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Section 6.10 Directors’
and Officers’ Indemnification, Exculpation and Insurance.
(a) Without
limiting any additional rights that any employee may have under any agreement or Company Plan, from the Effective Time through the sixth
anniversary of the date on which the Effective Time occurs, Parent shall, or shall cause the Surviving Corporation to, indemnify and
hold harmless each present (as of the Effective Time) and former officer, director or employee of the Company and its Subsidiaries (the
“Indemnified Parties”), against all claims, losses, liabilities, damages, judgments, inquiries, fines and reasonable
fees, costs and expenses, including attorneys’ fees and disbursements incurred in connection with any Action, whether civil, criminal,
administrative or investigative, arising out of or pertaining to (i) the fact that the Indemnified Party is or was an officer, director,
employee, fiduciary or agent of the Company or any of its Subsidiaries or (ii) matters existing or occurring at or prior to the
Effective Time (including this Agreement and the transactions and actions contemplated hereby), whether asserted or claimed prior to,
at or after the Effective Time, to the fullest extent permitted under applicable Law and the Company’s Organizational Documents
as at the date hereof. In the event of any such Action, (A) each Indemnified Party shall be entitled to advancement of expenses
incurred in the defense of any Action from Parent or the Surviving Corporation to the fullest extent permitted under applicable Law and
the Company’s Organizational Documents as of the date hereof within 10 Business Days of receipt by Parent or the Surviving Corporation
from the Indemnified Party of a request therefor, (B) neither Parent nor the Surviving Corporation shall settle, compromise or consent
to the entry of any judgment in any proceeding or threatened action, suit, proceeding, investigation or claim (and in which indemnification
could be sought by such Indemnified Party hereunder), unless such settlement, compromise or consent includes an unconditional release
of such Indemnified Party from all liability arising out of such action, suit, proceeding, investigation or claim or such Indemnified
Party otherwise consents, and (C) the Surviving Corporation shall cooperate in the defense of any such matter.
(b) The
certificate of incorporation and bylaws of the Surviving Corporation shall contain provisions no less favorable with respect to indemnification,
advancement of expenses and exculpation of former or present directors and officers than are presently set forth in the Company’s
Organizational Documents, which provisions shall not be amended, repealed or otherwise modified for a period of six years from the Effective
Time in any manner that would adversely affect the rights thereunder of any such individuals.
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(c) For
a period of six years from the Effective Time, Parent shall either cause to be maintained in effect the current policies of directors’
and officers’ liability insurance and fiduciary liability insurance maintained by the Company and its Subsidiaries or cause to
be provided substitute policies or purchase or cause the Surviving Corporation to purchase, a “tail policy,” in either case
of at least the same coverage and amounts containing terms and conditions that are not less advantageous in the aggregate than such policy
with respect to matters arising on or before the Effective Time; provided, however, that after the Effective Time, Parent
shall not be required to pay with respect to such insurance policies in respect of any one policy year annual premiums in excess of 300%
of the last annual premium paid by the Company prior to the date hereof in respect of the coverage required to be obtained pursuant hereto,
but in such case shall purchase as much coverage as reasonably practicable for such amount; provided further, that if the Surviving
Corporation purchases a “tail policy” and the coverage thereunder costs more than 300% of such last annual premium, the Surviving
Corporation shall purchase the maximum amount of coverage that can be obtained for 300% of such last annual premium. At the Company’s
option, the Company may purchase, prior to the Effective Time, a six-year prepaid “tail policy” on terms and conditions (in
both amount and scope) providing substantially equivalent benefits as the current policies of directors’ and officers’ liability
insurance and fiduciary liability insurance maintained by the Company and its Subsidiaries with respect to matters arising on or before
the Effective Time, covering without limitation the transactions contemplated hereby. If such tail prepaid policy has been obtained by
the Company prior to the Effective Time, Parent shall cause such policy to be maintained in full force and effect, for its full term,
and cause all obligations thereunder to be honored by the Surviving Corporation.
(d) Notwithstanding
anything herein to the contrary, if any Action (whether arising before, at or after the Effective Time) is instituted against any Indemnified
Party on or prior to the sixth anniversary of the Effective Time, the provisions of this Section 6.10 shall continue
in effect until the final disposition of such Action.
(e) The
indemnification provided for herein shall not be deemed exclusive of any other rights to which an Indemnified Party is entitled, whether
pursuant to Law, Contract or otherwise. The provisions of this Section 6.10 shall survive the consummation of the Merger
and, notwithstanding any other provision of this Agreement that may be to the contrary, expressly are intended to benefit, and shall
be enforceable by, each of the Indemnified Parties and their respective heirs and legal representatives.
(f) In
the event that the Surviving Corporation or Parent or any of their respective successors or assigns (i) consolidates with or merges
into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers
or conveys all or a majority of its properties and assets to any Person, then, and in each such case, proper provision shall be made
so that the successors and assigns of the Surviving Corporation or Parent, as the case may be, shall succeed to the obligations set forth
in this Section 6.10.
Section 6.11 Rule 16b-3.
Prior to the Effective Time, the Company shall be permitted to take such steps as may be reasonably necessary or advisable hereto to
cause dispositions of Company equity securities (including derivative securities) pursuant to the transactions contemplated by this Agreement
by each individual who is a director or officer of the Company to be exempt under Rule 16b-3 promulgated under the Exchange Act.
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Section 6.12 Public
Announcements. Except in the case of any announcement relating to any Acquisition Proposal or Superior Proposal, which shall not
be subject to this Section 6.12, each, of Parent and Purchaser, on the one hand, and the Company, on the other hand, shall,
to the extent reasonably practicable, consult with each other before issuing, and give each other a reasonable opportunity to review
and comment upon, any press release or other public statements with respect to this Agreement, the Offer, the Merger and the other transactions
contemplated hereby and shall not issue any such press release or make any public announcement without the prior consent of the other
party, which consent shall not be unreasonably withheld, except as may be required by applicable Law, court process or by obligations
pursuant to any listing agreement with any national securities exchange or national securities quotation system. Parent and the Company
agree that the press release announcing the execution and delivery of this Agreement shall be a joint release of Parent and the Company.
Section 6.13 Obligations
of Purchaser. Parent shall take all action necessary to cause Purchaser and the Surviving Corporation to perform their respective
obligations under this Agreement.
Section 6.14 Convertible
Notes. The Company shall comply in all material respects with its obligations under the terms of the Indenture, including within
the time periods required by the Indenture, taking all actions required by it to be taken prior to the Effective Time as a result of
the consummation of the Merger. In addition, without limiting the generality of the foregoing, the Company or the Surviving Corporation,
as applicable, shall use commercially reasonable efforts to, after the date of this Agreement and substantially concurrently with the
Offer make an offer and consent solicitation to remove Section 4.11 of the Indenture (the “Note Offer”)
to purchase the Convertible Notes at a purchase price approved by Purchaser and Parent contingent upon the occurrence of a “Fundamental
Change” (as defined in the Indenture) as a result of the Merger and purchase, after the Acceptance Time and prior to or concurrently
with the occurrence of the Closing, any Convertible Notes tendered and not withdrawn as of the expiration date of the Note Offer. After
consummation of the Merger, Parent and Purchaser shall, or shall cause the Company to, comply with the provisions of Article 15
of the Indenture, to the extent any Convertible Notes remain outstanding after the consummation of the Note Offer. Prior to the Closing,
the Company will, and following the Closing, Parent and Purchaser will, or will cause the Company to, (a) convert any Convertible
Notes surrendered for conversion by holders thereof, upon compliance with the provisions of the Indenture, pursuant to the terms of Article 14
of the Indenture; and (b) take all other actions required in accordance with, and subject to, the terms of the Indenture (including
the time periods specified therein), including the giving of any notices that may be required in connection with the Merger or in connection
with any repurchases or conversions of the Convertible Notes occurring as a result of, or in connection with, the transactions contemplated
by this Agreement constituting a “Fundamental Change” or a “Make-Whole Fundamental Change” (each, as defined
in the Indenture), and delivery of any legal opinions, officers’ certificates or other documents or instruments required in connection
with the consummation of the Merger, pursuant to the terms of the Indenture. The Company shall provide Parent, Purchaser and their Representatives
reasonable opportunity to review and comment on any written notice or communication made prior to the Closing to or with holders of the
Convertible Notes or with the Trustee under, and as defined in, the Indenture prior to the dispatch or making thereof, and the Company
shall give reasonable and good faith consideration to any comments made by Parent, Purchaser or their Representatives.
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Article VII
CONDITIONS PRECEDENT
Section 7.1 Conditions
to Each Party’s Obligation to Effect the Merger. The obligation of each party to effect the Merger is subject to the satisfaction
at or prior to the Effective Time of the following conditions:
(a) No
Injunctions or Legal Restraints; Illegality. No temporary restraining order, preliminary or permanent injunction or other judgment,
order or decree issued by any court of competent jurisdiction or other legal restraint or prohibition shall be in effect, and no Law
shall have been enacted, entered, promulgated, enforced or deemed applicable by any Governmental Entity that, in any such case, prohibits
or makes illegal the consummation of the Merger.
(b) Purchase
of Shares in the Offer. Purchaser shall have accepted for purchase all Shares validly tendered (and not withdrawn) pursuant to the
Offer.
Section 7.2 Frustration
of Closing Conditions. None of Parent, Purchaser or the Company may rely on the failure of any condition set forth in this Article VII
to be satisfied if such failure was caused by such party’s breach of this Agreement.
Article VIII
TERMINATION, AMENDMENT AND WAIVER
Section 8.1 Termination.
This Agreement may be terminated, and the Offer and the Merger may be abandoned at any time prior to the Effective Time (with any termination
by Parent also being an effective termination by Purchaser):
(a) by
mutual written consent of Parent and the Company;
(b) by
either Parent or the Company:
(i) if
(A) the Acceptance Time shall not have occurred on or before July 12, 2026 (the “Outside Date”) or (B) the
Offer shall have expired or been terminated in accordance with its terms and in accordance with this Agreement without Purchaser having
purchased any Shares pursuant thereto; provided, that the right to terminate this Agreement pursuant to this Section 8.1(b)(i) shall
not be available to Parent if Parent’s failure to fulfill in any material respect any of its obligations under this Agreement has
been the primary cause of, or the primary factor that resulted in, the event specified in either of the foregoing clauses (A) or
(B); or
(ii) if
any court of competent jurisdiction or other Governmental Entity shall have issued a judgment, order, injunction, rule or decree,
or taken any other action restraining, enjoining or otherwise prohibiting the consummation of any of the transactions contemplated by
this Agreement and such judgment, order, injunction, rule, decree or other action shall have become final and nonappealable; provided,
that the party seeking to terminate this Agreement pursuant to this Section 8.1(b)(ii) shall
have used its reasonable best efforts to contest, appeal and remove such judgment, order, injunction, rule, decree, ruling or other action
in accordance with Section 6.6;
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(c) by
Parent, at any time prior to the Acceptance Time:
(i) if
the Company shall have breached or failed to perform any of its representations, warranties, covenants or agreements set forth in this
Agreement, or if any representation or warranty of the Company shall have become untrue, which breach or failure to perform or to be
true, either individually or in the aggregate, if occurring or continuing at the scheduled Expiration Date (i) would result in the
failure of an Offer Condition to be satisfied and (ii) cannot be or has not been cured by the earlier of (A) the Outside Date
and (B) five (5) days after the giving of written notice to the Company of such breach or failure (except in the case of any
breach of Section 6.4 in which instance such breach must be cured within 48 hours); provided, that Parent
shall not have the right to terminate this Agreement pursuant to this Section 8.1(c)(i) if
Parent or Purchaser is then in material breach of any of its covenants or agreements set forth in this Agreement;
(ii) a
Company Board Recommendation Change shall have occurred; or
(iii) if
a failure of the condition set forth in clause (b)(vii) of Exhibit B has occurred.
(d) by
the Company, at any time prior to the Acceptance Time:
(i) if
Parent or Purchaser shall have breached or failed to perform any of its representations, warranties, covenants or agreements set forth
in this Agreement, or if any representation or warranty of Parent or Purchaser shall have become untrue, which breach or failure to perform
or to be true, either individually or in the aggregate, if occurring or continuing at the scheduled Expiration Date (A) would result
in a Parent Material Adverse Effect and (B) cannot be or has not been cured by the earlier of (1) the Outside Date and (2) five
(5) days after the giving of written notice to Parent of such breach or failure; provided, that the Company shall not have
the right to terminate this Agreement pursuant to this Section 8.1(d)(i) if
it is then in material breach of any of its covenants or agreements set forth in this Agreement;
(ii) if
(A) the Company Board (or a duly authorized committee thereof) shall have determined to terminate this Agreement, in accordance
with the terms set forth in Section 6.4(b) (Acquisition Proposals), in order to enter into an Alternative
Acquisition Agreement with respect to a Superior Proposal, (B) concurrently with the termination of this Agreement, the Company
enters into an Alternative Acquisition Agreement providing for a Superior Proposal, and (C) prior to or concurrently with such termination,
the Company pays to Parent in immediately available funds any fees required to be paid pursuant to Section 8.3(b)(iii) (Acquisition
Proposal);
(iii) if
(A) Purchaser fails to commence the Offer in violation of Section 1.1, (B) Purchaser shall have terminated
the Offer prior to the Expiration Date (as extended and re-extended in accordance with Section 1.1(e)), other
than in accordance with this Agreement or (C) Parent or Purchaser shall have made any change to the Offer in breach of this Agreement
and Parent and Purchaser fail to amend the Offer to cure such breach within five (5) Business Days after such breach.
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Section 8.2 Effect
of Termination. In the event of termination of the Agreement, this Agreement shall immediately become void and have no effect, without
any liability or obligation on the part of Parent, Purchaser or the Company, provided that the Confidentiality Agreement and the
provisions of Section 4.24 and Section 5.10 (Brokers), Section 6.12 (Public Announcements),
this Section 8.2 (Effect of Termination), Section 8.3 (Fees and Expenses), Section 9.4 (Notices),
Section 9.7 (Entire Agreement), Section 9.8 (Parties in Interest), Section 9.9 (Governing
Law), Section 9.10 (Submission to Jurisdiction), Section 9.11 (Assignment; Successors), Section 9.12
(Specific Performance), Section 9.14 (Severability), Section 9.15 (Waiver of Jury Trial) and
Section 9.18 (No Presumption Against Drafting Party) of this Agreement shall survive the termination hereof. Notwithstanding
the foregoing, except as set forth in Section 8.3, none of Parent, Purchaser or the Company shall be released from any liabilities
or damages arising out of any Willful Breach, and the parties acknowledge and agree that, to the fullest extent permitted under Section 261(a)(1) of
the DGCL, such liabilities or damages will not be limited to reimbursement of expenses or out of pocket costs and may, in the case of
liabilities or damages payable by Parent or Purchaser, include the benefit of the bargain lost by the Company and its stockholders, taking
into consideration all relevant matters, including lost stockholder premium, other opportunities and the time value of money, which amounts
may be recovered and retained by the Company. “Willful Breach” means a material breach of any covenant or agreement
set forth in this Agreement that is a consequence of an act or failure to act by the breaching party with the actual knowledge (as opposed
to imputed or constructive knowledge or knowledge that could have been obtained after inquiry, or recklessness or negligence) that the
taking of such act or failure to act would or would reasonably be expected to, cause or constitute a material breach of such covenant
or agreement.
Section 8.3 Fees
and Expenses.
(a) Except
as otherwise provided in this Agreement, including this Section 8.3, all fees and expenses incurred in connection with
this Agreement, the Offer, the Merger and the other transactions contemplated hereby shall be paid by the party incurring such fees or
expenses, whether or not the Offer or the Merger is consummated; provided that the expenses incurred in connection with the filing,
printing and mailing of the Offer Documents and the Schedule 14D 9, and all filing and other fees paid to the SEC, in each case
in connection with the Merger (other than attorneys’ fees, accountants’ fees and related expenses), shall be shared equally
by Parent and the Company if this Agreement is terminated. Notwithstanding anything to the contrary contained herein, Parent shall pay,
or cause to be paid, all documentary, sales, use, real property transfer, real property gains, registration, value added, transfer, stamp,
recording and similar Taxes, fees, and costs together with any interest thereon, penalties, fines, costs, fees, additions to Tax or additional
amounts with respect thereto incurred in connection with this Agreement and the transactions contemplated hereby, and shall file all
Tax Returns related thereto, regardless of who may be liable therefor under applicable Law.
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(b) Company
Termination Fee. The Company shall pay to Parent $6,263,180 (the “Company Termination Fee”), by wire transfer
of immediately available funds to an account or accounts designated in writing by Parent in the event that, it being understood that
in no event shall the Company be required to pay the Company Termination Fee on more than one occasion:
(i) (A) this
Agreement is terminated by Parent or by the Company pursuant to Section 8.1(b)(i) (Outside Date)
or by Parent pursuant to Section 8.1(c) (Company Breach Termination) (in each case, when the Company
is not otherwise permitted to terminate the Agreement pursuant to Section 8.1(d)(i) or Section 8.1(d)(iii));
(B) following the execution and delivery of this Agreement and prior to such termination of this Agreement (x) an Acquisition
Proposal (whether or not conditional and whether or not withdrawn) shall have been publicly announced or shall have been publicly disclosed
by the Company or (y) an Acquisition Proposal (whether or not conditional and whether or not withdrawn) shall have been made to
the Company Board; and (C) within twelve (12) months following such termination of this Agreement, the Company enters into a definitive
agreement with any third party with respect to an Acquisition Proposal or consummates an Acquisition Transaction, in which case the Company
Termination Fee shall be payable substantially concurrently with the consummation of such Acquisition Transaction;
(ii) this
Agreement is terminated pursuant to Section 8.1(c)(ii) (Company Board Recommendation Change), in
which case the Company Termination Fee shall be payable within five (5) Business Days after such termination; or
(iii) this
Agreement is terminated by the Company pursuant to Section 8.1(d)(ii) (Acquisition Proposal), in
which case the Company Termination Fee and the Garda Agreement Termination Fee Refund shall be payable concurrently with or prior to
(and in any event as a condition of) such termination.
(c) Refund
of Garda Agreement Termination Fee. Except if this Agreement is terminated by the Company pursuant to Section 8.1(d)(i) or
Section 8.1(d)(iii), if this Agreement is terminated in accordance with its terms, the Company shall pay, or cause to
be paid, to Parent, a termination fee, in return for the payment by Parent to Garda of the Garda Agreement Termination Fee, in an amount
equal to the Garda Agreement Termination Fee (the “Garda Agreement Termination Fee Refund”). For the avoidance
of doubt, payment of the Garda Agreement Termination Fee Refund shall be in addition to, and not in lieu of, any Company Termination
Fee payable to Parent pursuant to Section 8.3(b). The Garda Agreement Termination Fee Refund shall be paid by wire transfer
of immediately available funds to an account or accounts designated in writing by Parent, concurrently with or prior to (and in any event
as a condition of) such termination.
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(d) Termination
Fee as Exclusive Remedy. The parties acknowledge that the agreements contained in Section 8.3(b) are
an integral part of the transactions contemplated by this Agreement and constitute liquidated damages and not a penalty, and that, without
these agreements, the parties would not enter into this Agreement. Notwithstanding anything in this Agreement to the contrary, in the
event this Agreement is terminated under the circumstances in which the Company Termination Fee is payable pursuant to the terms hereof
and is accepted by Parent, then the payment by the Company of the Company Termination Fee pursuant to Section 8.3(b) (including,
in each case, any additional amount payable pursuant to Section 8.3(c) or this Section 8.3(d)),
if applicable, shall be the sole and exclusive remedy of Parent and Purchaser arising out of this Agreement or any of the transactions
contemplated hereby, and any loss suffered as a result of the failure of the Offer, the Merger or any other transactions contemplated
hereby to be consummated. If either the Company or Parent, as applicable, in order to obtain payment of any amount due pursuant to this
Section 8.3, commences an Action which results in a judgment against the other party for the payment set forth in this
Section 8.3, the Company or Parent, as applicable, shall reimburse the other for its reasonable and documented costs
and expenses (including reasonable and documented attorneys’ fees) incurred in prosecuting such Action, together with interest
on such amount at the prime rate as published in The Wall Street Journal in effect on the date such payment was required to be made through
the date such payment was actually received; provided, that in no case shall either Parent or the Company, as applicable, be required
to reimburse the other for any such costs and expenses or interest thereon in an amount greater than $500,000. Notwithstanding the foregoing,
payment of a Company Termination Fee or a Garda Agreement Termination Fee Refund by the Company will not relieve the Company from liability
for any actual and intentional fraud or Willful Breach.
Article IX
MISCELLANEOUS
Section 9.1 Non-Survival
of Representation and Warranties. None of the representations, warranties, covenants or agreements in this Agreement or in any instrument
delivered pursuant to this Agreement shall survive the Effective Time, other than those covenants or agreements of the parties which
by their terms apply, or are to be performed in whole or in part, after the Effective Time.
Section 9.2 Amendment
or Supplement. This Agreement may be amended, modified or supplemented by the parties, prior to the Effective Time, by action taken
or authorized by their respective Boards of Directors; provided, however, that after Purchaser has accepted for payment
and paid for Shares pursuant to the Offer, no amendment may be made which decreases the Merger Consideration. This Agreement may not
be amended, modified or supplemented in any manner, whether by course of conduct or otherwise, except by an instrument in writing specifically
designated as an amendment hereto, signed on behalf of each of the parties in interest at the time of the amendment.
Section 9.3 Extension
of Time; Waiver. At any time prior to the Effective Time, the parties may, by action taken or authorized by their respective Boards
of Directors, to the extent permitted by applicable Law, (a) extend the time for the performance of any of the obligations or acts
of the other party, (b) waive any inaccuracies in the representations and warranties of the other parties set forth in this Agreement
or any document delivered pursuant hereto or (c) subject to applicable Law, waive compliance with any of the agreements or conditions
of the other parties contained herein. Any agreement on the part of a party to any such waiver shall be valid only if set forth in a
written instrument executed and delivered by a duly authorized officer on behalf of such party. No failure or delay of any party in exercising
any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power,
or any abandonment or discontinuance of steps to enforce such right or power, or any course of conduct, preclude any other or further
exercise thereof or the exercise of any other right or power.
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Section 9.4 Notices.
All notices and other communications hereunder shall be in writing and shall be deemed duly given (a) on the date of delivery if
delivered personally, or if by e-mail, upon written confirmation of receipt by e-mail or otherwise, (b) on the first Business Day
following the date of dispatch if delivered utilizing a next-day service by a recognized next-day courier or (c) on the earlier
of confirmed receipt or the fifth Business Day following the date of mailing if delivered by registered or certified mail, return receipt
requested, postage prepaid. All notices hereunder shall be delivered to the addresses set forth below, or pursuant to such other instructions
as may be designated in writing by the party to receive such notice:
(i) if
to Parent, Purchaser or the Surviving Corporation, to:
Zydus Worldwide DMCC
Unit No. 908, Armada Tower 2, Plot No. JLT-PH2-P2A,
Jumeirah Lakes Towers
P.O. BOX-113536, Dubai, United Arab Emirates (UAE)
Attention: Ashish Kalawatia
E-mail: [***]
with a copy (which shall not constitute
notice) to:
Paul, Weiss, Rifkind, Wharton &
Garrison LLP
1285 Avenue of the Americas
New York, NY 10019
Attention: Krishna Veeraraghavan
Chelsea N. Darnell
E-mail: [***]
(ii) if
to Company, to:
Assertio Holdings, Inc.
100 S. Saunders Rd., Suite 300
Lake Forest, IL 60045
Attention: Legal Department
E-mail: [***]
with a copy (which shall not constitute notice) to:
Gibson, Dunn & Crutcher LLP
One Embarcadero Center, Suite 2600
San Francisco, CA 94111-3715
Attention: Ryan Murr, Branden Berns, Evan D’Amico
E-mail: [***]
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Section 9.5 Certain
Definitions. For purposes of this Agreement:
(a) “Acquisition
Transaction” means any transaction or series of related transactions (other than the transactions contemplated by this Agreement
and the Asset Purchase Agreement) resulting in: (a) any acquisition by any Person or “group” (as defined under Section 13(d) of
the Exchange Act and the rules and regulations thereunder) of more than fifty percent (50%) of the outstanding voting securities
of the Company or any tender offer or exchange offer that if consummated would result in any Person or group (as defined under Section 13(d) of
the Exchange Act and the rules and regulations thereunder) beneficially owning more than fifty percent (50%) of the outstanding
voting securities of the Company; (b) any share issuance, merger, consolidation, business combination, recapitalization, reorganization
or other similar transaction involving the Company or its Subsidiaries (i) pursuant to which any Person or “group” (as
defined in or under Section 13(d) of the Exchange Act) would hold more than fifty percent (50%) of the voting power of the
Company, the surviving entity or the resulting direct or indirect parent of the Company or such surviving entity or (ii) as a result
of which the Company stockholders (as a group) immediately prior to the consummation of such transaction would hold securities representing
less than fifty percent (50%) of the voting power of the Company, the surviving entity or the resulting direct or indirect parent of
the Company or such surviving entity after giving effect to the consummation of such transaction; (c) any sale, lease, exclusive
license or other disposition (whether through any merger, reorganization, consolidation, tender offer, self-tender, exchange offer, stock
acquisition, asset acquisition, binding share exchange, business combination, recapitalization, liquidation, dissolution, joint venture,
licensing or similar transaction) of any Company Product or assets representing more than fifty percent (50%) of the assets of the Company
and its Subsidiaries on a consolidated basis based on the fair market value thereof or to which fifty percent (50%) or more of the Company’s
aggregate revenues or earnings are attributable; or (d) any liquidation or dissolution of the Company; provided, however,
the Merger and the transactions contemplated hereby and the transactions contemplated by the Asset Purchase Agreement shall not be
deemed an Acquisition Transaction in any case.
(b) “Affiliate”
of any Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with, such first Person.
(c) “Business
Day” means any day other than a Saturday, a Sunday or a day on which banks in New York, New York are authorized or
required by applicable Law to be closed.
(d) “Closing
Net Cash” means the sum of the cash and cash equivalents and marketable securities of the Company and its Subsidiaries as of
the Acceptance Time, determined in accordance with GAAP, applied on a basis consistent with the Company’s application thereof in
the Company’s consolidated financial statements; provided, that, without limiting the generality of the foregoing, Closing
Net Cash shall not be reduced by (i) any amounts to be used to purchase Convertible Notes in connection with the Note Offer, or
(ii) any amounts of cash used or to be used by the Company after the date of the Agreement and Plan of Merger, dated as of April 8,
2026, by and among the Company, Garda and Garda Merger Sub to pay fees and expenses of the type contemplated by Section 8.3(a) incurred
in connection with this Agreement, the Offer, the Merger and the other transactions contemplated hereby.
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(e) “Company
Fundamental Representations” means the representations and warranties contained in Section 4.1 (Organization,
Standing and Power), Section 4.2 (Capital Stock), Section 4.3 (Authority) and Section 4.24
(Brokers).
(f) “control”
(including the terms “controlled,” “controlled by” and “under common control with”) means the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.
(g) “Convertible
Notes” means the 6.50% Convertible Notes of the Company due 2027 issued pursuant to the Indenture.
(h) “COVID-19”
means SARS-CoV-2 or COVID-19, and any variants or evolutions thereof or related or associated epidemics, pandemics or disease outbreaks.
(i) “Health
Care Laws” means all healthcare Laws applicable to the operation of the Company’s business as currently conducted, including,
to the extent applicable to the operation of the Company’s or its Subsidiaries’ business as currently conducted, (i) the
FDA Laws; and (ii) any and all federal, state and local fraud and abuse applicable Law, including the federal Anti-Kickback Statute
(42 U.S.C. § 1320a-7b(b)), the civil False Claims Act (31 U.S.C. §§ 3729 et seq.), the administrative
False Claims Law (42 U.S.C. § 1320a-7b(a)), the Civil Monetary Penalties Law (42 U.S.C. § 1320a-7a), the
Physician Payment Sunshine Act (42 U.S.C. § 1320a-7h), the Federal Health Care Fraud Law (18 U.S.C. § 1347),
and the regulations promulgated pursuant to such statutes.
(j) “Indenture”
means the Indenture, dated as of August 25, 2022, between the Company and U.S. Bank Trust Company, National Association, as Trustee.
(k) “Intervening
Event” means a material Effect that occurs or arises after the date of this Agreement that (a) was not known to, nor reasonably
foreseeable by, the Company Board as of the date of this Agreement or, if known, the material consequences of which were not reasonably
foreseeable to the Company Board as of the date of this Agreement and (b) does not relate to (i) an Acquisition Proposal, (ii) any
change, in and of itself, in the market price or trading volume of the Company Shares, (iii) any change in conditions generally
(including any regulatory changes) affecting the industries or sections in which the Company, Parent, or any of their respective Subsidiaries
operates, (iv) clearance of the Merger under the Antitrust Laws or any matters relating thereto or arising therefrom, or (v) the
fact that the Company or any of its Subsidiaries exceeds any internal or published industry analyst projections or forecasts or estimates
of revenue, earnings or other financial or operating metrics for any period; provided, however, that the underlying cause
of any Effect in the preceding clauses (ii) or (v) may constitute or be taken into account in determining whether there has
been an Intervening Event (unless otherwise excluded under another clause of this definition).
(l) “knowledge”
of the Company means the actual knowledge of the individuals listed on Section 9.5(l) of the Company Disclosure Letter.
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(m) “made
available” means any statement in the Agreement to the effect that any information, document or other material has been “made
available” shall mean that: (A) with respect to such information, document or other material made available by the Company:
(1) such information, document or material was made available prior to the execution of the Agreement in the virtual data room maintained
by the Company with Datasite in connection with the contemplated transactions or (2) such information, document or material was
publicly filed by the Company prior to the execution of this Agreement, and (B) with respect to information, document or other material
made available by Parent: (1) such information, document or material was made available prior to the execution of the Agreement
by email to the Company or its Representatives; or (2) such information, document or material was publicly filed by Parent prior
to the execution of this Agreement.
(n) “Organizational
Documents” means, with respect to any entity, the certificate of formation, limited liability company agreement or operating
agreement, certificate of incorporation, bylaws, certificate of limited partnership, limited partnership agreement and any governing
instrument equivalent to any of the foregoing, as applicable.
(o) “Person”
means an individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including
any Governmental Entity.
(p) “Public
Health Measures” means any quarantine, “shelter in place,” “stay at home,” furlough, workforce reduction,
social distancing, shut down, closure, sequester or any other Law, order, directive, guideline or recommendation issued or promulgated
by any Governmental Entity, the World Health Organization or any industry group in connection with or in response to COVID-19 or any
other epidemic, pandemic or outbreak of disease, or in connection with or in response to any other public health conditions, in each
case, whether such Law, order, directive, guideline or recommendation is in place currently or is issued, promulgated or modified hereafter.
(q) “Significant
Subsidiary” means a Subsidiary of the Company listed on Section 9.5(q) of the Company Disclosure Letter.
(r) “Subsidiary”
means, with respect to any Person, any other Person of which stock or other equity interests having ordinary voting power to elect more
than 50% of the board of directors or other governing body are owned, directly or indirectly, by such first Person.
Section 9.6 Interpretation.
When a reference is made in this Agreement to a Section, Article, Exhibit or Schedule such reference shall be to a Section,
Article, Exhibit or Schedule of this Agreement unless otherwise indicated. The table of contents, headings, and defined terms contained
in this Agreement or in any Exhibit or Schedule are for convenience of reference purposes only and shall not affect in any
way the meaning or interpretation of this Agreement. All words used in this Agreement will be construed to be of such gender or number
as the circumstances require. Any capitalized terms used in any Exhibit or Schedule but not otherwise defined therein shall
have the meaning as defined in this Agreement. All Exhibits and Schedules annexed hereto or referred to herein are hereby incorporated
in and made a part of this Agreement as if set forth herein. The word “including” and words of similar import when used in
this Agreement will mean “including, without limitation,” unless otherwise specified. The words “hereof,” “herein”
and “hereunder” and words of similar import when used in this Agreement shall refer to the Agreement as a whole and not to
any particular provision in this Agreement. The term “or” is not exclusive. The word “will” shall be construed
to have the same meaning and effect as the word “shall.” References to days mean calendar days unless otherwise specified.
57
Section 9.7 Entire
Agreement. This Agreement (including the Exhibits hereto), the Support Agreements (including the Exhibits thereto), the
Company Disclosure Letter, the Parent Disclosure Letter and the Confidentiality Agreement constitute the entire agreement, and supersede
all prior written agreements, arrangements, communications and understandings and all prior and contemporaneous oral agreements, arrangements,
communications and understandings among the parties with respect to the subject matter hereof and thereof.
Section 9.8 Parties
in Interest. This Agreement is not intended to, and shall not, confer upon any other Person other than the parties and their respective
successors and permitted assigns any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this
Agreement, except (a) with respect to Section 6.10, which shall inure to the benefit of the Persons benefiting therefrom
who are intended to be third party beneficiaries thereof, and (b) if the Effective Time occurs, (i) the right of the Company
stockholders to receive the Merger Consideration and (ii) the rights of holders of Company Equity Awards to receive the payments
contemplated by the applicable provisions of Section 3.2 in accordance with the terms and conditions of this Agreement. The
representations and warranties in this Agreement are the product of negotiations among the parties hereto. In some instances, the representations
and warranties in this Agreement may represent an allocation among the parties hereto of risks associated with particular matters regardless
of the knowledge of any of the parties hereto. Consequently, Persons other than the parties hereto may not rely upon the representations
and warranties in this Agreement or the characterization of actual facts or circumstances as of the date of this Agreement or as of any
other date.
Section 9.9 Governing
Law. This Agreement and any claims or causes of action arising out of or relating to this Agreement, the negotiation, execution or
performance of this Agreement or the transactions contemplated hereby (whether in contract, in tort, under statute or otherwise) shall
be governed by, and interpreted, construed and enforced in accordance with, the internal Laws of the State of Delaware, including its
statutes of limitations, without giving effect to any choice or conflict of Laws rules or provisions (whether of the State of Delaware
or any other jurisdiction) that would result in the application of the Laws of any jurisdiction other than the State of Delaware.
Section 9.10 Submission
to Jurisdiction. Each of the parties irrevocably agrees that any legal action or proceeding arising out of or relating to this Agreement
brought by any party or its Affiliates against any other party or its Affiliates shall be brought and determined in the Court of Chancery
of the State of Delaware, provided that if jurisdiction is not then available in the Court of Chancery of the State of Delaware,
then any such legal action or proceeding may be brought in any federal court located in the State of Delaware or any other Delaware state
court. Each of the parties hereby irrevocably submits to the jurisdiction of the aforesaid courts for itself and with respect to its
property, generally and unconditionally, with regard to any such action or proceeding arising out of or relating to this Agreement and
the transactions contemplated hereby. Each of the parties agrees not to commence any action, suit or proceeding relating thereto except
in the courts described above in Delaware, other than actions in any court of competent jurisdiction to enforce any judgment, decree
or award rendered by any such court in Delaware as described herein. Each of the parties further agrees that notice as provided herein
shall constitute sufficient service of process and the parties further waive any argument that such service is insufficient. Each of
the parties hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a defense, counterclaim or
otherwise, in any action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby, (a) any
claim that it is not personally subject to the jurisdiction of the courts in Delaware as described herein for any reason, (b) that
it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether
through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise)
and (c) that (i) the suit, action or proceeding in any such court is brought in an inconvenient forum, (ii) the venue
of such suit, action or proceeding is improper or (iii) this Agreement, or the subject matter hereof, may not be enforced in or
by such courts.
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Section 9.11 Assignment;
Successors. Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned or delegated,
in whole or in part, by operation of law or otherwise, by any party without the prior written consent of the other parties, and any such
assignment without such prior written consent shall be null and void. Subject to the preceding sentence, this Agreement will be binding
upon, inure to the benefit of, and be enforceable by, the parties and their respective successors and assigns.
Section 9.12 Specific
Performance.
(a) The
parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance
with their specific terms or were otherwise breached and that money damages or other legal remedies would not be an adequate remedy for
any such nonperformance or breach. Accordingly, each of the Company (on behalf of itself and on behalf of the holders of Shares as third
party beneficiaries under Section 9.8), Parent and Purchaser shall be entitled to specific performance of the terms
hereof, including an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions
of this Agreement in the Court of Chancery of the State of Delaware, provided that if jurisdiction is not then available in the Court
of Chancery of the State of Delaware, then in any federal court located in the State of Delaware or any other Delaware state court, this
being in addition to any other remedy to which such party is entitled at law or in equity. Each of the parties hereby further waives
(i) any defense in any action for specific performance that a remedy at law would be adequate and (ii) any requirement under
any Law to post security as a prerequisite to obtaining equitable relief.
Section 9.13 Currency.
All references to “dollars” or “$” or “US$” in this Agreement refer to United States dollars, which
is the currency used for all purposes in this Agreement.
Section 9.14 Severability.
Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such manner as to be effective
and valid under applicable Law, but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or
unenforceable in any respect under any applicable Law or rule in any jurisdiction, such invalidity, illegality or unenforceability
shall not affect any other provision or portion of any provision in such jurisdiction, and this Agreement shall be reformed, construed
and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained
herein.
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Section 9.15 Waiver
of Jury Trial. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
Section 9.16 Counterparts.
This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same instrument and shall become
effective when one or more counterparts have been signed by each of the parties and delivered to the other party.
Section 9.17 Electronic
Signature. This Agreement may be executed electronically (including by means of.pdf or similar graphic reproduction format or by
means of digital signature software, e.g. DocuSign or Adobe Sign) and delivered by e-mail or other similar means of electronic transmission,
and any electronic signature shall constitute an original for all purposes.
Section 9.18 No
Presumption Against Drafting Party. Each of Parent, Purchaser and the Company acknowledges that each party to this Agreement has
been represented by counsel in connection with this Agreement and the transactions contemplated by this Agreement.
Accordingly, any rule of
Law or any legal decision that would require interpretation of any claimed ambiguities in this Agreement against the drafting party has
no application and is expressly waived and any controversy over interpretations of this Agreement shall be decided without regard to
events of drafting or preparation.
Section 9.19 Parent
Guarantee. Parent agrees to take all action necessary to cause Purchaser or the Surviving Corporation, as applicable, to perform
all of its respective agreements, covenants and obligations under this Agreement. Parent unconditionally guarantees to the Company the
full and complete performance by Purchaser or the Surviving Corporation, as applicable, of its respective obligations under this Agreement
and shall be liable for any breach of any representation, warranty, covenant or obligation of Purchaser or the Surviving Corporation,
as applicable, under this Agreement. This is a guarantee of payment and performance and not of collectability. Parent hereby waives diligence,
presentment, demand of performance, filing of any claim, any right to require any proceeding first against Purchaser or the Surviving
Corporation, as applicable, protest, notice and all demands whatsoever in connection with the performance of its obligations set forth
in this Section 9.19.
Section 9.20 Further
Guarantee.
(a) The
Guarantor agrees to take all action necessary to cause each of Parent and Purchaser or the Surviving Corporation, as applicable, to perform
all of its respective agreements, covenants and obligations under this Agreement. The Guarantor unconditionally guarantees to the Company
the full and complete performance by Parent, Purchaser or the Surviving Corporation, as applicable, of its respective obligations under
this Agreement and shall be liable for any breach of any representation, warranty, covenant or obligation of Parent, Purchaser or the
Surviving Corporation, as applicable, under this Agreement. This is a guarantee of payment and performance and not of collectability.
The Guarantor hereby waives diligence, presentment, demand of performance, filing of any claim, any right to require any proceeding first
against Parent, Purchaser or the Surviving Corporation, as applicable, protest, notice and all demands whatsoever in connection with
the performance of its obligations set forth in this Section 9.20(a).
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(b) The
Guarantor represents and warrants to the Company as follows:
(i) The
Guarantor (A) is a corporation duly organized, validly existing and in good standing under the Laws of the jurisdiction of its incorporation,
(B) has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business as now
being conducted and (C) is duly qualified or licensed to do business and is in good standing in each jurisdiction in which the nature
of its business or the ownership, leasing or operation of its properties makes such qualification or licensing necessary, except, with
respect to clauses (B) and (C), for any such failures to have such power and authority or to be so qualified or licensed or in good
standing as would not, individually or in the aggregate, reasonably be expected to prevent or materially delay the Guarantor’s
ability to perform its obligations under this Section 9.20.
(ii) The
Guarantor has all necessary corporate power and authority to execute and deliver this Agreement, to perform its obligations under this
Section 9.20 and to consummate the transactions contemplated hereby. The execution, delivery and performance
of this Agreement by the Guarantor and the consummation by the Guarantor of the transactions contemplated hereby have been duly authorized
by the board of directors of the Guarantor, and no other corporate proceedings on the part of the Guarantor are necessary to approve
this Agreement or to consummate the transactions contemplated hereby. This Agreement has been duly executed and delivered by the Guarantor
and, assuming the due authorization, execution and delivery by the Company, constitutes a valid and binding obligation of the Guarantor
with respect to this Section 9.20, enforceable against the Guarantor in accordance with its terms (except to
the extent that enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or similar Laws affecting
the enforcement of creditors' rights generally or by general principles of equity).
(iii) (A) The
execution, delivery and performance of this Agreement by the Guarantor, and the consummation by the Guarantor of the transactions contemplated
hereby, do not and will not (1) conflict with or violate the certificate of incorporation or bylaws of the Guarantor, (2) conflict
with or violate any Law applicable to the Guarantor or by which any of its properties are bound or (3) result in any breach or violation
of, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give rise to any
right of termination, cancellation, amendment or acceleration of, any Contract to which the Guarantor is a party or by which the Guarantor
or any of its properties are bound, except, in the case of clauses (2) and (3), for any such conflict, breach, violation, default,
right or other occurrence that would not, individually or in the aggregate, reasonably be expected to prevent or materially delay the
Guarantor's ability to perform its obligations under this Section 9.20. (B) No consent, approval, order
or authorization of, or registration, declaration or filing with, any Governmental Entity is required by or with respect to the Guarantor
in connection with the execution and delivery of this Agreement by the Guarantor or the consummation by the Guarantor of the transactions
contemplated hereby, except for such consents, approvals, orders, authorizations, registrations, declarations and filings the failure
of which to be obtained or made would not, individually or in the aggregate, reasonably be expected to prevent or materially delay the
Guarantor's ability to perform its obligations under this Section 9.20.
[The remainder of this page is intentionally
left blank.]
61
IN WITNESS WHEREOF, the parties have caused this
Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.
ZYDUS WORLDWIDE
DMCC
By:
/s/ Ashish Kalawatia
Name:
Ashish Kalawatia
Title:
Director
ZARA MERGER
SUB INC.
By:
/s/ Ravi Yadavar
Name:
Ravi Yadavar
Title:
Treasurer
Zydus
Pharmaceuticals (USA) Inc.,
solely
for purposes of Section 9.20
By:
/s/ Ravi Yadavar
Name:
Ravi Yadavar
Title:
Chief Financial Officer
[Signature Page to
Agreement and Plan of Merger]
ASSERTIO HOLDINGS, INC.
By:
/s/ Mark Reisenauer
Name:
Mark Reisenauer
Title:
Chief Executive Officer
[Signature Page to Agreement and Plan
of Merger]
EXHIBIT A
FORM OF TENDER AND SUPPORT AGREEMENT
SUPPORT AGREEMENT
This SUPPORT AGREEMENT (“Agreement”),
dated as of [●], 2026, is made by and among Zydus Worldwide DMCC, a Dubai limited liability company (“Parent”),
Zara Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Purchaser”), and the undersigned
holder (“Stockholder”) of shares of common stock, par value $0.0001 per share (the “Company Common Stock”),
of Assertio Holdings, Inc., a Delaware corporation (the “Company”). Capitalized terms used herein and not defined
shall have the meanings ascribed to them in the Merger Agreement (as defined below).
RECITALS
WHEREAS, Stockholder is,
as of the date hereof, the beneficial owner (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), which meaning will apply for all purposes of this Agreement) of the number of shares of Company Common
Stock set forth opposite the name of Stockholder on Schedule 1 attached hereto (all such Shares, together with any securities
convertible into or exercisable or exchangeable or redeemable for Shares, and any New Shares (defined in Section 3 below),
the “Shares”);
WHEREAS, Parent, Purchaser
and the Company have entered into an Agreement and Plan of Merger, dated as of [●], by and among Parent, Purchaser, the Company
and, solely for purposes of Section 9.20 thereof, Zydus Pharmaceuticals (USA) Inc., a New Jersey corporation (as such agreement
may be subsequently amended or modified, the “Merger Agreement”), which provides, among other things, for Purchaser
to commence a tender offer for all of the issued and outstanding shares of Company Common Stock (the “Offer”) and,
following the completion of the Offer, the merger of Purchaser with and into the Company, with the Company surviving that merger, on
the terms and subject to the conditions set forth in the Merger Agreement (the “Merger”); and
WHEREAS, as an inducement
and a condition to the willingness of Parent and Purchaser to enter into the Merger Agreement, and in consideration of the substantial
expenses incurred and to be incurred by them in connection therewith, Stockholder has agreed to enter into and perform this Agreement.
AGREEMENT
NOW, THEREFORE, in consideration
of, and as a condition to, Parent and Purchaser entering into the Merger Agreement and proceeding with the transactions contemplated
thereby, and in consideration of the expenses incurred and to be incurred by Parent in connection therewith, the parties hereto agree
as follows:
1. Agreement to Tender Shares.
a) Subject to the terms of this Agreement,
Stockholder hereby agrees that it shall irrevocably tender its Shares, or cause its Shares
to be validly and irrevocably tendered, into the Offer pursuant to and in accordance with
the terms of the Offer, free and clear of all Liens (as defined below) (except for Permitted
Liens (as defined below)).
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b) Upon receipt of payment in full for all
of its Shares pursuant to the Merger Agreement and the full and complete satisfaction of
the terms of the Offer, Stockholder agrees that any and all rights incident to its ownership
of Shares (including any rights to recover amounts, if any, that may be determined to be
due to any stockholder or former stockholder of the Company), including but not limited to
rights arising out of Stockholder’s ownership of Shares prior to the transfer of such
Shares to Purchaser or Parent pursuant to the Offer or pursuant to the Merger Agreement,
shall be transferred to Purchaser and Parent upon the transfer to Purchaser or Parent of
Stockholder’s Shares.
2. Termination Date. As used in this
Agreement, the term “Termination Date” shall mean the earliest to occur
of (a) the Effective Time, (b) such date and time as the Merger Agreement shall
be validly terminated, (c) an amendment of the Merger Agreement, without the prior written
consent of Stockholder, in a manner that negatively or adversely affects the Offer or that
decreases the amount, or changes the form, of consideration payable to any stockholders of
the Company pursuant to the terms of the Merger Agreement, (d) the mutual written agreement
of the parties to terminate this Agreement, (e) any material breach of this Agreement
or the Merger Agreement by Parent or Purchaser or (f) the Company Board approves, recommends,
encourages or supports an alternative transaction. Upon termination of this Agreement, no
party shall have any further obligations or liabilities under this Agreement; provided,
however, that such termination shall not relieve any party from liability for any
common law fraud or willful, knowing and material breach of this Agreement prior to termination
hereof.
3. Additional Purchases. Stockholder
agrees that any Shares of the Company (and any securities convertible into or exercisable
or exchangeable or redeemable for Shares) that Stockholder purchases or with respect to which
Stockholder otherwise acquires beneficial ownership (as defined in Rule 13d-3 under
the Exchange Act) after the execution of this Agreement and prior to the Termination Date,
including, without limitation, by the exercise of a Company Stock Option or the vesting or
settlement of a Company RSU that occurs prior to the acceptance of Shares in the Offer (“New
Shares”), shall be subject to the terms and conditions of this Agreement to the
same extent as if they constituted Shares as of the date hereof and the representation and
warranties in Section 5 below shall be true and correct as of the date that beneficial
ownership (as defined in Rule 13d-3 under the Exchange Act) of such New Shares is acquired.
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4. Agreement to Retain Shares and Other
Covenants. From and after the date hereof until the Termination Date, except as otherwise
provided herein (including pursuant to Section 1 or Section 7) or
in the Merger Agreement, Stockholder shall not, and Stockholder shall not direct its Affiliates
to: (i) voluntarily transfer, assign, sell, gift-over, hedge, pledge or otherwise dispose
(whether by sale or merger, liquidation, dissolution, dividend or distribution, by operation
of Law or otherwise) of, enter into any derivative arrangement with respect to, create or
suffer to exist any Liens (except for Permitted Liens) on or consent to any of the foregoing
(“Transfer”), any or all of the Shares or any right or interest therein,
provided that Transfers shall not include the exercise of a Company Stock Option or
the vesting or settlement of a Company RSU, which shall not be restricted by this Section 4;
(ii) enter into any contract, option or other agreement, arrangement or understanding
with respect to any Transfer; (iii) grant or permit the grant of any proxy, power-of-attorney
or other authorization or consent with respect to any of the Shares with respect to any matter
that is, or that is reasonably likely to be exercised in a manner, inconsistent with the
transactions contemplated by the Merger Agreement or the provisions thereof; (iv) deposit
any of the Shares into a voting trust, or enter into a voting agreement or arrangement with
respect to any of the Shares; or (v) directly take or cause the taking of any other
action that would restrict, limit or interfere with the performance of Stockholder’s
obligations hereunder or the transactions contemplated hereby, except, in each case, as would
not reasonably be expected to have, individually or in the aggregate, a material adverse
effect on such Stockholder’s ability to timely perform its obligations under this Agreement;
provided, that Stockholder and its Affiliates shall be permitted to Transfer Shares to Affiliates
or between trusts for estate planning purposes, so long as such transferees agree to remain
subject to the terms of this Agreement. Without limiting the foregoing, at all times commencing
with the execution and delivery of this Agreement and continuing until Termination Date,
Stockholder shall not tender the Shares into any tender or exchange offer commenced by a
Person other than Parent, Purchaser or any other subsidiary of Parent.
5. Representations and Warranties of
Stockholder. Stockholder hereby represents and warrants, as of the date hereof, to Parent
and Purchaser as follows:
a) Stockholder (i) is the beneficial
owner of the Shares set forth opposite Stockholder’s name on Schedule 1
to this Agreement and (ii) except as set forth on Schedule 1 to this Agreement,
neither holds nor has any beneficial ownership interest in any other shares of Company Common
Stock or any performance based stock units, restricted stock, restricted stock units, deferred
stock units, options, warrants or other right or security convertible into or exercisable,
exchangeable or redeemable for shares of Company Common Stock.
b) Stockholder has the full power and authority
to execute and deliver this Agreement and to perform Stockholder’s obligations hereunder,
subject to applicable federal securities laws and the terms of this Agreement; if Stockholder
is not an individual, it is duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization and has taken all action necessary, to execute,
deliver and perform its obligations under this Agreement and to consummate the transactions
contemplated hereby, and no other proceedings on the part of Stockholder are necessary to
authorize this Agreement, the performance of Stockholder’s obligations hereunder and
the consummation of the transactions contemplated hereby.
c) This Agreement (assuming this Agreement
constitutes a valid and binding agreement of Parent and Purchaser) has been duly executed
and delivered by or on behalf of Stockholder and constitutes a valid and binding agreement
with respect to Stockholder, enforceable against Stockholder in accordance with its terms,
subject to (i) laws of general application relating to bankruptcy, insolvency and the
relief of debtors, (ii) rules of law governing specific performance, injunctive
relief and other equitable remedies, and (iii) Section 17.
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d) The shares of Company Common Stock and
the certificates, if any, representing the Shares owned by Stockholder are now held by Stockholder,
by a nominee or custodian for the benefit of Stockholder or by the depository under the Offer,
free and clear of any liens, claims, charges, proxies, powers of attorney, rights of first
offer or rights of first refusal, voting agreement or voting trust or any other agreement,
arrangement, or restriction with respect to the voting of such Shares, or other encumbrances
or restrictions of any kind whatsoever (“Liens”), and has sole or shared,
and otherwise unrestricted, voting power with respect to such Shares, except for (i) any
such Liens arising hereunder (in connection therewith any restrictions on transfer or any
other Liens have been waived by appropriate consent) and (ii) Liens imposed by federal
or state securities laws (collectively, “Permitted Liens”).
e) Neither the execution and delivery of
this Agreement by such Stockholder nor the consummation of the transactions contemplated
hereby nor compliance by such Stockholder with any provisions herein will (i) if such
Stockholder is not an individual, violate, contravene or conflict with or result in any breach
of any provision of the certificate of incorporation or bylaws (or other similar governing
documents) of such Stockholder, (ii) violate, conflict with, or result in a breach of
any provisions of, or require any consent, waiver or approval or result in a default or loss
of a benefit (or give rise to any right of termination, cancellation, modification or acceleration
or any event that, with the giving of notice, the passage of time or otherwise, would constitute
a default or give rise to any such right) under any of the terms, conditions or provisions
of any Contract or other legally binding instrument or obligation to which such Stockholder
is a party or by which such Stockholder or any of its assets may be bound, (iii) result
(or, with the giving of notice, the passage of time or otherwise, would result) in the creation
or imposition of any Lien on any assets (including Shares) of such Stockholder (other than
one created by Parent or Purchaser) or (iv) violate any Law applicable to such Stockholder
or by which any of its assets (including Shares) are bound, except, in each case, as would
not reasonably be expected to have, individually or in the aggregate, a material adverse
effect on such Stockholder’s ability to timely perform its obligations under this Agreement.
f) Stockholder has not directly engaged any
broker, investment banker, financial advisor, finder, agent or other Person such that such
Person is entitled to any broker’s, finder’s, financial adviser’s or other
similar fee or commission in connection with this Agreement.
g) Stockholder understands and acknowledges
that Parent and Purchaser are entering into the Merger Agreement in reliance upon Stockholder’s
execution and delivery of this Agreement.
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6. Representations and Warranties of
Parent and Purchaser. Each of Parent and Purchaser hereby represents and warrants to
Stockholder as follows:
a) Each of Parent and Purchaser are a corporation,
both duly organized, validly existing and in good standing (with respect to jurisdictions
that recognize such concept) under the laws of the jurisdiction of its organization, and
each of Parent and Purchaser has all requisite corporate power and authority to enter into
and to perform its obligations under this Agreement.
b) This Agreement has been duly authorized,
executed and delivered by each of Parent and Purchaser, and, assuming the due authorization,
execution and delivery of this Agreement on behalf of Stockholder, constitutes the valid
and binding obligations of each of Parent and Purchaser, enforceable against each of them
in accordance with their terms, subject to (i) laws of general application relating
to bankruptcy, insolvency and the relief of debtors, and (ii) rules of law governing
specific performance, injunctive relief and other equitable remedies.
c) Except for violations and defaults that
would not adversely affect Parent’s or Purchaser’s ability to perform any of
its obligations under, or consummate any of the transactions contemplated by, this Agreement
or the Merger Agreement, the execution and delivery of this Agreement or the Merger Agreement
by each of Parent and Purchaser, and the consummation by Parent and Purchaser of the transactions
contemplated hereby or thereby will not cause a violation by Parent or Purchaser of any legal
requirement applicable to Parent or Purchaser. Neither Parent nor Purchaser is required to
make any filing with or to obtain any consent from any Person at or prior to the Acceptance
Time or the Effective Time in connection with the execution and delivery of this Agreement
and the Merger Agreement or the consummation by Parent or Purchaser of any of the transactions
contemplated by this Agreement or the Merger Agreement, except: (i) as may be required
by the Exchange Act, General Corporation Law of the State of Delaware (the “DGCL”)
or other applicable Laws; or (ii) where the failure to make any such filing or obtain
any such consent would not adversely affect Parent’s or Purchaser’s ability to
perform any of its obligations under, or consummate any of the transactions contemplated
by, this Agreement and the Merger Agreement.
7. Survival. All representations,
warranties, covenants and agreements of or on behalf of Stockholder in this Agreement or
in any certificate, document or instrument delivered pursuant to this Agreement will terminate
upon, and not survive, the closing of the transactions contemplated by the Merger Agreement.
Stockholder and its Affiliates will not have any liability or obligation to any other party
or any other person or entity for any breach or inaccuracy of any representation, warranty,
covenant or agreement in this Agreement or in any such certificate, document or instrument.
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8. No Limitation on Discretion as Director
or Fiduciary. Notwithstanding anything herein to the contrary, the covenants and agreements
set forth herein shall not prevent Stockholder, (a) from exercising his, her or its
duties and obligations as a director of the Company or otherwise taking any action while
acting in such capacity as a director of the Company, (b) if Stockholder or any of its
Representatives is an officer of the Company, from exercising his or her duties and obligations
as an officer of the Company or otherwise taking any action permitted by the Merger Agreement,
or (c) if Stockholder is serving as a trustee or fiduciary of any ERISA plan or trust,
from exercising his duties and obligations as a trustee or fiduciary of such ERISA plan or
trust. Stockholder is executing this Agreement solely in his, her or its capacity as a stockholder.
Notwithstanding anything to the contrary in this Agreement or any other agreement or document
executed or delivered in connection with the transactions contemplated hereby, nothing in
this Agreement or any such other agreement or document shall (a) release, waive, discharge,
compromise, settle or affect any rights or claims that Stockholder or its Affiliates may
have for (i) indemnification, advancement of expenses, contribution or reimbursement
under any applicable law, the certificate of incorporation, bylaws or other organizational
documents of any person or party, any agreement or arrangement providing for such indemnification,
advancement, contribution or reimbursement, or any insurance policy covering Stockholder
or any of its Affiliates, (ii) any breach of or default under this Agreement, the Merger
Agreement or any other agreement or document executed or delivered by Parent or Purchaser,
(iii) any rights under this Agreement or the Merger Agreement, or (iv) any rights
or claims that are expressly reserved, acknowledged or granted by this Agreement or any other
agreement or document executed or delivered in connection with the transactions contemplated
hereby; or (b) limit, impair or affect any rights or claims that Stockholder and/or
its Affiliates may have against any other person or party arising out of or relating to any
matter, event, circumstance, action, omission, transaction or occurrence that is outside
the transactions contemplated hereby or the subject matter of this Agreement or any other
agreement or document executed or delivered in connection therewith.
9. Notice. All notices and other
communications hereunder shall be in writing and shall be deemed to have been duly given
(i) when delivered if delivered in person, (ii) on the next business day if transmitted
by national overnight courier or (iii) on the date delivered if sent by e-mail (provided
confirmation of email receipt is obtained), to Parent or Purchaser to the address or email
address set forth in Section 9.4 of the Merger Agreement and to each Stockholder
at its, his or her address or email address set forth opposite such Stockholder’s name
on Schedule 1 attached hereto (or at such other address or email address for
a party hereto as shall be specified by like notice).
10. Certain Restrictions. Subject
to the other terms of this Agreement, Stockholder hereby (i) waives and agrees not to
exercise any rights (including under Section 262 of the DGCL) to demand appraisal of
any Shares or rights to dissent from the Merger which may arise with respect to the Merger
and (ii) solely in its capacity as a stockholder of the Company, agrees not to commence
or participate in, and to take all actions necessary to opt out of any class in any class
action with respect to, any claim, derivative or other proceeding, against Parent, Purchaser,
the Company or any of their respective directors, officers or successors relating to the
negotiation, execution or delivery of this Agreement or the Merger Agreement or the making
or consummation of the Offer or consummation of the Merger, including any proceeding (x) challenging
the validity of, or seeking to enjoin the operation of, any provision of the Merger Agreement
or this Agreement or (y) alleging a breach of any fiduciary duty of the Company Board
in connection with the Merger Agreement or the transactions contemplated thereby.
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11. Disclosure.
a) Stockholder shall permit the Company and
Parent to disclose in all documents and schedules filed with the U.S. Securities and Exchange
Commission (the “SEC”) that Parent determines to be necessary in connection
with the Merger and any transactions related to the Merger, Stockholder’s identity
and ownership of Shares and the nature of Stockholder’s commitments, arrangements and
understandings under this Agreement; provided that Stockholder shall have a reasonable
opportunity to review and approve such disclosure prior to any such filing.
b) From and after the date hereof until the
Termination Date, Stockholder shall not make any public announcement regarding this Agreement
and the transactions contemplated hereby without the prior written consent of Parent, except
as may be required by applicable Law (provided that reasonable notice of any such disclosure
will be provided to Parent and Stockholder shall reasonably consult with Parent and Purchaser
with respect to such disclosure) or for public announcements permitted to be made by the
Company and its representatives under the Merger Agreement.
12. Adjustments. In the event of
any stock split, stock dividend, merger, reorganization, recapitalization, reclassification,
combination, exchange of shares or the like of the capital stock of the Company affecting
the Shares, the terms of this Agreement shall apply to the resulting securities and the term
“Shares” shall be deemed to refer to and include such securities.
13. Binding Effect and Assignment.
All of the covenants and agreements contained in this Agreement shall be binding upon, and
inure to the benefit of, the respective parties and their permitted successors, assigns,
heirs, executors, administrators and other legal representatives, as the case may be. This
Agreement shall not be assignable by operation of Law or otherwise; provided that
Parent may designate, prior to the Effective Time, by written notice to Stockholder, another
subsidiary to be a party to this Agreement to the extent such assignment is permitted by
the Merger Agreement; provided that such assignment shall not relieve Parent of its
obligations hereunder or otherwise enlarge, alter or change any obligation of Stockholder
or due to Parent or such other subsidiary. Any assignment in contravention of the preceding
sentence shall be null and void.
14. No Waivers. No waivers of any
breach of this Agreement extended by Parent to Stockholder shall be construed as a waiver
of any rights or remedies of Parent with respect to any other stockholder of the Company
who has executed an agreement substantially in the form of this Agreement with respect to
Shares held or subsequently held by such stockholder or with respect to any subsequent breach
of Stockholder or any other such stockholder of the Company. No waiver of any provisions
hereof by either party shall be deemed a waiver of any other provisions hereof by any such
party, nor shall any such waiver be deemed a continuing waiver of any provision hereof by
such party.
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15. Governing Law; Jurisdiction and Venue.
This Agreement shall be governed by, and construed in accordance with, the laws of the State
of Delaware without regard to its rules of conflict of laws. The parties hereto hereby
irrevocably and unconditionally consent to and submit to the exclusive jurisdiction of the
courts of the State of Delaware and of the United States of America located in such state
(the “Delaware Courts”) for any litigation arising out of or relating
to this Agreement and the transactions contemplated hereby (and agree not to commence any
litigation relating thereto except in such courts), waive any objection to the laying of
venue of any such litigation in the Delaware Courts and agree not to plead or claim in any
Delaware Court that such litigation brought therein has been brought in any inconvenient
forum.
16. WAIVER OF JURY TRIAL. THE PARTIES
HERETO HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY ACTION OR PROCEEDING RELATED
TO OR ARISING OUT OF THIS AGREEMENT, ANY DOCUMENT EXECUTED IN CONNECTION HEREWITH AND THE
MATTERS CONTEMPLATED HEREBY AND THEREBY.
17. No Agreement Until Executed.
Irrespective of negotiations among the parties or the exchanging of drafts of this Agreement,
this Agreement shall not constitute or be deemed to evidence a contract, agreement, arrangement
or understanding between the parties hereto unless and until (a) the Company Board has
approved, for purposes of any applicable anti-takeover laws and regulations, and any applicable
provision of the Company’s certificate of incorporation, the transactions contemplated
by the Merger Agreement, (b) the Merger Agreement is executed by all parties thereto,
and (c) this Agreement is executed by all parties hereto.
18. Entire Agreement; Amendment.
This Agreement supersedes all prior agreements, written or oral, among the parties hereto
with respect to the subject matter hereof and contains the entire agreement among the parties
with respect to the subject matter hereof. This Agreement may not be amended, supplemented
or modified, and no provisions hereof may be modified or waived, except by an instrument
in writing signed by each party hereto.
19. Effect of Headings. The section
headings herein are for convenience only and shall not affect the construction of interpretation
of this Agreement.
20. Severability. In the event that
any provision of this Agreement, or the application thereof, becomes or is declared by a
court of competent jurisdiction to be illegal, void or unenforceable, the remainder of this
Agreement will continue in full force and effect and the application of such provision to
other Persons or circumstances will be interpreted so as reasonably to effect the intent
of the parties. The parties further agree to replace such void or unenforceable provision
of this Agreement with a valid and enforceable provision that will achieve, to the extent
possible, the economic, business and other purposes of such void or unenforceable provision.
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21. Specific Performance. The parties
hereto agree that irreparable damage may occur and that the parties hereto may not have any
adequate remedy at law in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached. It is accordingly
agreed that the parties hereto shall be entitled to seek an injunction or injunctions, specific
performance or other equitable relief to prevent breaches or threatened breaches of this
Agreement and to enforce specifically the terms and provisions of this Agreement in the Delaware
Courts without proof of damages and, in any action for specific performance, each party hereto
waives any requirement for the securing or posting of any bond in connection with such remedy,
this being in addition to any other remedy to which they are entitled at law or in equity.
Any requirements for the securing or posting of any bond with respect to any such remedy
are hereby waived. The parties hereto further agree that by seeking the remedies provided
for in this Section 21, a party shall not in any respect waive its right to seek
any other form of relief that may be available to such party under this Agreement (including
monetary damages) for breach of any of the provisions of this Agreement or in the event that
the remedies provided for in this Section 21 are not available or otherwise are
not granted.
22. Expenses. All fees and expenses
incurred in connection this Agreement and the transactions contemplated hereby shall be paid
by the party incurring such fees or expenses, whether or not the Offer or the Merger is consummated.
23. Counterparts; Effectiveness; Signatures.
This Agreement may be executed in any number of counterparts (including by facsimile or by
attachment to electronic mail in portable document format (PDF) or through the use of an
electronic signature platform), each such counterpart being deemed to be an original instrument,
and all such counterparts shall together constitute the same agreement, and shall become
effective when one or more counterparts have been signed by each of the parties and delivered
to the other party. Signatures delivered by facsimile, PDF, or electronic signature (including
via DocuSign or similar platform) shall be deemed original signatures for all purposes.
[Signature Page Follows]
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IN WITNESS WHEREOF, Parent,
Purchaser and Stockholder have caused this Agreement to be duly executed and delivered as of the date first written above.
ZYDUS WORLDWIDE DMCC
By:
Name:
Title:
ZARA MERGER SUB INC.
By:
Name:
Title:
[Signature Page to Support Agreement]
IN WITNESS WHEREOF, Parent, Merger Sub and Stockholder
have caused this Agreement to be duly executed and delivered as of the date first written above.
[STOCKHOLDER]
By:
Name:
Title:
[Signature Page to Support Agreement]
SCHEDULE 1
Stockholder
Name,
Address & Email Address
Company
Common Stock
Company
Stock Options
Company
RSUs
Total
Shares
[•]
Address:
[•]
Email:
[•]
[•]
[•]
[•]
[•]
[Signature Page to Support Agreement]
EXHIBIT B
CONDITIONS TO THE OFFER
Notwithstanding any other
term of the Offer or the Merger Agreement, Purchaser shall not be required to accept for payment (and Parent shall not be required to
cause Purchaser to accept for payment) or, subject to any applicable rules and regulations of the SEC, including Rule 14e-1(c) under
the Exchange Act (relating to Purchaser’s obligation to pay for or return tendered Shares promptly after the termination or withdrawal
of the Offer), to pay for any Shares tendered and not validly withdrawn pursuant to the Offer:
(a) prior
to the Expiration Date, there shall not have been validly tendered and not validly withdrawn in accordance with the terms of the Offer
a number of Shares that, together with the Shares, if any, then beneficially owned by Purchaser or its affiliates (as such term is defined
in Section 251(h) of the DGCL), would represent at least one (1) Share more than 50% of the number of Shares that are
then issued and outstanding (such condition in this clause (a) being the “Minimum Condition”).
(b) any
of the following conditions shall exist or shall have occurred and be continuing at the Expiration Date:
(i) there
shall have been any Law enacted, entered, promulgated, enforced or deemed applicable to the Offer that would: (A) make illegal or
otherwise prohibit, restrain, enjoin, prevent or materially delay the consummation of the Offer, the Merger or any of the other transactions
contemplated by the Merger Agreement, (B) prohibit, restrain, enjoin, prevent or limit the ownership, operation or control by the
Company, Parent or any of their respective Subsidiaries of any material portion of the business or assets of the Company, Parent or any
of their respective Subsidiaries, or to compel the Company, Parent or any of their respective Subsidiaries to dispose of or hold separate
any material portion of the business or assets of the Company, Parent or any of their respective Subsidiaries or (C) impose limitations
on the ability of Parent to acquire or hold, or exercise full rights of ownership of, any Shares (or shares of capital stock of the Surviving
Corporation), including the right to vote the Shares purchased or owned by them on all matters properly presented to stockholders of
the Company;
(ii) there
shall be any Action brought by, or before, any Governmental Entity seeking to: (A) make illegal or otherwise prohibit, restrain,
enjoin or prevent or materially delay the consummation of the Offer, the Merger or any of the other transactions contemplated by the
Merger Agreement, (B) prohibit, restrain, enjoin or prevent or limit the ownership, operation or control by the Company, Parent
or any of their respective Subsidiaries of any material portion of the business or assets of the Company, Parent or any of their respective
Subsidiaries, or to compel the Company, Parent or any of their respective Subsidiaries to dispose of or hold separate any material portion
of the business or assets of the Company, Parent or any of their respective Subsidiaries or (C) impose limitations on the ability
of Parent to acquire or hold, or exercise full rights of ownership of, any Shares (or shares of capital stock of the Surviving Corporation),
including the right to vote the Shares purchased or owned by them on all matters properly presented to stockholders of the Company;
(iii) (A) the
Company shall have breached or failed to comply in any material respect with any of its obligations, covenants or agreements under the
Merger Agreement or (B) (1) the Company Fundamental Representations are not true and correct in all material respects as of
the date of the Expiration Date as though made as of the Expiration Date (except to the extent such representations and warranties expressly
relate to an earlier date, in which case as of such earlier date), and (2) the representations and warranties of the Company set
forth in the Merger Agreement (other than the Company Fundamental Representations) shall be true and correct as of the Expiration Date
as though made as of the Expiration Date (except to the extent such representations and warranties expressly relate to an earlier date,
in which case as of such earlier date), except for inaccuracies of representations or warranties the circumstances giving rise to which
would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect (it being understood that, for
purposes of determining the accuracy of such representations and warranties, all materiality, “Material Adverse Effect” and
similar qualifiers set forth in such representations and warranties shall be disregarded);
(iv) a
Material Adverse Effect with respect to the Company and its subsidiaries, taken as a whole, shall have occurred and be continuing;
(v) Parent
and Purchaser shall have not received a certificate, signed on behalf of the Company by its chief executive officer or chief financial
officer, certifying that the conditions set forth in clauses (b)(iii)(A), (b)(iii)(B) and (b)(iv) have been satisfied as of
the Expiration Date;
(vi) the
Merger Agreement shall have been validly terminated in accordance with its terms; or
(viii) the
Closing Net Cash is less than $95,000,000.
The conditions set forth
in this Exhibit B are for the benefit of Parent and Purchaser and (except for the conditions set forth in clauses (a) and
(b)(iv)) may be waived by Parent or Purchaser in whole or in part at any time or from time to time subject to the terms and conditions
of the Merger Agreement and the applicable rules and regulations of the SEC.
Capitalized terms used in
this Exhibit B and not otherwise defined shall have the respective meanings assigned thereto in the Merger Agreement to which
this Exhibit B is attached (the “Merger Agreement”).
EXHIBIT C
AMENDED AND RESTATED CERTIFICATE OF INCORPORATION
OF THE SURVIVING CORPORATION
AMENDED AND RESTATED CERTIFICATE OF INCORPORATION
OF
ASSERTIO HOLDINGS, INC.
ARTICLE I
NAME
The name of this corporation is Assertio Holdings, Inc.
ARTICLE II
REGISTERED OFFICE AND AGENT
The address of the registered
office of the corporation in the State of Delaware is 131 Continental Drive, Suite 301, Newark, Delaware 19713-4323 and the name
of the registered agent of the Corporation at such address is InCorp Services, Inc.
ARTICLE III
PURPOSE
The purpose of this corporation
is to engage in any lawful act or activity for which a corporation may be organized under the Delaware General Corporation Law (the “DGCL”).
ARTICLE IV
CAPITAL STOCK
This corporation is authorized
to issue only one class of stock, which shall be designated “Common Stock”. The total number of shares of Common Stock
presently authorized is One Thousand (1,000) shares, each having a par value of $0.00001.
ARTICLE V
MANAGEMENT OF THE BUSINESS OF THE CORPORATION
The management of the business
and the conduct of the affairs of the corporation shall be vested in its Board of Directors. The number of directors which shall constitute
the whole Board of Directors shall be fixed by the Board of Directors in the manner provided in the Bylaws of the corporation. The directors
of the corporation need not be elected by written ballot unless the Bylaws of the corporation so provide.
ARTICLE VI
LIMITATION OF LIABILITY OF DIRECTORS
A. To
the fullest extent permitted by the DGCL, as the same exists or as may hereafter be amended, no director of the corporation shall be
personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director.
B. Any
amendment, alteration or repeal of this Article VI shall be prospective only and shall not adversely affect any right of a director
with respect to any proceeding involving any occurrence or alleged occurrence of any action or omission to act that took place prior
to such amendment, alteration or repeal.
ARTICLE VII
AMENDMENT OF CERTIFICATE OF INCORPORATION AND BYLAWS
The corporation reserves
the right to amend, alter, change or repeal any provision contained in this Amended and Restated Certificate of Incorporation, in the
manner now or hereafter prescribed by statute, and all rights conferred upon the stockholders herein are granted subject to this reservation.
The Board of Directors is expressly empowered to adopt, amend or repeal the Bylaws of the corporation. The stockholders shall also have
power to adopt, amend or repeal the Bylaws of the corporation; provided, however, that, in addition to any vote of the
holders of any class or series of stock of the corporation required by law or by this Amended and Restated Certificate of Incorporation,
the affirmative vote of the holders of at least a majority of the voting power of all of the then-outstanding shares of the capital stock
of the corporation entitled to vote generally in the election of directors, voting together as a single class, shall be required to adopt,
amend or repeal any provision of the Bylaws of the corporation.
ARTICLE VIII
FORUM
Unless the corporation consents
in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum
for (a) any derivative action or proceeding brought on behalf of the corporation, (b) any action asserting a claim for breach
of a fiduciary duty owed by any director, officer, employee or agent of the corporation to the corporation or the corporation’s
stockholders, (c) any action asserting a claim arising pursuant to any provision of the DGCL, this Certificate of Incorporation
or the Bylaws or (d) any action asserting a claim governed by the internal affairs doctrine, in each case subject to said Court
of Chancery having personal jurisdiction over the indispensable parties named as defendants therein.
* * *
EXHIBIT D
AMENDED AND RESTATED BYLAWS OF THE SURVIVING
CORPORATION
D-1
AMENDED AND RESTATED BYLAWS
OF
ASSERTIO HOLDINGS, INC.
(A DELAWARE CORPORATION)
Dated as of [●], 2026
D-2
TABLE OF CONTENTS
Page
ARTICLE I STOCKHOLDERS’ ACTIONS
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Section 1.1
Place of Meetings
D-5
Section 1.2
Annual Meeting
D-5
Section 1.3
Special Meetings
D-6
Section 1.4
Notice of Meetings
D-6
Section 1.5
Adjournment and Notice of Adjourned Meetings
D-6
Section 1.6
Record Date
D-6
Section 1.7
Quorum
D-7
Section 1.8
Voting
D-7
Section 1.9
List of Stockholders
D-8
Section 1.10
Action Without Meeting
D-8
Section 1.11
Organization
D-9
ARTICLE II DIRECTORS
D-10
Section 2.1
Powers
D-10
Section 2.2
Number and Qualifications
D-10
Section 2.3
Term of Office
D-10
Section 2.4
Resignation
D-10
Section 2.5
Removal
D-10
Section 2.6
Vacancies
D-10
Section 2.7
Meetings
D-10
Section 2.8
Quorum and Voting
D-11
Section 2.9
Action Without Meeting
D-11
Section 2.10
Committees
D-11
Section 2.11
Chairman of the Board; Vice Chairman of the Board
D-12
Section 2.12
Fees and Compensation
D-13
ARTICLE III OFFICERS
D-13
Section 3.1
Officers Designated
D-13
Section 3.2
Tenure of Officers
D-13
Section 3.3
Duties of Officers
D-13
Section 3.4
Execution of Corporate Instruments
D-14
Section 3.5
Voting of Securities Owned by the Company
D-14
Section 3.6
Salaries
D-15
Section 3.7
Loans
D-15
Section 3.8
Delegation of Authority
D-15
D-3
ARTICLE IV SHARES OF STOCK
D-15
Section 4.1
Form and Execution of Certificates
D-15
Section 4.2
Lost Certificates
D-15
ARTICLE V TRANSFERS OF SHARES
D-16
Section 5.1
Transfers
D-16
Section 5.2
Registered Stockholders
D-16
Section 5.3
Notice of Transfer
D-16
ARTICLE VI
DIVIDENDS
D-16
Section 6.1
Declaration of Dividends
D-16
Section 6.2
Dividend Reserve
D-16
Section 6.3
Record Date
D-16
ARTICLE VII INDEMNIFICATION AND ADVANCEMENT OF EXPENSES
D-17
Section 7.1
Right to Indemnification
D-17
Section 7.2
Right to Advancement of Expenses
D-18
Section 7.3
Right of Indemnitee to Bring Suit
D-19
Section 7.4
Non-Exclusivity of Rights
D-19
Section 7.5
Insurance
D-19
Section 7.6
Indemnification of Employees and Agents of the Company
D-19
Section 7.7
Nature of Rights
D-19
Section 7.8
Settlement of Claims
D-20
Section 7.9
Severability
D-20
ARTICLE VIII NOTICES
D-20
Section 8.1
Notices to Stockholders
D-20
Section 8.2
Notices to Directors
D-20
Section 8.3
Methods of Notice
D-20
Section 8.4
Notices to Person with Whom Communication Is Unlawful
D-21
ARTICLE IX MISCELLANEOUS
D-21
Section 9.1
Fiscal Year
D-21
Section 9.2
Corporate Seal
D-21
Section 9.3
Annual Report
D-21
Section 9.4
Amendments
D-21
D-4
AMENDED AND RESTATED BYLAWS
OF
ASSERTIO HOLDINGS, INC.
(A DELAWARE CORPORATION)
Article X
STOCKHOLDERS’
ACTIONS
Section 10.1 Place
of Meetings. Meetings of the stockholders of Assertio Holdings, Inc. (the “Company”) may be held at any place
as may be determined from time to time by the board of directors of the Company (the “Board”). The Board may, in its
sole discretion, determine that any such meeting shall be held solely by means of remote communication as provided under the Delaware
General Corporation Law (“DGCL”).
Section 10.2 Annual
Meeting.
(a) The
annual meeting of the stockholders of the Company, for the purpose of the election of directors and for such other business as may lawfully
come before it, shall be held on such date and at such time as may be designated from time to time by the Board; provided that
the Company shall not be required to hold an annual meeting of the stockholders if the stockholders take action by written consent in
accordance with Section 1.10 to elect directors.
(b) At
an annual meeting of the stockholders, only such business shall be conducted as shall have been properly brought before the meeting.
For nominations or other business to be properly brought before an annual meeting by a stockholder, (i) such stockholder must have
given timely notice thereof in writing to the Secretary of the Company and (ii) such other business must be a proper matter for
stockholder action under the DGCL. To be timely, a stockholder’s notice shall be delivered to the Secretary at the principal executive
offices of the Company not later than the close of business on the tenth (10th) day following the day on which notice of such meeting
is first given. Such stockholder’s notice shall set forth (A) as to each person whom the stockholder proposed to nominate
for election or reelection as a director, such person’s name and qualifications to serve as a director of the Company, (B) as
to any other business that the stockholder proposes to bring before the meeting, a brief description of the business desired to be brought
before the meeting, the reasons for conducting such business at the meeting and any material interest in such business of such stockholder
and the beneficial owner, if any, on whose behalf the proposal is made and (C) as to the stockholder giving the notice and the beneficial
owner, if any, on whose behalf the nomination or proposal is made (x) the name and address of such stockholder, as they appear on
the Company’s books, and of such beneficial owner, and (y) the class and number of shares of the Company which are owned beneficially
and of record by such stockholder and such beneficial owner.
D-5
(c) Only
such persons who are nominated in accordance with the procedures set forth in this Section 1.2 shall be eligible to serve as directors
and only such business shall be conducted at a meeting of stockholders as shall have been brought before the meeting in accordance with
the procedures set forth in this Section 1.2. Except as otherwise provided by law, the Chairman of the meeting shall have the power
and duty to determine whether a nomination or any business proposed to be brought before the meeting was made, or proposed, as the case
may be, in accordance with the procedures set forth in these Amended and Restated Bylaws of the Company (these “Bylaws”)
and, if any proposed nomination or business is not in compliance with these Bylaws, to declare that such defective proposal or nomination
shall not be presented for stockholder action at the meeting and shall be disregarded.
Section 10.3 Special
Meetings. Special meetings of the stockholders of the Company may be called, for any purpose or purposes, by the Chief Executive
Officer or the Board.
Section 10.4 Notice
of Meetings. Except as otherwise provided by law, notice, given in writing or by electronic transmission, of each meeting of stockholders
shall be given not less than ten (10) nor more than sixty (60) days before the date of the meeting to each stockholder entitled
to vote at such meeting, such notice to specify the place, if any, date and hour, in the case of special meetings, the purpose or purposes
of the meeting, and the means of remote communications, if any, by which stockholders and proxyholders may be deemed to be present in
person and vote at any such meeting. If mailed, notice is given when deposited in the United States mail, postage prepaid, directed to
the stockholder at such stockholder’s address as it appears on the records of the Company. Notice of the time, place, if any, and
purpose of any meeting of stockholders may be waived in writing, signed by the person entitled to notice thereof or by electronic transmission
by such person, either before or after such meeting, and will be waived by any stockholder by his presence in person, by remote communication,
if applicable, or by proxy, except when the stockholder attends a meeting for the express purpose of objecting, at the beginning of the
meeting, to the transaction of any business because the meeting is not lawfully called or convened. Any stockholder so waiving notice
of such meeting shall be bound by the proceedings of any such meeting in all respects as if due notice thereof had been given.
Section 10.5 Adjournment
and Notice of Adjourned Meetings. Any meeting of stockholders, whether annual or special, may be adjourned from time to time either
by the chairman of the meeting or by the vote of a majority of the shares present in person, by remote communication, if applicable,
or represented by proxy. When a meeting is adjourned to another time or place, if any, notice need not be given of the adjourned meeting
if the time and place, if any, thereof are announced at the meeting at which the adjournment is taken. At the adjourned meeting, the
Company may transact any business which might have been transacted at the original meeting. If the adjournment is for more than thirty
(30) days or, if after the adjournment, a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall
be given to each stockholder of record entitled to vote at the meeting.
Section 10.6 Record
Date. In order that the Company may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or
any adjournment thereof, the Board may fix, in advance, a record date, which record date shall not precede the date upon which the resolution
fixing the record date is adopted by the Board, and which record date shall, subject to applicable law, not be less than ten (10) nor
more than sixty (60) days before the date of such meeting. If no record date is fixed by the Board, the record date for determining stockholders
entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on
which notice is given, or if notice is waived, at the close of business on the day preceding the day on which the meeting is held. A
determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment
of the meeting; provided, however, that the Board may fix a new record date for the adjourned meeting.
D-6
Section 10.7 Quorum.
At all meetings of stockholders, except where otherwise provided by statute or by the Certificate of Incorporation, or by these Bylaws,
the presence in person, by remote communication, if applicable, or by proxy duly authorized, of the holders of a majority of the outstanding
shares of stock entitled to vote shall constitute a quorum for the transaction of business. In the absence of a quorum, any meeting of
stockholders may be adjourned, from time to time, either by the chairman of the meeting or by vote of the holders of a majority of the
shares represented thereat, but no other business shall be transacted at such meeting. The stockholders present at a duly called or convened
meeting, at which a quorum is present, may continue to transact business until adjournment, notwithstanding the withdrawal of enough
stockholders to leave less than a quorum. Where a separate vote by a class or classes or series is required, except where otherwise provided
by the statute or by the Certificate of Incorporation or these Bylaws, a majority of the outstanding shares of such class or classes
or series, present in person, by remote communication, if applicable, or represented by proxy duly authorized, shall constitute a quorum
entitled to take action with respect to that vote on that matter.
Section 10.8 Voting.
(a) Entitlement
to Vote. For the purpose of determining those stockholders entitled to vote at any meeting of the stockholders, except as otherwise
provided by law, including Section 217 of the DGCL (relating to voting rights of fiduciaries, pledgers and joint owners of stock)
and Section 218 of the DGCL (relating to voting trusts and other voting agreements), only persons in whose names shares stand on
the stock records of the Company on the record date, as provided in Section 1.6, shall be entitled to vote at any meeting of stockholders.
Every person entitled to vote or execute consents shall have the right to do so either in person, by remote communication, if applicable,
or by a proxy duly authorized. A proxy so authorized need not be a stockholder. No proxy shall be voted after three years from its date
of creation unless the proxy provides for a longer period.
(b) Required
Vote. Except as otherwise provided by statute, or by the Certificate of Incorporation or these Bylaws, in all matters other than
the election of directors, the affirmative vote of a majority of shares present in person, by remote communication, if applicable, or
represented by proxy duly authorized at the meeting and entitled to vote generally on the subject matter shall be the act of the stockholders.
Except as otherwise provided by statute, or by the Certificate of Incorporation or these Bylaws, directors shall be elected by a plurality
of the votes of the shares present in person, by remote communication, if applicable, or represented by proxy duly authorized at the
meeting and entitled to vote generally on the election of directors. Where a separate vote by a class or classes or series is required,
except where otherwise provided by statute, or by the Certificate of Incorporation or these Bylaws, the affirmative vote of the majority
(or plurality, in the case of the election of directors) of shares of such class or classes or series present in person, by remote communication,
if applicable, or by proxy duly authorized at the meeting shall be the act of such class or classes or series.
D-7
Section 10.9 List
of Stockholders. The Secretary shall prepare and make, at least ten (10) days before every meeting of stockholders, a complete
list of the stockholders entitled to vote at such meeting, arranged in alphabetical order, showing the address of each stockholder and
the number of shares registered in the name of each stockholder. Such list shall be open to the examination of any stockholder, for any
purpose germane to the meeting during ordinary business hours, at the principal place of business of the Company or on a reasonably accessible
electronic network. In the event that the Company determines to make the list available on an electronic network, information required
to gain access to such list shall be provided with the notice of the meeting; provided, however, that the Company may take
reasonable steps to ensure that such information is available only to stockholders of the Company. The list shall be open to examination
of any stockholder during the time of the meeting as provided by law.
Section 10.10 Action
Without Meeting.
(a) Unless
otherwise provided in the Certificate of Incorporation, any action required or permitted to be taken at any annual or special meeting
of the stockholders may be taken without a meeting, without prior notice and without a vote, if a consent in writing or by electronic
transmission setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum
number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were
present and voted.
(b) Every
written consent or electronic transmission shall bear the date of signature of each stockholder who signs the consent, and no written
consent or electronic transmission shall be effective to take the corporate action referred to therein unless, within sixty (60) days
of the earliest dated consent delivered to the Company in the manner herein required, written consents or electronic transmissions signed
by a sufficient number of stockholders to take action are delivered to the Company by delivery to its registered office in the State
of Delaware, its principal place of business or an officer or agent of the Company having custody of the book in which proceedings of
meetings of stockholders are recorded. Any person executing a consent may provide, whether through instruction to an agent or otherwise,
that such a consent will be effective at a future time (including a time determined upon the happening of an event), no later than sixty
(60) days after such instruction is given or such provision is made, if evidence of such instruction or provision is provided to the
Company, and unless otherwise provided, any such consent shall be revocable prior to its becoming effective. Delivery made to a Company’s
registered office shall be by hand or by certified or registered mail, return receipt requested. Any copy, facsimile or other reliable
reproduction of a consent in writing may be substituted or used in lieu of the original writing for any and all purposes for which the
original writing could be used, provided that such copy, facsimile or other reproduction shall be a complete reproduction of the entire
original consent.
(c) Prompt
notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those stockholders
who have not consented in writing or by electronic transmission and who, if the action had been taken at a meeting, would have been entitled
to notice of the meeting if the record date for such meeting had been the date that written consents signed by a sufficient number of
stockholders to take action were delivered to the Company as provided in Section 228(c) of the DGCL. If the action which is
consented to is such as would have required the filing of a certificate under any section of the DGCL if such action had been voted on
by stockholders at a meeting thereof, then the certificate filed under such section shall state, in lieu of any statement required by
such section concerning any vote of stockholders, that written consent has been given in accordance with Section 228 of the DGCL.
D-8
(d) An
electronic transmission consenting to an action to be taken and transmitted by a stockholder or proxyholder shall be deemed to be written,
signed and dated for the purposes of this section, provided that any such electronic transmission sets forth or is delivered with information
from which the Company can determine (i) that the electronic transmission was transmitted by the stockholder or proxyholder or by
a person or persons authorized to act for the stockholder and (ii) the date on which such stockholder or proxyholder or authorized
person or persons transmitted such electronic transmission. The date on which such electronic transmission is transmitted shall be deemed
to be the date on which such consent was signed. Notwithstanding the foregoing limitations on delivery, consents given by electronic
transmission may be otherwise delivered to the principal place of business of the Company or to an officer or agent of the Company having
custody of the book in which proceedings of meetings of stockholders are recorded if, to the extent and in the manner provided by resolution
of the Board.
(e) Any
stockholder of record seeking to have the stockholders authorize or take corporate action by written consent shall, by written notice
to the Secretary, request the Board to fix a record date. The Board shall promptly, but in all events within ten (10) days after
the date on which such a request is received, adopt a resolution fixing the record date. If no record date has been fixed by the Board
within ten (10) days of the date on which such a request is received, the record date for determining stockholders entitled to consent
to corporate action in writing without a meeting, when no prior action by the Board is required by applicable law, shall be the first
date on which a signed written consent setting forth the action taken or proposed to be taken is delivered to the Company by delivery
to its registered office in the State of Delaware, its principal place of business or an officer or agent of the Company having custody
of the book in which proceedings of meetings of stockholders are recorded. If no record date has been fixed by the Board and prior action
by the Board is required by law, the record date for determining stockholders entitled to consent to corporate action in writing without
a meeting shall be at the close of business on the day on which the Board adopts the resolution taking such prior action.
Section 10.11 Organization.
(a) At
every meeting of stockholders, the Chairman of the Board, or, if a Chairman has not been appointed or is absent, the President, or, if
the President is absent, a chairman of the meeting chosen by a majority in interest of the stockholders entitled to vote present in person
or by proxy, shall act as chairman. The Secretary, or, in his absence, an Assistant Secretary directed to do so by the President, shall
act as secretary of the meeting.
(b) The
Board shall be entitled to make such rules or regulations for the conduct of meetings of stockholders as it shall deem necessary,
appropriate or convenient. Subject to such rules and regulations of the Board, if any, the chairman of the meeting shall have the
right and authority to prescribe such rules, regulations and procedures and to do all such acts as, in the judgment of such chairman,
are necessary, appropriate or convenient for the proper conduct of the meeting.
D-9
Article XI
DIRECTORS
Section 11.1 Powers.
The business and affairs of the Company shall be managed by or under the direction of the Board, except as may be otherwise provided
by statute or by the Certificate of Incorporation.
Section 11.2 Number
and Qualifications. The authorized number of directors of the Company shall be fixed by the Board from time to time. Directors need
not be stockholders unless so required by the Certificate of Incorporation.
Section 11.3 Term
of Office. Except as otherwise provided by law, or by the Certificate of Incorporation or these Bylaws, directors shall serve until
their successors are duly elected and qualified or until their earlier death, resignation or removal. No decrease in the number of directors
constituting the Board shall shorten the term of any incumbent director.
Section 11.4 Resignation.
Any director may resign at any time by delivering his or her notice in writing or by electronic transmission to the Secretary, such resignation
to specify whether it will be effective at a particular time, upon receipt by the Secretary or at the pleasure of the Board. If no such
specification is made, it shall be deemed effective at the pleasure of the Board.
Section 11.5 Removal.
Subject to any limitations imposed by applicable law, the Board or any director may be removed from office at any time by the affirmative
vote of the holders of a majority of the voting power of all then-outstanding shares of capital stock of the Company entitled to vote
generally at an election of directors.
Section 11.6 Vacancies.
Unless otherwise provided in the Certificate of Incorporation, and subject to the rights of the holders of any series of Preferred Stock,
any vacancies on the Board resulting from death, resignation, disqualification, removal or other causes and any newly created directorships
resulting from any increase in the number of directors shall be filled only by the affirmative vote of a majority of the directors then
in office, even though less than a quorum of the Board, or by a sole remaining director, provided, however, that whenever
the holders of any class or classes of stock or series thereof are entitled to elect one or more directors by the provisions of the Certificate
of Incorporation, vacancies and newly created directorships of such class or classes or series shall be filled by a majority of the directors
elected by such class or classes or series thereof then in office, or by a sole remaining director so elected.
Section 11.7 Meetings.
(a) Regular
Meetings. Unless otherwise provided in the Certificate of Incorporation, regular meetings of the Board may be held at such time,
date and place as has been designated by the Board and of which all directors have been notified, either orally or in writing. No further
notice shall be required for a regular meeting of the Board.
D-10
(b) Special
Meetings. Unless otherwise provided in the Certificate of Incorporation, special meetings of the Board may be held at any time and
place whenever called by the Chairman of the Board, the President or any two of the directors.
(c) Notice
of Special Meetings. Notice of the time and place of all special meetings of the Board shall be made, orally or in writing, and delivered
manually or by electronic transmission, at least twenty-four (24) hours before the date and time of the meeting. If notice is sent by
US mail, it shall be sent by first class mail, postage prepaid at least three (3) days before the date of the meeting. Notice of
any meeting may be waived in writing or by electronic transmission at any time before or after the meeting and will be waived by any
director by attendance thereat, except when the director attends the meeting for the express purpose of objecting, at the beginning of
the meeting, to the transaction of any business because the meeting is not lawfully called or convened. The transaction of all business
at any special meeting of the Board, or any committee thereof, however called or noticed, shall be valid as though the meeting had been
duly held after regular call and notice, if a quorum is present and, either before or after the meeting, each of the directors not present
who did not receive notice shall sign a written waiver of notice or shall waive notice by electronic transmission. All such waivers shall
be filed with the corporate records or made a part of the minutes of the meeting.
(d) Meetings
by Electronic Communications Equipment. Any member of the Board, or of any committee thereof, may participate in a meeting by telephone
or other electronic communications equipment by means of which all persons participating in the meeting can hear each other, and participation
in a meeting by such means shall constitute presence in person at such meeting.
Section 11.8 Quorum
and Voting.
(a) Unless
the Certificate of Incorporation requires a greater number, a quorum of the Board shall consist of a majority of the total number of
directors; provided, however, at any meeting, whether or not a quorum is present, a majority of the directors present may
adjourn from time to time until the time fixed for the next regular meeting of the Board, without notice other than by announcement at
the meeting.
(b) At
each meeting of the Board at which a quorum is present, all questions and business shall be determined by the affirmative vote of a majority
of the directors present, unless a different vote be required by law, or by the Certificate of Incorporation or these Bylaws.
Section 11.9 Action
Without Meeting. Unless otherwise provided in the Certificate of Incorporation, any action required or permitted to be taken at any
meeting of the Board or of any committee thereof may be taken without a meeting, if all members of the Board or committee, as the case
may be, consent thereto in writing or by electronic transmission, and such writings or transmissions are filed with the minutes of proceedings
of the Board or committee.
Section 11.10 Committees.
(a) Establishment
and Composition. The Board may establish one or more committees, each consisting of one or more directors, each of whom shall serve
as a member of such committee until his or her death, resignation or removal from the committee or from the Board. Unless otherwise provided
in the Certificate of Incorporation, the Board may at any time increase or decrease the number of members of a committee or terminate
the existence of a committee. The Board may at any time for any reason remove any individual committee member and the Board may fill
any committee vacancy created by death, resignation, removal or increase in the number of members of the committee. The Board may designate
one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the
committee, and, in addition, in the absence or disqualification of any member of a committee, the member or members thereof present at
any meeting and not disqualified from voting, whether or not he, she or they constitute a quorum, may unanimously appoint another member
of the Board to act at the meeting in the place of any such absent or disqualified member.
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(b) Powers.
Each committee shall have such powers and perform such duties as may be prescribed by the resolutions creating such committees, but in
no event shall any such committee have any power or authority in reference to (i) approving or adopting, or recommending to the
stockholders, any action or matter expressly required by the DGCL to be submitted to stockholders for approval, or (ii) adopting,
amending or repealing any bylaw of the Company.
(c) Meetings.
Unless the Board shall otherwise provide, regular meetings of any committee appointed pursuant to this Section 2.10 shall be held
at such times and places as are determined by the Board, or by any such committee, and when notice thereof has been given to each member
of such committee, no further notice of such regular meetings need be given thereafter. Special meetings of any such committee may be
held at any place which has been determined from time to time by such committee, and may be called by any director who is a member of
such committee, upon notice to the members of such committee of the time and place of such special meeting given in the manner provided
for the giving of notice to members of the Board of the time and place of special meetings of the Board. Notice of any special meeting
of any committee may be waived in writing at any time before or after the meeting and will be waived by any director by attendance thereat,
except when the director attends such special meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction
of any business because the meeting is not lawfully called or convened.
(d) Quorum
and Voting. Unless otherwise provided by the Board in the resolutions authorizing the creation of the committee, a majority of the
authorized number of members of any such committee shall constitute a quorum for the transaction of business, and the act of a majority
of those present at any meeting at which a quorum is present shall be the act of such committee.
Section 11.11 Chairman
of the Board; Vice Chairman of the Board. The Board may appoint from its members a Chairman of the Board and a Vice Chairman of the
Board. If the Board appoints a Chairman of the Board or a Vice Chairman of the Board, such Chairman or Vice Chairman shall perform such
duties and possess such powers as are assigned by the Board. Unless otherwise provided by the Board, the Chairman of the Board or, in
the Chairman’s absence, the Vice Chairman of the Board, if any, shall preside at all meetings of the Board.
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Section 11.12 Fees
and Compensation. Directors shall be entitled to such compensation for their services as may be approved from time to time by the
Board, including, if so approved, a fixed sum and expenses of attendance, if any, for attendance at each regular or special meeting of
the Board and at any meeting of a committee of the Board. Nothing herein contained shall be construed to preclude any director from serving
the Company in any other capacity as an officer, agent, employee or otherwise and receiving compensation therefor.
Article XII
OFFICERS
Section 12.1 Officers
Designated. The officers of the Company shall include, if and when designated by the Board, the Chief Executive Officer, the President,
one or more Vice Presidents, the Secretary, the Chief Financial Officer and the Treasurer, all of whom shall be elected at any meeting
of the Board. The Board may also appoint one or more Assistant Secretaries, Assistant Treasurers and such other officers and agents with
such powers and duties as it shall deem necessary. The Board may assign such additional titles to one or more of the officers as it shall
deem appropriate. Any one person may hold any number of offices of the Company at any one time unless specifically prohibited therefrom
by law.
Section 12.2 Tenure
of Officers.
(a) General.
All officers shall hold office at the pleasure of the Board and until their successors shall have been duly elected and qualified or
their earlier death, resignation or removal.
(b) Resignations.
Any officer may resign at any time by giving notice in writing or by electronic transmission to the Board or to the President or to the
Secretary. Any such resignation shall be effective when received by the person or persons to whom such notice is given, unless a later
time is specified therein, in which event the resignation shall become effective at such later time. Unless otherwise specified in such
notice, the acceptance of any such resignation shall not be necessary to make it effective. Any resignation shall be without prejudice
to the rights, if any, of the Company under any contract with the resigning officer.
(c) Removal.
Any officer may be removed from office at any time, either with or without cause, by the Board or by any committee or superior officers
upon whom such power of removal may have been conferred by the Board.
(d) Vacancies.
If the office of any officer becomes vacant for any reason, the vacancy may be filled by the Board.
Section 12.3 Duties
of Officers.
(a) Duties
of the Chief Executive Officer. The Chief Executive Officer shall preside at all meetings of the stockholders and at all meetings
of the Board, unless the Chairman of the Board has been appointed and is present. The Chief Executive Officer shall, subject to the direction
of the Board, have general supervision, direction and control of the business and affairs of the Company. The Chief Executive Officer
shall also perform all other duties commonly incident to the office or that are delegated to such officer by the Board from time to time.
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(b) Duties
of President. Unless some other officer has been elected Chief Executive Officer of the Company, the President shall be the chief
executive officer of the Company and shall, subject to the direction of the Board, have general supervision, direction and control of
the business and affairs of the Company. The President shall also perform all other duties commonly incident to the office or that are
delegated to such office by the Board from time to time.
(c) Duties
of Vice Presidents. The Vice Presidents may assume and perform the duties of the President in the absence or disability of the President
or whenever the office of President is vacant. The Vice Presidents shall also perform all other duties commonly incident to their office
or that are delegated to such office by the Board from time to time.
(d) Duties
of Secretary. The Secretary shall attend all meetings of the stockholders and of the Board and shall record all acts and proceedings
thereof in the minute book of the Company. The Secretary shall give notice in conformity with these Bylaws of all meetings of the stockholders
and of all meetings of the Board and any committee thereof requiring notice. The Secretary shall perform all other duties provided for
in these Bylaws and/or that are delegated to such office by the Board from time to time.
(e) Duties
of Chief Financial Officer. The Chief Financial Officer shall keep or cause to be kept the books of account of the Company in a thorough
and proper manner and shall render statements of the financial affairs of the Company in such form and as often as required by the Board
or the Chief Executive Officer. The Chief Financial Officer shall also perform all other duties commonly incident to the office or that
are delegated to such office by the Board from time to time.
(f) Duties
of Treasurer. Unless some other officer has been elected Chief Financial Officer, the Treasurer shall be the chief financial officer
of the Company and shall keep or cause to be kept the books of account of the Company in a thorough and proper manner and shall render
statements of the financial affairs of the Company in such form and as often as required by the Board or the Chief Executive Officer.
The Treasurer shall also perform all other duties commonly incident to the office or that are delegated to such officer by the Board
from time to time.
Section 12.4 Execution
of Corporate Instruments. The Board may, in its discretion, determine the method and designate the signatory officer or officers,
or other person or persons, to execute on behalf of the Company any corporate instrument or document, or to sign on behalf of the Company
the corporate name, or to enter into contracts on behalf of the Company, except where otherwise provided by law or these Bylaws, and
such execution or signature shall be binding upon the Company. Unless authorized or ratified by the Board, no officer, agent or employee
shall have any power or authority to bind the Company by any contract or engagement or to pledge its credit or to render it liable for
any purpose or for any amount. All checks and drafts drawn on banks or other depositaries of funds to the credit of the Company or in
special accounts of the Company shall be signed by such person or persons as the Board shall authorize.
Section 12.5 Voting
of Securities Owned by the Company. All stock and other securities of other companies owned or held by the Company for itself, or
for other parties in any capacity, shall be voted, and all proxies with respect thereto shall be executed, by the person authorized by
resolution of the Board, or, in the absence of such authorization, by the Chairman of the Board, the Chief Executive Officer, the President
or any Vice President.
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Section 12.6 Salaries.
The salaries and other compensation of the officers of the Company shall be fixed by or in the manner designated by the Board.
Section 12.7 Loans.
Except as otherwise prohibited under applicable law, the Company may lend money to, or guarantee any obligation of, or otherwise assist
any officer or other employee of the Company or of its subsidiaries, including any officer or employee who is a director of the Company
or its subsidiaries, whenever, in the judgment of the Board, such loan, guarantee or assistance is in the best interests of the Company
and its stockholders. The loan, guarantee or other assistance may be with or without interest and may be unsecured, or secured in such
manner as the Board shall approve, including, without limitation, a pledge of shares of stock of the Company.
Section 12.8 Delegation
of Authority. The Board may from time to time delegate the powers or duties of any officer to any other officer or agent, notwithstanding
any provision hereof.
Article XIII
SHARES OF STOCK
Section 13.1 Form and
Execution of Certificates. The shares of the Company shall be represented by certificates or, if determined by the Board, may be
uncertificated. Certificates for the shares of stock, if any, shall be in such form as is consistent with the Certificate of Incorporation
and applicable law. Every holder of stock in the Company represented by certificate shall be entitled to have a certificate signed by
or in the name of the Company by any two authorized officers of the Company, certifying the number of shares owned by him or her in the
Company. Any or all of the signatures on the certificate may be facsimiles. In case any officer, transfer agent, or registrar who has
signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent, or registrar
before such certificate is issued, it may be issued with the same effect as if he or she were such officer, transfer agent, or registrar
at the date of issue.
Section 13.2 Lost
Certificates. A new certificate or certificates shall be issued in place of any certificate or certificates theretofore issued by
the Company alleged to have been lost, stolen, or destroyed, upon the making of an affidavit of that fact by the person claiming the
certificate of stock to be lost, stolen, or destroyed. The Company may require, as a condition precedent to the issuance of a new certificate
or certificates, the owner of such lost, stolen, or destroyed certificate or certificates, or the owner’s legal representative,
to agree to indemnify the Company in such manner as it shall require or to give the Company a surety bond in such form and amount as
it may direct as indemnity against any claim that may be made against the Company with respect to the certificate alleged to have been
lost, stolen, or destroyed.
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Article XIV
TRANSFERS OF SHARES
Section 14.1 Transfers.
(a) Transfers
of record of shares of stock of the Company shall be made only upon its books by the holders thereof, in person or by attorney duly authorized,
and, in the case of stock represented by certificate, upon the surrender of a properly endorsed certificate or certificates for a like
number of shares.
(b) The
Company shall have power to enter into and perform any agreement with any number of stockholders of any one or more classes of stock
of the Company to restrict the transfer of shares of stock of the Company of any one or more classes owned by such stockholders in any
manner not prohibited by the DGCL.
Section 14.2 Registered
Stockholders. The Company shall be entitled to recognize the exclusive right of a person registered on its books as the owner of
shares to receive dividends, and to vote as such owner, and shall not be bound to recognize any equitable or other claim to or interest
in such share or shares on the part of any other person whether or not it shall have express or other notice thereof, except as otherwise
provided by the laws of Delaware.
Section 14.3 Notice
of Transfer. If a stockholder desires to sell, transfer, assign, pledge, or otherwise dispose of or encumber any shares of Common
Stock of the Company (the “Common Stock”) or any right or interest therein, whether voluntarily or by operation of
law, or by gift or otherwise (each, a “Transfer”) any shares of Common Stock of the Company, then the stockholder
shall first give written notice thereof to the Company. The notice shall name the proposed transferee and state the number of shares
of Common Stock to be transferred, the proposed consideration, and all other terms and conditions of the proposed Transfer.
Article XV
DIVIDENDS
Section 15.1 Declaration
of Dividends. Dividends upon the capital stock of the Company, subject to the provisions of the Certificate of Incorporation and
applicable law, if any, may be declared by the Board pursuant to law at any regular or special meeting. Dividends may be paid in cash,
in property, or in shares of the capital stock, subject to the provisions of the Certificate of Incorporation and applicable law.
Section 15.2 Dividend
Reserve. Before payment of any dividend, there may be set aside out of any funds of the Company available for dividends such sum
or sums as the Board from time to time, in their absolute discretion, think proper as a reserve or reserves to meet contingencies, or
for equalizing dividends, or for repairing or maintaining any property of the Company, or for such other purpose as the Board shall think
conducive to the interests of the Company, and the Board may modify or abolish any such reserve in the manner in which it was created.
Section 15.3 Record
Date. In order that the Company may determine the stockholders entitled to receive payment of any dividend or other distribution
or allotment of any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or exchange of stock,
or for the purpose of any other lawful action, the Board may fix, in advance, a record date, which record date shall not precede the
date upon which the resolution fixing the record date is adopted, and which record date shall be not more than sixty (60) days prior
to such action. If no record date is fixed, the record date for determining stockholders for any such purpose shall be at the close of
business on the day on which the Board adopts the resolution relating thereto.
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Article XVI
INDEMNIFICATION AND ADVANCEMENT OF EXPENSES
Section 16.1 Right
to Indemnification.
(a) Indemnified
Persons. Each person who was or is a party or is threatened to be made a party to, or was or is otherwise involved in, any action,
suit, arbitration, alternative dispute resolution mechanism, investigation, inquiry, judicial, administrative or legislative hearing,
or any other threatened, pending or completed proceeding, whether brought by or in the right of the Company or otherwise, including any
and all appeals, whether of a civil, criminal, administrative, legislative, investigative or other nature (hereinafter a “Proceeding”),
by reason of the fact that he or she is or was a director or an officer of the Company or while a director or officer of the Company
is or was serving at the request of the Company as a director, officer, employee, agent or trustee of another corporation or of a partnership,
joint venture, trust or other enterprise, including service with respect to an employee benefit plan (hereinafter an “Indemnitee”),
or by reason of anything done or not done by him or her in any such capacity, shall be indemnified and held harmless by the Company to
the fullest extent authorized by the DGCL, as the same exists or may hereafter be amended, against all expense, liability and loss (including
attorneys’ fees, judgments, fines, ERISA excise taxes, penalties and amounts paid in settlement by or on behalf of the Indemnitee)
actually and reasonably incurred by such Indemnitee in connection therewith, all on the terms and conditions set forth in these Bylaws;
provided, however, that, except as otherwise required by law or provided in Section 7.3 with respect to suits to enforce
rights under this Article VII, the Company shall indemnify any such Indemnitee in connection with a Proceeding, or part thereof,
voluntarily initiated by such Indemnitee (including claims and counterclaims, whether such counterclaims are asserted by: (i) such
Indemnitee; or (ii) the Company in a Proceeding initiated by such Indemnitee) only if such Proceeding, or part thereof, was authorized
or ratified by the Board or the Board otherwise determines that indemnification or advancement of expenses is appropriate.
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(b) Request
for Indemnification. To receive indemnification under this Section 7.1, an Indemnitee shall submit a written request to the
Secretary of the Company. Such request shall include documentation or information that is necessary to determine the entitlement of the
Indemnitee to indemnification and that is reasonably available to the Indemnitee. Upon receipt by the Secretary of the Company of such
a written request, the entitlement of the Indemnitee to indemnification shall be determined by the following person or persons who shall
be empowered to make such determination, as selected by the Board (except with respect to clause (v) of this Section 7.1(b)):
(i) the Board by a majority vote of the directors who are not parties to such Proceeding, whether or not such majority constitutes
a quorum; (ii) a committee of such directors designated by a majority vote of such directors, whether or not such majority constitutes
a quorum; (iii) if there are no such directors, or if such directors so direct, by independent legal counsel in a written opinion
to the Board, a copy of which shall be delivered to the Indemnitee; (iv) the stockholders of the Company; or (v) in the event
that a Change of Control (as defined below) has occurred, by independent legal counsel in a written opinion to the Board, a copy of which
shall be delivered to the Indemnitee. The determination of entitlement to indemnification shall be made and, unless a contrary determination
is made, such indemnification shall be paid in full by the Company not later than sixty (60) days after receipt by the Secretary of the
Company of a written request for indemnification. For purposes of this Section 7.1(b), a “Change of Control”
will be deemed to have occurred if, with respect to any particular 24-month period, the individuals who, at the beginning of such 24-month
period, constituted the Board (the “Incumbent Board”), cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual becoming a director subsequent to the beginning of such 24-month period whose
election, or nomination for election by the stockholders of the Company, was approved by a vote of at least a majority of the directors
then comprising the incumbent board shall be considered as though such individual were a member of the Incumbent Board, but excluding,
for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest.
Section 16.2 Right
to Advancement of Expenses.
(a) Eligibility.
The Company shall advance to any person who was or is a party or is threatened to be made a party to any threatened, pending or completed
Proceeding by reason of the fact that such person is or was a director or officer of the Company, or is or was serving at the request
of the Company as a director or officer of another corporation, partnership, joint venture, trust or other enterprise, prior to the final
disposition of the Proceeding, promptly following request therefor, all expenses (including attorneys’ fees) incurred by such person
in connection with such Proceeding; provided, however, that, if required by the DGCL, such advancement of expenses shall
be made only upon delivery to the Company of an undertaking, by or on behalf of such person, to repay all amounts so advanced if it shall
ultimately be determined by final judicial decision (hereinafter, a “Final Adjudication”) of a court of competent
jurisdiction from which there is no further right to appeal that such person is not entitled to be indemnified for such expenses under
this Article VII or otherwise. Each such advancement of expenses shall be made within ten (10) days after the receipt by the
Company of a written request for advancement of expenses.
(b) Request
for Advancement of Expenses. To receive an advancement of expenses under this Section 7.2, an Indemnitee shall submit a written
request to the Secretary of the Company. Such request shall reasonably evidence the expenses incurred by the Indemnitee and shall include
or be accompanied by the undertaking required by Section 7.2(a).
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Section 16.3 Right
of Indemnitee to Bring Suit. In the event that: (a) a determination is made that the Indemnitee is not entitled to indemnification,
(b) payment is not timely made following a determination of entitlement to indemnification pursuant to Section 7.1(b), or (c) an
advancement of expenses is not timely made under Section 7.2(b), then in each case, the Indemnitee may at any time thereafter bring
suit against the Company in a court of competent jurisdiction in the State of Delaware seeking an adjudication of entitlement to such
indemnification or advancement of expenses. If successful in whole or in part in any such suit, or in a suit brought by the Company to
recover an advancement of expenses pursuant to the terms of an undertaking, the Indemnitee shall be entitled to be paid also the expense
of prosecuting or defending such suit to the fullest extent permitted by law. In any suit brought by the Indemnitee to enforce a right
to indemnification hereunder (but not in a suit brought by the Indemnitee to enforce a right to an advancement of expenses) it shall
be a defense that the Indemnitee has not met any applicable standard of conduct for indemnification set forth in the DGCL. Further, in
any suit brought by the Company to recover an advancement of expenses pursuant to the terms of an undertaking, the Company shall be entitled
to recover such expenses upon a Final Adjudication that the Indemnitee has not met any applicable standard of conduct for indemnification
set forth in the DGCL. Neither the failure of the Company (including its directors who are not parties to such action, a committee of
such directors, independent legal counsel or its stockholders) to have made a determination prior to the commencement of such suit that
indemnification of the Indemnitee is proper in the circumstances because the Indemnitee has met the applicable standard of conduct set
forth in the DGCL, nor an actual determination by the Company (including its directors who are not parties to such action, a committee
of such directors, independent legal counsel or its stockholders) that the Indemnitee has not met such applicable standard of conduct,
shall create a presumption that the Indemnitee has not met the applicable standard of conduct or, in the case of such a suit brought
by the Indemnitee, be a defense to such suit. In any suit brought by the Indemnitee to enforce a right to indemnification or to an advancement
of expenses hereunder, or brought by the Company to recover an advancement of expenses pursuant to the terms of an undertaking, the burden
of proving that the Indemnitee is not entitled to be indemnified, or to such advancement of expenses, under applicable law, this Article VII
or otherwise shall be on the Company.
Section 16.4 Non-Exclusivity
of Rights. The rights to indemnification and to the advancement of expenses conferred in this Article VII shall not be exclusive
of any other right which any person may have or hereafter acquire under any law, agreement (including that certain Agreement and Plan
of Merger, dated as of [●], 2026, by and among Zydus Worldwide DMCC, a Dubai limited liability company, Zara Merger Sub Inc., a
Delaware corporation and Assertio Holdings, Inc., a Delaware corporation, and, solely for purposes of Section 9.20 thereof,
Zydus Pharmaceuticals (USA) Inc., a New Jersey corporation), vote of stockholders or disinterested directors, provisions of a certificate
of incorporation or bylaws, or otherwise.
Section 16.5 Insurance.
The Company may maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the Company or
another corporation, partnership, joint venture, trust or other enterprise against any expense, liability or loss, whether or not the
Company would have the power to indemnify such person against such expense, liability or loss under the DGCL.
Section 16.6 Indemnification
of Employees and Agents of the Company. The Company may, to the extent and in the manner permitted by law, and to the extent authorized
from time to time, grant rights to indemnification and to the advancement of expenses to any employee or agent of the Company.
Section 16.7 Nature
of Rights. The rights conferred upon Indemnitees in this Article VII shall be contract rights and such rights shall continue
as to an Indemnitee who has ceased to be a director or officer and shall inure to the benefit of the Indemnitee’s heirs, executors
and administrators. Any amendment, alteration or repeal of this Article VII that adversely affects any right of an Indemnitee or
its successors shall be prospective only and shall not limit or eliminate any such right with respect to any Proceeding involving any
occurrence or alleged occurrence of any action or omission to act that took place prior to such amendment, alteration or repeal.
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Section 16.8 Settlement
of Claims. Notwithstanding anything in this Article VII to the contrary, the Company shall not be liable to indemnify any Indemnitee
under this Article VII for any amounts paid in settlement of any Proceeding effected without the Company’s written consent,
which consent shall not be unreasonably withheld.
Section 16.9 Severability.
If any provision or provisions of this Article VII shall be held to be invalid, illegal or unenforceable as applied to any person
or entity or circumstance for any reason whatsoever, then, to the fullest extent permitted by law: (a) the validity, legality and
enforceability of such provision in any other circumstance and of the remaining provisions of this Article VII (including, without
limitation, all portions of any paragraph of this Article VII containing any such provision held to be invalid, illegal or unenforceable,
that are not by themselves invalid, illegal or unenforceable) and the application of such provision to other persons or entities or circumstances
shall not in any way be affected or impaired thereby; and (b) to the fullest extent possible, the provisions of this Article VII
(including, without limitation, all portions of any paragraph of this Article VII containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall be construed so as to give effect to the intent
that the Company provide protection to the Indemnitee to the fullest extent set forth in this Article VII.
Article XVII
NOTICES
Section 17.1 Notices
to Stockholders. Written notice to stockholders of stockholder meetings shall be given as provided in Section 1.4 herein. Without
limiting the manner by which notice may otherwise be given effectively to stockholders under any agreement or contract with such stockholder,
and except as otherwise required by law, written notice to stockholders for purposes other than stockholder meetings may be sent by United
States mail, nationally recognized overnight courier or by electronic transmission. An affidavit, executed by a duly authorized and competent
employee or other agent of the Company, that notice has been given shall, in the absence of fraud, be prima facie evidence of the facts
therein contained.
Section 17.2 Notices
to Directors. Any notice required to be given to any director may be given by the methods stated in Section 8.1. If such notice
is not delivered personally, it shall be sent to such address as such director shall have filed in writing with the Secretary, or, in
the absence of such filing, to the last known address of such director. An affidavit, executed by a duly authorized and competent employee
or other agent of the Company, that notice has been given shall, in the absence of fraud, be prima facie evidence of the facts therein
contained.
Section 17.3 Methods
of Notice. It shall not be necessary that the same method of giving notice be employed in respect of all recipients of notice, but
one permissible method may be employed in respect of any one or more, and any other permissible method or methods may be employed in
respect of any other or others.
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Section 17.4 Notices
to Person with Whom Communication Is Unlawful. Whenever notice is required to be given, under any provision of law or of the Certificate
of Incorporation or these Bylaws, to any person with whom communication is unlawful, the giving of such notice to such person shall not
be required and there shall be no duty to apply to any governmental authority or agency for a license or permit to give such notice to
such person. Any action or meeting which shall be taken or held without notice to any such person with whom communication is unlawful
shall have the same force and effect as if such notice had been duly given. In the event that the action taken by the Company is such
as to require the filing of a certificate under any provision of the DGCL, the certificate shall state, if such is the fact and if notice
is required, that notice was given to all persons entitled to receive notice except such persons with whom communication is unlawful.
Article XVIII
MISCELLANEOUS
Section 18.1 Fiscal
Year. The fiscal year of the Company shall be fixed by resolution of the Board.
Section 18.2 Corporate
Seal. The Board may adopt a corporate seal. The Company may use such seal by causing it or a facsimile thereof to be impressed or
affixed or reproduced or otherwise.
Section 18.3 Annual
Report. The Company shall cause an annual report to be sent to the stockholders of the Company; provided that if and so long
as there are fewer than one hundred (100) holders of record of the Company’s shares, any requirement of sending an annual report
to the stockholders of the Company under these Bylaws or under applicable law is hereby expressly waived.
Section 18.4 Amendments.
The Board is expressly empowered to adopt, amend or repeal Bylaws of the Company. The stockholders shall also have power to adopt, amend
or repeal the Bylaws of the Company; provided, however, that, in addition to any vote of the holders of any class or series
of stock of the Company required by law or by the Certificate of Incorporation, such action by stockholders shall require the affirmative
vote of the holders of at least a majority of the voting power of all of the then-outstanding shares of the capital stock of the Company
entitled to vote generally in the election of directors, voting together as a single class.
* * *
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EX-99.1 — EXHIBIT 99.1
EX-99.1
Filename: tm2611405d26_ex99-1.htm · Sequence: 3
Exhibit 99.1
Assertio to Be Acquired by Zydus Worldwide DMCC
for $23.50 Per Share in Cash
All-Cash Tender Offer of $23.50 per share or
$166.4 Million
Offer Represents 30.6% Premium to Original Agreement
with Garda Therapeutics AND 75.8% Premium to Unaffected Price
LAKE FOREST, IL., May 13, 2026 – Assertio Holdings, Inc.
(Nasdaq: ASRT) (“Assertio” or the “Company”) today announced that, following an engagement process outlined under
the revised merger agreement (the “Garda Merger Agreement”) with Garda Therapeutics, Inc. (“Garda”), the
Company’s Board of Directors (the “Board”) approved a definitive agreement with Zydus Worldwide DMCC, a subsidiary of
Zydus Lifesciences Limited (“Zydus”) to acquire all outstanding shares of Assertio common stock for $23.50 per share in cash,
representing total consideration of approximately $166.4 million (the “Zydus Offer”). The Board determined that the Zydus
Offer constituted a “Superior Proposal” under the Garda Merger Agreement and authorized the Company to terminate the Garda
agreement announced on May 4, 2026 and enter into the transaction with Zydus (the “Zydus Transaction”).
The Zydus Offer of $23.50 per share in cash represents a 30.6% premium
to the $18.00 per share all-cash transaction with Garda announced on April 8, 2026, a 7.8% premium to the $21.80 per share all-cash
transaction with Garda announced on May 4, 2026, and a 75.8% premium to the Company’s unaffected closing stock price on March 20,
2026 – the day before significant share price and trading volume movement.
In making its determination that the Zydus Offer represented a Superior
Proposal, the Board considered Zydus’ strong execution profile, including that the Zydus Offer has no financing contingencies, requires
no third-party financing, and is fully guaranteed by a creditworthy Zydus entity, providing Assertio with direct recourse in the event
of a breach or failure to close.
Heather Mason, Chair of the Assertio Board of Directors, stated: “We
are pleased that the comprehensive and disciplined strategic review process undertaken by the Board has yielded this outcome. After carefully
evaluating all relevant factors, including price, certainty of value, execution risk and overall transaction terms, the Board determined
that the Zydus offer represents the best path available to Assertio shareholders. I want to thank everyone involved for their continued
dedication throughout this process.”
Transaction Overview
Under the terms of the Zydus Transaction, Zydus will promptly commence
a tender offer to acquire all outstanding shares of Assertio common stock for $23.50 per share in cash, without interest, representing
total cash consideration of approximately $166.4 million. The Board unanimously recommends that Assertio stockholders tender their shares
into the Zydus Transaction.
The Zydus Transaction is expected to close in the second quarter of
2026, subject to customary closing conditions, including the tender of a majority of the Company’s outstanding shares. No regulatory
approvals are expected to be required.
Following the successful completion of the tender offer, Zydus will
acquire any remaining shares through a second-step merger at the same price of $23.50 per share in cash. Upon completion of the transaction,
Assertio’s common stock will no longer be listed on Nasdaq.
Assertio will file a current report on Form 8-K with the U.S.
Securities and Exchange Commission (the “SEC”) containing a summary of the terms and conditions of the Zydus Transaction.
The Company also expects to file a Schedule 14D-9 with the SEC in connection with the tender offer, which will include additional information
regarding the transaction and the strategic review process.
Advisors
Moelis & Company LLC is serving as financial advisor, Gibson,
Dunn & Crutcher LLP as legal counsel, and Longacre Square Partners as strategy and communications advisor to Assertio.
About Assertio
Assertio is a pharmaceutical company with comprehensive commercial
capabilities offering differentiated products designed to address patients’ needs. Our focus is on supporting patients by marketing
products primarily in the oncology market. To learn more about Assertio, visit www.assertiotx.com.
Additional Information and Where to Find It
The tender offer described in this communication has not yet commenced.
This communication is for information purposes only and is neither an offer to buy nor a solicitation of an offer to sell any securities
of Assertio Holdings, Inc. (“Assertio”), nor is it a substitute for the tender offer materials that Zydus Worldwide DMCC
(“Zydus”) and its wholly owned acquisition subsidiary, Zara Merger Sub, Inc. (“Merger Sub”), will file with
the Securities and Exchange Commission (the “SEC”). The solicitation and the offer to buy shares of Assertio’s common
stock will only be made pursuant to a tender offer statement on Schedule TO, including an offer to purchase, a letter of transmittal and
other related materials that Zydus and Merger Sub intend to file with the SEC. In addition, Assertio will file with the SEC a Solicitation/
Recommendation Statement on Schedule 14D-9 with respect to the tender offer.
Once filed, investors will be able to obtain the tender offer statement
on Schedule TO, the offer to purchase, the Solicitation/Recommendation Statement of Assertio on Schedule 14D-9 and related materials with
respect to the tender offer and merger, free of charge at the website of the SEC at www.sec.gov or from the information agent named in
the tender offer materials. Investors may also obtain, at no charge, the documents filed with or furnished to the SEC by Assertio under
the “Investors” section of Assertio’s website at www.assertiotx.com.
STOCKHOLDERS AND INVESTORS ARE STRONGLY ADVISED TO READ THESE DOCUMENTS
WHEN THEY BECOME AVAILABLE, INCLUDING THE SOLICITATION/RECOMMENDATION STATEMENT OF ASSERTIO ON SCHEDULE 14D-9 AND ANY AMENDMENTS
THERETO, AS WELL AS ANY OTHER DOCUMENTS RELATING TO THE TENDER OFFER AND THE MERGER THAT ARE FILED WITH THE SEC, CAREFULLY AND IN THEIR
ENTIRETY PRIOR TO MAKING ANY DECISIONS WITH RESPECT TO WHETHER TO TENDER THEIR SHARES INTO THE TENDER OFFER BECAUSE THEY CONTAIN IMPORTANT
INFORMATION, INCLUDING THE TERMS AND CONDITIONS OF THE TENDER OFFER.
Cautionary Note Regarding Forward-Looking Statements
This communication contains forward-looking statements within the meaning
of the federal securities laws. Forward-looking statements may discuss goals, intentions and expectations as to future plans, trends,
events, results of operations or financial condition, or otherwise, based on current beliefs. Forward-looking statements speak only as
of the date they are made and should not be relied upon as predictions of future events, as there can be no assurance that the events
or circumstances reflected in these statements will be achieved or will occur.
In particular, this communication includes forward-looking statements
regarding Assertio Holdings, Inc. (“Assertio” or the “Company”), the proposed tender offer by Zara Merger
Sub, Inc., a wholly owned subsidiary of Zydus Worldwide DMCC (“Zydus”), to acquire all outstanding shares of the Company’s
common stock and the subsequent merger pursuant to which the Company would become a wholly owned subsidiary of Zydus, including, without
limitation, statements regarding the expected timing and completion of these transactions and the parties’ ability to satisfy the
conditions to consummation.
Forward-looking statements can often, but not always, be identified
by the use of forward-looking terminology such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “goal,” “intend,” “may,” “might,” “opportunity,” “plan,”
“potential,” “project,” “seek,” “should,” “strategy,” “target,”
“will,” or the negative of these words and phrases, other variations of these words and phrases or comparable terminology.
These forward-looking statements are based upon current estimates and
assumptions and are subject to various risks and uncertainties, many of which are beyond the Company’s control and subject to change.
Actual results could differ materially from those expressed or implied by these forward-looking statements. Important factors that could
cause actual results to differ materially include, among others: risks associated with the timing of the closing of the proposed transaction,
including the risks that a condition to closing would not be satisfied within the expected timeframe or at all or that the closing of
the proposed transaction will not occur in which case Rolvedon would be the Company’s only product; uncertainties as to how many
of the Company’s stockholders will tender their shares in the offer; the possibility that competing offers will be made; the possibility
that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction; the occurrence of
any event, change or other circumstance that could give rise to the termination of the transaction; the outcome of any legal proceedings
that may be instituted against the parties and others related to the transaction; unanticipated difficulties or expenditures relating
to the proposed transaction; the effect of the announcement or pendency of the proposed transaction on the Company’s business and
operating results (including the response of business partners and competitors and potential difficulties in employee retention as a result
of the announcement and pendency of the proposed transaction); risks related to the diverting of management’s attention from the
Company’s ongoing business operations; and other risks and uncertainties identified in the Company’s filings with the U.S.
Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings.
Many of these risks and uncertainties may be exacerbated by public health emergencies and general macroeconomic conditions.
The foregoing list of factors is not exhaustive. You should not place
undue reliance on any forward-looking statements. The Company does not assume, and hereby disclaims, any obligation to update or revise
any forward-looking statements, except as required by law.
Investor and Media Contact
Longacre Square Partners
assertio@longacresquare.com
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