Form 8-K
8-K — Forge Nano Holdings, Inc.
Accession: 0001104659-26-119178
Filed: 2026-10-27
Period: 2026-10-21
CIK: 0002101833
SIC: 3559 (SPECIAL INDUSTRY MACHINERY, NEC)
Item: Entry into a Material Definitive Agreement
Item: Completion of Acquisition or Disposition of Assets
Item: Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Item: Unregistered Sales of Equity Securities
Item: Material Modifications to Rights of Security Holders
Item: Changes in Control of Registrant
Item: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
Item: Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
Item: Amendments to the Registrant's Code of Ethics, or Waiver of a Provision of the Code of Ethics
Item: Change in Shell Company Status
Item: Financial Statements and Exhibits
Documents
8-K — tm2628316d1_8k.htm (Primary)
EX-3.1 — EXHIBIT 3.1 (tm2628316d1_ex3-1.htm)
EX-3.2 — EXHIBIT 3.2 (tm2628316d1_ex3-2.htm)
EX-4.1 — EXHIBIT 4.1 (tm2628316d1_ex4-1.htm)
EX-4.2 — EXHIBIT 4.2 (tm2628316d1_ex4-2.htm)
EX-4.5 — EXHIBIT 4.5 (tm2628316d1_ex4-5.htm)
EX-4.6 — EXHIBIT 4.6 (tm2628316d1_ex4-6.htm)
EX-10.2 — EXHIBIT 10.2 (tm2628316d1_ex10-2.htm)
EX-10.3 — EXHIBIT 10.3 (tm2628316d1_ex10-3.htm)
EX-10.4 — EXHIBIT 10.4 (tm2628316d1_ex10-4.htm)
EX-10.5 — EXHIBIT 10.5 (tm2628316d1_ex10-5.htm)
EX-10.6 — EXHIBIT 10.6 (tm2628316d1_ex10-6.htm)
EX-10.14 — EXHIBIT 10.14 (tm2628316d1_ex10-14.htm)
EX-10.15 — EXHIBIT 10.15 (tm2628316d1_ex10-15.htm)
EX-10.16 — EXHIBIT 10.16 (tm2628316d1_ex10-16.htm)
EX-14.1 — EXHIBIT 14.1 (tm2628316d1_ex14-1.htm)
EX-21.1 — EXHIBIT 21.1 (tm2628316d1_ex21-1.htm)
EX-99.1 — EXHIBIT 99.1 (tm2628316d1_ex99-1.htm)
EX-99.2 — EXHIBIT 99.2 (tm2628316d1_ex99-2.htm)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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):
October 21, 2026
FORGE NANO HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Delaware
001-43517
41-2980280
(State or other jurisdiction of
incorporation or organization)
(Commission
File No.)
(IRS Employer
identification number)
12300 Grant Street, Suite 100
Thornton, CO
80241
(Address of principal executive offices)
(Zip Code)
(720) 259-8579
(Registrant’s telephone number, including area code)
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:
¨
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))
¨
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, par value $0.0001 per share
NANO
The Nasdaq Stock Market LLC
Warrants, each whole warrant exercisable for one share of Common Stock at an exercise price of $11.50 per share
NANOW
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 x
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. ¨
INTRODUCTORY NOTE
On April 20, 2026, Archimedes Tech SPAC Partners
II Co., a Cayman Islands exempted company (“ATII”), entered into that certain Agreement and Plan of Merger (the “Merger
Agreement”), by and among ATII, ATII Holdings Inc., a Delaware corporation and a wholly-owned subsidiary of ATII (“Pubco”),
ATII Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of ATII (“Merger Sub I”), ATII Merger Sub II, LLC,
a Delaware limited liability company and a wholly-owned subsidiary of ATII (“Merger Sub II”), and Forge Nano, Inc., a Delaware
corporation (“Forge Nano”).
At the extraordinary general meeting of ATII held
on October 16, 2026 (the “Extraordinary General Meeting”), the holders of ATII Ordinary Shares (as defined below) approved
the Business Combination (as defined below) and the other proposals described in the definitive proxy statement/prospectus, dated September
22, 2026 (the “Proxy Statement/Prospectus”), filed with the U.S. Securities and Exchange Commission (the “SEC”)
on September 24, 2026, which forms a part of the registration statement on Form S-4 (File No. 333-295563) under the Securities Act of
1933, as amended (the “Securities Act”), initially filed with the SEC on May 5, 2026 and declared effective by the SEC on
September 22, 2026.
As described in more detail below, on October 21,
2026, ATII consummated the Domestication Merger (as defined below) and, on October 22, 2026 (the “Closing Date”), the parties
to the Merger Agreement consummated the Company Mergers (as defined below) and the other transactions contemplated by the Merger Agreement
(the “Closing”).
Unless context otherwise requires, “we,”
“us,” “our” and the “Company” refer to Forge Nano Holdings, Inc. (formerly known as ATII Holdings
Inc.) and its consolidated subsidiaries after giving effect to the Business Combination, and “Pubco” refers to such entity
prior to giving effect to the Business Combination. Capitalized terms used but not defined in this Current Report on Form 8-K (this “Report”)
have the meanings given to them in the Proxy Statement/Prospectus, and such definitions are incorporated herein by reference.
Domestication Merger
Pursuant to the Merger Agreement and as described
in the section titled “Proposal No. 1 – The Business Combination Proposal” beginning on page 140 of the Proxy Statement/Prospectus,
on October 21, 2026, ATII re-domiciled and became a Delaware corporation by merging with and into Pubco (the “Domestication Merger”),
following which the separate corporate existence of ATII ceased and Pubco continued as the surviving corporation. At the effective time
of the Domestication Merger (the “Domestication Merger Effective Time”), Pubco adopted Delaware organizational documents (the
Charter and the Bylaws, each as defined in Item 5.03 below), which provide, among other things, that the name of Pubco was changed to
“Forge Nano Holdings, Inc.”
Immediately prior to the Domestication Merger Effective
Time, each then issued and outstanding unit of ATII (an “ATII Unit”) separated and converted automatically into one ordinary
share, par value $0.0001 per share, of ATII (an “ATII Ordinary Share”) and one-half of one warrant of ATII, each whole warrant
entitling the holder thereof to acquire one ATII Ordinary Share at a purchase price of $11.50 per share (the “ATII Warrants”),
and all ATII Units ceased to be outstanding and ceased to exist. At the Domestication Merger Effective Time, each then issued and outstanding
ATII Ordinary Share was cancelled in exchange for the right to receive one share of common stock, par value $0.0001 per share, of Pubco
(each, a share of “Pubco Common Stock”) and each whole ATII Warrant that was outstanding and unexercised converted automatically
into a warrant to acquire one share of Pubco Common Stock at a purchase price of $11.50 per share (each, a “Pubco SPAC Warrant”),
pursuant to the terms of the Warrant Agreement, dated as of February 10, 2025 (as assumed by Pubco pursuant to the Assumption of Warrant
Agreement dated as of October 21, 2026, the “ATII Warrant Agreement”), by and between ATII and Odyssey Transfer and Trust
Company, as warrant agent.
2
Company Mergers
On the Closing Date, as contemplated by the Merger
Agreement and as described in the section titled “Proposal No. 1 – The Business Combination Proposal” beginning
on page 140 of the Proxy Statement/Prospectus, the parties to the Merger Agreement consummated the Company Mergers, whereby:
· Merger Sub I merged with and into Forge Nano (the “First Company Merger”), with Forge Nano surviving the First Company
Merger as a wholly-owned subsidiary of the Company (the “Initial Surviving Corporation”);
· at the effective time of the First Company Merger (the “First Effective Time”), (i) each share of each class of preferred
stock, par value $0.0001 per share, of Forge Nano (the “Forge Nano Preferred Stock”) issued and outstanding immediately prior
to the First Effective Time was converted into shares of common stock, par value $0.0001 per share, of Forge Nano (the “Forge Nano
Common Stock”) pursuant to Forge Nano’s organizational documents, and (ii) each share of Forge Nano Common Stock issued and
outstanding immediately prior to the First Effective Time (including shares of Forge Nano Common Stock issued upon conversion of the Forge
Nano Preferred Stock, but excluding treasury shares, which were cancelled) was cancelled and automatically converted into the right to
receive, without interest, the applicable pro rata portion of the Closing Payment Shares, based on an exchange ratio calculated as of
the First Effective Time of approximately 28.5 to 1 (the “Exchange Ratio”);
· in addition, at the First Effective Time, (i) each option to purchase shares of Forge Nano Common Stock (each, a “Forge Nano
Option”) outstanding and unexpired immediately prior to the First Effective Time was converted into an option to purchase shares
of Pubco Common Stock (each, a “Pubco Option”) on substantially the same terms and conditions, including with respect to vesting
and termination-related provisions, except that the number of shares of Pubco Common Stock subject to each Pubco Option equals the product
(rounded down to the nearest whole share) of (a) the number of shares of Forge Nano Common Stock subject to such Forge Nano Option immediately
prior to the First Effective Time and (b) the quotient of the Applicable Per Share Merger Consideration divided by the Equity Award Conversion
Amount (each as defined in the Merger Agreement), and the per-share exercise price of each Pubco Option equals the exercise price per
share of such Forge Nano Option divided by the Equity Award Conversion Amount, rounded up to the nearest whole cent; (ii) each warrant
of Forge Nano (each, a “Forge Nano Warrant”) outstanding and unexpired immediately prior to the First Effective Time was assumed
by the Company and became a corresponding warrant to purchase shares of Pubco Common Stock (each, a “Pubco Forge Nano Warrant”),
subject to the same terms and conditions (including vesting and exercisability) as were applicable to the corresponding Forge Nano Warrant
immediately prior to the First Effective Time; and (iii) each option to acquire securities of Forge Nano held by Ascent Funds International
Management LLC or its affiliates (the “Forge Nano Ascent Options” and, together with the Forge Nano Warrants, the “Forge
Nano Convertible Securities”) outstanding and unexpired immediately prior to the First Effective Time was cancelled and converted
into a warrant to purchase shares of Pubco Common Stock (each, a “Pubco Ascent Warrant” and, together with the Pubco Forge
Nano Warrants, the “Pubco Convertible Securities”) pursuant to the Pubco Ascent Warrant Agreement (as defined below);
· the Company issued an aggregate of 90,000,000 shares of Pubco Common Stock (the “Earn-Out Shares”) to Odyssey Transfer
and Trust Company, as escrow agent (the “Escrow Agent”), which will be disbursed to the former shareholders of Forge Nano
who received Closing Payment Shares and the holders of Pubco Convertible Securities, in proportional amounts, upon the achievement of
the following milestones during the five-year period following the Closing Date: (a) 30,000,000 Earn-Out Shares if the VWAP (as defined
in the Merger Agreement) of the Pubco Common Stock equals or exceeds $15.00 per share over any 30-trading-day period or the revenue publicly
reported by the Company for the preceding twelve months equals or exceeds $400,000,000; (b) 30,000,000 Earn-Out Shares if such VWAP equals
or exceeds $20.00 per share or such revenue equals or exceeds $600,000,000; and (c) 30,000,000 Earn-Out Shares if such VWAP equals or
exceeds $25.00 per share or such revenue equals or exceeds $800,000,000. The milestones operate on a cumulative basis, and Earn-Out Shares
attributable to holders of Pubco Convertible Securities will only be disbursed upon the exercise, conversion or settlement of such Pubco
Convertible Securities in accordance with their terms; and
· immediately following the First Effective Time, the Initial Surviving Corporation merged with and into Merger Sub II (the “Second
Company Merger” and, together with the First Company Merger, the “Company Mergers” and, the Company Mergers together
with the Domestication Merger and the other transactions contemplated by the Merger Agreement, the “Business Combination”),
with Merger Sub II surviving the Second Company Merger as a wholly-owned subsidiary of the Company.
3
The foregoing description of the Business Combination
does not purport to be complete and is qualified in its entirety by the full text of the Merger Agreement, which is attached as Exhibit
2.1 to this Report and is incorporated herein by reference.
PIPE Financing
On April 20, 2026, concurrently with the execution
of the Merger Agreement, ATII, Pubco and Forge Nano entered into a subscription agreement (as amended and restated on October 13, 2026,
the “A&R PIPE Subscription Agreement”) with a certain accredited investor (the “Initial PIPE Investor”), pursuant
to which, substantially concurrently with the Closing, the Company issued and sold to the Initial PIPE Investor for an aggregate purchase
price of $100,000,000 (the “PIPE Financing”) (a) 2,968,825 shares of Pubco Common Stock (the “PIPE Subscribed Shares”)
at a subscription price of $10.00 per share, (b) pre-funded warrants (the “Pre-Funded Warrants”) to purchase an aggregate
of 7,031,175 shares of Pubco Common Stock, each with an exercise price of $0.0001 per share, at a subscription price of $10.00 per Pre-Funded
Warrant, and (c) warrants (the “PIPE Warrants”) to purchase an aggregate of 15,000,000 shares of Pubco Common Stock, each
with an initial exercise price of $10.00 per share (subject to adjustment as described below).
The PIPE Warrants are exercisable at any time after
their issuance and expire five years after the date of issuance. The exercise price of the PIPE Warrants is subject to certain adjustments,
including a one-time reset on the 21st trading day following the six-month anniversary of the Closing Date to the greater of (i) the VWAP
(as defined in the PIPE Warrant Certificate) of the Pubco Common Stock for the twenty trading day period commencing on the date that is
six months after the Closing Date and (ii) a floor price of $5.00 per share (the “PIPE Reset Price”). The terms of the PIPE
Warrants are described in the section of the Proxy Statement/Prospectus titled “Description of Pubco Securities – Warrants
– PIPE Warrants” beginning on page 360, which is incorporated herein by reference.
In the event that on the 21st trading day following
the six-month anniversary of the Closing Date, the VWAP (as defined in the PIPE Warrant Certificate) of the Pubco Common Stock is less
than the Exercise Price (as defined in the PIPE Warrant Certificate), the Company will issue to the Initial PIPE Investor additional warrants
entitling the Initial PIPE Investor to purchase up to 10,000,000 shares of Pubco Common Stock (the “Reset PIPE Warrants”),
in an amount equal to (i) the product of (x) 10,000,000, multiplied by (y) the Exercise Price then in effect divided by
the PIPE Reset Price minus (ii) 10,000,000. In addition, if, on the 24-month anniversary of the Closing Date, the Initial PIPE
Investor certifies in writing that the Initial PIPE Investor beneficially owns 5,000,000 shares of Pubco Common Stock, the Company will
issue to the Initial PIPE Investor additional warrants entitling the Initial PIPE Investor to purchase 5,000,000 shares of Pubco Common
Stock (the “Additional PIPE Warrants”).
Additionally, subsequent to the execution of the
Merger Agreement, ATII, Pubco and Forge Nano entered into subscription agreements (the “Additional PIPE Subscription Agreements”)
with certain other accredited investors (collectively, the “Additional PIPE Investors” and together with the Initial PIPE
Investor, the “PIPE Investors”), pursuant to which, substantially concurrently with the Closing, the Company issued and sold
an aggregate of 2,300,000 shares of Pubco Common Stock (the “Additional PIPE Subscribed Shares”) to the Additional PIPE Investors
at a subscription price of $10.00 per share, for an aggregate purchase price of $23,000,000 (the “Additional PIPE Financing”).
The foregoing description of the A&R PIPE Subscription
Agreement, the PIPE Warrants, the Pre-Funded Warrants, the Reset PIPE Warrants, the Additional PIPE Warrants and the Additional PIPE Subscription
Agreements does not purport to be complete and is qualified in its entirety by the full text of the form of A&R PIPE Subscription
Agreement, the form of PIPE Warrant Certificate, the form of Pre-Funded Warrant and the form of Additional PIPE Subscription Agreements,
which are included as Exhibits 10.1, 4.3, 4.4 and 10.2, respectively, to this Report and are incorporated herein by reference.
4
Outstanding Securities
In connection with the consummation of the Business
Combination and the PIPE Financing, and after giving effect to the redemptions, the Company:
(1) issued an aggregate of 128,655,585 shares of Pubco Common Stock, consisting of:
· 7,370,932 shares of Pubco Common Stock issued to the holders of ATII Ordinary Shares in the Domestication Merger (after giving effect
to the redemptions);
· 116,015,828 shares of Pubco Common Stock issued to the former stockholders of Forge Nano as Closing Payment Shares in the First Company
Merger;
· 5,268,825 shares of Pubco Common Stock issued to the PIPE Investors in the PIPE Financing and the Additional PIPE Financing;
(2) issued 90,000,000 Earn-Out Shares to the Escrow Agent;
(3) issued 11,919,995 Pubco SPAC Warrants in exchange for ATII Warrants in the Domestication Merger;
(4) issued PIPE Warrants exercisable for up to 15,000,000 shares of Pubco Common Stock and Pre-Funded Warrants exercisable for up to 7,031,175
shares of Pubco Common Stock in the PIPE Financing;
(5) issued or assumed Pubco Options, Pubco Forge Nano Warrants and Pubco Ascent Warrants that collectively are exercisable for 15,954,561
shares of Pubco Common Stock; and
(6) granted an aggregate of 8,744,864 Performance Stock Units (“PSUs”) which will vest as follows: (i) one third of the PSUs
will vest if the VWAP of the Pubco Common Stock equals or exceeds $15.00 per share over any 30-trading day period or the revenue of the
Company for the preceding twelve months equals or exceeds $400,000,000, (ii) one third of the PSUs will vest if the VWAP of the Pubco
Common Stock equals or exceeds $20.00 per share over any 30-trading day period or the revenue of the Company for the preceding twelve
months equals or exceeds $600,000,000 and (iii) one third of the PSUs will vest if the VWAP of the Pubco Common Stock equals or exceeds
$25.00 per share over any 30-trading day period or the revenue of the Company for the preceding twelve months equals or exceeds $800,000,000.
In addition, at the Closing, pursuant to the Purchaser
Support Agreement, dated as of April 20, 2026 (the “Purchaser Support Agreement”), by and among ATII, Forge Nano and Archimedes
Tech SPAC Sponsors II LLC (the “Sponsor”), the Sponsor transferred an aggregate of 3,300,000 shares of Pubco Common Stock
(which it received in exchange for Founder Shares in the Domestication Merger) to certain investors at the Closing in connection with
the PIPE Financing for no additional cash consideration.
In connection with the Closing, the OIC Growth
Funds (as defined below) exercised all of their outstanding Forge Nano Warrants in exchange for shares of Forge Nano Common Stock, which
were converted into shares of Pubco Common Stock at the First Effective Time and are included in the 116,015,828 shares of Pubco Common
Stock issued to former stockholders of Forge Nano, as described above.
5
Redemption
In connection with the Extraordinary General Meeting,
holders of 22,219,068 ATII Ordinary Shares sold in ATII’s initial public offering (the “ATII Public Shares”) properly
exercised their right to have such shares redeemed for a per-share price, payable in cash, equal to the pro rata portion of the aggregate
amount then on deposit in the trust account established in connection with ATII’s initial public offering (the “Trust Account”),
calculated as of two business days prior to the consummation of the Business Combination, including interest earned on the funds held
in the Trust Account (net of taxes paid or payable), which was approximately $10.73 per share, or approximately $238.4 million in the
aggregate (the “Redemption”). The remaining balance immediately prior to the Closing of approximately $8.4 million remained
in the Trust Account.
Item 1.01 Entry into a Material Definitive Agreement.
Amended and Restated Registration Rights
Agreement
On the Closing Date, as contemplated by the Merger
Agreement, the Company, the Sponsor and certain significant stockholders of Forge Nano (the “Significant Forge Nano Holders”)
entered into an amended and restated registration rights agreement with respect to their shares of Pubco Common Stock (the “A&R
Registration Rights Agreement”), which amended and restated the Registration Rights Agreement, dated February 10, 2025, by and among
ATII, the Sponsor and the holders signatory thereto. The material terms of the A&R Registration Rights Agreement are described in
the section of the Proxy Statement/Prospectus beginning on page 177 titled “Proposal No. 1 – The Business Combination Proposal
– Additional Agreements – A&R Registration Rights Agreement.” Such description is qualified in its entirety
by the text of the A&R Registration Rights Agreement, which is included as Exhibit 10.3 to this Report and is incorporated herein
by reference.
Lock-Up Agreements
On or prior to the Closing Date, as contemplated
by the Merger Agreement, the Company and Forge Nano entered into lock-up and release agreements (the “Lock-Up Agreements”)
with certain stockholders of Forge Nano (such stockholders, the “Forge Nano Lock-Up Holders”), pursuant to which each Forge
Nano Lock-Up Holder agreed, subject to certain customary exceptions, not to transfer any Lock-Up Shares during the period commencing on
the Closing Date and ending on the earlier of (i) six months after the Closing Date and (ii) the date on which the last reported sale
price of the Pubco Common Stock equals or exceeds $12.00 per share for any 20 trading days within any 30-trading-day period after the
Closing. Each Lock-Up Agreement also contains a release by the applicable Forge Nano Lock-Up Holder, on behalf of itself and its affiliates,
of claims against the Company and its subsidiaries (including Forge Nano) and their respective officers, directors, managers, employees
and representatives arising in its capacity as an equityholder of Forge Nano and its subsidiaries prior to the Closing, subject to certain
customary exceptions. The material terms of the Lock-Up Agreements are described in the section of the Proxy Statement/Prospectus beginning
on page 176 titled “Proposal No. 1 – The Business Combination Proposal – Additional Agreements – Lock-Up Agreement.”
Such description is qualified in its entirety by the text of the form of Lock-Up Agreement, which is included as Exhibit 10.4 to this
Report and is incorporated herein by reference.
Pubco Ascent Warrant Agreement
On the Closing Date, as contemplated by the Merger
Agreement, the Company entered into warrant agreements with the holders party thereto (the “Pubco Ascent Warrant Agreements”),
which govern the Pubco Ascent Warrants issued upon the conversion of the Forge Nano Ascent Options at the First Effective Time. Immediately
following the Closing, Pubco Ascent Warrants to purchase an aggregate of 3,562,305 shares of Pubco Common Stock were outstanding, consisting
of (i) Pubco Ascent Warrants to purchase 2,351,238 shares of Pubco Common Stock at an exercise price of $3.40 per share, which expire
on December 31, 2028 (subject to extension to December 31, 2029 at the holder’s election, in which case the exercise price applicable
to any exercise occurring between January 1, 2029 and December 31, 2029 will increase by 25%), and (ii) Pubco Ascent Warrants to purchase
1,211,067 shares of Pubco Common Stock at an exercise price of $9.83 per share, which expire on December 31, 2029. The material terms
of the Pubco Ascent Warrants are described in the section of the Proxy Statement/Prospectus beginning on page 351 titled “Description
of Pubco Securities – Warrants – Pubco Ascent Warrants.” Such description is qualified in its entirety by the text
of the Pubco Ascent Warrant Agreements, which are included as Exhibits 4.5 and 4.6 to this Report and are incorporated herein by reference.
6
Indemnification Agreements
On the Closing Date, the Company entered into indemnification
agreements with each of its directors and executive officers. Each indemnification agreement provides for indemnification and advancement
by the Company of certain expenses and costs relating to claims, suits or proceedings arising from the indemnitee’s service to the
Company or, at the Company’s request, service to other entities, as an officer or director, to the fullest extent permitted by applicable
law. The foregoing description of the indemnification agreements does not purport to be complete and is qualified in its entirety by the
terms and conditions of the indemnification agreements, a form of which is attached hereto as Exhibit 10.5 to this Report and is incorporated
herein by reference.
Item 2.01 Completion of Acquisition or Disposition of Assets.
The disclosure set forth in the “Introductory
Note” above is incorporated by reference into this Item 2.01. The material terms and conditions of the Merger Agreement are
described in the Proxy Statement/Prospectus in the section titled “Proposal No. 1 – The Business Combination Proposal –
The Merger Agreement” beginning on page 168, which is incorporated herein by reference.
FORM 10 INFORMATION
Item 2.01(f) of Form 8-K states that if a predecessor
registrant was a shell company, as ATII was immediately before the Business Combination, then the registrant must disclose the information
that would be required if the registrant was filing a general form for registration of securities on Form 10. Accordingly, the Company
is providing below the information that would be included in a Form 10 if it were to file a Form 10. Please note that the information
provided below relates to the combined company after the consummation of the Business Combination, unless otherwise specifically indicated
or the context otherwise requires.
Cautionary Note Regarding Forward-Looking Statements
This Report contains “forward-looking statements”
that involve substantial risks and uncertainties, including information about, among other topics, expectations for future financial performance
and business strategies or expectations for our business following the Business Combination. In addition, any statements that refer to
projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking
statements. Such statements can be identified by the fact that they are not historical statements of fact and are statements regarding,
but not limited to, our expectations, hopes, beliefs, intentions or strategies regarding the future. When used in this Report, words such
as “anticipate”, “believe”, “can”, “continue”, “could”, “estimate”,
“expect”, “forecast”, “intend”, “may”, “might”, “plan”, “possible”,
“potential”, “predict”, “project”, “seek”, “should”, “strive”,
“target”, “will”, “would” and similar expressions may identify forward-looking statements, but the
absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections
and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant
risks and uncertainties. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance
on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether
as a result of new information, future events or otherwise, except as required by law.
Forward-looking statements in this Report and in
any document incorporated by reference in this Report may include information about, among other topics, the following that could cause
actual results to differ materially from those expressed or implied by such statements:
· the anticipated benefits of the Business Combination;
· the future financial performance of the Company following the Business Combination;
· changes in the market for the Company’s products and services; and
· expansion plans and opportunities.
7
Risks and uncertainties include, among other things:
· risks related to the ability to realize the anticipated benefits of the Business Combination, including the possibility that the expected
benefits from the Business Combination will not be realized within the expected time period;
· risks relating to the uncertainty of the projected financial information included in the Proxy Statement/Prospectus with respect to
Forge Nano;
· the outcome of any litigation and/or regulatory actions related to the Business Combination that may be instituted against the Company;
· the ability to meet and maintain the listing standards of The Nasdaq Stock Market LLC (“Nasdaq”) following the Business
Combination;
· risks related to the Company’s public securities’ liquidity and trading;
· the risk that the Business Combination disrupts current plans and operations;
· the projected financial information included in the Proxy Statement/Prospectus, anticipated growth rate, profitability and market
opportunity of Forge Nano may not be an indication of the actual results of the Business Combination or the Company’s future results;
· significant transaction costs related to the Business Combination;
· the Company’s ability to obtain sufficient additional capital needed to operate and grow its business;
· the impact of the Company’s indebtedness outstanding following the Business Combination, which may reduce funds available for
other business purposes and reduce our operational flexibility;
· changes in the market in which the Company competes, including with respect to its competitive landscape, technology evolution or
changes in applicable laws or regulations;
· the impact of macroeconomic events, such as inflation, recessions or depressions and war or fears of war;
· changes in the vertical markets that the Company targets or consolidation among the Company’s distributors and customers or
the loss of any key customer;
· the impact of current or future government regulation and oversight, including by U.S. federal, state and local authorities;
· the ability to launch new services and products or to profitably expand into new markets;
· the ability to develop and maintain effective internal controls and procedures, correct and remediate previously identified material
weaknesses, and to correct or remediate any material weaknesses that may be identified in the future;
· future litigation or legal disputes, which could lead the Company to incur significant liabilities and costly litigation or reputational
damage;
· a material failure, inadequacy or interruption of the Company’s information technology systems;
· other risks and uncertainties set forth in the section titled “Risk Factors” beginning on page 83 of the Proxy
Statement/Prospectus, which is incorporated herein by reference.
8
You should carefully consider the foregoing factors
and the other risks and uncertainties that affect our business described in the section titled “Risk Factors” in the
Proxy Statement/Prospectus and in the other documents filed by the Company from time to time with the SEC, all of which are available
at www.sec.gov. These filings identify and address other important risks and uncertainties that could cause actual events and results
to differ materially from those contained in the forward-looking statements. Readers are cautioned not to put undue reliance on forward-looking
statements, and we do not assume any obligation to, and do not intend to, update or revise these forward-looking statements, whether as
a result of new information, future events, or otherwise, unless required by law. We cannot give any assurance that we will achieve our
expectations.
Business
The business of ATII prior to the Business Combination
is described in the Proxy Statement/Prospectus in the section titled “Information About ATII” beginning on page 270,
and the business of Forge Nano prior to, and of the Company subsequent to, the Business Combination, is described in the Proxy Statement/Prospectus
in the section titled “Business of Forge Nano” beginning on page 290, which are incorporated herein by reference.
Risk Factors
The risk factors related to the Company’s
business and operations and the Business Combination are set forth in the section titled “Risk Factors” beginning on
page 83 of the Proxy Statement/Prospectus and that information is incorporated herein by reference.
The Company believes there are no changes that
constitute material changes from the risk factors previously disclosed in the Proxy Statement/Prospectus, other than as set forth below.
Our board of directors has adopted resolutions
renouncing our interest and expectancy in certain corporate opportunities.
On October 22, 2026, our board of directors adopted
resolutions waiving the application of the doctrine of corporate opportunity, or any other analogous doctrine, with respect to the Company,
any non-employee directors, any non-employee stockholders or any of their respective affiliates. In addition, pursuant to such resolutions,
the Company renounced, to the fullest extent permitted by law, any interest or expectancy of the Company, its stockholders and any of
their respective affiliates in, or in being notified of or offered an opportunity to participate in any matter, transaction or interest
that is presented to, or acquired, created or developed by, or which otherwise comes into the possession of (i) any director of the Company
who is not an employee of the Company or any of its subsidiaries, or (ii) any such director’s affiliates, partners, or other representatives
(each of the foregoing, an “Exempt Person” and each such contemplated opportunity, an “Excluded Opportunity”),
unless such matter, transaction or interest is expressly offered to such director solely in his or her capacity as a director of the Company.
The foregoing renunciation and waiver does not apply to, and shall not result in the renunciation by the Company or any of its subsidiaries
of any interest or expectancy in a business opportunity with respect to, an Exempt Person who first identified the applicable opportunity
solely through the disclosure of the Company’s or any of its subsidiaries’ confidential information in circumstances in which
the Company had a reasonable expectation that such information would be held in confidence. In addition, no Exempt Person shall have any
duty to communicate or offer an Excluded Opportunity to the Company or any of its affiliates or stockholders, and no Exempt Person shall
have any liability to the Company, any of its affiliates or stockholders for breach of any duty, as a director or otherwise, by reason
of the fact that such Exempt Person pursues or acquires an Excluded Opportunity, directs an Excluded Opportunity to another person or
fails to present an Excluded Opportunity, or information regarding an Excluded Opportunity, to the Company or any of its affiliates or
stockholders.
For example, the Exempt Persons may pursue acquisition
opportunities that may be complementary to our business, and, as a result, those acquisition opportunities may not be available to us.
In addition, the Exempt Persons may have an interest in our pursuing acquisitions, divestitures, and other transactions that, in their
judgment, could enhance their investment, even though such transactions might involve risks to us and our stockholders. These potential
conflicts of interest could have a material adverse effect on our business, financial condition, results of operations or prospects if
attractive corporate opportunities are allocated elsewhere by Exempt Persons instead of to us.
9
Financial Information
The audited consolidated financial statements of
ATII as of December 31, 2025 and 2024, for the year ended December 31, 2025 and for the period from June 7, 2024 (inception) through December
31, 2024, and the related notes, are included in the Proxy Statement/Prospectus beginning on page F-25, and the unaudited condensed consolidated
financial statements of ATII as of June 30, 2026 and for the three and six months ended June 30, 2026 and 2025, and the related notes,
are included in the Proxy Statement/Prospectus beginning on page F-3, each of which is incorporated herein by reference. These financial
statements should be read in conjunction with the section titled “Management’s Discussion and Analysis of Financial Condition
and Results of Operations of ATII” included in the Proxy Statement/Prospectus and incorporated herein by reference.
The audited consolidated financial statements of
Forge Nano as of and for the years ended December 31, 2025 and 2024, and the related notes, are included in the Proxy Statement/Prospectus
beginning on page F-79, and the unaudited condensed consolidated financial statements of Forge Nano as of June 30, 2026 and for the three
and six months ended June 30, 2026 and 2025, and the related notes, are included in the Proxy Statement/Prospectus beginning on page F-45,
each of which is incorporated herein by reference. These financial statements should be read in conjunction with the section titled “Management’s
Discussion and Analysis of Financial Condition and Results of Operations of Forge Nano” included in the Proxy Statement/Prospectus
and incorporated herein by reference.
The audited financial statements of Pubco as of
December 31, 2025 and for the period from December 4, 2025 (inception) through December 31, 2025, and the related notes are included in
the Proxy Statement/Prospectus beginning on page F-123, and the unaudited condensed financial statements of Pubco as of June 30, 2026
and for the three and six months ended June 30, 2026, and the related notes, are included in the Proxy Statement/Prospectus beginning
on page F-113 and are incorporated herein by reference.
The audited consolidated financial statements of
HzO, Inc. (“HzO”) as of and for the years ended December 31, 2025 and 2024, and the related notes are included in the Proxy
Statement/Prospectus beginning on page F-156, and the unaudited condensed consolidated financial statements of HzO as of June 30, 2026
and for the three and six months ended June 30, 2026, and the related notes, are included in the Proxy Statement/Prospectus beginning
on page F-133 and are incorporated herein by reference.
The unaudited pro forma condensed combined financial
information of the Company as of and for the six months ended June 30, 2026 and for the year ended December 31, 2025 is set forth in Exhibit
99.1 hereto and is incorporated herein by reference.
The unaudited pro forma condensed combined financial
information of the Company (acquisition of HzO) as of and for the six months ended June 30, 2026 and for the year ended December 31, 2025
is set forth in Exhibit 99.2 hereto and is incorporated herein by reference.
Management’s Discussion and Analysis of
Financial Condition and Results of Operations
ATII’s management’s discussion and
analysis of the financial condition and results of operations of ATII for the year ended December 31, 2025, the period from June 7, 2024
(inception) through December 31, 2024 and the three and six months ended June 30, 2026 and 2025 is included in the Proxy Statement/Prospectus
in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations of ATII”
beginning on page 284, which is incorporated herein by reference.
Forge Nano’s management’s discussion
and analysis of the financial condition and results of operations of Forge Nano for the years ended December 31, 2025 and 2024 and the
three and six months ended June 30, 2026 and 2025 is included in the Proxy Statement/Prospectus in the section titled “Management’s
Discussion and Analysis of Financial Condition and Results of Operations of Forge Nano” beginning on page 307, which is incorporated
herein by reference.
10
Quantitative and Qualitative Disclosures About
Market Risk
Quantitative and qualitative disclosures about
market risk applicable to Forge Nano prior to the Business Combination, as of June 30, 2026 are included in the Proxy Statement/Prospectus
in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations of Forge Nano
– Quantitative and Qualitative Disclosures About Market Risk” beginning on page 318 of the Proxy Statement/Prospectus
which is incorporated herein by reference.
Properties
The properties of Forge Nano prior to the Business
Combination are described in the Proxy Statement/Prospectus in the section titled “Business of Forge Nano – Facilities”
beginning on page 304, which is incorporated herein by reference.
Security Ownership of Certain Beneficial Owners
and Management
The following table sets forth information known
to the Company regarding the beneficial ownership of Pubco Common Stock as of the Closing Date by:
· each person who is known by the Company to be the beneficial owner of more than 5% of the outstanding shares of Pubco Common Stock;
· each of the Company’s named executive officers and directors; and
· all executive officers and directors of the Company as a group.
The beneficial ownership of shares of Pubco Common
Stock in the following table is based on 128,655,585 shares of Pubco Common Stock issued and outstanding as of the Closing Date, after
giving effect to the Redemption, the Business Combination, the PIPE Financing and the Additional PIPE Financing, and excludes the 90,000,000
Earn-Out Shares held by the Escrow Agent. After giving effect to the issuance of the 90,000,000 Earn-Out Shares, the number of shares
of Pubco Common Stock issued and outstanding is 218,655,585.
Except as otherwise noted herein, the number and
percentage of shares of Pubco Common Stock beneficially owned is determined in accordance with the rules of the SEC and includes voting
or investment power with respect to, or the power to receive the economic benefit of ownership of, the securities and the information
is not necessarily indicative of beneficial ownership for any other purpose. Under such rule, in computing the number of shares beneficially
owned by a person and the percentage ownership of that person, shares that the person has the right to acquire within 60 days are included,
including through the exercise of any option, warrant or other right or the conversion of any other security. However, these shares are
not included in the computation of the percentage ownership of any other person. Unless otherwise indicated, the Company believes that
all persons named in the table below have sole voting and investment power with respect to the shares beneficially owned by them.
Name and Address of Beneficial Owner
Number of Shares
of Pubco Common
Stock
% of Outstanding
Pubco Common
Stock
Directors and Executive Officers(1)
Paul Lichty(2)
16,532,751
12.8 %
Michael Danner
—
—
David Goggins(3)
130,282
*
Millicent Pitts-DiCicco(4)
130,282
*
Jimmy Smith(5)
130,282
*
Kamal Bherwani
—
—
Ben Landen(6)
93,237
*
Michael Kleinberg(7)
659,046
*
Curtis Zimmermann(8)
437,264
*
All directors and executive officers of the Company as a group (9 individuals)
18,113,144
13.9 %
Five Percent Holders
The Eugene and Josephine Danner 2012 Dynasty Trust(9)
8,792,436
6.8 %
Volkswagen Group of America Investments, LLC(10)
8,358,931
6.5 %
Ascent Funds(11)
10,097,880
7.6 %
David King(12)
10,964,690
8.5 %
OIC Growth Funds(13)
9,386,839
7.3 %
11
* Less than 1%.
(1) Unless otherwise noted, the business address of each of the directors and executive officers of the Company is c/o Forge Nano Holdings,
Inc., 12300 Grant Street, Suite 100, Thornton, CO 80241.
(2) Includes 888,493 shares of Pubco Common Stock issuable upon the exercise of Pubco Options that are exercisable within 60 days of the
Closing Date. Does not include 11,733,192 Earn-Out Shares that may be issuable to Mr. Lichty and 1,035,356 PSUs held by Mr. Lichty.
(3) Does not include 97,713 Earn-Out Shares that may be issuable to Mr. Goggins.
(4) Does not include 97,713 Earn-Out Shares that may be issuable to Ms. Pitts-DiCicco.
(5) Does not include 97,713 Earn-Out Shares that may be issuable to Mr. Smith.
(6) Includes 1,250 shares of Pubco Common Stock issuable upon exercise of Pubco SPAC Warrants.
(7) Includes 437,264 shares of Pubco Common Stock issuable upon the exercise of Pubco Options that are exercisable within 60 days of the
Closing Date. Does not include 14,790 Earn-Out Shares that may be issuable to Mr. Kleinberg and 686,291 PSUs held by Mr. Kleinberg.
(8) Includes 428,801 shares of Pubco Common Stock issuable upon the exercise of Pubco Options that are exercisable within 60 days of the
Closing Date. Does not include 422,777 PSUs held by Mr. Zimmermann.
(9) Tom Graner is the trustee of The Eugene and Josephine Danner 2012 Dynasty Trust (the “Danner Trust”) and may be deemed
to hold voting and dispositive power over the shares held by the Danner Trust. The business address of the Danner Trust is 111 Miguel
Road, Telluride, CO 81435. Does not include 6,594,327 Earn-Out Shares that may be issuable to the Danner Trust.
(10) Volkswagen AG is the parent company of Volkswagen US-Holding, Inc., which in turn is the direct parent company of Volkswagen Group
of America Investments, LLC (“VWGoAI”). The shares beneficially owned by VWGoAI may also be deemed to be beneficially owned
by Volkswagen US-Holding, Inc. and Volkswagen AG. The business address of VWGoAI is 1950 Opportunity Way, Suite 1500, Reston, VA 20190.
The business address of Volkswagen US-Holding, Inc. is 1950 Opportunity Way, Suite 1900, Reston, VA 20190. The business address of Volkswagen
AG is Berliner Ring 2, 38440 Wolfsburg, Germany. Does not include 6,269,199 Earn-Out Shares that may be issuable to VWGoAI.
(11) Includes 3,562,305 shares of Pubco Common Stock issuable upon the exercise of Pubco Ascent Warrants that are exercisable within 60
days of the Closing Date. Reflects securities held by Ascent Energy Innovation SPV I LP, Ascent Funds International SPV I LP, Ascent Funds
International SPV II LP, Ascent Funds International SPV III LP and Ascent Funds International Management LLC (collectively, the “Ascent
Funds”). Ascent Energy Innovation Management LLC, the management company of Ascent Energy Innovation SPV I LP, has voting and investment
control of the shares held by Ascent Energy Innovation SPV I LP. Ascent Funds International Management LLC, the management company of
each of Ascent Funds International SPV I LP, Ascent Funds International SPV II LP and Ascent Funds International SPV III LP, has voting
and investment control of the shares held by each such entity. Mark Gordon is the Managing Partner of each of Ascent Energy Innovation
Management LLC and Ascent Funds International Management LLC and may be deemed to be the beneficial owner of the shares held by, or issuable
upon exercise of warrants held by, the foregoing entities. Mr. Gordon disclaims any beneficial ownership of such shares. The business
address of each of the foregoing entities is 788 NE 23rd Street, 5401, Miami, FL 33137. Does not include 7,573,407 Earn-Out Shares that
may be issuable to the Ascent Funds.
(12) Includes 15,642 shares of Pubco Common Stock issuable upon the exercise of Pubco Options that are exercisable within 60 days of the
Closing Date. The address of David King is c/o Forge Nano Holdings, Inc., 12300 Grant Street, Suite 100, Thornton, CO 80241. Does not
include 8,211,786 Earn-Out Shares that may be issuable to Mr. King and 30,669 PSUs held by Mr. King.
(13) Reflects securities held of record by OIC Growth Fund I AUS, L.P., OIC Growth Fund I GPFA, L.P., OIC Growth Fund I PV, L.P. and OIC
Growth Fund I, L.P. (collectively, the “OIC Growth Funds”) and OIC Growth Fund I GP, L.P. (“OIC Growth Fund GP”).
The general partner of the OIC Growth Funds is OIC Growth Fund GP, and the general partner of OIC Growth Fund GP is OIC Growth Fund Upper
GP, LLC (“OIC Growth Fund Upper GP”). OIC Growth Fund Upper GP is owned and controlled by Nazar Massouh and Gerrit Nicholas
and, as such, Messrs. Massouh and Nicholas may be deemed to have voting and dispositive control of the securities held by the OIC Growth
Funds and OIC Growth Fund GP. Each of OIC Growth Fund Upper GP and Messrs. Massouh and Nicholas disclaims beneficial ownership of any
securities held of record by the OIC Growth Funds or OIC Growth Fund GP, except to the extent of any pecuniary interest therein. Does
not include 7,040,133 Earn-Out Shares that may be issuable to the OIC Growth Funds.
12
Directors and Executive Officers
The Company’s directors and executive officers
are described in the section titled “Management of Pubco Following the Business Combination” beginning on page 320
of the Proxy Statement/Prospectus, and that information is incorporated herein by reference.
Directors
Pursuant to the approval of ATII shareholders at
the Extraordinary General Meeting, the following persons constitute the Company’s board of directors (the “Board”) effective
upon the First Effective Time: Paul Lichty, Michael Danner, David Goggins, Millicent Pitts-DiCicco, Jimmy Smith, Kamal Bherwani and Ben
Landen. Biographical information for these individuals is set forth in the section titled “Management of Pubco Following the
Business Combination” beginning on page 320 of the Proxy Statement/Prospectus, which is incorporated herein by reference. Long
Long resigned as sole director of the Company effective as of the First Effective Time.
Committees of the Board of Directors
Information with respect to the committees of the
Board is set forth in the Proxy Statement/Prospectus in the section titled “Management of Pubco Following the Business Combination”
beginning on page 320, which is incorporated herein by reference.
Executive Officers
Information about the executive officers of the
Company is set forth in the section titled “Management of Pubco Following the Business Combination” beginning on page
320 of the Proxy Statement/Prospectus, which is incorporated herein by reference. Long Long resigned as chief executive officer of the
Company effective as of the First Effective Time.
13
Executive and Director Compensation
A description of the compensation of the named
executive officers and directors of Forge Nano prior to the consummation of the Business Combination is set forth in the section titled
“Executive and Director Compensation of Forge Nano” beginning on page 327 of the Proxy Statement/Prospectus, which
is incorporated herein by reference.
At the Extraordinary General Meeting, the holders
of ATII Ordinary Shares approved the Forge Nano Holdings, Inc. 2026 Omnibus Incentive Compensation Plan (the “2026 Equity Plan”).
A description of the 2026 Equity Plan is set forth in the section titled “Proposal No. 7 – The Equity Incentive Plan Proposal”
beginning on page 207 of the Proxy Statement/Prospectus, which is incorporated herein by reference. A copy of the full text of the 2026
Equity Plan is filed as Exhibit 10.6 hereto and is incorporated herein by reference.
Indemnification of Directors and Officers
The information set forth under “Indemnification
Agreements” under Item 1.01 of this Report is incorporated herein by reference. Further information about the indemnification
of the Company’s directors and officers is set forth in the Proxy Statement/Prospectus in the section titled “Description
of Pubco Securities – Limitations on Liability and Indemnification of Officers and Directors” beginning on page 365, which
is incorporated herein by reference.
Certain Relationships and Related Transactions
Certain relationships and related party transactions
of the Company are described in the section titled “Certain Relationships and Related Party Transactions” beginning
on page 341 of the Proxy Statement/Prospectus, which is incorporated herein by reference.
Legal Proceedings
Reference is made to the disclosure regarding legal
proceedings in the section of the Proxy Statement/Prospectus titled “Business of Forge Nano – Legal Proceedings”
beginning on page 305, which is incorporated herein by reference.
Market Price of and Dividends on the Registrant’s
Common Equity and Related Stockholder Matters
The ATII Units, ATII Ordinary Shares and ATII Warrants
were previously listed on Nasdaq under the symbols “ATIIU,” “ATII” and “ATIIW,” respectively. On October
21, 2026, ATII requested that Nasdaq suspend trading of the ATII Units, ATII Ordinary Shares and ATII Warrants and Nasdaq filed with the
SEC a Form 25 to delist such securities. As of the Closing Date, there were approximately 307 holders of record of Pubco Common Stock
and approximately 118 holders of record of Pubco SPAC Warrants. The Pubco Common Stock and the Pubco SPAC Warrants began trading on Nasdaq
under the symbols “NANO” and “NANOW,” respectively, on October 22, 2026.
The Company has not paid any cash dividends on
shares of Pubco Common Stock to date and does not intend to pay cash dividends in the foreseeable future. The payment of cash dividends
in the future will be dependent upon the Company’s revenues and earnings, if any, capital requirements and general financial condition.
The payment of any dividends will be within the discretion of the Board.
Recent Sales of Unregistered Securities
Reference is made to the disclosure set forth below
under Item 3.02 of this Report concerning the issuance and sale by the Company of certain unregistered securities, which is incorporated
herein by reference.
14
Description of Registrant’s Securities
The description of the Company’s securities
is contained in the section titled “Description of Pubco Securities” beginning on page 347 of the Proxy Statement/Prospectus,
which is incorporated herein by reference.
The Company believes there are no changes that
constitute material changes from the description of the Company’s securities previously disclosed in the Proxy Statement/Prospectus,
other than as set forth below.
Pre-Funded Warrants
The Pre-Funded Warrants are exercisable for Pubco
Common Stock on or after the date of their issuance and have no expiration date. The exercise price per Pre-Funded Warrant is $0.0001,
subject to adjustment as set forth in the Pre-Funded Warrant Certificate and described below. The Pre-Funded Warrants may be exercised
on a “net-issuance” basis. The Pre-Funded Warrants are subject to a beneficial ownership limitation, at the election of the
holder. If the election is made, the Company will not effect any exercise of the Pre-Funded Warrants, and a holder will not have the right
to exercise any portion of the Pre-Funded Warrants, to the extent that after giving effect to such exercise the holder (together with
the holder’s affiliates, and anyone acting as a group together with the holder or any of the holder’s affiliates) would beneficially
own in excess of 4.9%, 9.9% or 19.9% (or such other amount as the holder may specify) of outstanding shares of Pubco Common Stock. The
holder may increase or decrease such limitation by written notice; provided, however, that any such increase will not be effective until
the 61st day after such notice is delivered to the Company. The Pre-Funded Warrants do not entitle the holder to any rights of a stockholder
of the Company, including voting rights, prior to exercise, except as expressly provided in the Pre-Funded Warrant (including the right
to participate in certain distributions described below).
The number of shares issuable upon exercise and
the exercise price of the Pre-Funded Warrants are subject to adjustment if the Company (i) subdivides or combines (including by way of
a reverse stock split) the outstanding Pubco Common Stock or (ii) issues by reclassification of Pubco Common Stock into any shares of capital stock
of the Company. If Pubco declares or makes any dividend or other distribution of its assets (or rights to acquire its assets) to holders
of Pubco Common Stock, by way of return of capital or otherwise, the holder of Pre-Funded Warrants shall be entitled to participate in
such distribution to the same extent as if the holder had held the number of shares of Pubco Common Stock acquired upon exercise of such
holder’s Pre-Funded Warrants. If a Fundamental Transaction (as defined in the Pre-Funded Warrant) occurs, then, upon any subsequent
exercise of a Pre-Funded Warrant, the holder will have the right to receive, for each share of Pubco Common Stock that would have been
issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the holder (without
regard to the beneficial ownership limitation), the number of shares of the successor or acquiring corporation or of the Company, if it
is the surviving corporation, and any additional consideration receivable as a result of such Fundamental Transaction by a holder of the
number of shares of Pubco Common Stock for which such Pre-Funded Warrant is exercisable immediately prior to such Fundamental Transaction
(without regard to the beneficial ownership limitation).
The foregoing description of the Pre-Funded Warrants
does not purport to be complete and is qualified in its entirety by reference to the full text of the Form of Pre-Funded Warrant Certificate,
which is filed as Exhibit 4.4 hereto and incorporated herein by reference.
The information set forth under Item 3.03 of this
Report is incorporated herein by reference.
Financial Statements and Supplementary Data
The information set forth under Item 9.01 of this
Report is incorporated herein by reference.
Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure
None.
15
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
Upon the Domestication Merger Effective Time, all
of the outstanding ATII Units listed on Nasdaq under the symbol “ATIIU” separated into their component securities and no longer
trade as an independent security, and the ATII Ordinary Shares and ATII Warrants ceased trading on Nasdaq under the symbols “ATII”
and “ATIIW,” respectively. The Pubco Common Stock and the Pubco SPAC Warrants began trading on Nasdaq under the symbols “NANO”
and “NANOW,” respectively, on October 22, 2026.
Item 3.02 Unregistered Sales of Equity Securities.
The disclosure set forth with respect to the issuance
of equity securities in the “Introductory Note” above is incorporated into this Item 3.02 by reference. The PIPE Subscribed
Shares, the Additional PIPE Subscribed Shares, the PIPE Warrants and the Pre-Funded Warrants were issued in reliance upon the exemption
from registration provided by Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder. The Pubco Forge Nano Warrants
and the Pubco Ascent Warrants issued in connection with the First Company Merger were issued in reliance upon the exemption from registration
provided by Section 4(a)(2) of the Securities Act.
Item 3.03 Material Modification to Rights of Security Holders.
At the Domestication Merger Effective Time, the
certificate of incorporation and bylaws of Pubco were amended and restated in the form of the Charter and the Bylaws (each as defined
in Item 5.03 below), respectively. The material terms of the Charter and the Bylaws and the general effect upon the rights of holders
of the Company’s capital stock are discussed in the sections of the Proxy Statement/Prospectus titled “Proposal No. 2 –
The Domestication Merger Proposal” beginning on page 183, “Proposal No. 5 – The Organizational Documents Proposal”
beginning on page 196, “Proposal No. 6 – The Advisory Organizational Documents Proposals” beginning on page 198,
“Comparison of Corporate Governance and Shareholder Rights” beginning on page 342 and “Description of Pubco
Securities” beginning on page 347, which are incorporated herein by reference.
The disclosures set forth under the “Introductory
Note,” in Item 1.01 and in Item 2.01 of this Report are also incorporated herein by reference. Copies of the Charter and the Bylaws
are included as Exhibit 3.1 and Exhibit 3.2, respectively, to this Report and are incorporated herein by reference.
On October 22, 2026, our board of directors adopted
resolutions waiving the application of the doctrine of corporate opportunity, or any other analogous doctrine, with respect to the Company,
any non-employee directors, any non-employee stockholders or any of their respective affiliates. In addition, pursuant to such resolutions,
the Company renounced, to the fullest extent permitted by law, any interest or expectancy of the Company, its stockholders and any of
their respective affiliates in, or in being notified of or offered an opportunity to participate in any matter, transaction or interest
that is presented to, or acquired, created or developed by, or which otherwise comes into the possession of (i) any director of the Company
who is not an employee of the Company or any of its subsidiaries or (ii) any such director’s affiliates, partners, or other representatives
(each of the foregoing, an “Exempt Person” and each such contemplated opportunity, an “Excluded Opportunity”),
unless such matter, transaction or interest is expressly offered to such director solely in his or her capacity as a director of the Company.
The foregoing renunciation and waiver does not apply to, and shall not result in the renunciation by the Company or any of its subsidiaries
of any interest or expectancy in a business opportunity with respect to, an Exempt Person who first identified the applicable opportunity
solely through the disclosure of the Company’s or any of its subsidiaries’ confidential information in circumstances in which
the Company had a reasonable expectation that such information would be held in confidence. In addition, no Exempt Person shall have any
duty to communicate or offer an Excluded Opportunity to the Company or any of its affiliates or stockholders, and no Exempt Person shall
have any liability to the Company, any of its affiliates or stockholders for breach of any duty, as a director or otherwise, by reason
of the fact that such Exempt Person pursues or acquires an Excluded Opportunity, directs an Excluded Opportunity to another person or
fails to present an Excluded Opportunity, or information regarding an Excluded Opportunity, to the Company or any of its affiliates or
stockholders.
16
Item 5.01 Changes in Control of Registrant.
The disclosure set forth in the “Introductory
Note” and in Item 2.01 of this Report is incorporated herein by reference.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
Executive Officers and Directors
Effective as of the First Effective Time, Long
Long ceased serving as Chief Executive Officer of the Company. Effective as of the First Effective Time, the Board appointed Mr. Lichty
to serve as the Company’s Chief Executive Officer, Mr. Kleinberg to serve as the Company’s Chief Financial Officer and Mr.
Zimmermann to serve as the Company’s Chief Legal Counsel.
Effective as of the First Effective Time, Long
Long resigned as sole director of the Company. Paul Lichty, Michael Danner, David Goggins, Millicent Pitts-DiCicco, Jimmy Smith, Kamal
Bherwani and Ben Landen were appointed as directors of the Company, to serve until the end of their respective terms and until their successors
are elected and qualified, and Mr. Lichty was appointed as Chair of the Board. Pursuant to the terms of the Merger Agreement, Messrs.
Lichty, Danner, Goggins, Smith and Bherwani and Ms. Pitts-DiCicco were designated by Forge Nano, and Mr. Landen was designated by the
Sponsor. The Board appointed Millicent Pitts-DiCicco, Ben Landen and David Goggins to serve on the Audit Committee, with Ms. Pitts-DiCicco
as chair and qualifying as an audit committee financial expert, as such term is defined in Item 407(d)(5) of Regulation S-K. The Board
appointed Mr. Landen and Ms. Pitts-DiCicco to serve on the Compensation Committee, with Mr. Landen as chair. The Board appointed Messrs.
Goggins and Smith to serve on the Nominating and Corporate Governance Committee, with Mr. Goggins as chair.
There are no material compensatory plans, contracts
or arrangements entered into or materially amended in connection with the appointments described above, other than as described in the
Proxy Statement/Prospectus and this Report.
Reference is also made to the disclosure described
in the Proxy Statement/Prospectus in the sections titled “Proposal No. 3 – The Director Election Proposal” beginning
on page 189 and “Management of Pubco Following the Business Combination” beginning on page 320 of the Proxy Statement/Prospectus
for biographical information about each of the directors and executive officers following the Business Combination, which is incorporated
herein by reference.
There are no transactions between the Company and
any of the newly appointed directors or executive officers that would be required to be reported under Item 404(a) of Regulation S-K,
except as described in the section of the Proxy Statement/Prospectus titled “Certain Relationships and Related Party Transactions”
beginning on page 341 (including with respect to the proposed acquisition of HzO, Inc., of which Mr. Bherwani serves as Executive Chairman),
which is incorporated herein by reference.
2026 Equity Plan
On the Closing Date, the 2026 Equity Plan became
effective. The initial aggregate number of shares of Pubco Common Stock available for issuance under the 2026 Equity Plan is 12,865,558,
which number will automatically increase on January 1 of each year, commencing on January 1, 2027, by an amount equal to 5% of the total
number of shares of Pubco Common Stock outstanding as of the immediately preceding December 31 (or such lesser number as determined by
the Compensation Committee), subject to certain adjustments set forth therein.
A description of the 2026 Equity Plan is set forth
in the section titled “Proposal No. 7 – The Equity Incentive Plan Proposal” beginning on page 207 of the Proxy
Statement/Prospectus, which is incorporated herein by reference. A copy of the full text of the 2026 Equity Plan is filed as Exhibit 10.6
hereto and is incorporated herein by reference.
17
Item 5.03 Amendments to the Articles of Incorporation or By-laws.
At the Domestication Merger Effective Time, the
certificate of incorporation and bylaws of Pubco were amended and restated in the form of the amended and restated certificate of incorporation
of the Company (the “Charter”) and the amended and restated bylaws of the Company (the “Bylaws”), respectively,
which, among other things, changed the name of Pubco from “ATII Holdings Inc.” to “Forge Nano Holdings, Inc.”
The material terms of the Charter and the Bylaws and the general effect upon the rights of holders of the Company’s capital stock
are discussed in the sections of the Proxy Statement/Prospectus titled “Proposal No. 2 – The Domestication Merger Proposal”
beginning on page 183, “Proposal No. 5 – The Organizational Documents Proposal” beginning on page 196 and “Proposal
No. 6 – The Advisory Organizational Documents Proposals” beginning on page 198, which are incorporated herein by reference.
Copies of the Charter and the Bylaws are attached
as Exhibit 3.1 and Exhibit 3.2 hereto, respectively, and are incorporated herein by reference.
Item 5.05 Amendments to the Registrant’s Code of Ethics, or Waiver of a Provision of the Code of Ethics.
In connection with the Business Combination, on
the Closing Date, the Board approved and adopted a new Code of Business Conduct and Ethics applicable to all employees, officers and directors
of the Company. A copy of the Code of Business Conduct and Ethics is attached as Exhibit 14.1 hereto and is incorporated herein by reference.
Item 5.06 Change in Shell Company Status.
As a result of the Business Combination, the Company
ceased being a shell company. Reference is made to the disclosure in the sections of the Proxy Statement/Prospectus titled “Proposal
No. 1 – The Business Combination Proposal” beginning on page 140 and “Proposal No. 2 – The Domestication
Merger Proposal” beginning on page 183, which are incorporated herein by reference. Further, the information set forth in the
“Introductory Note” and under Item 2.01 of this Report is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(a) Financial
Statements of Businesses Acquired.
The audited consolidated financial statements of
Forge Nano as of and for the years ended December 31, 2025 and 2024 and the related notes are included in the Proxy Statement/Prospectus
beginning on page F-79 and are incorporated herein by reference.
The unaudited condensed consolidated financial
statements of Forge Nano as of June 30, 2026 and for the three and six months ended June 30, 2026 and 2025 and the related notes are included
in the Proxy Statement/Prospectus beginning on page F-45 and are incorporated herein by reference.
The audited consolidated financial statements of
ATII as of December 31, 2025 and 2024, for the year ended December 31, 2025 and for the period from June 7, 2024 (inception) through December
31, 2024 and the related notes are included in the Proxy Statement/Prospectus beginning on page F-25 and are incorporated herein by reference.
The unaudited condensed consolidated financial
statements of ATII as of June 30, 2026 and for the three and six months ended June 30, 2026 and 2025 and the related notes are included
in the Proxy Statement/Prospectus beginning on page F-3 and are incorporated herein by reference.
The audited consolidated financial statements of
HzO as of and for the years ended December 31, 2025 and 2024, and the related notes are included in the Proxy Statement/Prospectus beginning
on page F-156 and are incorporated herein by reference.
18
The unaudited condensed consolidated financial
statements of HzO as of June 30, 2026 and for the three and six months ended June 30, 2026, and the related notes, are included in the
Proxy Statement/Prospectus beginning on page F-133 and are incorporated herein by reference.
(b) Pro
Forma Financial Information.
The unaudited pro forma condensed combined financial
information of the Company as of and for the six months ended June 30, 2026 and for the year ended December 31, 2025 is set forth in Exhibit
99.1 hereto and is incorporated herein by reference.
The unaudited pro forma condensed combined financial
information of the Company (acquisition of HzO) as of and for the six months ended June 30, 2026 and for the year ended December 31, 2025
is set forth in Exhibit 99.2 hereto and is incorporated herein by reference.
(d) Exhibits:
Exhibit
Description
2.1*
Agreement and Plan of Merger, dated as of April 20, 2026, by and among Archimedes Tech SPAC Partners II Co., ATII Holdings Inc., ATII Merger Sub Inc., ATII Merger Sub II, LLC and Forge Nano, Inc. (incorporated by reference to Annex A to the Company’s Registration Statement on Form S-4 (File No. 333-295563), filed with the SEC on May 5, 2026).
3.1
Amended and Restated Certificate of Incorporation of Forge Nano Holdings, Inc.
3.2
Amended and Restated Bylaws of Forge Nano Holdings, Inc.
4.1
Warrant Agreement, dated February 10, 2025, by and between Archimedes Tech SPAC Partners II Co. (as predecessor to the Company) and Odyssey Transfer and Trust Company, as warrant agent.
4.2
Assumption of Warrant Agreement, dated as of October 21, 2026, by and among the Company, Archimedes Tech SPAC Partners II Co. and Odyssey Transfer and Trust Company.
4.3
Form of PIPE Warrant Certificate (incorporated by reference to Exhibit 4.1 filed on the Company’s Current Report on Form 8-K, filed on October 13, 2026).
4.4
Form of Pre-Funded Warrant Certificate (incorporated by reference to Exhibit 4.2 filed on the Company’s Current Report on Form 8-K, filed on October 13, 2026).
4.5
Ascent Warrant Agreement, dated as of October 22, 2026.
4.6
Ascent Warrant Agreement, dated as of October 22, 2026.
4.7
Warrant to Purchase Shares of Common Stock, dated January 31, 2020, by and between Forge Nano, Inc. and Saoradh Energy Partners LLC (incorporated by reference to Exhibit 4.4 to the Company’s Registration Statement on Form S-4 (File No. 333-295563), filed with the SEC on July 24, 2026).
4.8
Warrant to Purchase Stock, dated May 24, 2022, by and between Forge Nano, Inc. and Silicon Valley Bank (incorporated by reference to Exhibit 4.5 to the Company’s Registration Statement on Form S-4 (File No. 333-295563), filed with the SEC on July 24, 2026).
4.9
Warrant to Purchase Common Stock, dated February 10, 2021, by and between Forge Nano, Inc. and Silicon Valley Bank (incorporated by reference to Exhibit 4.9 to the Company’s Registration Statement on Form S-4 (File No. 333-295563), filed with the SEC on September 2, 2026).
10.1
Form of Amended and Restated PIPE Subscription Agreement (incorporated by reference to Exhibit 10.1 filed on the Company’s Current Report on Form 8-K, filed on October 13, 2026).
10.2
Form of Additional PIPE Subscription Agreement.
10.3
Amended and Restated Registration Rights Agreement, dated as of October 22, 2026, by and among Forge Nano Holdings, Inc., Archimedes Tech SPAC Sponsors II LLC and the other holders party thereto.
19
Exhibit
Description
10.4
Form of Lock-Up Agreement.
10.5
Form of Indemnification Agreement.
10.6
Forge Nano Holdings, Inc. 2026 Omnibus Incentive Compensation Plan.
10.7
Lease Agreement, dated March 31, 2025, by and among Forge Battery, Inc., as tenant, and 401 Southport, LLC, as landlord (incorporated by reference to Exhibit 10.9 to the Company’s Registration Statement on Form S-4 (File No. 333-295563), filed with the SEC on July 24, 2026).
10.8
First Amendment to Lease Agreement, dated May 8, 2026, by and among Forge Battery, Inc., as tenant, and 401 Southport, LLC, as landlord (incorporated by reference to Exhibit 10.10 to the Company’s Registration Statement on Form S-4 (File No. 333-295563), filed with the SEC on July 24, 2026).
10.9
Assistance Agreement between Forge Battery, Inc. and the U.S. Department of Energy, dated April 16, 2026 (incorporated by reference to Exhibit 10.11 to the Company’s Registration Statement on Form S-4 (File No. 333-295563), filed with the SEC on July 24, 2026).
10.10
Amended and Restated Loan and Security Agreement, dated February 10, 2021, by and among Forge Nano and Silicon Valley Bank (incorporated by reference to Exhibit 10.19 to the Company’s Registration Statement on Form S-4 (File No. 333-295563), filed with the SEC on July 24, 2026).
10.11
Executive Employment Agreement, by and between Paul Lichty and Forge Nano, dated May 14, 2019 (incorporated by reference to Exhibit 10.21 to the Company’s Registration Statement on Form S-4 (File No. 333-295563), filed with the SEC on July 24, 2026).
10.12
Executive Employment Agreement, by and between Michael Kleinberg and Forge Nano, dated September 14, 2020 (incorporated by reference to Exhibit 10.22 to the Company’s Registration Statement on Form S-4 (File No. 333-295563), filed with the SEC on July 24, 2026).
10.13
Offer Letter, by and between Curtis Zimmermann and Forge Nano, dated June 2, 2021 (incorporated by reference to Exhibit 10.23 to the Company’s Registration Statement on Form S-4 (File No. 333-295563), filed with the SEC on July 24, 2026).
10.14
Form of RSU Award Agreement.
10.15
Form of Earnout PSU Award Agreement.
10.16
Earnout Escrow Agreement, dated as of October 21, 2026, by and between the Company and Odyssey Transfer and Trust Company
14.1
Code of Business Conduct and Ethics
21.1
List of Subsidiaries of Forge Nano Holdings, Inc.
99.1
Unaudited Pro Forma Condensed Combined Financial Information of Forge Nano Holdings, Inc.
99.2
Unaudited Pro Forma Condensed Combined Financial Information of Forge Nano Holdings, Inc. (acquisition of HzO).
104
Cover Page Interactive Data File (formatted as Inline XBRL).
* Certain schedules and similar attachments to this Exhibit have been omitted or redacted in accordance with Item 601(a)(5), 601(b)(2)(ii)
or 601(b)(10)(iv), as applicable, of Regulation S-K. The registrant agrees to furnish supplementally a copy of any omitted exhibit or
schedule to the SEC upon its request.
20
SIGNATURE
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.
Date: October 27, 2026
By:
/s/ Michael Kleinberg
Name:
Michael Kleinberg
Title:
Chief Financial Officer
21
EX-3.1 — EXHIBIT 3.1
EX-3.1
Filename: tm2628316d1_ex3-1.htm · Sequence: 2
Exhibit 3.1
RESTATED CERTIFICATE OF INCORPORATION
OF
ATII HOLDINGS INC.
ATII Holdings Inc. (the “Corporation”),
a corporation organized and existing under the General Corporation Law of the State of Delaware (the “DGCL”), does
hereby certify as follows:
1. The
name of the Corporation is ATII Holdings Inc. The Corporation was incorporated under the name ATII Holdings Inc. by the filing of its
original Certificate of Incorporation with the Secretary of State of the State of Delaware on December 4, 2025.
2. This
Restated Certificate of Incorporation (the “Restated Certificate”), which amends, restates and further integrates the
certificate of incorporation of the Corporation as heretofore in effect, has been approved by the Board of Directors of the Corporation
(the “Board of Directors”) in accordance with Sections 242 and 245 of the DGCL, and has been adopted by the written
consent of the stockholders of the Corporation in accordance with Section 228 of the DGCL.
3. The
text of the certificate of incorporation of the Corporation, as heretofore amended, is hereby amended and restated by this Restated Certificate
to read in its entirety as set forth in EXHIBIT A attached hereto.
IN WITNESS WHEREOF, ATII Holdings Inc.
has caused this Restated Certificate to be signed by a duly authorized officer of the Corporation, on October 21, 2026.
ATII Holdings Inc.,
a Delaware corporation
By:
/s/ Long Long
Name: Long Long
Title: Chief Executive Officer
EXHIBIT A
ARTICLE I
The name of the corporation is Forge
Nano Holdings, Inc. (the “Corporation”).
ARTICLE II
The address of the Corporation’s
registered office in the State of Delaware is 251 Little Falls Drive, in the City of Wilmington, County of New Castle, 19808, and the
name of its registered agent at such address is Corporation Service Company.
ARTICLE III
The purpose of the Corporation is to
engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware
(the “DGCL”) as it now exists or may hereafter be amended and supplemented.
ARTICLE IV
The Corporation is authorized to issue
two classes of stock to be designated, respectively, “Common Stock” and “Preferred Stock.” The total
number of shares of capital stock which the Corporation shall have authority to issue is 505,000,000. The total number of shares of Common
Stock that the Corporation is authorized to issue is 500,000,000, having a par value of $0.0001 per share, and the total number of shares
of Preferred Stock that the Corporation is authorized to issue is 5,000,000, having a par value of $0.0001 per share.
ARTICLE V
The designations and the powers, privileges
and rights, and the qualifications, limitations or restrictions thereof in respect of each class of capital stock of the Corporation are
as follows:
A. COMMON STOCK.
1. General.
The voting, dividend, liquidation and other rights and powers of the Common Stock are subject to and qualified by the rights, powers and
preferences of any series of Preferred Stock as may be designated by the Board of Directors of the Corporation (the “Board of
Directors”) and outstanding from time to time.
2. Voting.
Except as otherwise provided herein or expressly required by law, each holder of Common Stock, as such, shall be entitled to vote on each
matter submitted to a vote of stockholders and shall be entitled to one (1) vote for each share of Common Stock held of record by
such holder as of the record date for determining stockholders entitled to vote on such matter. Except as otherwise required by law, holders
of Common Stock, as such, shall not be entitled to vote on any amendment to this Restated Certificate (including any Certificate of Designation
(as defined below)) that relates solely to the rights, powers, preferences (or the qualifications, limitations or restrictions thereof)
or other terms of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately
or together with the holders of one or more other such series, to vote thereon pursuant to this Restated Certificate (including any Certificate
of Designation) or pursuant to the DGCL. There shall be no cumulative voting.
Subject to the rights of any holders of
any outstanding series of Preferred Stock, the number of authorized shares of Common Stock may be increased or decreased (but not below
the number of shares thereof then outstanding) by the requisite vote of the stockholders entitled to vote thereon, voting as a single
class, irrespective of the provisions of Section 242(b)(2) of the DGCL.
3. Dividends.
Subject to applicable law and the rights and preferences of any holders of any outstanding series of Preferred Stock, the holders of Common
Stock, as such, shall be entitled to the payment of dividends on the Common Stock when, as and if declared by the Board of Directors in
accordance with applicable law.
4. Liquidation.
Subject to the rights and preferences of any holders of any shares of any outstanding series of Preferred Stock, in the event of any liquidation,
dissolution or winding up of the Corporation, whether voluntary or involuntary, the funds and assets of the Corporation that may be legally
distributed to the Corporation’s stockholders shall be distributed among the holders of the then outstanding Common Stock pro
rata in accordance with the number of shares of Common Stock held by each such holder.
B. PREFERRED STOCK
Shares of Preferred Stock may be issued
from time to time in one or more series, each of such series to have such terms as stated or expressed herein and in the resolution or
resolutions providing for the creation and issuance of such series adopted by the Board of Directors as hereinafter provided.
Authority is hereby expressly granted
to the Board of Directors from time to time to issue the Preferred Stock in one or more series, and in connection with the creation of
any such series, by adopting a resolution or resolutions providing for the issuance of the shares thereof and by filing a certificate
of designation relating thereto in accordance with the DGCL (a “Certificate of Designation”), to determine and
fix the number of shares of such series and such voting powers, full or limited, or no voting powers, and such designations, preferences
and relative participating, optional or other special rights, and qualifications, limitations or restrictions thereof, including without
limitation thereof, dividend rights, conversion rights, redemption privileges and liquidation preferences, and to increase or decrease
(but not below the number of shares of such series then outstanding) the number of shares of any series as shall be stated and expressed
in such resolutions, all to the fullest extent now or hereafter permitted by the DGCL. Without limiting the generality of the foregoing,
the resolution or resolutions providing for the creation and issuance of any series of Preferred Stock may provide that such series shall
be superior or rank equally or be junior to any other series of Preferred Stock to the extent permitted by law and this Restated Certificate
(including any Certificate of Designation). Except as otherwise required by law, holders of any series of Preferred Stock shall be entitled
only to such voting rights, if any, as shall expressly be granted thereto by this Restated Certificate (including any Certificate of Designation).
The number of authorized shares of
Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the requisite vote of the
stockholders of the Corporation entitled to vote thereon, voting as a single class, irrespective of the provisions of Section 242(b)(2) of
the DGCL, unless a separate vote of any such holders is required pursuant to the terms of any Certificate of Designation.
ARTICLE VI
For the management of the business
and for the conduct of the affairs of the Corporation it is further provided that:
A. Subject
to the special rights of the holders of one or more outstanding series of Preferred Stock to elect directors, the directors of the Corporation
shall be classified with respect to the time for which they severally hold office into three classes, designated as Class I, Class II
and Class III. Each class shall consist, as nearly as may be possible, of one-third of the total number of directors constituting
the entire Board of Directors. The initial Class I directors shall serve for a term expiring at the first annual meeting of stockholders
following the initial registration of the Corporation’s Common Stock pursuant to the Securities Exchange Act of 1934, as amended;
the initial Class II directors shall serve for a term expiring at the second annual meeting of stockholders following such registration;
and the initial Class III directors shall serve for a term expiring at the third annual meeting of stockholders following such registration.
At each annual meeting of stockholders of the Corporation beginning with the first annual meeting of stockholders following the initial
registration, subject to any special rights of the holders of one or more outstanding series of Preferred Stock to elect directors, the
successors of the class of directors whose term expires at that meeting shall be elected to hold office for a term expiring at the annual
meeting of stockholders held in the third year following the year of their election. Each director shall hold office until his or her
successor is duly elected and qualified or until his or her earlier death, resignation, disqualification or removal. No decrease in the
number of directors shall shorten the term of any incumbent director. The Board of Directors is authorized to designate members of the
Board of Directors already in office as Class I, Class II and Class III.
B. Except
as otherwise expressly provided by the DGCL or this Restated Certificate, the business and affairs of the Corporation shall be managed
by or under the direction of the Board of Directors. The number of directors which shall constitute the whole Board of Directors shall
be fixed exclusively by one or more resolutions adopted from time to time by the Board of Directors.
C. Subject
to the special rights of the holders of one or more outstanding series of Preferred Stock to elect directors, the Board of Directors or
any individual director may be removed from office at any time, but only for cause and only by the affirmative vote of the holders of
at least two-thirds of the voting power of all of the then outstanding shares of voting stock of the Corporation entitled to vote at an
election of directors.
D. Subject
to the special rights of the holders of one or more outstanding series of Preferred Stock to elect directors, except as otherwise provided
by law, any vacancies on the Board of Directors resulting from death, resignation, disqualification, retirement, removal or other causes
and any newly created directorships resulting from any increase in the number of directors shall be filled exclusively by the affirmative
vote of a majority of the directors then in office, even though less than a quorum, or by a sole remaining director (other than any directors
elected by the separate vote of one or more outstanding series of Preferred Stock), and shall not be filled by the stockholders. Any director
appointed in accordance with the preceding sentence shall hold office until the expiration of the term of the class to which such director
shall have been appointed or until his or her earlier death, resignation, retirement, disqualification or removal.
E. Whenever
the holders of any one or more series of Preferred Stock issued by the Corporation shall have the right, voting separately as a series
or separately as a class with one or more such other series, to elect directors at an annual or special meeting of stockholders, the election,
term of office, removal and other features of such directorships shall be governed by the terms of this Certificate of Incorporation (including
any Certificate of Designation). Notwithstanding anything to the contrary in this Article VI, the number of directors that may be
elected by the holders of any such series of Preferred Stock shall be in addition to the number fixed pursuant to paragraph B of this
Article VI, and the total number of directors constituting the whole Board of Directors shall be automatically adjusted accordingly.
Except as otherwise provided in the Certificate of Designation(s) in respect of one or more series of Preferred Stock, whenever the
holders of any series of Preferred Stock having such right to elect additional directors are divested of such right pursuant to the provisions
of such Certificate of Designation(s), the terms of office of all such additional directors elected by the holders of such series of Preferred
Stock, or elected to fill any vacancies resulting from the death, resignation, disqualification or removal of such additional directors,
shall forthwith terminate (in which case each such director thereupon shall cease to be qualified as, and shall cease to be, a director)
and the total authorized number of directors of the Corporation shall automatically be reduced accordingly.
F. In
furtherance and not in limitation of the powers conferred by statute, the Board of Directors is expressly authorized to adopt, amend or
repeal Bylaws of the Corporation (as amended and/or restated from time to time, the “Bylaws”). In addition to any vote
of the holders of any class or series of stock of the Corporation required by applicable law or by this Certificate of Incorporation (including
any Certificate of Designation in respect of one or more series of Preferred Stock) or the Bylaws of the Corporation, the adoption, amendment
or repeal of the Bylaws of the Corporation by the stockholders of the Corporation shall require the affirmative vote of the holders of
at least two-thirds of the voting power of all of the then outstanding shares of voting stock of the Corporation entitled to vote generally
in an election of directors.
G. The
directors of the Corporation need not be elected by written ballot unless the Bylaws so provide.
ARTICLE VII
A. Any
action required or permitted to be taken by the stockholders of the Corporation must be effected at an annual or special meeting of stockholders
of the Corporation, and shall not be taken by written consent in lieu of a meeting. Notwithstanding the foregoing, any action required
or permitted to be taken by the holders of any series of Preferred Stock, voting separately as a series or separately as a class with
one or more other such series, may be taken without a meeting, without prior notice and without a vote, to the extent expressly so provided
by the applicable Certificate of Designation relating to such series of Preferred Stock, if a consent or consents in writing, setting
forth the action so taken, shall be signed by the holders of outstanding shares of the relevant series of Preferred 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 and shall be delivered to the Corporation in accordance with the applicable provisions of the DGCL.
B. Subject
to the special rights of the holders of one or more series of Preferred Stock, special meetings of stockholders of the Corporation may
be called, for any purpose or purposes, at any time only by or at the direction of the Board of Directors, the Chairperson of the Board
of Directors, the Chief Executive Officer or, in the absence of a Chief Executive Officer, the President, and shall not be called by any
other person or persons.
C. Advance
notice of stockholder nominations for the election of directors and of other business proposed to be brought by stockholders before any
meeting of stockholders of the Corporation shall be given in the manner provided in the Bylaws of the Corporation.
ARTICLE VIII
No director or officer of the Corporation
shall have any personal liability to the Corporation or its stockholders for monetary damages for any breach of fiduciary duty as a director
or officer, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL as the same exists
or hereafter may be amended. Any amendment, repeal or modification of this Article VIII, or the adoption of any provision of the
Restated Certificate inconsistent with this Article VIII, shall not adversely affect any right or protection of a director or officer
of the Corporation with respect to any act or omission occurring prior to such amendment, repeal, modification or adoption. If the DGCL
is amended after approval by the stockholders of this Article VIII to authorize corporate action further eliminating or limiting
the personal liability of directors or officers, then the liability of a director or officer of the Corporation shall be eliminated or
limited to the fullest extent permitted by the DGCL as so amended.
ARTICLE IX
The Corporation shall have the power
to provide rights to indemnification and advancement of expenses to its current and former officers, directors, employees and agents and
to any person who is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise.
ARTICLE X
Unless the Corporation consents in
writing to the selection of an alternative forum, (a) the Court of Chancery (the “Chancery Court”) of the
State of Delaware (or, in the event that the Chancery Court does not have jurisdiction, the federal district court for the District of
Delaware or other state courts of the State of Delaware) shall, to the fullest extent permitted by law, be the sole and exclusive forum
for (i) any derivative action, suit or proceeding brought on behalf of the Corporation, (ii) any action, suit or proceeding
asserting a claim of breach of a fiduciary duty owed by any director, officer or stockholder of the Corporation to the Corporation or
to the Corporation’s stockholders, (iii) any action, suit or proceeding arising pursuant to any provision of the DGCL or the
Bylaws of the Corporation or this Restated Certificate (as either may be amended from time to time) or (iv) any action, suit or proceeding
asserting a claim against the Corporation governed by the internal affairs doctrine; and (b) subject to the preceding provisions
of this Article X, the federal district courts of the United States of America shall be the exclusive forum for the resolution of
any complaint asserting a cause or causes of action arising under the Securities Act of 1933, as amended, including all causes of action
asserted against any defendant to such complaint. If any action the subject matter of which is within the scope of clause (a) of
the immediately preceding sentence is filed in a court other than the courts in the State of Delaware (a “Foreign Action”)
in the name of any stockholder, such stockholder shall be deemed to have consented to (x) the personal jurisdiction of the state
and federal courts in the State of Delaware in connection with any action brought in any such court to enforce the provisions of clause
(a) of the immediately preceding sentence and (y) having service of process made upon such stockholder in any such action by
service upon such stockholder’s counsel in the Foreign Action as agent for such stockholder.
Any person or entity purchasing or
otherwise acquiring any interest in any security of the Corporation shall be deemed to have notice of and consented to this Article X.
This Article X is intended to benefit and may be enforced by the Corporation, its officers and directors, the underwriters to any
offering giving rise to such complaint, and any other professional or entity whose profession gives authority to a statement made by that
person or entity and who has prepared or certified any part of the documents underlying the offering. Notwithstanding the foregoing, the
provisions of this Article X shall not apply to suits brought to enforce any liability or duty created by the Securities Exchange
Act of 1934, as amended, or any other claim for which the federal courts of the United States have exclusive jurisdiction.
If any provision or provisions of this
Article X shall be held to be invalid, illegal or unenforceable as applied to any circumstance for any reason whatsoever, (a) the
validity, legality and enforceability of such provisions in any other circumstance and of the remaining provisions of this Article X
(including, without limitation, each portion of any paragraph of this Article X containing any such provision held to be invalid,
illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired
thereby and (b) the application of such provision to other persons or entities and circumstances shall not in any way be affected
or impaired thereby.
ARTICLE XI
A. Notwithstanding
anything contained in this Restated Certificate to the contrary, in addition to any vote required by applicable law, the following provisions
in this Restated Certificate may be amended, altered, repealed or rescinded, in whole or in part, or any provision inconsistent therewith
or herewith may be adopted, only by the affirmative vote of the holders of at least two-thirds of the total voting power of all the then
outstanding shares of stock of the Corporation entitled to vote thereon, voting together as a single class: Article IV, Part A
of Article V, Part B of Article V, Article VI, Article VII, Article VIII, Article IX, Article X,
and this Article XI.
B. If
any provision or provisions of this Restated Certificate shall be held to be invalid, illegal or unenforceable as applied to any circumstance
for any reason whatsoever: (i) the validity, legality and enforceability of such provisions in any other circumstance and of the
remaining provisions of this Restated Certificate (including, without limitation, each portion of any paragraph of this Restated Certificate
containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable)
shall not, to the fullest extent permitted by applicable law, in any way be affected or impaired thereby and (ii) to the fullest
extent permitted by applicable law, the provisions of this Restated Certificate (including, without limitation, each such portion of any
paragraph of this Restated Certificate containing any such provision held to be invalid, illegal or unenforceable) shall be construed
so as to permit the Corporation to protect its directors, officers, employees and agents from personal liability in respect of their good
faith service to or for the benefit of the Corporation to the fullest extent permitted by law.
EX-3.2 — EXHIBIT 3.2
EX-3.2
Filename: tm2628316d1_ex3-2.htm · Sequence: 3
Exhibit 3.2
Amended and Restated Bylaws of
Forge Nano Holdings, Inc.
(a Delaware corporation)
As of October 21, 2026
TABLE OF CONTENTS
Article I - Corporate Offices
1.1
Registered Office
1
1.2
Other Offices
1
Article II - Meetings of Stockholders
2.1
Place of Meetings
1
2.2
Annual Meeting
1
2.3
Special Meeting
1
2.4
Notice of Business to be Brought before a Meeting
2
2.5
Notice of Nominations for Election to the Board of Directors
5
2.6
Additional Requirements for Valid Nomination of Candidates to Serve as Director and, if Elected, to be Seated as Directors
9
2.7
Notice of Stockholders’ Meetings
10
2.8
Quorum
11
2.9
Adjourned Meeting; Notice
11
2.10
Conduct of Business
11
2.11
Voting
12
2.12
Record Date for Stockholder Meetings and Other Purposes
12
2.13
Proxies
13
2.14
List of Stockholders Entitled to Vote
13
2.15
Inspectors of Election
14
2.16
Delivery to the Corporation
14
Article III - Directors
3.1
Powers
15
3.2
Number of Directors
15
3.3
Election, Qualification and Term of Office of Directors
15
3.4
Resignation and Vacancies
15
3.5
Place of Meetings; Meetings by Telephone
15
3.6
Regular Meetings
16
3.7
Special Meetings; Notice
16
3.8
Quorum
16
3.9
Board Action without a Meeting
17
3.10
Fees and Compensation of Directors
17
Article IV - Committees
4.1
Committees of Directors
17
4.2
Committee Minutes
17
4.3
Meetings and Actions of Committees
18
4.4
Subcommittees
18
i
Article V - Officers
5.1
Officers
18
5.2
Appointment of Officers
19
5.3
Subordinate Officers
19
5.4
Removal and Resignation of Officers
19
5.5
Vacancies in Offices
19
5.6
Representation of Shares of Other Corporations
19
5.7
Authority and Duties of Officers
20
5.8
Compensation
20
Article VI - Records
Article VII - General Matters
7.1
Execution of Corporate Contracts and Instruments
20
7.2
Stock Certificates
21
7.3
Special Designation of Certificates
21
7.4
Lost Certificates
22
7.5
Shares Without Certificates
22
7.6
Construction; Definitions
22
7.7
Dividends
22
7.8
Fiscal Year
22
7.9
Seal
23
7.10
Transfer of Stock
23
7.11
Stock Transfer Agreements
23
7.12
Registered Stockholders
23
7.13
Waiver of Notice
23
Article VIII - Notice
8.1
Delivery of Notice; Notice by Electronic Transmission
24
Article IX - Indemnification
9.1
Indemnification of Directors and Officers
25
9.2
Indemnification of Others
25
9.3
Prepayment of Expenses
25
9.4
Determination; Claim
26
9.5
Non-Exclusivity of Rights
26
9.6
Insurance
26
9.7
Other Indemnification
26
9.8
Continuation of Indemnification
26
9.9
Amendment or Repeal; Interpretation
26
Article X - Amendments
Article XI - Definitions
ii
Amended and Restated Bylaws
of
Forge Nano Holdings, Inc.
_______________________________
Article I - Corporate Offices
1.1 Registered
Office.
The address of the registered office of Forge
Nano Holdings, Inc. (the “Corporation”) in the State of Delaware, and the name of its registered agent at such
address, shall be as set forth in the Corporation’s certificate of incorporation, as the same may be amended and/or restated from
time to time (the “Certificate of Incorporation”).
1.2 Other
Offices.
The Corporation may have additional offices at
any place or places, within or outside the State of Delaware, as the Corporation’s board of directors (the “Board”)
may from time to time establish or as the business of the Corporation may require.
Article II - Meetings of Stockholders
2.1 Place
of Meetings.
Meetings of stockholders shall be held at any
place within or outside the State of Delaware, designated by the Board. The Board may, in its sole discretion, determine that a meeting
of stockholders shall not be held at any place, but may instead be held solely by means of remote communication as authorized by Section 211(a)(2) of
the General Corporation Law of the State of Delaware (the “DGCL”). In the absence of any such designation or determination,
stockholders’ meetings shall be held at the Corporation’s principal executive office.
2.2 Annual
Meeting.
The Board shall designate the date and time of
the annual meeting of stockholders. At the annual meeting of stockholders, directors shall be elected and other proper business properly
brought before the meeting in accordance with Section 2.4 of these Bylaws may be transacted. The Board may postpone, reschedule
or cancel any previously scheduled annual meeting of stockholders.
2.3 Special
Meeting.
Special meetings of stockholders may be called
only by such persons and only in such manner as set forth in the Certificate of Incorporation.
No business may be transacted at any special meeting
of stockholders other than the business specified in the notice of such meeting. The Board may postpone, reschedule or cancel any previously
scheduled special meeting of stockholders.
2.4 Notice
of Business to be Brought before a Meeting.
(a) At
an annual meeting of the stockholders, only such business shall be conducted as shall have been properly brought before the meeting.
To be properly brought before an annual meeting, business must be (i) specified in a notice of meeting given by or at the direction
of the Board of Directors, (ii) if not specified in a notice of meeting, otherwise brought before the meeting by or at the direction
of the Board of Directors or the Chairperson of the Board or (iii) otherwise properly brought before the meeting by a stockholder
present in person who (A) (1) was a record owner of shares of capital stock of the Corporation both at the time of giving the
notice provided for in this Section 2.4 and at the time of the meeting, (2) is entitled to vote at the meeting, and
(3) has complied with this Section 2.4 in all applicable respects or (B) properly made such proposal in accordance
with Rule 14a-8 under the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (as so amended
and inclusive of such rules and regulations, the “Exchange Act”). The foregoing clause (iii) shall
be the exclusive means for a stockholder to propose business to be brought before an annual meeting of the stockholders. The only matters
that may be brought before a special meeting are the matters specified in the notice of meeting given by or at the direction of the person
calling the meeting pursuant to Section 2.3, and stockholders shall not be permitted to propose business to be brought before
a special meeting of the stockholders. For purposes of this Section 2.4, “present in person” shall mean that
the stockholder proposing that the business be brought before the annual meeting of the Corporation, or a qualified representative of
such proposing stockholder, appear at such annual meeting, either in person or by means of remote communication. A “qualified representative”
of such proposing stockholder shall be a duly authorized officer, manager or partner of such stockholder or any other person authorized
by a writing executed by such stockholder or an electronic transmission delivered by such stockholder to act for such stockholder as
proxy at the meeting of stockholders and such person must produce such writing or electronic transmission, or a reliable reproduction
of the writing or electronic transmission, at or before the meeting of stockholders in writing or by electronic transmission. Stockholders
seeking to nominate persons for election to the Board of Directors must comply with Section 2.5 and Section 2.6
and this Section 2.4 shall not be applicable to nominations except as expressly provided in Section 2.5 and Section 2.6.
(b) Without
qualification, for business to be properly brought before an annual meeting by a stockholder, the stockholder must (i) provide Timely
Notice (as defined below) thereof in writing and in proper form to the Secretary of the Corporation and (ii) provide any updates
or supplements to such notice at the times and in the forms required by this Section 2.4. To be timely, a stockholder’s
notice must be delivered to, or mailed and received at, the principal executive offices of the Corporation not less than ninety (90)
days nor more than one hundred twenty (120) days prior to the first anniversary of the preceding year’s annual meeting which, in
the case of the first annual meeting of stockholders following the effectiveness of these Bylaws, the date of the preceding year’s
annual meeting shall be deemed to be June 1, 2026; provided, however, that if the date of the annual meeting is more
than thirty (30) days before or more than seventy (70) days after such anniversary date, notice by the stockholder to be timely must
be so delivered, or mailed and received, not more than the hundred twentieth (120th) day prior to such annual meeting and not later than
(i) the ninetieth (90th) day prior to such annual meeting or, (ii) if later, the tenth (10th) day following the day on which
public disclosure of the date of such annual meeting was first made by the Corporation (such notice within such time periods, “Timely
Notice”). In no event shall any adjournment or postponement of an annual meeting or the announcement thereof commence a new
time period (or extend any time period) for the giving of Timely Notice as described above.
2
(c) To
be in proper form for purposes of this Section 2.4, a stockholder’s notice to the Secretary shall set forth:
(i) As
to each Proposing Person (as defined below), (A) the name and address of such Proposing Person (including, if applicable, the name
and address that appear on the Corporation’s books and records), (B) the class or series and number of shares of capital stock
of the Corporation that are, directly or indirectly, owned of record or beneficially owned (within the meaning of Rule 13d-3 under
the Exchange Act) by such Proposing Person, except that such Proposing Person shall in all events be deemed to beneficially own any shares
of any class or series of capital stock of the Corporation as to which such Proposing Person has a right to acquire beneficial ownership
at any time in the future, (C) the date or dates such shares were acquired, (D) the investment intent of such acquisition and
(E) any pledge by such Proposing Person with respect to any of such shares (the disclosures to be made pursuant to the foregoing
clauses (A) through (E) are referred to as “Stockholder Information”);
(ii) As
to each Proposing Person, (A) the material terms and conditions of any “derivative security” (as such term is defined
in Rule 16a-1(c) under the Exchange Act) that constitutes a “call equivalent position” (as such term is defined
in Rule 16a-1(b) under the Exchange Act) or a “put equivalent position” (as such term is defined in Rule 16a-1(h) under
the Exchange Act) or other derivative or synthetic arrangement in respect of any class or series of shares of capital stock of the Corporation
(“Synthetic Equity Position”) that is, directly or indirectly, held or maintained by, held for the benefit of, or
involving such Proposing Person, including, without limitation, (1) any option, warrant, convertible security, stock appreciation
right, future or similar right with an exercise or conversion privilege or a settlement payment or mechanism at a price related to any
class or series of shares of capital stock of the Corporation or with a value derived in whole or in part from the value of any shares
of any class or series of shares of capital stock of the Corporation, (2) any derivative or synthetic arrangement having the characteristics
of a long position or a short position in any class or series of shares of capital stock of the Corporation, including, without limitation,
a stock loan transaction, a stock borrow transaction, or a share repurchase transaction or (3) any contract, derivative, swap or
other transaction or series of transactions designed to (x) produce economic benefits and risks that correspond substantially to
the ownership of any class or series of shares of capital stock of the Corporation, (y) mitigate any loss relating to, reduce the
economic risk (of ownership or otherwise) of, or manage the risk of share price decrease in, any class or series of shares of capital
stock of the Corporation, or (z) increase or decrease the voting power in respect of any class or series of shares of capital stock
of the Corporation held or maintained by, held for the benefit of, or involving such Proposing Person, including, without limitation,
due to the fact that the value of such contract, derivative, swap or other transaction or series of transactions is determined by reference
to the price, value or volatility of any class or series of shares of capital stock of the Corporation, whether or not such instrument,
contract or right shall be subject to settlement in the underlying class or series of shares of capital stock of the Corporation, through
the delivery of cash or other property, or otherwise, and without regard to whether the holder thereof may have entered into transactions
that hedge or mitigate the economic effect of such instrument, contract or right, or any other direct or indirect opportunity to profit
or share in any profit derived from any increase or decrease in the price or value of any shares of any class or series of shares of
capital stock of the Corporation; provided that, for the purposes of the definition of “Synthetic Equity Position,”
the term “derivative security” shall also include any security or instrument that would not otherwise constitute a “derivative
security” as a result of any feature that would make any conversion, exercise or similar right or privilege of such security or
instrument becoming determinable only at some future date or upon the happening of a future occurrence, in which case the determination
of the amount of securities into which such security or instrument would be convertible or exercisable shall be made assuming that such
security or instrument is immediately convertible or exercisable at the time of such determination; and, provided, further,
that any Proposing Person satisfying the requirements of Rule 13d-1(b)(1) under the Exchange Act (other than a Proposing Person
that so satisfies Rule 13d-1(b)(1) under the Exchange Act solely by reason of Rule 13d-1(b)(1)(ii)(E)) shall not be deemed
to hold or maintain the notional amount of any securities that underly any Synthetic Equity Position that is, directly or indirectly,
held or maintained by, held for the benefit of, or involving such Proposing Person as a hedge with respect to a bona fide derivatives
trade or position of such Proposing Person arising in the ordinary course of such Proposing Person’s business as a derivatives
dealer, (B) a description of any agreement, arrangement or understanding with respect to any rights to dividends on the shares of
any class or series of shares of capital stock of the Corporation owned beneficially by such Proposing Person that are separated or separable
pursuant to such agreement, arrangement or understanding from the underlying shares of capital stock of the Corporation, (C) any
material pending or threatened legal proceeding in which such Proposing Person is a party or material participant involving the Corporation
or any of its officers or directors, or any affiliate of the Corporation, (D) any other material relationship between such Proposing
Person, on the one hand, and the Corporation or any affiliate of the Corporation, on the other hand, (E) any direct or indirect
material interest in any material contract or agreement of such Proposing Person with the Corporation or any affiliate of the Corporation
(including, in any such case, any employment agreement, collective bargaining agreement or consulting agreement), (F) any proportionate
interest in shares of capital stock of the Corporation or a Synthetic Equity Position held, directly or indirectly, by a general or limited
partnership, limited liability company or similar entity in which any such Proposing Person (1) is a general partner or, directly
or indirectly, beneficially owns an interest in a general partner of such general or limited partnership or (2) is the manager,
managing member or, directly or indirectly, beneficially owns an interest in the manager or managing member of such limited liability
company or similar entity, (G) a representation that such Proposing Person intends or is part of a group that intends to deliver
a proxy statement and/or form of proxy to holders of at least the percentage of the Corporation’s outstanding capital stock required
to approve or adopt the proposal or otherwise solicit proxies or votes from stockholders in support of such proposal and (H) any
other information relating to such Proposing Person that would be required to be disclosed in a proxy statement or other filing required
to be made in connection with solicitations of proxies or consents by such Proposing Person in support of the business proposed to be
brought before the meeting pursuant to Section 14(a) of the Exchange Act, (the disclosures to be made pursuant to the foregoing
clauses (A) through (H) are referred to as “Disclosable Interests”); provided, however, that
Disclosable Interests shall not include any such disclosures with respect to the ordinary course business activities of any broker, dealer,
commercial bank, trust company or other nominee who is a Proposing Person solely as a result of being the stockholder directed to prepare
and submit the notice required by these Bylaws on behalf of a beneficial owner; and
3
(iii) As
to each item of business that the stockholder proposes to bring before the annual meeting, (A) a brief description of the business
desired to be brought before the annual meeting, the reasons for conducting such business at the annual meeting and any material interest
in such business of each Proposing Person, (B) the text of the proposal or business (including the text of any resolutions proposed
for consideration and in the event that such business includes a proposal to amend the Bylaws, the language of the proposed amendment),
(C) a reasonably detailed description of all agreements, arrangements and understandings (x) between or among any of the Proposing
Persons or (y) between or among any Proposing Person and any other record or beneficial holder(s) or persons(s) who have
a right to acquire beneficial ownership at any time in the future of the shares of any class or series of capital stock of the Corporation
or any other person or entity (including their names) in connection with the proposal of such business by such stockholder, and (D) any
other information relating to such item of business that would be required to be disclosed in a proxy statement or other filing required
to be made in connection with solicitations of proxies in support of the business proposed to be brought before the meeting pursuant
to Section 14(a) of the Exchange Act; provided, however, that the disclosures required by this paragraph (iii) shall
not include any disclosures with respect to any broker, dealer, commercial bank, trust company or other nominee who is a Proposing Person
solely as a result of being the stockholder directed to prepare and submit the notice required by these Bylaws on behalf of a beneficial
owner.
For purposes of this Section 2.4,
the term “Proposing Person” shall mean (i) the stockholder providing the notice of business proposed to be brought
before an annual meeting, (ii) the beneficial owner or beneficial owners, if different, on whose behalf the notice of the business
proposed to be brought before the annual meeting is made, and (iii) any participant (as defined in paragraphs (a)(ii)-(vi) of
Instruction 3 to Item 4 of Schedule 14A) with such stockholder in such solicitation.
(d) The
Board of Directors may request that any Proposing Person furnish such additional information as may be reasonably required by the Board
of Directors. Such Proposing Person shall provide such additional information within ten (10) days after it has been requested by
the Board of Directors.
(e) A
Proposing Person shall update and supplement its notice to the Corporation of its intent to propose business at an annual meeting, if
necessary, so that the information provided or required to be provided in such notice pursuant to this Section 2.4 shall
be true and correct as of the record date for stockholders entitled to vote at the meeting and as of the date that is ten (10) business
days prior to the meeting or any adjournment or postponement thereof, and such update and supplement shall be delivered to, or mailed
and received by, the Secretary at the principal executive offices of the Corporation not later than five (5) business days after
the record date for stockholders entitled to vote at the meeting (in the case of the update and supplement required to be made as of
such record date), and not later than eight (8) business days prior to the date for the meeting or, if practicable, any adjournment
or postponement thereof (and, if not practicable, on the first practicable date prior to the date to which the meeting has been adjourned
or postponed) (in the case of the update and supplement required to be made as of ten (10) business days prior to the meeting or
any adjournment or postponement thereof). For the avoidance of doubt, the obligation to update and supplement as set forth in this paragraph
or any other section of these Bylaws shall not limit the Corporation’s rights with respect to any deficiencies in any notice provided
by a stockholder, extend any applicable deadlines hereunder or enable or be deemed to permit a stockholder who has previously submitted
notice hereunder to amend or update any proposal or to submit any new proposal, including by changing or adding matters, business or
resolutions proposed to be brought before a meeting of the stockholders.
4
(f) Notwithstanding
anything in these Bylaws to the contrary, no business shall be conducted at an annual meeting that is not properly brought before the
meeting in accordance with this Section 2.4. The presiding officer of the meeting (or, in advance of any meeting of stockholders,
the Board of Directors or an authorized committee thereof) shall, if the facts warrant, determine that the business was not properly
brought before the meeting in accordance with this Section 2.4, and if he or she should so determine, he or she shall so
declare to the meeting and any such business not properly brought before the meeting shall not be transacted.
(g) This
Section 2.4 is expressly intended to apply to any business proposed to be brought before an annual meeting of stockholders
other than any proposal made in accordance with Rule 14a-8 under the Exchange Act and included in the Corporation’s proxy
statement. In addition to the requirements of this Section 2.4 with respect to any business proposed to be brought before
an annual meeting, each Proposing Person shall comply with all applicable requirements of the Exchange Act with respect to any such business.
Nothing in this Section 2.4 shall be deemed to affect the rights of stockholders to request inclusion of proposals in the
Corporation’s proxy statement pursuant to Rule 14a-8 under the Exchange Act.
(h) For
purposes of these Bylaws, “public disclosure” shall mean disclosure in a press release reported by a national news
service or in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Sections 13, 14 or
15(d) of the Exchange Act.
2.5 Notice
of Nominations for Election to the Board of Directors.
(a) Nominations
of any person for election to the Board of Directors at an annual meeting or at a special meeting (but only if the election of directors
is a matter specified in the notice of meeting given by or at the direction of the person calling such special meeting) may be made at
such meeting only (i) by or at the direction of the Board of Directors, including by any committee or persons authorized to do so
by the Board of Directors or these bylaws, or (ii) by a stockholder present in person who (A) was a record owner of shares
of capital stock of the Corporation both at the time of giving the notice provided for in this Section 2.5 and at the time
of the meeting, (B) is entitled to vote at the meeting, and (C) has complied with this Section 2.5 and Section 2.6
as to such notice and nomination. For purposes of this Section 2.5, “present in person” shall mean that the stockholder
nominating any person for election to the Board of Directors at the meeting of the Corporation, or a qualified representative of such
stockholder, appear at such meeting, either in person or by means of remote communication. A “qualified representative” of
such proposing stockholder shall be a duly authorized officer, manager or partner of such stockholder or any other person authorized
by a writing executed by such stockholder or an electronic transmission delivered by such stockholder to act for such stockholder as
proxy at the meeting of stockholders and such person must produce such writing or electronic transmission, or a reliable reproduction
of the writing or electronic transmission, at or before the meeting of stockholders in writing or by electronic transmission. The foregoing
clause (ii) shall be the exclusive means for a stockholder to make any nomination of a person or persons for election to the Board
of Directors at an annual meeting or special meeting.
5
(b) (i) Without
qualification, for a stockholder to make any nomination of a person or persons for election to the Board of Directors at an annual meeting,
the stockholder must (1) provide Timely Notice (as defined in Section 2.4) thereof in writing and in proper form to
the Secretary of the Corporation, (2) provide the information, agreements and questionnaires with respect to each Nominating Person
(as defined below) and its candidate for nomination as required to be set forth by this Section 2.5 and Section 2.6
and (3) provide any updates or supplements to such notice at the times and in the forms required by this Section 2.5
and Section 2.6.
(ii) Without
qualification, if the election of directors is a matter specified in the notice of meeting given by or at the direction of the person
calling a special meeting, then for a stockholder to make any nomination of a person or persons for election to the Board of Directors
at a special meeting, the stockholder must (A) provide timely notice thereof in writing and in proper form to the Secretary of the
Corporation at the principal executive offices of the Corporation, (B) provide the information with respect to each Nominating Person
and its candidate for nomination as required by this Section 2.5 and Section 2.6 and (C) provide any updates
or supplements to such notice at the times and in the forms required by this Section 2.5. To be timely, a stockholder’s
notice for nominations to be made at a special meeting must be delivered to, or mailed and received at, the principal executive offices
of the Corporation not earlier than the one hundred twentieth (120th) day prior to such special meeting and not later than the ninetieth
(90th) day prior to such special meeting or, if later, the tenth (10th) day following the day on which public disclosure (as defined
in Section 2.4) of the date of such special meeting was first made (such notice within such time periods, “Special
Meeting Timely Notice”).
(iii) In
no event shall any adjournment or postponement of an annual meeting or special meeting or the announcement thereof commence a new time
period (or extend any time period) for the giving of a stockholder’s notice as described above.
(iv) In
no event may a Nominating Person deliver a notice of nomination, as applicable, with respect to a greater number of director candidates
than are subject to election by stockholders at the applicable meeting. If the Corporation shall, subsequent to such notice, increase
the number of directors subject to election at the meeting, such notice as to any additional nominees shall be due on the later of (i) the
conclusion of the time period for Timely Notice or Special Meeting Timely Notice, as applicable, or (ii) the tenth day following
the date of public disclosure (as defined in Section 2.4) of such increase.
(c) To
be in proper form for purposes of this Section 2.5, a stockholder’s notice to the Secretary shall set forth:
(i) As
to each Nominating Person, the Stockholder Information (as defined in Section 2.4(c)(i), except that for purposes of this
Section 2.5 the term “Nominating Person” shall be substituted for the term “Proposing Person”
in all places it appears in Section 2.4(c)(i));
6
(ii) As
to each Nominating Person, any Disclosable Interests (as defined in Section 2.4(c)(ii), except that for purposes of this
Section 2.5 the term “Nominating Person” shall be substituted for the term “Proposing Person”
in all places it appears in Section 2.3(c)(ii) and the disclosure with respect to the business to be brought before
the meeting in Section 2.4(c)(ii) shall be made with respect to the nomination proposed to be made at the meeting);
and provided that, in lieu of including the information set forth in Section 2.4(c)(ii)(G), the Nominating Person’s
notice for purposes of this Section 2.5 shall include a representation as to whether the Nominating Person intends or is
part of a group that intends to deliver a proxy statement and solicit the holders of shares representing at least 67% of the voting power
of shares entitled to vote on the election of directors in support of director nominees other than the Corporation’s nominees in
accordance with Rule 14a-19 promulgated under the Exchange Act; and
(iii) As
to each candidate whom a Nominating Person proposes to nominate for election as a director, (A) all information relating to such
candidate for nomination that is required to be disclosed in a proxy statement or other filings required to be made in connection with
solicitations of proxies for election of directors in a contested election pursuant to Section 14(a) under the Exchange Act
(including such candidate’s written consent to being named in a proxy statement and accompanying proxy card relating to the Corporation’s
next meeting of stockholders at which directors are to be elected and to serving as a director for a full term if elected), (B) a
description of any direct or indirect material interest in any material contract or agreement between or among any Nominating Person,
on the one hand, and each candidate for nomination or his or her respective associates (as defined in Rule 14a-1(a) promulgated
under the Exchange Act) or any other participants (as defined in paragraphs (a)(ii)-(vi) of Instruction 3 to Item 4 of Schedule
14A) in such solicitation, on the other hand, including, without limitation, all information that would be required to be disclosed pursuant
to Item 404 under Regulation S-K if such Nominating Person were the “registrant” for purposes of such rule and the candidate
for nomination were a director or executive officer of such registrant (the disclosures to be made pursuant to the foregoing clauses
(A) and (B) are referred to as “Nominee Information”), and (C) a completed and signed questionnaire,
representation and agreement as provided in Section 2.6(a).
For purposes of this Section 2.5,
the term “Nominating Person” shall mean (i) the stockholder providing the notice of the nomination proposed to
be made at the meeting, (ii) the beneficial owner or beneficial owners, if different, on whose behalf the notice of the nomination
proposed to be made at the meeting is made, and (iii) any participant (as defined in paragraphs (a)(ii)-(vi) of Instruction
3 to Item 4 of Schedule 14A) with such stockholder in such solicitation.
(d) The
Board of Directors may request that any Nominating Person furnish such additional information as may be reasonably required by the Board
of Directors. Such Nominating Person shall provide such additional information within ten (10) days after it has been requested
by the Board of Directors.
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(e) A
stockholder providing notice of any nomination proposed to be made at a meeting shall further update and supplement such notice or the
materials delivered pursuant to this Section 2.5, as applicable, if necessary, so that the information provided or required
to be provided in such notice pursuant to this Section 2.5 shall be true and correct as of the record date for stockholders
entitled to vote at the meeting and as of the date that is ten (10) business days prior to the meeting or any adjournment or postponement
thereof, and such update and supplement shall be delivered to, or mailed and received by, the Secretary at the principal executive offices
of the Corporation not later than five (5) business days after the record date for stockholders entitled to vote at the meeting
(in the case of the update and supplement required to be made as of such record date), and not later than eight (8) business days
prior to the date for the meeting or, if practicable, any adjournment or postponement thereof (and, if not practicable, on the first
practicable date prior to the date to which the meeting has been adjourned or postponed) (in the case of the update and supplement required
to be made as of ten (10) business days prior to the meeting or any adjournment or postponement thereof). For the avoidance of doubt,
the obligation to update and supplement as set forth in this paragraph or any other section of these Bylaws shall not limit the Corporation’s
rights with respect to any deficiencies in any notice provided by a stockholder, extend any applicable deadlines hereunder or enable
or be deemed to permit a stockholder who has previously submitted notice hereunder to amend or update any nomination, including by changing
or adding nominees, or to submit any new nomination, or submit any new proposal, matters, business or resolutions proposed to be brought
before a meeting of the stockholders.
(f) In
addition to the requirements of this Section 2.5 with respect to any nomination proposed to be made at a meeting, each Nominating
Person shall comply with all applicable requirements of the Exchange Act with respect to any such nominations. Notwithstanding the foregoing
provisions of this Section 2.5, unless otherwise required by law, (i) no Nominating Person shall solicit proxies in
support of director nominees other than the Corporation’s nominees unless such Nominating Person has, or is part of a group that
has, complied with Rule 14a-19 promulgated under the Exchange Act in connection with the solicitation of such proxies, including
the provision to the Corporation of notices required thereunder, in accordance with the time frames required in this Section 2.5
or by Rule 14a-19 promulgated under the Exchange Act, as applicable, and (ii) if (1) any Nominating Person provides notice
in accordance with Rule 14a-19(b) promulgated under the Exchange Act and (2) (x) such notice in accordance with Rule 14a-19(b) is
not provided within the time period for Timely Notice or Special Meeting Timely Notice, as applicable, (y) such Nominating Person
subsequently fails to comply with the requirements of Rule 14a-19(a)(2) or Rule 14a-19(a)(3) promulgated under the
Exchange Act or (z) such Nominating Person fails to timely provide reasonable evidence sufficient to satisfy the Corporation that
such Nominating Person has met the requirements of Rule 14a-19(a)(3) promulgated under the Exchange Act in accordance with
the following sentence, then the nomination of such Nominating Person’s proposed nominees shall be disregarded, notwithstanding
that each such nominee is included as a nominee in the Corporation’s proxy statement, notice of meeting or other proxy materials
for any meeting of stockholders (or any supplement thereto) and notwithstanding that proxies or votes in respect of the election of such
proposed nominees may have been received by the Corporation (which proxies and votes shall be disregarded). If any Nominating Person
provides notice in accordance with Rule 14a-19(b) promulgated under the Exchange Act, such Nominating Person shall deliver
to the Corporation, no later than seven (7) business days prior to the applicable meeting, reasonable evidence that it has met the
requirements of Rule 14a-19(a)(3) promulgated under the Exchange Act.
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2.6 Additional
Requirements for Valid Nomination of Candidates to Serve as Director and, if Elected, to be Seated as Directors.
(a) To
be eligible to be a candidate for election as a director of the Corporation at an annual or special meeting, a candidate must be nominated
in the manner prescribed in Section 2.5 and the candidate for nomination, whether nominated by the Board of Directors or
by a stockholder of record, must have previously delivered, to the Secretary at the principal executive offices of the Corporation, (i) a
completed written questionnaire (in the form provided by the Corporation within ten (10) days upon written request of any stockholder
of record therefor) with respect to the background, qualifications, stock ownership and independence of such proposed nominee and (ii) a
written representation and agreement (in the form provided by the Corporation within ten (10) days upon written request of any stockholder
of record therefor) that such candidate for nomination (A) is not and, if elected as a director during his or her term of office,
will not become a party to (1) any agreement, arrangement or understanding with, and has not given and will not give any commitment
or assurance to, any person or entity as to how such proposed nominee, if elected as a director of the Corporation, will act or vote
on any issue or question (a “Voting Commitment”) or (2) any Voting Commitment that could limit or interfere with
such proposed nominee’s ability to comply, if elected as a director of the Corporation, with such proposed nominee’s fiduciary
duties under applicable law, (B) is not, and will not become a party to, any agreement, arrangement or understanding with any person
or entity other than the Corporation with respect to any direct or indirect compensation or reimbursement for service as a director that
has not been disclosed to the Corporation, (C) if elected as a director of the Corporation, will comply with all applicable corporate
governance, conflict of interest, confidentiality, stock ownership and trading and other policies and guidelines of the Corporation applicable
to directors and in effect during such person’s term in office as a director (and, if requested by any candidate for nomination,
the Secretary of the Corporation shall provide to such candidate for nomination all such policies and guidelines then in effect), and
(D) if elected as a director of the Corporation, intends to serve the entire term until the next meeting at which such candidate
would face re-election.
(b) The
Board of Directors may also require any proposed candidate for nomination as a director to furnish such other information related to
such candidate’s eligibility or qualification to serve as a director as may reasonably be requested by the Board of Directors in
writing prior to the meeting of stockholders at which such candidate’s nomination is to be acted upon. Without limiting the generality
of the foregoing, the Board of Directors may request such other information in order for the Board of Directors to determine the eligibility
of such candidate for nomination to be an independent director of the Corporation or to comply with the director qualification standards
and additional selection criteria in accordance with the Corporation’s Corporate Governance Guidelines. Such other information
shall be delivered to, or mailed and received by, the Secretary at the principal executive offices of the Corporation not later than
five (5) business days after the request by the Board of Directors has been delivered to, or mailed and received by, the Nominating
Person.
(c) A
candidate for nomination as a director shall further update and supplement the materials delivered pursuant to this Section 2.6,
if necessary, so that the information provided or required to be provided pursuant to this Section 2.6 shall be true and
correct as of the record date for stockholders entitled to vote at the meeting and as of the date that is ten (10) business days
prior to the meeting or any adjournment or postponement thereof, and such update and supplement shall be delivered to, or mailed and
received by, the Secretary at the principal executive offices of the Corporation not later than five (5) business days after the
record date for stockholders entitled to vote at the meeting (in the case of the update and supplement required to be made as of such
record date), and not later than eight (8) business days prior to the date for the meeting or, if practicable, any adjournment
or postponement thereof (and, if not practicable, on the first practicable date prior to the date to which the meeting has been adjourned
or postponed) (in the case of the update and supplement required to be made as of ten (10) business days prior to the meeting or
any adjournment or postponement thereof). For the avoidance of doubt, the obligation to update and supplement as set forth in this paragraph
or any other section of these Bylaws shall not limit the Corporation’s rights with respect to any deficiencies in any notice provided
by a stockholder, extend any applicable deadlines hereunder or enable or be deemed to permit a stockholder who has previously submitted
notice hereunder to amend or update any nomination or to submit any new proposal, including by changing or adding nominees, matters,
business or resolutions proposed to be brought before a meeting of the stockholders.
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(d) No
candidate nominated pursuant to Section 2.5(a) (ii) shall be eligible for nomination as a director of the Corporation
unless such candidate for nomination and the Nominating Person seeking to place such candidate’s name in nomination has complied
with Section 2.5 and this Section 2.6, as applicable. The presiding officer at the meeting shall, if the facts
warrant, determine that a nomination was not properly made in accordance with Section 2.5 and this Section 2.6,
and if he or she should so determine, he or she shall so declare such determination to the meeting, the defective nomination shall be
disregarded and any ballots cast for the candidate in question (but in the case of any form of ballot listing other qualified nominees,
only the ballots cast for the nominee in question) shall be void and of no force or effect.
(e) Notwithstanding
anything in these Bylaws to the contrary, no candidate for nomination shall be eligible to be seated as a director of the Corporation
unless nominated in accordance with Section 2.5 and this Section 2.6 and elected as a director.
2.7 Notice
of Stockholders’ Meetings.
Unless otherwise provided by law, the Certificate
of Incorporation or these Bylaws, the notice of any meeting of stockholders shall be sent or otherwise given in accordance with Section 8.1
of these Bylaws 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. The notice shall specify the place, if any, date and time of the meeting, the means of remote communication,
if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such meeting, and, in the case of a
special meeting of stockholders, the purpose or purposes for which such meeting is called.
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2.8 Quorum.
Unless otherwise provided by law, the Certificate
of Incorporation or these Bylaws, the holders of a majority in voting power of the stock issued and outstanding and entitled to vote,
present in person, or by remote communication, if applicable, or represented by proxy, shall constitute a quorum for the transaction
of business at all meetings of stockholders. A quorum, once established at a meeting, shall not be broken by the withdrawal of enough
votes to leave less than a quorum. If, however, a quorum is not present or represented at any meeting of stockholders, then either (i) the
person presiding over the meeting or (ii) a majority in voting power of the stockholders entitled to vote at the meeting, present
in person, or by remote communication, if applicable, or represented by proxy, shall have power to recess the meeting or adjourn the
meeting from time to time in the manner provided in Section 2.9 of these Bylaws until a quorum is present or represented.
At any recessed or adjourned meeting at which a quorum is present or represented, any business may be transacted that might have been
transacted at the meeting as originally noticed.
2.9 Adjourned
Meeting; Notice.
When a meeting is adjourned to another time or
place, unless these Bylaws otherwise require, notice need not be given of the adjourned meeting if the time, place, if any, thereof,
and the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and vote
at such adjourned meeting are announced at the meeting at which the adjournment is taken or are provided in any other manner permitted
by the DGCL. At any adjourned meeting, the Corporation may transact any business which might have been transacted at the original meeting.
If the adjournment is for more than thirty (30) days, a notice of the adjourned meeting shall be given to each stockholder of record
entitled to vote at the meeting. If after the adjournment a new record date for determination of stockholders entitled to vote is fixed
for the adjourned meeting, the Board shall fix as the record date for determining stockholders entitled to notice of such adjourned meeting
the same or an earlier date as that fixed for determination of stockholders entitled to vote at the adjourned meeting, and shall give
notice of the adjourned meeting to each stockholder of record entitled to vote at such meeting as of the record date so fixed for notice
of such adjourned meeting.
2.10 Conduct
of Business.
The date and time of the opening and the closing
of the polls for each matter upon which the stockholders will vote at a meeting shall be announced at the meeting by the person presiding
over the meeting. The Board may adopt by resolution such rules and regulations for the conduct of the meeting of stockholders as
it shall deem appropriate. Except to the extent inconsistent with such rules and regulations as adopted by the Board, the person
presiding over any meeting of stockholders shall have the right and authority to convene and (for any or no reason) to recess and/or
adjourn the meeting, to prescribe such rules, regulations and procedures (which need not be in writing) and to do all such acts as, in
the judgment of such presiding person, are appropriate for the proper conduct of the meeting. Such rules, regulations or procedures,
whether adopted by the Board or prescribed by the person presiding over the meeting, may include, without limitation, the following:
(i) the establishment of an agenda or order of business for the meeting; (ii) rules and procedures for maintaining order
at the meeting and the safety of those present (including, without limitation, rules and procedures for removal of disruptive persons
from the meeting); (iii) limitations on attendance at or participation in the meeting to stockholders entitled to vote at the meeting,
their duly authorized and constituted proxies or such other persons as the person presiding over the meeting shall determine; (iv) restrictions
on entry to the meeting after the time fixed for the commencement thereof; and (v) limitations on the time allotted to questions
or comments by participants. The presiding person at any meeting of stockholders, in addition to making any other determinations that
may be appropriate to the conduct of the meeting (including, without limitation, determinations with respect to the administration and/or
interpretation of any of the rules, regulations or procedures of the meeting, whether adopted by the Board or prescribed by the person
presiding over the meeting), shall, if the facts warrant, determine and declare to the meeting that a matter of business was not properly
brought before the meeting and if such presiding person should so determine, such presiding person shall so declare to the meeting and
any such matter or business not properly brought before the meeting shall not be transacted or considered. Unless and to the extent determined
by the Board or the person presiding over the meeting, meetings of stockholders shall not be required to be held in accordance with the
rules of parliamentary procedure.
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2.11 Voting.
Except as may be otherwise provided in the Certificate
of Incorporation, these Bylaws or the DGCL, each stockholder shall be entitled to one (1) vote for each share of capital stock held
by such stockholder.
Except as otherwise provided by the Certificate
of Incorporation, at all duly called or convened meetings of stockholders at which a quorum is present, for the election of directors,
a plurality of the votes cast shall be sufficient to elect a director. Except as otherwise provided by the Certificate of Incorporation,
these Bylaws, the rules or regulations of any stock exchange applicable to the Corporation, or applicable law or pursuant to any
regulation applicable to the Corporation or its securities, each other matter presented to the stockholders at a duly called or convened
meeting at which a quorum is present shall be decided by the affirmative vote of the holders of a majority in voting power of the votes
cast (excluding abstentions and broker non-votes) on such matter.
2.12 Record
Date for Stockholder Meetings and Other Purposes.
In order that the Corporation may determine the
stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, the Board may fix 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, unless otherwise required by law, not be more than sixty (60) days nor less than ten (10) days before the date of such
meeting. If the Board so fixes a date, such date shall also be the record date for determining the stockholders entitled to vote at such
meeting unless the Board determines, at the time it fixes such record date, that a later date on or before the date of the meeting shall
be the date for making such determination. 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 the close of business on the next day preceding the day on which notice
is first given, or, if notice is waived, at the close of business on the day next 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 determination of stockholders entitled to vote at the adjourned
meeting; and in such case shall also fix as the record date for stockholders entitled to notice of such adjourned meeting the same or
an earlier date as that fixed for determination of stockholders entitled to vote in accordance herewith at the adjourned meeting.
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In order that the Corporation may determine the
stockholders entitled to receive payment of any dividend or other distribution or allotment or any rights or the stockholders entitled
to exercise any rights in respect of any change, conversion or exchange of capital stock, or for the purposes of any other lawful action,
the Board may fix 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.
2.13 Proxies.
Each stockholder entitled to vote at a meeting
of stockholders may authorize another person or persons to act for such stockholder by proxy authorized by an instrument in writing or
by a transmission permitted by law, including Rule 14a-19 promulgated under the Securities Exchange Act of 1934, as amended, filed
in accordance with the procedure established for the meeting, but no such proxy shall be voted or acted upon after three (3) years
from its date, unless the proxy provides for a longer period. The revocability of a proxy that states on its face that it is irrevocable
shall be governed by the provisions of Section 212 of the DGCL. A proxy may be in the form of an electronic transmission which sets
forth or is submitted with information from which it can be determined that the transmission was authorized by the stockholder.
Any stockholder directly or indirectly soliciting proxies from other
stockholders must use a proxy card color other than white, which shall be reserved for the exclusive use by the Board.
2.14 List
of Stockholders Entitled to Vote.
The Corporation shall prepare, no later than the
tenth day before each meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting (provided,
however, that if the record date for determining the stockholders entitled to vote is less than ten (10) days before the
date of the meeting, the list shall reflect the stockholders entitled to vote as of the tenth day before the meeting date), arranged
in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder.
The Corporation shall not be required to include electronic mail addresses or other electronic contact information on such list. Such
list shall be open to the examination of any stockholder, for any purpose germane to the meeting for a period of ten (10) days ending
on the day before the meeting date: (i) on a reasonably accessible electronic network, provided that the information required
to gain access to such list is provided with the notice of the meeting, or (ii) during ordinary business hours, at the Corporation’s
principal executive office. In the event that the Corporation determines to make the list available on an electronic network, the Corporation
may take reasonable steps to ensure that such information is available only to stockholders of the Corporation. Such list shall presumptively
determine the identity of the stockholders entitled to vote at the meeting and the number of shares held by each of them. Except as otherwise
provided by law, the stock ledger shall be the only evidence as to who are the stockholders entitled to examine the list of stockholders
required by this Section 2.14 or to vote in person or by proxy at any meeting of stockholders.
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2.15 Inspectors
of Election.
Before any meeting of stockholders, the Corporation
shall appoint an inspector or inspectors of election to act at the meeting or its adjournment and make a written report thereof. The
Corporation may designate one or more persons as alternate inspectors to replace any inspector who fails to act. If any person appointed
as inspector or any alternate fails to appear or fails or refuses to act, then the person presiding over the meeting shall appoint a
person to fill that vacancy.
Such inspectors shall:
(i) determine
the number of shares outstanding and the voting power of each, the number of shares represented at the meeting and the validity of any
proxies and ballots;
(ii) count
all votes or ballots;
(iii) count
and tabulate all votes;
(iv) determine
and retain for a reasonable period a record of the disposition of any challenges made to any determination by the inspector(s); and
(v) certify
its or their determination of the number of shares represented at the meeting and its or their count of all votes and ballots.
Each inspector, before entering upon the discharge
of the duties of inspector, shall take and sign an oath faithfully to execute the duties of inspection with strict impartiality and according
to the best of such inspector’s ability. Any report or certificate made by the inspectors of election is prima facie evidence of
the facts stated therein. The inspectors of election may appoint such persons to assist them in performing their duties as they determine.
2.16 Delivery
to the Corporation.
Whenever this Article II requires one or
more persons (including a record or beneficial owner of stock) to deliver a document or information to the Corporation or any officer,
employee or agent thereof (including any notice, request, questionnaire, revocation, representation or other document or agreement),
such document or information shall be in writing exclusively (and not in an electronic transmission) and shall be delivered exclusively
by hand (including, without limitation, overnight courier service) or by certified or registered mail, return receipt requested, and
the Corporation shall not be required to accept delivery of any document not in such written form or so delivered. For the avoidance
of doubt, the Corporation expressly opts out of Section 116 of the DGCL with respect to the delivery of information and documents
to the Corporation required by this Article II.
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Article III - Directors
3.1 Powers.
Except as otherwise provided by the Certificate
of Incorporation or the DGCL, the business and affairs of the Corporation shall be managed by or under the direction of the Board.
3.2 Number
of Directors.
Subject to the Certificate of Incorporation, the
total number of directors constituting the Board shall be determined from time to time by resolution of the Board. No reduction of the
authorized number of directors shall have the effect of removing any director before that director’s term of office expires.
3.3 Election,
Qualification and Term of Office of Directors.
Except as provided in Section 3.4
of these Bylaws, and subject to the Certificate of Incorporation, each director, including a director elected to fill a vacancy or newly
created directorship, shall hold office until the expiration of the term of the class, if any, for which elected and until such director’s
successor is elected and qualified or until such director’s earlier death, resignation, disqualification or removal. Directors
need not be stockholders. The Certificate of Incorporation or these Bylaws may prescribe qualifications for directors.
3.4 Resignation
and Vacancies.
Any director may resign at any time upon notice
given in writing or by electronic transmission to the Corporation. The resignation shall take effect at the time specified therein or
upon the happening of an event specified therein, and if no time or event is specified, at the time of its receipt. When one or more
directors so resigns and the resignation is effective at a future date or upon the happening of an event to occur on a future date, a
majority of the directors then in office, including those who have so resigned, shall have power to fill such vacancy or vacancies, the
vote thereon to take effect when such resignation or resignations shall become effective, and each director so chosen shall hold office
as provided in Section 3.3.
Unless otherwise provided in the Certificate of
Incorporation or these Bylaws, vacancies resulting from the death, resignation, disqualification or removal of any director, and newly
created directorships resulting from any increase in the authorized number of directors shall be filled only by a majority of the directors
then in office, although less than a quorum, or by a sole remaining director.
3.5 Place
of Meetings; Meetings by Telephone.
The Board may hold meetings, both regular and
special, either within or outside the State of Delaware.
Unless otherwise restricted by the Certificate
of Incorporation or these Bylaws, members of the Board, or any committee designated by the Board, may participate in a meeting of the
Board, or any committee, by means of conference telephone or other communications equipment by means of which all persons participating
in the meeting can hear each other, and such participation in a meeting pursuant to this Bylaw shall constitute presence in person at
the meeting.
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3.6 Regular
Meetings.
Regular meetings of the Board may be held within
or outside the State of Delaware and at such time and at such place as which has been designated by the Board and publicized among all
directors, either orally or in writing, by telephone, including a voice-messaging system or other system designed to record and communicate
messages, facsimile, telegraph or telex, or by electronic mail or other means of electronic transmission. No further notice shall be
required for regular meetings of the Board.
3.7 Special
Meetings; Notice.
Special meetings of the Board for any purpose
or purposes may be called at any time by the chairperson of the Board, the Chief Executive Officer, the President, the Secretary or a
majority of the total number of directors constituting the Board.
Notice of the time and place of special meetings
shall be:
(i) delivered
personally by hand, by courier or by telephone;
(ii) sent
by United States first-class mail, postage prepaid;
(iii) sent
by facsimile or electronic mail; or
(iv) sent
by other means of electronic transmission,
directed to each director at that director’s address, telephone
number, facsimile number or electronic mail address, or other address for electronic transmission, as the case may be, as shown on the
Corporation’s records.
If the notice is (i) delivered personally
by hand, by courier or by telephone, (ii) sent by facsimile or electronic mail, or (iii) sent by other means of electronic
transmission, it shall be delivered or sent at least twenty-four (24) hours before the time of the holding of the meeting. If the notice
is sent by
U.S. mail, it shall be deposited in the U.S. mail
at least four (4) days before the time of the holding of the meeting. The notice need not specify the place of the meeting (if the
meeting is to be held at the Corporation’s principal executive office) nor the purpose of the meeting.
3.8 Quorum.
At all meetings of the Board, unless otherwise
provided by the Certificate of Incorporation, a majority of the total number of directors shall constitute a quorum for the transaction
of business. The vote of a majority of the directors present at any meeting at which a quorum is present shall be the act of the Board,
except as may be otherwise specifically provided by statute, the Certificate of Incorporation or these Bylaws. If a quorum is not present
at any meeting of the Board, then the directors present thereat may adjourn the meeting from time to time, without notice other than
announcement at the meeting, until a quorum is present.
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3.9 Board
Action without a Meeting.
Unless otherwise restricted by the Certificate
of Incorporation or these Bylaws, 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. After an action is taken, the consent or consents relating thereto shall be filed with the minutes of the proceedings of
the Board, or the committee thereof, in the same paper or electronic form as the minutes are maintained. Such action by written consent
or consent by electronic transmission shall have the same force and effect as a unanimous vote of the Board.
3.10 Fees
and Compensation of Directors.
Unless otherwise restricted by the Certificate
of Incorporation or these Bylaws, the Board shall have the authority to fix the compensation, including fees and reimbursement of expenses,
of directors for services to the Corporation in any capacity.
Article IV - Committees
4.1 Committees
of Directors.
The Board may designate one (1) or more committees,
each committee to consist, of one (1) or more of the directors of the Corporation. The Board may designate one (1) or more
directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In
the absence or disqualification of a member of a committee, the member or members thereof present at any meeting and not disqualified
from voting, whether or not such member or members 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. Any such committee, to the extent provided in the resolution of the
Board or in these Bylaws, shall have and may exercise all the powers and authority of the Board in the management of the business and
affairs of the Corporation, and may authorize the seal of the Corporation to be affixed to all papers that may require it; but no such
committee shall have the power or authority to (i) approve or adopt, or recommend to the stockholders, any action or matter expressly
required by the DGCL to be submitted to stockholders for approval, or (ii) adopt, amend or repeal any Bylaw of the Corporation.
4.2 Committee
Minutes.
Each committee shall keep regular minutes of its
meetings and report the same to the Board when required.
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4.3 Meetings
and Actions of Committees.
Meetings and actions of committees shall be governed
by, and held and taken in accordance with, the provisions of:
(i) Section 3.5
(place of meetings; meetings by telephone);
(ii) Section 3.6
(regular meetings);
(iii) Section 3.7
(special meetings; notice);
(iv) Section 3.9
(board action without a meeting); and
(v) Section 7.13
(waiver of notice),
with such changes in the context of those bylaws as are necessary
to substitute the committee and its members for the Board and its members. However:
(vi) the
time of regular meetings of committees may be determined either by resolution of the Board or by resolution of the committee;
(vii) special
meetings of committees may also be called by resolution of the Board or the chairperson of the applicable committee; and
(viii) the
Board may adopt rules for the governance of any committee to override the provisions that would otherwise apply to the committee
pursuant to this Section 4.3, provided that such rules do not violate the provisions of the Certificate of Incorporation
or applicable law.
4.4 Subcommittees.
Unless otherwise provided in the Certificate of
Incorporation, these Bylaws or the resolutions of the Board designating the committee, a committee may create one (1) or more subcommittees,
each subcommittee to consist of one (1) or more members of the committee, and delegate to a subcommittee any or all of the powers
and authority of the committee.
Article V - Officers
5.1 Officers.
The officers of the Corporation shall include
a Chief Executive Officer, a President and a Secretary. The Corporation may also have, at the discretion of the Board, a Chairperson
of the Board, a Vice Chairperson of the Board, a Chief Financial Officer, a Treasurer, one (1) or more Vice Presidents, one (1) or
more Assistant Vice Presidents, one (1) or more Assistant Treasurers, one (1) or more Assistant Secretaries, and any such other
officers as may be appointed in accordance with the provisions of these Bylaws. Any number of offices may be held by the same person.
No officer need be a stockholder or director of the Corporation.
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5.2 Appointment
of Officers.
The Chief Executive Officer shall have general
supervision, direction and control of the business and affairs of the Corporation in the ordinary course of business, subject to the
oversight and control of the Board. The Chief Executive Officer shall have authority to execute contracts, instruments and other obligations
on behalf of the Corporation in the ordinary course of business and may delegate authority to other officers, employees or agents of
the Corporation, in each case subject to such limitations as may be established by the Board, the Certificate of Incorporation, these
Bylaws or applicable law.
The Board shall appoint the officers of the Corporation,
except such officers as may be appointed in accordance with the provisions of Section 5.3 of these Bylaws.
5.3 Subordinate
Officers.
The Chief Executive Officer may appoint such subordinate
officers, employees and agents as the business of the Corporation may require, unless otherwise determined by the Board. The Board may
also appoint, or empower the Chief Executive Officer or, in the absence of a Chief Executive Officer, the President, to appoint, such
other officers and agents as the business of the Corporation may require. Each of such officers and agents shall hold office for such
period, have such authority, and perform such duties as are provided in these Bylaws or as the Board or the Chief Executive Officer,
to the extent authorized by these Bylaws or by the Board, may from time to time determine.
5.4 Removal
and Resignation of Officers.
Subject to the rights, if any, of an officer under
any contract of employment, any officer may be removed, either with or without cause, by the Board or, except in the case of an officer
chosen by the Board, by any officer upon whom such power of removal may be conferred by the Board. The Chief Executive Officer may remove
any officer, employee or agent appointed by either the Chief Executive Officer or the Board, with or without cause, subject to any employment
agreement and any limitations imposed by the Board.
Any officer may resign at any time by giving written
notice to the Corporation. Any resignation shall take effect at the date of the receipt of that notice or at any later time specified
in that notice. Unless otherwise specified in the notice of resignation, the acceptance of the resignation shall not be necessary to
make it effective. Any resignation is without prejudice to the rights, if any, of the Corporation under any contract to which the officer
is a party.
5.5 Vacancies
in Offices.
Any vacancy occurring in any office of the Corporation
shall be filled by the Board or as provided in Section 5.2.
5.6 Representation
of Shares of Other Corporations.
The Chairperson of the Board, the Chief Executive
Officer, or the President of this Corporation, or any other person authorized by the Board, the Chief Executive Officer or the President,
is authorized to vote, represent and exercise on behalf of this Corporation all rights incident to any and all shares or voting securities
of any other corporation or other person standing in the name of this Corporation. The authority granted herein may be exercised either
by such person directly or by any other person authorized to do so by proxy or power of attorney duly executed by such person having
the authority.
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5.7 Authority
and Duties of Officers.
All officers of the Corporation shall respectively
have such authority and perform such duties in the management of the business of the Corporation as may be provided herein or designated
from time to time by the Board and, to the extent not so provided, as generally pertain to their respective offices, subject to the control
of the Board.
5.8 Compensation.
The compensation of the officers of the Corporation
for their services as such shall be fixed from time to time by or at the direction of the Board.
An officer of the Corporation shall not be prevented
from receiving compensation by reason of the fact that he or she is also a director of the Corporation.
Article VI - Records
A stock ledger consisting of one or more records
in which the names of all of the Corporation’s stockholders of record, the address and number of shares registered in the name
of each such stockholder, and all issuances and transfers of stock of the corporation are recorded in accordance with Section 224
of the DGCL shall be administered by or on behalf of the Corporation. Any records administered by or on behalf of the Corporation in
the regular course of its business, including its stock ledger, books of account, and minute books, may be kept on, or by means of, or
be in the form of, any information storage device, or method, or one or more electronic networks or databases (including one or more
distributed electronic networks or databases), provided that the records so kept can be converted into clearly legible paper form
within a reasonable time and, with respect to the stock ledger, that the records so kept (i) can be used to prepare the list of
stockholders specified in Sections 219 and 220 of the DGCL, (ii) record the information specified in Sections 156, 159, 217(a) and
218 of the DGCL, and (iii) record transfers of stock as governed by Article 8 of the Uniform Commercial Code as adopted in
the State of Delaware.
Article VII - General Matters
7.1 Execution
of Corporate Contracts and Instruments.
The Board, except as otherwise provided in these
Bylaws, may authorize any officer or officers, or agent or agents, to enter into any contract or execute any instrument in the name of
and on behalf of the Corporation; such authority may be general or confined to specific instances. Unless otherwise limited by the Board,
the Chief Executive Officer shall have authority to enter into and execute contracts, agreements, instruments and other obligations in
the name of and on behalf of the Corporation in the ordinary course of business and may delegate such authority to other officers, employees
or agents of the Corporation, in each case subject to such limitations as may be established by the Board, the Certificate of Incorporation,
these Bylaws or applicable law.
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7.2 Stock
Certificates.
The shares of the Corporation shall be represented
by certificates, provided that the Board by resolution may provide that some or all of the shares of any class or series of stock
of the Corporation shall 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 represented by a certificate shall be entitled to have a certificate
signed by, or in the name of the Corporation by, any two officers authorized to sign stock certificates representing the number of shares
registered in certificate form. The Chairperson or Vice Chairperson of the Board, Chief Executive Officer, the President, Vice President,
the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Corporation, or the Chief Financial Officer shall
be specifically authorized to sign stock certificates. Any or all of the signatures on the certificate may be a facsimile. In case any
officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate has ceased to be
such officer, transfer agent or registrar before such certificate is issued, it may be issued by the Corporation with the same effect
as if he or she were such officer, transfer agent or registrar at the date of issue.
The Corporation may issue the whole or any part
of its shares as partly paid and subject to call for the remainder of the consideration to be paid therefor. Upon the face or back of
each stock certificate issued to represent any such partly paid shares, or upon the books and records of the Corporation in the case
of uncertificated partly paid shares, the total amount of the consideration to be paid therefor and the amount paid thereon shall be
stated.
Upon the declaration of any dividend on fully
paid shares, the Corporation shall declare a dividend upon partly paid shares of the same class, but only upon the basis of the percentage
of the consideration actually paid thereon.
7.3 Special
Designation of Certificates.
If the Corporation is authorized to issue more
than one class of stock or more than one series of any class, then the powers, the designations, the preferences and the relative, participating,
optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such
preferences and/or rights shall be set forth in full or summarized on the face or on the back of the certificate that the Corporation
shall issue to represent such class or series of stock (or, in the case of uncertificated shares, set forth in a notice provided pursuant
to Section 151 of the DGCL); provided, however, that except as otherwise provided in Section 202 of the DGCL,
in lieu of the foregoing requirements, there may be set forth on the face of back of the certificate that the Corporation shall issue
to represent such class or series of stock (or, in the case of any uncertificated shares, included in the aforementioned notice) a statement
that the Corporation will furnish without charge to each stockholder who so requests the powers, the designations, the preferences and
the relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations
or restrictions of such preferences and/or rights.
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7.4 Lost
Certificates.
Except as provided in this Section 7.4,
no new certificates for shares shall be issued to replace a previously issued certificate unless the latter is surrendered to the Corporation
and cancelled at the same time. The Corporation may issue a new certificate of stock or uncertificated shares in the place of any certificate
theretofore issued by it, alleged to have been lost, stolen or destroyed, and the Corporation may require the owner of the lost, stolen
or destroyed certificate, or such owner’s legal representative, to give the Corporation a bond sufficient to indemnify it against
any claim that may be made against it on account of the alleged loss, theft or destruction of any such certificate or the issuance of
such new certificate or uncertificated shares.
7.5 Shares
Without Certificates.
The Corporation may adopt a system of issuance,
recordation and transfer of its shares of stock by electronic or other means not involving the issuance of certificates, provided the
use of such system by the Corporation is permitted in accordance with applicable law.
7.6 Construction;
Definitions.
Unless the context requires otherwise, the general
provisions, rules of construction and definitions in the DGCL shall govern the construction of these Bylaws. Without limiting the
generality of this provision, the singular number includes the plural and the plural number includes the singular.
7.7 Dividends.
The Board, subject to any restrictions contained
in either (i) the DGCL or (ii) the Certificate of Incorporation, may declare and pay dividends upon the shares of its capital
stock. Dividends may be paid in cash, in property or in shares of the Corporation’s capital stock.
The Board may set apart out of any of the funds
of the Corporation available for dividends a reserve or reserves for any proper purpose and may abolish any such reserve. Such purposes
shall include but not be limited to equalizing dividends, repairing or maintaining any property of the Corporation, and meeting contingencies.
7.8 Fiscal
Year.
The fiscal year of the Corporation shall be fixed
by resolution of the Board and may be changed by the Board.
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7.9 Seal.
The Corporation may adopt a corporate seal, which
shall be adopted and which may be altered by the Board. The Corporation may use the corporate seal by causing it or a facsimile thereof
to be impressed or affixed or in any other manner reproduced.
7.10 Transfer
of Stock.
Shares of the Corporation shall be transferable
in the manner prescribed by law and in these Bylaws. Shares of stock of the Corporation shall be transferred on the books of the Corporation
only by the holder of record thereof or by such holder’s attorney duly authorized in writing, upon surrender to the Corporation
of the certificate or certificates representing such shares endorsed by the appropriate person or persons (or by delivery of duly executed
instructions with respect to uncertificated shares), with such evidence of the authenticity of such endorsement or execution, transfer,
authorization and other matters as the Corporation may reasonably require, and accompanied by all necessary stock transfer stamps. No
transfer of stock shall be valid as against the Corporation for any purpose until it shall have been entered in the stock records of
the Corporation by an entry showing the names of the persons from and to whom it was transferred.
7.11 Stock
Transfer Agreements.
The Corporation shall have power to enter into
and perform any agreement with any number of stockholders of any one or more classes or series of stock of the Corporation to restrict
the transfer of shares of stock of the Corporation of any one or more classes owned by such stockholders in any manner not prohibited
by the DGCL.
7.12 Registered
Stockholders.
The Corporation:
(i) 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
(ii) shall
not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of another person, whether
or not it shall have express or other notice thereof, except as otherwise provided by the laws of the State of Delaware.
7.13 Waiver
of Notice.
Whenever notice is required to be given under
any provision of the DGCL, the Certificate of Incorporation or these Bylaws, a written waiver, signed by the person entitled to notice,
or a waiver by electronic transmission by the person entitled to notice, whether before or after the time of the event for which notice
is to be given, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such
meeting, except when the person 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. Neither the business to be transacted at, nor the purpose of,
any regular or special meeting of the stockholders need be specified in any written waiver of notice or any waiver by electronic transmission
unless so required by the Certificate of Incorporation or these Bylaws.
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Article VIII - Notice
8.1 Delivery
of Notice; Notice by Electronic Transmission.
Without limiting the manner by which notice otherwise
may be given effectively to stockholders, any notice to stockholders given by the Corporation under any provisions of the DGCL, the Certificate
of Incorporation, or these Bylaws may be given in writing directed to the stockholder’s mailing address (or by electronic transmission
directed to the stockholder’s electronic mail address, as applicable) as it appears on the records of the Corporation and shall
be given (1) if mailed, when the notice is deposited in the U.S. mail, postage prepaid, (2) if delivered by courier service,
the earlier of when the notice is received or left at such stockholder’s address or (3) if given by electronic mail, when
directed to such stockholder’s electronic mail address unless the stockholder has notified the Corporation in writing or by electronic
transmission of an objection to receiving notice by electronic mail. A notice by electronic mail must include a prominent legend that
the communication is an important notice regarding the Corporation.
Without limiting the manner by which notice otherwise
may be given effectively to stockholders, any notice to stockholders given by the Corporation under any provision of the DGCL, the Certificate
of Incorporation or these Bylaws shall be effective if given by a form of electronic transmission consented to by the stockholder to
whom the notice is given. Any such consent shall be revocable by the stockholder by written notice or electronic transmission to the
Corporation. Notwithstanding the provisions of this paragraph, the Corporation may give a notice by electronic mail in accordance with
the first paragraph of this section without obtaining the consent required by this paragraph.
Any notice given pursuant to the preceding paragraph
shall be deemed given:
(i) if
by facsimile telecommunication, when directed to a number at which the stockholder has consented to receive notice;
(ii) if
by a posting on an electronic network together with separate notice to the stockholder of such specific posting, upon the later of (A) such
posting and (B) the giving of such separate notice; and
(iii) if
by any other form of electronic transmission, when directed to the stockholder.
Notwithstanding the foregoing, a notice may not
be given by an electronic transmission from and after the time that (1) the Corporation is unable to deliver by such electronic
transmission two (2) consecutive notices given by the Corporation and (2) such inability becomes known to the Secretary or
an Assistant Secretary of the Corporation or to the transfer agent, or other person responsible for the giving of notice, provided,
however, the inadvertent failure to discover such inability shall not invalidate any meeting or other action.
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An affidavit of the Secretary or an Assistant
Secretary or of the transfer agent or other agent of the Corporation that the notice has been given shall, in the absence of fraud, be
prima facie evidence of the facts stated therein.
Article IX - Indemnification
9.1 Indemnification
of Directors and Officers.
The Corporation shall indemnify and hold harmless,
to the fullest extent permitted by the DGCL as it presently exists or may hereafter be amended, any person who was or is made or is threatened
to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative
(a “Proceeding”) by reason of the fact that he or she, or a person for whom he or she is the legal representative,
is or was a director or officer of the Corporation or, while serving as a director or officer of the Corporation, is or was serving at
the request of the Corporation as a director, officer, employee or agent of another entity or enterprise, including service with respect
to employee benefit plans (a “Covered Person”), against all liability and loss suffered and expenses (including attorneys’
fees), judgments, fines ERISA excise taxes or penalties and amounts paid in settlement (except for judgments, fines and amounts paid
in settlement in any action or suit by or in the right of the Corporation to procure a judgment in its favor) actually and reasonably
incurred by such Covered Person in connection with any such Proceeding. Notwithstanding the preceding sentence, except as otherwise provided
in Section 9.4, the Corporation shall be required to indemnify a Covered Person in connection with a Proceeding (or part
thereof) initiated by such Covered Person only if the initiation of such Proceeding (or part thereof) was authorized in the specific
case by the Board.
9.2 Indemnification
of Others.
The Corporation shall have the power to indemnify
and hold harmless, to the fullest extent permitted by applicable law as it presently exists or may hereafter be amended, any employee
or agent of the Corporation who was or is made or is threatened to be made a party or is otherwise involved in any Proceeding by reason
of the fact that he or she, or a person for whom he or she is the legal representative, is or was an employee or agent of the Corporation
or is or was serving at the request of the Corporation as a director, officer, employee or agent of another entity or enterprise, including
service with respect to employee benefit plans, against all liability and loss suffered and expenses actually and reasonably incurred
by such person in connection with any such Proceeding.
9.3 Prepayment
of Expenses.
The Corporation shall to the fullest extent not
prohibited by applicable law pay the expenses (including attorneys’ fees) incurred by any Covered Person, and may pay the expenses
incurred by any employee or agent of the Corporation, in defending any Proceeding in advance of its final disposition; provided,
however, that, to the extent required by applicable law, such payment of expenses in advance of the final disposition of the Proceeding
shall be made only upon receipt of an undertaking by the Covered Person or other person to repay all amounts advanced if it should be
ultimately determined that the Covered Person or other person is not entitled to be indemnified under this Article IX or
otherwise.
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9.4 Determination;
Claim.
If a claim for indemnification (following the
final disposition of such Proceeding) under this Article IX is not paid in full within sixty (60) days, or a claim for advancement
of expenses under this Article IX is not paid in full within thirty (30) days, after a written claim therefor has been received
by the Corporation the claimant may thereafter (but not before) file suit to recover the unpaid amount of such claim and, if successful
in whole or in part, shall be entitled to be paid the expense of prosecuting such claim to the fullest extent permitted by law. In any
such action the Corporation shall have the burden of proving that the claimant was not entitled to the requested indemnification or advancement
of expenses under applicable law.
9.5 Non-Exclusivity
of Rights.
The rights conferred on any Covered Person or
other person by this Article IX shall not be exclusive of any other rights which such Covered Person or other person may
have or hereafter acquire under any statute, provision of the Certificate of Incorporation, these Bylaws, agreement, vote of stockholders
or disinterested directors or otherwise.
9.6 Insurance.
The Corporation may purchase and maintain insurance
on behalf of any person who is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request
of the Corporation as a director, officer, employee or agent of another corporation, partnership, limited liability company, joint venture,
trust enterprise or non-profit entity against any liability asserted against him or her and incurred by him or her in any such capacity,
or arising out of his or her status as such, whether or not the Corporation would have the power to indemnify him or her against such
liability under the provisions of the DGCL.
9.7 Other
Indemnification.
The Corporation’s obligation, if any, to
indemnify or advance expenses to any Covered Person or other person who was or is serving at its request as a director, officer, employee
or agent of another entity or enterprise shall be reduced by any amount such Covered Person or other person may collect as indemnification
or advancement of expenses from such other entity or Covered enterprise.
9.8 Continuation
of Indemnification.
The rights to indemnification and to prepayment
of expenses provided by, or granted pursuant to, this Article IX shall continue notwithstanding that the Covered Person has
ceased to be a director or officer of the Corporation and shall inure to the benefit of the estate, heirs, executors, administrators,
legatees and distributees of such Covered Person.
9.9 Amendment
or Repeal; Interpretation.
The provisions of this Article IX
shall constitute a contract between the Corporation, on the one hand, and, on the other hand, each individual who serves or has served
as a director or officer of the Corporation (whether before or after the adoption of these Bylaws), in consideration of such Covered
Person’s performance of such services, and pursuant to this Article IX the Corporation intends to be legally bound
to each such current or former director or officer of the Corporation. With respect to current and former directors and officers of the
Corporation, the rights conferred under this Article IX are present contractual rights and such rights are fully vested,
and shall be deemed to have vested fully, immediately upon adoption of these Bylaws. With respect to any directors or officers of the
Corporation who commence service following adoption of these Bylaws, the rights conferred under this provision shall be present contractual
rights and such rights shall fully vest, and be deemed to have vested fully, immediately upon such director or officer commencing service
as a director or officer of the Corporation. Any repeal or modification of the foregoing provisions of this Article IX shall
not adversely affect any right or protection (i) hereunder of any Covered Person in respect of any act or omission occurring prior
to the time of such repeal or modification or (ii) under any agreement providing for indemnification or advancement of expenses
to an officer or director of the Corporation in effect prior to the time of such repeal or modification.
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Any reference to an officer of the Corporation
in this Article IX shall be deemed to refer exclusively to the Chief Executive Officer, Chief Financial Officer, President,
and Secretary, or other officer of the Corporation appointed by (x) the Board pursuant to Article V of these Bylaws
or (y) an officer to whom the Board has delegated the power to appoint officers pursuant to Article V of these Bylaws,
and any reference to an officer of any other entity or enterprise shall be deemed to refer exclusively to an officer appointed by the
board of directors (or equivalent governing body) of such other entity pursuant to the certificate of incorporation and bylaws (or equivalent
organizational documents) of such other entity or enterprise. The fact that any person who is or was an employee of the Corporation or
an employee of any other entity or enterprise has been given or has used the title of “Vice President” or any other title
that could be construed to suggest or imply that such person is or may be an officer of the Corporation or of such other entity or enterprise
shall not result in such person being constituted as, or being deemed to be, an officer of the Corporation or of such other entity or
enterprise for purposes of this Article IX.
Article X - Amendments
The Board is expressly empowered to adopt, amend
or repeal the bylaws of the Corporation. The stockholders also shall have power to adopt, amend or repeal the bylaws of the Corporation;
provided, however, that such action by stockholders shall require, in addition to any other vote required by the Certificate of Incorporation
or applicable law, the affirmative vote of the holders of at least two-thirds of the voting power of all the then-outstanding shares
of voting stock of the Corporation with the power to vote generally in an election of directors, voting together as a single class.
Article XI - Definitions
As used in these Bylaws, unless the context otherwise
requires, the following terms shall have the following meanings:
An “electronic transmission”
means any form of communication, not directly involving the physical transmission of paper, including the use of, or participation in,
one or more electronic networks or databases (including one or more distributed electronic networks or databases), that creates a record
that may be retained, retrieved and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient
through an automated process.
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An “electronic mail” means
an electronic transmission directed to a unique electronic mail address (which electronic mail shall be deemed to include any files attached
thereto and any information hyperlinked to a website if such electronic mail includes the contact information of an officer or agent
of the Corporation who is available to assist with accessing such files and information).
An “electronic mail address”
means a destination, commonly expressed as a string of characters, consisting of a unique user name or mailbox (commonly referred to
as the “local part” of the address) and a reference to an internet domain (commonly referred to as the “domain
part” of the address), whether or not displayed, to which electronic mail can be sent or delivered.
The term “person” means any
individual, general partnership, limited partnership, limited liability company, corporation, trust, business trust, joint stock company,
joint venture, unincorporated association, cooperative or association or any other legal entity or organization of whatever nature, and
shall include any successor (by merger or otherwise) of such entity.
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EX-4.1 — EXHIBIT 4.1
EX-4.1
Filename: tm2628316d1_ex4-1.htm · Sequence: 4
Exhibit 4.1
WARRANT AGREEMENT
This WARRANT AGREEMENT (this “Agreement”)
is made as of February 10, 2025 between Archimedes Tech SPAC Partners II Co., a Cayman Islands exempted company (the “Company”),
and Odyssey Transfer and Trust Company, a Minnesota corporation, as warrant agent (the “Warrant Agent”).
WHEREAS, the Company is engaged in a public offering
(the “Public Offering”) of up to 23,000,000 units (including 3,000,000 units which may be issued pursuant to an over-allotment
option granted to the underwriters of the Public Offering), each unit (“Unit”) comprised of one ordinary share of the
Company, par value $0.0001 per share (“Ordinary Share”), and one-half of one warrant, where each whole warrant entitles
the holder to purchase one Ordinary Share at a price of $11.50 per share, subject to adjustment as described herein, and, in connection
therewith, will issue and deliver up to 11,500,000 warrants (the “Public Warrants”) to the public investors in connection
with the Public Offering; and
WHEREAS, the Company has filed with the U.S. Securities
and Exchange Commission (the “SEC”) a Registration Statement on Form S-1, File No. 333-282885 (the “Registration
Statement”), and a prospectus (“Prospectus”), for the registration, under the Securities Act of 1933, as
amended (the “Securities Act”) of, among other securities, the Public Warrants; and
WHEREAS, the Company has received commitments from
Archimedes Tech SPAC Sponsors II LLC (the “Initial Shareholder”) and BTIG, LLC, the representative of the underwriters
in the Public Offering (“BTIG”), to purchase up to an aggregate of 840,000 Units (including 75,000 Units which will
be purchased if the underwriters’ over-allotment option is exercised in full), which will include up to an aggregate of 420,000
warrants (the “Private Warrants”) in a private placement that will close simultaneously with the consummation of the
Public Offering, each bearing the legend set forth in Exhibit B hereto; and
WHEREAS, the Company may issue up to an additional
150,000 Units which will include up to an additional 75,000 warrants (the “Working Capital Warrants”), in satisfaction
of certain working capital loans which may be made by the Company’s officers, directors, Initial Shareholder and its affiliates;
and
WHEREAS, following consummation of the Public Offering,
the Company may issue additional warrants (“Post-IPO Warrants” and together with the Public Warrants, Private Warrants,
and Working Capital Warrants, the “Warrants”) in connection with, or following the consummation by the Company of,
a Business Combination (defined below); and
WHEREAS, the Company desires the Warrant Agent
to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with the issuance, registration, transfer,
exchange, redemption, and exercise of the Warrants; and
WHEREAS, the Company desires to provide for the
form and provisions of the Warrants, the terms upon which they shall be issued and exercised, and the respective rights, limitation of
rights, and immunities of the Company, the Warrant Agent, and the holders of the Warrants; and
WHEREAS, all acts and things have been done and
performed which are necessary to make the Warrants, when executed on behalf of the Company and countersigned by or on behalf of the Warrant
Agent (if a physical certificate is issued), as provided herein, the valid, binding, and legal obligations of the Company, and to authorize
the execution and delivery of this Agreement.
NOW, THEREFORE, in consideration of the mutual
agreements herein contained, the parties hereto agree as follows:
1. Appointment of Warrant Agent. The Company hereby appoints
the Warrant Agent to act as agent for the Company for the Warrants, and the Warrant Agent hereby accepts such appointment and agrees to
perform the same in accordance with the terms and conditions set forth in this Agreement.
2.
Warrants.
2.1 Form of Warrant. Each Warrant shall
initially be issued in registered form only, and, if a physical certificate issued, shall be in substantially the form of Exhibit A
hereto, the provisions of which are incorporated herein and shall be signed by, or bear the electronic (including by DocuSign) or facsimile
signature of, the Chairman of the Board of Directors or Chief Executive Officer and Treasurer, Secretary or Assistant Secretary of the
Company. In the event the person whose electronic or facsimile signature has been placed upon any Warrant shall have ceased to serve in
the capacity in which such person signed the Warrant before such Warrant is issued, it may be issued with the same effect as if he or
she had not ceased to be such at the date of issuance. All of the Public Warrants shall initially be represented by one or more book-entry
certificates (each, a “Book-Entry Warrant Certificate”).
2.2 Uncertificated Warrants. Notwithstanding
anything herein to the contrary, any Warrant, or portion thereof, may be issued as part of, and be represented by, a Unit, and any Warrant
may be issued in uncertificated or book-entry form through the Warrant Agent and/or the facilities of The Depository Trust Company or
other book-entry depositary system, in each case as determined by the Board of Directors of the Company or by an authorized committee
thereof. Any Warrant so issued shall have the same terms, force and effect as a certificated Warrant that has been duly countersigned
by the Warrant Agent in accordance with the terms of this Agreement.
2.3 Effect of Countersignature. Except with
respect to uncertificated Warrants as described above, unless and until countersigned by the Warrant Agent pursuant to this Agreement,
a Warrant shall be invalid and of no effect and may not be exercised by the holder thereof.
2.4 Registration.
2.4.1 Warrant Register. The Warrant Agent
shall maintain books (the “Warrant Register”) for the registration of original issuance and the registration of transfer
of the Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall issue and register the Warrants in the names of the
respective holders thereof in such denominations and otherwise in accordance with instructions delivered to the Warrant Agent by the Company.
All of the Public Warrants shall initially be represented by one or more Book-Entry Warrant Certificates deposited with The Depository
Trust Company (the “Depositary”) and registered in the name of Cede & Co., a nominee of the Depositary. Ownership
of beneficial interests in the Public Warrants shall be shown on, and the transfer of such ownership shall be effected through, records
maintained by (i) the Depositary or its nominee for each Book-Entry Warrant Certificate, or (ii) institutions that have accounts
with the Depositary (each such institution, with respect to a Warrant in its account, a “Participant”). If the Depositary
subsequently ceases to make its book-entry settlement system available for the Public Warrants, the Company may instruct the Warrant Agent
regarding making other arrangements for book-entry settlement. In the event that the Public Warrants are not eligible for, or it is no
longer necessary to have the Public Warrants available in, book-entry form, the Warrant Agent shall provide written instructions to the
Depositary to deliver to the Warrant Agent for cancellation each Book-Entry Warrant Certificate, and the Company shall instruct the Warrant
Agent to deliver to the Depositary definitive certificates in physical form evidencing such Warrants (a “Definitive Warrant Certificate”).
Such Definitive Warrant Certificate shall be in the form annexed hereto as Exhibit A, with appropriate insertions, modifications
and omissions, as provided above.
2.4.2 Registered Holder. Prior to due presentment
for registration of transfer of any Warrant, the Company and the Warrant Agent may deem and treat the person in whose name such Warrant
is then registered in the Warrant Register (such person, a “Registered Holder”) as the absolute owner of such Warrant
and of each Warrant represented thereby (notwithstanding any notation of ownership or other writing on the warrant certificate made by
anyone other than the Company or the Warrant Agent), for the purpose of any exercise thereof, and for all other purposes, and neither
the Company nor the Warrant Agent shall be affected by any notice to the contrary.
2.4.3 Detachability of Warrants. The securities
comprising the Units will not be separately transferable until the 52nd day following the date of the Prospectus or, if such 52nd day
is not on a day, other than a Saturday, Sunday or federal holiday, on which banks in New York City are generally open for normal business
(a “Business Day”), then on the immediately succeeding Business Day following such date, or earlier with the consent
of BTIG, but in no event will BTIG allow separate trading of the securities comprising the Units until (i) the Company has filed
a Current Report on Form 8-K which includes an audited balance sheet reflecting the receipt by the Company of the gross proceeds
of the Public Offering including the proceeds received by the Company from the exercise of the underwriters’ over-allotment option
in the Public Offering, if the over-allotment option is exercised prior to the filing of the Form 8-K, and (ii) the Company
has issued a press release and has filed a Current Report on Form 8-K announcing when such separate trading shall begin (the “Detachment
Date”); provided that no fractional Warrants will be issued upon separation of the Units and only whole Warrants will
trade.
2.4.4 Private Warrants and Working Capital Warrants.
The Private Warrants and Working Capital Warrants will be identical to the Public Warrants.
2.4.5 Post-IPO Warrants. The Post-IPO Warrants,
when and if issued, shall have the same terms and be in the same form as the Public Warrants except as may be agreed upon by the Company.
3.
Terms and Exercise of Warrants.
3.1 Warrant Price. Each whole Warrant shall
entitle the Registered Holder thereof, subject to the provisions of such Warrant and of this Agreement, to purchase from the Company the
number of Ordinary Shares stated therein, at the price of $11.50 per share, subject to the adjustments provided in Section 4 hereof
and in the last sentence of this Section 3.1. The term “Warrant Price” as used in this Agreement refers to the
price per share at which the Ordinary Shares may be purchased at the time a Warrant is exercised. The Company in its sole discretion may
lower the Warrant Price at any time prior to the Expiration Date (as defined below) for a period of not less than twenty (20) Business
Days; provided that the Company shall provide at least twenty (20) days’ prior written notice of such reduction to Registered
Holders of the Warrants and provided further that any such reduction shall be applied consistently to all of the Warrants.
3.2 Duration of Warrants. A Warrant may
be exercised only during the period (A) commencing on the later of (i) the date that is thirty (30) days after the consummation
by the Company of a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or other similar business
combination with one or more target businesses (“Business Combination”) and (ii) the date that is twelve (12)
months from the date of the closing of the Public Offering, and (B) terminating at 5:00 p.m., New York City time on the earliest
to occur of (x) the date that is five (5) years after the date on which the Company consummates a Business Combination, (y) the
Redemption Date (defined below) as provided in Section 6.2 of this Agreement and (z) the liquidation of the Company (“Expiration
Date”). The period of time from the date the Warrants will first become exercisable until the expiration of the Warrants shall
hereafter be referred to as the “Exercise Period.” Except with respect to the right to receive the Redemption Price
(defined below) (as set forth in Section 6 hereunder), as applicable, each outstanding Warrant not exercised on or before the Expiration
Date shall become void, and all rights thereunder and all rights in respect thereof under this Agreement shall cease at 5:00 p.m., New
York City time on the Expiration Date. The Company in its sole discretion may extend the duration of the Warrants by delaying the Expiration
Date; provided, however, that the Company will provide at least twenty (20) days’ prior written notice of any such
extension to Registered Holders and provided further that any such extension shall be applied consistently to all of the Warrants.
3.3 Exercise of Warrants.
3.3.1 Payment. Subject to the provisions of
the Warrant and this Agreement, a Warrant may be exercised by the Registered Holder thereof by surrendering it, at the office of the Warrant
Agent designated for such purposes, or at the office of its successor as Warrant Agent, with the subscription form, as set forth in the
Warrant, duly executed, and by paying in full the Warrant Price for each Ordinary Share as to which the Warrant is exercised and any and
all applicable taxes due in connection with the exercise of the Warrant, as follows:
(a) in lawful money of the United
States, by good certified check or good bank draft payable to the order of the Warrant Agent or wire transfer;
(b) in the event of a redemption pursuant
to Section 6.1 hereof in which the Company’s management has elected to require all holders of Warrants to exercise such Warrants
on a “cashless basis,” by surrendering the Warrants for that number of Ordinary Shares equal to the quotient obtained by dividing
(x) the product of the number of Ordinary Shares underlying the Warrants, multiplied by the difference between the Warrant Price
and the Fair Market Value (as defined in this Section 3.3.1(b)) by (y) the Fair Market Value. Solely for purposes of this Section 3.3.1(b),
the “Fair Market Value” shall mean the average reported closing price of the Ordinary Share for the five (5) trading
days ending on the third trading day prior to the date on which the notice of redemption is sent to holders of the Warrants pursuant to
Section 6 hereof; or
(c) in the event the registration
statement required by Section 7.4 hereof is not effective and current within sixty (60) days after the closing of a Business Combination,
by surrendering such Warrants for that number of Ordinary Shares equal to the quotient obtained by dividing (x) the product of the
number of Ordinary Shares underlying the Warrants, multiplied by the difference between the exercise price of the Warrants and the Fair
Market Value (as defined in this Section 3.3.1(c)) by (y) the Fair Market Value. Solely for purposes of this Section 3.3.1(c),
the “Fair Market Value” shall mean the average reported last sale price of the Ordinary Shares for the five (5) trading
days ending on the third trading day prior to the date of exercise.
3.3.2 Issuance of Ordinary Shares. As soon
as practicable after the exercise of any Warrant and the clearance of the funds in payment of the Warrant Price (if any), the Company
shall issue to the Registered Holder of such Warrant a certificate or certificates, or book-entry position, for the number of Ordinary
Shares to which he, she or it is entitled, registered in such name or names as may be directed by him, her or it, and if such Warrant
shall not have been exercised in full, a new countersigned Warrant, or book-entry position, for the number of shares as to which such
Warrant shall not have been exercised. Notwithstanding the foregoing, in no event will the Company be required to net cash settle the
Warrant exercise. No Warrant shall be exercisable for cash and the Company shall not be obligated to issue Ordinary Shares upon exercise
of a Warrant unless the Ordinary Shares issuable upon such Warrant exercise has been registered, qualified or deemed to be exempt under
the securities laws of the state of residence of the Registered Holder of the Warrants. In the event that the condition in the immediately
preceding sentence is not satisfied with respect to a Warrant, the holder of such Warrant shall not be entitled to exercise such Warrant
for cash. Warrants may not be exercised by, or securities issued to, any Registered Holder in any state in which such exercise or issuance
would be unlawful.
3.3.3 Valid Issuance. All Ordinary Shares
issued upon the proper exercise of a Warrant in conformity with this Agreement and the Amended and Restated Memorandum and Articles of
Association of the Company shall be validly issued, fully paid and nonassessable.
3.3.4 Date of Issuance. Each person in whose
name any book-entry position or certificate for Ordinary Shares is issued shall for all purposes be deemed to have become the holder of
record of such shares on the date on which the Warrant, or book-entry position representing such Warrant, was surrendered and payment
of the Warrant Price was made, irrespective of the date of delivery of such certificate in the case of a certificated Warrant, except
that, if the date of such surrender and payment is a date when the share transfer books of the Company or book-entry system of the Warrant
Agent are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding
date on which the share transfer books or book-entry system are open.
3.3.5 Maximum Percentage. A holder of a Warrant
may notify the Company in writing in the event it elects to be subject to the provisions contained in this Section 3.3.5; however,
no holder of a Warrant shall be subject to this Section 3.3.5 unless he, she or it makes such election. If the election is made by
a holder, the Warrant Agent shall not cause the exercise of the holder’s Warrant, and such holder shall not have the right to exercise
such Warrant, to the extent that after giving effect to such exercise, such person (together with such person’s affiliates) or any
“group” of which the holder or its affiliates is a member, would beneficially own in excess of 4.9% or 9.8% (or such other
amount as the holder may specify) (the “Maximum Percentage”) of the Ordinary Shares outstanding immediately after giving
effect to such exercise. For purposes of the foregoing sentence, the aggregate number of Ordinary Shares beneficially owned by such person
and its affiliates, or any “group” of which such holder and its affiliates is a member, shall include the number of Ordinary
Shares issuable upon exercise of the Warrant with respect to which the determination of such sentence is being made, but shall exclude
Ordinary Shares that would be issuable upon (x) exercise of the remaining, unexercised portion of the Warrant beneficially owned
by such person and its affiliates, or any “group” of which such holder and its affiliates is a member, and (y) exercise
or conversion of the unexercised or unconverted portion of any other securities of the Company beneficially owned by such person and its
affiliates, or any “group” of which such holder and its affiliates is a member (including, without limitation, any convertible
notes or convertible preference shares or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained
herein. Except as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance
with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the applicable
regulations of the SEC. For purposes hereof, “group” has the meaning set forth in Section 13(d) of the Exchange
Act and applicable regulations of the SEC, and the percentage held by a Holder shall be determined in a manner consistent with the provisions
of Section 13(d) of the Exchange Act. For purposes of the Warrant, in determining the number of outstanding Ordinary Shares,
the holder may rely on the number of outstanding Ordinary Shares as reflected in (1) the Company’s most recent annual report
on Form 10-K, quarterly report on Form 10-Q, current report on Form 8-K or other public filing with the SEC as the case
may be, (2) a more recent public announcement by the Company or (3) any other notice by the Company or the Warrant Agent setting
forth the number of Ordinary Shares outstanding. For any reason at any time, upon the written request of the holder of the Warrant, the
Company shall, within two (2) Business Days, confirm orally and in writing to such holder the number of Ordinary Shares then outstanding.
In any case, the number of outstanding Ordinary Shares shall be determined after giving effect to the conversion or exercise of equity
securities of the Company by the holder and its affiliates since the date as of which such number of outstanding shares of Ordinary Shares
was reported. By written notice to the Company, the holder of a Warrant may from time to time increase or decrease the Maximum Percentage
applicable to such holder to any other percentage specified in such notice; provided, however, that any such increase shall
not be effective until the sixty-first (61st) day after such notice is delivered to the Company.
4.
Adjustments.
4.1 Share Dividends; Share Sub-Divisions.
If after the date hereof, and subject to the provisions of Section 4.6 below, the number of outstanding Ordinary Shares is increased
by a share dividend payable in Ordinary Shares, or by a sub-division of Ordinary Shares, or other similar event, then, on the effective
date of such share dividend, split up or similar event, the number of Ordinary Shares issuable on exercise of each Warrant shall be increased
in proportion to such increase in outstanding Ordinary Shares. A rights offering made to all or substantially all holders of Ordinary
Shares entitling holders to purchase Ordinary Shares at a price less than the “Historical Fair Market Value” (as defined below)
shall be deemed a share dividend of a number of Ordinary Shares equal to the product of (i) the number of Ordinary Shares actually
sold in such rights offering (or issuable under any other equity securities sold in such rights offering that are convertible into or
exercisable for the Ordinary Shares) multiplied by (ii) one (1) minus the quotient of (x) the price per Ordinary Share
paid in such rights offering divided by (y) the Historical Fair Market Value. For purposes of this subsection 4.1, (i) if the
rights offering is for securities convertible into or exercisable for Ordinary Shares, in determining the price payable for Ordinary Shares,
there shall be taken into account any consideration received for such rights, as well as any additional amount payable upon exercise or
conversion and (ii) “Historical Fair Market Value” means the volume weighted average price of the Ordinary Shares during
the ten (10) trading day period ending on the trading day prior to the first date on which the Ordinary Shares trade on the applicable
exchange or in the applicable market, regular way, without the right to receive such rights. No Ordinary Shares shall be issued at less
than their par value.
4.2 Aggregation of Shares. If after the
date hereof, the number of outstanding Ordinary Shares is decreased by a consolidation, combination or reclassification of Ordinary Shares
or other similar event, then, on the effective date of such consolidation, combination, reclassification or similar event, the number
of Ordinary Shares issuable on exercise of each Warrant shall be decreased in proportion to such decrease in outstanding Ordinary Shares.
4.3 Extraordinary Dividends. If the Company,
at any time while the Warrants are outstanding and unexpired, shall pay a dividend or make a distribution in cash, securities or other
assets to the holders of the Ordinary Shares or other shares of the Company’s share capital into which the Warrants are convertible
(an “Extraordinary Dividend”), then the Warrant Price shall be decreased, effective immediately after the effective
date of such Extraordinary Dividend, by the amount of cash and the fair market value (as determined by the Company’s Board of Directors,
in good faith) of any securities or other assets paid in respect of such Extraordinary Dividend divided by all outstanding shares of the
Company at such time (whether or not any shareholders waived their right to receive such dividend); provided, however, that
none of the following shall be deemed an Extraordinary Dividend for purposes of this provision: (i) any adjustment described in Section 4.1
above, (ii) any cash dividends or cash distributions which, when combined on a per share basis with all other cash dividends and
cash distributions paid on the Ordinary Shares during the 365-day period ending on the date of declaration of such dividend or distribution
does not exceed $0.50 per share (taking into account all of the outstanding shares of the Company at such time (whether or not any shareholders
waived their right to receive such dividend) and as adjusted to appropriately reflect any of the events referred to in other subsections
of this Section 4 and excluding cash dividends or cash distributions that resulted in an adjustment to the Warrant Price or to the
number of Ordinary Shares issuable on exercise of each Warrant) but only with respect to the amount of the aggregate cash dividends or
cash distributions equal to or less than $0.50, or (iii) any payment to satisfy the conversion rights of the holders of the Ordinary
Shares in connection with a proposed initial Business Combination or certain amendments to the Company’s Amended and Restated Memorandum
and Articles of Association (as described in the Registration Statement). Solely for purposes of illustration, if the Company, at a time
while the Warrants are outstanding and unexpired, pays a cash dividend of $0.35 and previously paid an aggregate of $0.40 of cash dividends
and cash distributions on the Ordinary Shares during the 365-day period ending on the date of declaration of such $0.35 dividend, then
the Warrant Price will be decreased, effectively immediately after the effective date of such $0.35 dividend, by $0.25 (the absolute value
of the difference between $0.75 (the aggregate amount of all cash dividends and cash distributions paid or made in such 365-day period,
including such $0.35 dividend) and $0.50 (the greater of (x) $0.50 and (y) the aggregate amount of all cash dividends and cash
distributions paid or made in such 365-day period prior to such $0.35 dividend)). Furthermore, solely for the purposes of illustration,
if following the closing of the Company’s initial Business Combination, there were 100,000,000 shares outstanding and the Company
paid a $1.00 dividend to 17,500,000 of such shares (with the remaining 82,500,000 shares waiving their right to receive such dividend),
then no adjustment to the Warrant Price would occur as a $17.5 million dividend payment divided by 100,000,000 shares equals $0.175 per
share, which is less than $0.50 per share.
4.4 Adjustments in Exercise Price. Whenever
the number of Ordinary Shares purchasable upon the exercise of the Warrants is adjusted, as provided in Sections 4.1 and 4.2 above, the
Warrant Price shall be adjusted (to the nearest cent) by multiplying such Warrant Price immediately prior to such adjustment by a fraction
(x) the numerator of which shall be the number of Ordinary Shares purchasable upon the exercise of the Warrants immediately prior
to such adjustment, and (y) the denominator of which shall be the number of Ordinary Shares so purchasable immediately thereafter.
4.5 Replacement of Securities upon Reorganization, etc.
In case of any reclassification or reorganization of the outstanding Ordinary Shares (other than a change covered by Section 4.1,
4.2 or 4.3 hereof or that solely affects the par value of the Ordinary Shares), or in the case of any merger or consolidation of the Company
with or into another company (other than a consolidation or merger in which the Company is the continuing company and that does not result
in any reclassification or reorganization of the outstanding Ordinary Shares), or in the case of any sale or conveyance to another company,
corporation or entity of the assets or other property of the Company as an entirety or substantially as an entirety in connection with
which the Company is dissolved, the Warrant holders shall thereafter have the right to purchase and receive, upon the basis and upon the
terms and conditions specified in the Warrants and in lieu of the Ordinary Shares of the Company immediately theretofore purchasable and
receivable upon the exercise of the rights represented thereby, the kind and amount of shares or other securities or property (including
cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or
transfer, that the Warrant holder would have received if such Warrant holder had exercised his, her or its Warrant(s) immediately
prior to such event (the “Alternative Issuance”); provided, however, that if the holders of the Ordinary
Shares were entitled to exercise a right of election as to the kind or amount of securities, cash or other assets receivable upon such
consolidation or merger, then the kind and amount of securities, cash or other assets constituting the Alternative Issuance for which
each Warrant shall become exercisable shall be deemed to be the weighted average of the kind and amount received per share by the holders
of the Ordinary Shares in such consolidation or merger that affirmatively make such election; provided, further, that if
less than seventy percent (70%) of the consideration receivable by the holders of the Ordinary Shares in the applicable event is payable
in the form of ordinary shares in the successor entity that is listed for trading on a national securities exchange or is quoted in an
established over-the-counter market, or is to be so listed for trading or quoted immediately following such event, and if the Registered
Holder properly exercises the Warrant within thirty (30) days following the public disclosure of the consummation of such applicable event
by the Company pursuant to a current report on Form 8-K filed with the Commission, the Warrant Price shall be reduced by an amount
(in dollars) equal to the difference of (i) the Warrant Price in effect prior to such reduction minus (ii) (A) the Per
Share Consideration (as defined below) (but in no event less than zero) minus (B) the Black-Scholes Warrant Value (as defined below).
The “Black-Scholes Warrant Value” means the value of a Warrant immediately prior to the consummation of the applicable
event based on the Black-Scholes Warrant Model for a Capped American Call on Bloomberg Financial Markets (“Bloomberg”),
as calculated by an accounting, appraisal, investment banking firm or consultant of nationally recognized standing that is, in the good
faith judgment of the Board, qualified to make such calculation. For purposes of calculating such amount, (1) Section 6.1 shall
be taken into account, (2) the price of each Ordinary Share shall be the 10-Day Average Closing Price as of the effective date of
the applicable event, (3) the assumed volatility shall be the ninety (90) day volatility obtained from the HVT function on Bloomberg
determined as of the trading day immediately prior to the day of the announcement of the applicable event, and (4) the assumed risk-free
interest rate shall correspond to the U.S. Treasury rate for a period equal to the remaining term of the Warrant. “Per Share
Consideration” means (i) if the consideration paid to holders of the Ordinary Shares consists exclusively of cash, the
amount of such cash per Ordinary Share, and (ii) in all other cases, the average last reported sale price of the Ordinary Shares
as reported during the ten (10) trading day period ending on the trading day prior to the effective date of the applicable event.
If any reclassification also results in a change in the Ordinary Shares covered by Section 4.1, 4.2 or 4.3, then such adjustment
shall be made pursuant to Sections 4.1, 4.2, 4.3, 4.4 and this Section 4.5. The provisions of this Section 4.5 shall similarly
apply to successive reclassifications, reorganizations, mergers or consolidations, sales or other transfers. In no event will the Warrant
Price be reduced to less than the par value per share issuable upon exercise of the Warrant.
4.6 Issuance in connection with a Business Combination.
If, in connection with a Business Combination, the Company (i) issues additional Ordinary Shares or equity-linked securities at an
issue price or effective issue price of less than $9.20 per share (with such issue price or effective issue price as determined by the
Company’s Board of Directors, in good faith, and in the case of any such issuance to the Initial Shareholder or its affiliates,
without taking into account any founders shares held by it or such affiliates, as applicable, prior to such issuance) (the “Newly
Issued Price”), (ii) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds,
and interest thereon, available for the funding of the Business Combination on the date of the consummation of such Business Combination
(net of redemptions), and (iii) the Fair Market Value (as defined below in this Section 4.6) is below $9.20 per share, the exercise
price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of (a) the Fair Market Value or (b) the
Newly Issued Price and the $18.00 per share redemption trigger price described in Section 6.1 shall be adjusted (to the nearest cent)
to be equal to 180% of the higher of the Market Value and the Newly Issued Price. Solely for purposes of this Section 4.6, the “Fair
Market Value” shall mean the volume weighted average reported trading price of the Ordinary Shares for the twenty (20) trading
days starting on the trading day prior to the date of the consummation of the Business Combination.
4.7 Notices of Changes in Warrant. Upon
every adjustment of the Warrant Price or the number of shares issuable upon exercise of a Warrant, the Company shall give written notice
thereof to the Warrant Agent, which notice shall state the Warrant Price resulting from such adjustment and the increase or decrease,
if any, in the number of shares purchasable at such price upon the exercise of a Warrant, setting forth in reasonable detail the method
of calculation and the facts upon which such calculation is based. Upon the occurrence of any event specified in Sections 4.1, 4.2, 4.3,
4.4, 4.5, or 4.6, then, in any such event, the Company shall give written notice to each Warrant holder, at the last address set forth
for such holder in the Warrant Register, of the record date or the effective date of the event. Failure to give such notice, or any defect
therein, shall not affect the legality or validity of such event.
4.8 No Fractional Warrants or Shares. Notwithstanding
any provision contained in this Agreement to the contrary, the Company shall not issue fractional shares upon exercise of Warrants. If
the holder of any Warrant would be entitled, upon the exercise of such Warrant, to receive a fractional interest in a share, the Company
shall, upon such exercise, round down to the nearest whole number of Ordinary Shares to be issued to the Warrant holder.
4.9 Form of Warrant. The form of Warrant
need not be changed because of any adjustment pursuant to this Section 4, and Warrants issued after such adjustment may state the
same Warrant Price and the same number of shares as is stated in the Warrants initially issued pursuant to this Agreement. However, the
Company may at any time in its sole discretion make any change in the form of Warrant that the Company may deem appropriate and that does
not affect the substance thereof, and any Warrant thereafter issued or countersigned, whether in exchange or substitution for an outstanding
Warrant or otherwise, may be in the form as so changed.
4.10 Other Events. In case any event shall
occur affecting the Company as to which none of the provisions of preceding subsections of this Section 4 is strictly applicable,
but which would require an adjustment to the terms of the Warrants in order to (i) avoid an adverse impact on the Warrants and (ii) effectuate
the intent and purpose of this Section 4, then, in each such case, the Company shall appoint a firm of independent public accountants,
investment banking or other appraisal firm of recognized national standing, which shall give its opinion as to whether or not any adjustment
to the rights represented by the Warrants is necessary to effectuate the intent and purpose of this Section 4 and, if they determine
that an adjustment is necessary, the terms of such adjustment. The Company shall adjust the terms of the Warrants in a manner that is
consistent with any adjustment recommended in such opinion.
5.
Transfer and Exchange of Warrants.
5.1 Registration of Transfer. The Warrant
Agent shall register the transfer, from time to time, of any outstanding Warrant upon the Warrant Register, upon surrender of such Warrant
for transfer, properly endorsed with signatures, in the case of certificated Warrants, properly guaranteed and accompanied by appropriate
instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate number of Warrants shall be issued and
the old Warrant shall be cancelled by the Warrant Agent. In the case of certificated Warrants, the Warrants so cancelled shall be delivered
by the Warrant Agent to the Company from time to time upon request.
5.2 Procedure for Surrender of Warrants.
Warrants may be surrendered to the Warrant Agent, either in certificated form or in book-entry position, together with a written request
for exchange or transfer, and thereupon the Warrant Agent shall issue in exchange therefor one or more new Warrants, or book-entry positions,
as requested by the Registered Holder of the Warrants so surrendered, representing an equal aggregate number of Warrants; provided,
however, that in the event that a Warrant surrendered for transfer bears a restrictive legend, the Warrant Agent shall not cancel
such Warrant and issue new Warrants in exchange therefor until the Warrant Agent has received an opinion of counsel for the Company stating
that such transfer may be made and indicating whether the new Warrants must also bear a restrictive legend.
5.3 Fractional Warrants. The Warrant Agent
shall not be required to effect any registration of transfer or exchange which will result in the issuance of a warrant certificate or
book-entry position for a fraction of a Warrant, except as part of the Units.
5.4 Service Charges. No service charge shall
be made for any exchange or registration of transfer of Warrants.
5.5 Warrant Execution and Countersignature.
The Warrant Agent is hereby authorized to countersign and to deliver, in accordance with the terms of this Agreement, the Warrants required
to be issued pursuant to the provisions of this Section 5, and the Company, whenever required by the Warrant Agent, will supply the
Warrant Agent with Warrants duly executed on behalf of the Company for such purpose.
5.6 Transfers prior to Detachment. Prior
to the Detachment Date, the Public Warrants may be transferred or exchanged only together with the Unit in which such Warrant is included,
and only for the purpose of effecting, or in conjunction with, a transfer or exchange of such Unit. Furthermore, each transfer of a Unit
on the register relating to such Units shall operate also to transfer the Warrants included in such Unit. Notwithstanding the foregoing,
the provisions of this Section 5.6 shall have no effect on any transfer of Warrants on or after the Detachment Date.
6.
Redemption.
6.1 Redemption. All but not less than all
of the outstanding Warrants may be redeemed, at the option of the Company, at any time during the Exercise Period, at the office of the
Warrant Agent, upon the notice referred to in Section 6.2, at the price of $0.01 per Warrant (“Redemption Price”),
provided that the closing price of the Ordinary Shares equals or exceeds $18.00 per share (subject to adjustment in accordance with Section 4
hereof), on each of twenty (20) trading days within any thirty (30) trading day period commencing after the Warrants become exercisable
and ending on the third trading day prior to the date on which notice of redemption is given and provided that there is an effective registration
statement covering the Ordinary Shares issuable upon exercise of the Warrants, and a current prospectus relating thereto, available throughout
the 30-day redemption period or the Company has elected to require the exercise of the Warrants on a “cashless basis” pursuant
to Section 3.3.1(b); provided, however, that if and when the Warrants become redeemable by the Company, the Company
may not exercise such redemption right if the issuance of Ordinary Shares upon exercise of the Warrants is not exempt from registration
or qualification under applicable state blue sky laws or the Company is unable to effect such registration or qualification.
6.2 Date Fixed for, and Notice of, Redemption.
In the event the Company shall elect to redeem all of the Warrants that are subject to redemption, the Company shall fix a date for the
redemption (the “Redemption Date”). Notice of redemption shall be mailed by first class mail, postage prepaid, by the
Company not less than thirty (30) days prior to the Redemption Date to the Registered Holders of the Warrants to be redeemed at their
last addresses as they shall appear on the registration books. Any notice mailed in the manner herein provided shall be conclusively presumed
to have been duly given whether or not the Registered Holder received such notice.
6.3 Exercise After Notice of Redemption.
The Warrants may be exercised, for cash (or on a “cashless basis” in accordance with Section 3 of this Agreement) at
any time after notice of redemption shall have been given by the Company pursuant to Section 6.2 hereof and prior to the Redemption
Date. In the event the Company determines to require all holders of Warrants to exercise their Warrants on a “cashless basis”
pursuant to Section 3.3.1(b), the notice of redemption will contain the information necessary to calculate the number of Ordinary
Shares to be received upon exercise of the Warrants, including the “Fair Market Value” in such case. On and after the Redemption
Date, the record holder of the Warrants shall have no further rights except to receive, upon surrender of the Warrants, the Redemption
Price.
7. Other Provisions Relating to Rights of Holders of Warrants.
7.1 No Rights as Shareholder. A Warrant
does not entitle the Registered Holder thereof to any of the rights of a shareholder of the Company, including, without limitation, the
right to receive dividends, or other distributions, exercise any preemptive rights to vote or to consent or to receive notice as shareholders
in respect of the general meetings of the Company or the appointment of directors of the Company or any other matter.
7.2 Lost, Stolen, Mutilated, or Destroyed Warrants.
If any Warrant is lost, stolen, mutilated, or destroyed, the Company and the Warrant Agent may on such terms as to indemnity or otherwise
as they may in their discretion impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant
of like denomination, tenor, and date as the Warrant so lost, stolen, mutilated, or destroyed. Any such new Warrant shall constitute a
substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated, or destroyed Warrant shall be
at any time enforceable by anyone.
7.3 Reservation of Ordinary Shares. The
Company shall at all times reserve and keep available a number of its authorized but unissued Ordinary Shares that will be sufficient
to permit the exercise in full of all outstanding Warrants issued pursuant to this Agreement.
7.4 Registration of Ordinary Shares. The
Company agrees that as soon as practicable, but in no event later than twenty (20) business days after the closing of its initial Business
Combination, it shall use its best efforts to file with the Securities and Exchange Commission a registration statement for the registration,
under the Securities Act, of the Ordinary Shares issuable upon exercise of the Warrants, and it shall use its best efforts to take such
action as is necessary to register or qualify for sale, in those states in which the Warrants were initially offered by the Company and
in those states where holders of Warrants then reside, the Ordinary Shares issuable upon exercise of the Warrants, to the extent an exemption
is not available. The Company will use its best efforts to cause the same to become effective and to maintain the effectiveness of such
registration statement, and a current prospectus relating thereto, until the expiration of the Warrants in accordance with the provisions
of this Agreement. If any such registration statement has not been declared effective by the 60th business day following the closing of
the Business Combination, holders of the Warrants shall have the right, during the period beginning on the 91st day after the closing
of the Business Combination and ending upon such registration statement being declared effective by the Securities and Exchange Commission,
and during any other period when the Company shall fail to have maintained an effective registration statement covering the Ordinary Shares
issuable upon exercise of the Warrants, to exercise such Warrants on a “cashless basis” as determined in accordance with Section 3.3.1(c).
The Company shall provide the Warrant Agent with an opinion of counsel for the Company (which shall be an outside law firm with securities
law experience) stating that (i) the exercise of the Warrants on a cashless basis in accordance with this Section 7.4 is not
required to be registered under the Securities Act and (ii) the Ordinary Shares issued upon such exercise will be freely tradable
under U.S. federal securities laws by anyone who is not an affiliate (as such term is defined in Rule 144 under the Securities Act)
of the Company and, accordingly, will not be required to bear a restrictive legend. For the avoidance of any doubt, unless and until all
of the Warrants have been exercised or have expired, the Company shall continue to be obligated to comply with its registration obligations
under the first three sentences of this Section 7.4. The provisions of this Section 7.4 may not be modified, amended, or deleted
without the prior written consent of BTIG.
8.
Concerning the Warrant Agent and Other Matters.
8.1 Payment of Taxes. The Company will from
time to time promptly pay all taxes and charges that may be imposed upon the Company or the Warrant Agent in respect of the issuance or
delivery of Ordinary Shares upon the exercise of Warrants, but the Company shall not be obligated to pay any transfer taxes in respect
of the Warrants or such Ordinary Shares.
8.2 Resignation, Removal, Consolidation, or
Merger of Warrant Agent.
8.2.1 Appointment of Successor Warrant Agent.
The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be discharged from all further duties and liabilities
hereunder after giving sixty (60) days’ notice in writing to the Company. The Company may remove the Warrant Agent or any successor
Warrant Agent upon thirty (30) days’ notice in writing, sent to the Warrant Agent or successor Warrant Agent, as the case may be.
If the office of the Warrant Agent becomes vacant by resignation, removal or incapacity to act or otherwise, the Company shall appoint
in writing a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period
of thirty (30) days after it has been notified in writing of such resignation or incapacity by the Warrant Agent or by the holder of the
Warrant (who shall, with such notice, submit his Warrant for inspection by the Company), then the holder of any Warrant may apply to the
Supreme Court of the State of New York for the County of New York for the appointment of a successor Warrant Agent at the Company’s
cost. Any successor Warrant Agent, whether appointed by the Company or by such court, shall be an entity organized and existing under
the laws of the United States of America, or any state thereunder, in good standing, and authorized under such laws to exercise corporate
trust powers and subject to supervision or examination by federal or state authority. After appointment, any successor Warrant Agent shall
be vested with all the authority, powers, rights, immunities, duties, and obligations of its predecessor Warrant Agent with like effect
as if originally named as Warrant Agent hereunder, without any further act or deed; but if for any reason it becomes necessary or appropriate,
the predecessor Warrant Agent shall execute and deliver, at the expense of the Company, an instrument transferring to such successor Warrant
Agent all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and upon request of any successor Warrant Agent
the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting in
and confirming to such successor Warrant Agent all such authority, powers, rights, immunities, duties, and obligations.
8.2.2 Notice of Successor Warrant Agent. In
the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof to the predecessor Warrant Agent and the
transfer agent for the Ordinary Shares not later than the effective date of any such appointment.
8.2.3 Merger or Consolidation of Warrant Agent.
Any corporation into which the Warrant Agent may be merged or with which it may be consolidated or any corporation resulting from any
merger or consolidation to which the Warrant Agent shall be a party shall be the successor Warrant Agent under this Agreement without
any further act.
8.3 Fees and Expenses of Warrant Agent.
8.3.1 Remuneration. The Company agrees to
pay the Warrant Agent reasonable remuneration for its services as such Warrant Agent hereunder in accordance with a fee schedule to be
mutually agreed upon and will reimburse the Warrant Agent upon demand for all expenditures that the Warrant Agent may reasonably incur
in the execution of its duties hereunder.
8.3.2 Further Assurances. The Company agrees
to perform, execute, acknowledge, and deliver or cause to be performed, executed, acknowledged, and delivered all such further and other
acts, instruments, and assurances as may reasonably be required by the Warrant Agent for the carrying out or performing of the provisions
of this Agreement.
8.4 Liability of Warrant Agent.
8.4.1 Reliance on Company Statement. Whenever
in the performance of its duties under this Agreement, the Warrant Agent shall deem it necessary or desirable that any fact or matter
be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence
in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a statement signed by
the Chief Executive Officer or Chairman of the Board of Directors of the Company and delivered to the Warrant Agent. The Warrant Agent
may rely upon such statement for any action taken or suffered in good faith by it pursuant to the provisions of this Agreement.
8.4.2 Indemnity. The Warrant Agent shall be
liable hereunder only for its own actual fraud, gross negligence, willful misconduct, or willful and material breach of this Agreement
(each as determined by a final, non-appealable judgment of a court of competent jurisdiction). The Company agrees to indemnify the Warrant
Agent and save it harmless against any and all liabilities, including judgments, costs and reasonable counsel fees, for anything done
or omitted by the Warrant Agent in the execution of this Agreement except as a result of the Warrant Agent’s actual fraud, gross
negligence, willful misconduct, or willful and material breach of this Agreement (each as determined by a final, non-appealable judgment
of a court of competent jurisdiction).
8.4.3 Exclusions. The Warrant Agent shall
have no responsibility with respect to the validity of this Agreement or with respect to the validity or execution of any Warrant (except
its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained in this
Agreement or in any Warrant; nor shall it be responsible to make any adjustments required under the provisions of Section 4 hereof
or responsible for the manner, method, or amount of any such adjustment or the ascertaining of the existence of facts that would require
any such adjustment; nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation
of any Ordinary Shares to be issued pursuant to this Agreement or any Warrant or as to whether any Ordinary Shares will, when issued,
be valid and fully paid and nonassessable.
8.5 Acceptance of Agency. The Warrant Agent
hereby accepts the agency established by this Agreement and agrees to perform the same upon the terms and conditions herein set forth
and among other things, shall account promptly to the Company with respect to Warrants exercised and concurrently account for, and pay
to the Company, all monies received by the Warrant Agent for the purchase of Ordinary Shares through the exercise of Warrants.
9.
Miscellaneous Provisions.
9.1 Successors. All the covenants and provisions
of this Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure to the benefit of their respective successors
and assigns.
9.2 Notices. Any notice, statement or demand
authorized by this Agreement to be given or made by the Warrant Agent or by the holder of any Warrant to or on the Company shall be sufficiently
given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five (5) days
after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Company with the Warrant Agent),
as follows:
Archimedes Tech SPAC Partners II Co.
2093 Philadelphia Pike #1968
Claymont, DE 19703
Attn: Long Long, CEO
Any notice, statement or demand authorized by this Agreement to be
given or made by the holder of any Warrant or by the Company to or on the Warrant Agent shall be sufficiently given when so delivered
if by hand or overnight delivery or if sent by certified mail or private courier service within five days after deposit of such notice,
postage prepaid, addressed (until another address is filed in writing by the Warrant Agent with the Company), as follows:
Odyssey Transfer and Trust Company
2155 Woodlane Drive, Suite 100
Woodbury, MN 55125
Attention: Client Services
with a copy, in each case, to:
Loeb & Loeb LLP
345 Park Avenue
New York, NY 10154
Attn: Giovanni Caruso
Email: gcaruso@loeb.com
and
White & Case LLP
1221 Avenue of the Americas
New York, NY 10020
Attn: Joel L. Rubinstein; Daniel E. Nussen
Email: joel.rubinstein@whitecase.com; daniel.nussen@whitecase.com
and
BTIG, LLC
65 East 55th Street
New York, NY 10022
Attn:
Email:
9.3 Applicable Law. The validity, interpretation,
and performance of this Agreement and of the Warrants shall be governed in all respects by the laws of the State of New York, without
giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. The
Company hereby agrees that any action, proceeding or claim against it arising out of or relating in any way to this Agreement shall be
brought and enforced in the courts of the State of New York or the United States District Court for the Southern District of New York,
and irrevocably submits to such jurisdiction, which jurisdiction shall be the exclusive forum for any such action, proceeding or claim.
The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Notwithstanding
the foregoing, the provisions of this paragraph are not binding on holders of Warrants and will not apply to suits brought to enforce
any liability or duty created by the Securities Act or the Exchange Act or any other claim for which the federal district courts of the
United States of America are the sole and exclusive forum. Any process or summons to be served upon the Company may be served by transmitting
a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in
Section 9.2 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action,
proceeding or claim.
9.4 Persons Having Rights under this Agreement.
Nothing in this Agreement expressed and nothing that may be implied from any of the provisions hereof is intended, or shall be construed,
to confer upon, or give to, any person or corporation other than the parties hereto and the Registered Holders of the Warrants and, for
the purposes of Sections 7.4, 9.4 and 9.8 hereof, BTIG, any right, remedy, or claim under or by reason of this Warrant Agreement or of
any covenant, condition, stipulation, promise, or agreement hereof. BTIG shall be deemed to be a third-party beneficiary of this Agreement
with respect to Sections 7.4, 9.4 and 9.8 hereof. All covenants, conditions, stipulations, promises, and agreements contained in this
Warrant Agreement shall be for the sole and exclusive benefit of the parties hereto (and BTIG with respect to the Sections 7.4, 9.4 and
9.8 hereof) and their successors and assigns and of the Registered Holders of the Warrants.
9.5 Examination of the Warrant Agreement.
A copy of this Agreement shall be available at all reasonable times at the office of the Warrant Agent in the Borough of Manhattan, City
and State of New York, for inspection by the Registered Holder of any Warrant. The Warrant Agent may require any such holder to submit
his Warrant for inspection by it.
9.6 Counterparts. This Agreement may be
executed in any number of original, electronic or facsimile counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one and the same instrument. A signature to this Agreement
transmitted electronically shall have the same authority, effect, and enforceability as an original signature.
9.7 Effect of Headings. The section headings
herein are for convenience only and are not part of this Agreement and shall not affect the interpretation thereof.
9.8 Amendments. This Agreement may be amended
by the parties hereto without the consent of any Registered Holder for the purpose of curing any ambiguity, or of curing, correcting or
supplementing any defective provision contained herein, correcting any mistake, including to conform the provisions of this Agreement
to the description of the terms of the Public Warrants and this Agreement set forth in the Prospectus, or adding or changing any other
provisions with respect to matters or questions arising under this Agreement as the parties may deem necessary or desirable and that the
parties deem shall not adversely affect the interest of the Registered Holders. All other modifications or amendments, including any amendment
to increase the Warrant Price or shorten the Exercise Period, shall require the written consent or vote of the Registered Holders of (i) a
majority of the then outstanding Warrants (excluding any Private Warrants) if such modification or amendment is being undertaken prior
to, or in connection with, the consummation of a Business Combination or (ii) a majority of the then outstanding Warrants if such
modification or amendment is being undertaken after the consummation of a Business Combination. Notwithstanding the foregoing, the Company
may lower the Warrant Price or extend the duration of the Exercise Period pursuant to Sections 3.1 and 3.2, respectively, without the
consent of the Registered Holders. The provisions of this Section 9.8 may not be modified, amended or deleted without the prior written
consent of BTIG.
9.9 Trust Account Waiver. The Warrant Agent
acknowledges and agrees that it shall not make any claims or proceed against the trust account established by the Company in connection
with the Public Offering (as more fully described in the Registration Statement) (“Trust Account”), including by way
of set-off, and shall not be entitled to any funds in the Trust Account under any circumstance. In the event that the Warrant Agent has
a claim against the Company under this Agreement, the Warrant Agent will pursue such claim solely against the Company and not against
the property held in the Trust Account.
9.10 Severability. This Agreement shall
be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability
of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision,
the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable
provision as may be possible and be valid and enforceable.
[signature page follows]
IN WITNESS WHEREOF, this Agreement has been duly
executed by the parties hereto as of the day and year first above written.
ARCHIMEDES TECH SPAC PARTNERS
II CO.
By:
/s/ Long Long
Name: Long Long
Title: Chief Executive Officer
ODYSSEY TRANSFER AND TRUST COMPANY
By:
/s/ Rebecca Paulson
Name: Rebecca Paulson
Title: President
Exhibit A
Form of Warrant
NUMBER
WARRANTS
SEE REVERSE FOR CERTAIN DEFINITIONS
CUSIP __________
THIS WARRANT WILL
BE VOID IF NOT EXERCISED
PRIOR TO
THE EXPIRATION DATE (DEFINED BELOW) WARRANTS
ARCHIMEDES TECH SPAC PARTNERS II CO.
WARRANT
THIS CERTIFIES THAT, for value received
is the registered holder of a warrant or warrants (the “Warrant(s)”) of Archimedes Tech SPAC Partners II Co., a Cayman
Islands exempted company (the “Company”), expiring at 5:00 p.m., New York City time, on the five year anniversary of
the Company’s completion of an initial merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization
or other similar business combination with one or more businesses (a “Business Combination”) or earlier upon redemption
or liquidation of the trust account established in connection with the Company’s initial public offering, to purchase one fully
paid and non-assessable ordinary share, par value $0.0001 per share (“Shares”), of the Company for each whole Warrant
evidenced by this Warrant Certificate. The Warrant entitles the holder thereof to purchase from the Company, commencing thirty days after
the Company’s completion of an initial Business Combination, such number of Shares of the Company at the Warrant Price (as defined
below), upon surrender of this Warrant Certificate and payment of the Warrant Price at the office or agency of Odyssey Transfer and Trust
Company (the “Warrant Agent”), but only subject to the conditions set forth herein and in the Warrant Agreement between
the Company and the Warrant Agent. In no event will the Company be required to net cash settle any warrant exercise. The term “Warrant
Price” as used in this Warrant Certificate refers to the price per Share at which Shares may be purchased at the time the Warrant
is exercised. The initial Warrant Price per Share is equal to $11.50 per Share. The Warrant Agreement provides that upon the occurrence
of certain events the Warrant Price, the Redemption Trigger Price (defined below) and the number of Shares purchasable hereunder, set
forth on the face hereof, may, subject to certain conditions, be adjusted.
No fraction of a Share will
be issued upon any exercise of a Warrant. If the holder of a Warrant would be entitled to receive a fraction of a Share upon any exercise
of a Warrant, the Company shall, upon such exercise, round down to the nearest whole number the number of Shares to be issued to such
holder.
Upon any exercise of the Warrant
for less than the total number of Shares provided for herein, there shall be issued to the registered holder hereof or the registered
holder’s assignee a new Warrant Certificate covering the number of Shares for which the Warrant has not been exercised.
Warrant Certificates, when
surrendered at the office or agency of the Warrant Agent by the registered holder in person or by attorney duly authorized in writing,
may be exchanged in the manner and subject to the limitations provided in the Warrant Agreement, but without payment of any service charge,
for another Warrant Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of Warrants.
Upon due presentment for registration
of transfer of this Warrant Certificate at the office of the Warrant Agent, a new Warrant Certificate or Warrant Certificates of like
tenor and evidencing in the aggregate a like number of Warrants shall be issued to the transferee in exchange for this Warrant Certificate,
subject to the limitations provided in the Warrant Agreement, without charge except for any applicable tax or other governmental charge
imposed in connection therewith.
The Company and the Warrant
Agent may deem and treat the registered holder as the absolute owner of this Warrant Certificate (notwithstanding any notation of ownership
or other writing hereon made by anyone), for the purpose of any exercise hereof, of any distribution to the registered holder, and for
all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.
Neither the Warrants nor this
Warrant Certificate entitles the registered holder to any of the rights of a shareholder of the Company.
The Company reserves the right
to call the Warrant prior to its exercise with a notice of call in writing to the holders of record of the Warrant, giving at least 30
days’ notice of such call, at any time while the Warrant is exercisable, if the reported closing price of the Shares has been at
least $18.00 per share (as adjusted for share sub-divisions, share dividends, reorganizations, recapitalizations and the like) (the “Redemption
Trigger Price”) for any 20 trading days within a 30 trading day period (the “30-day trading period”) commencing
after the Warrants become exercisable and ending on the third business day prior to the date on which notice of such call is given and
if, and only if, there is a current registration statement in effect with respect to the Shares underlying the Warrants throughout the
30-day trading period and continuing each day thereafter until the date of redemption. The call price of the Warrants is to be $0.01 per
Warrant. Any Warrant either not exercised or tendered back to the Company by the end of the date specified in the notice of call shall
be canceled on the books of the Company and have no further value except for the $0.01 call price.
Witness the electronic or facsimile signatures of its duly authorized
officers.
Chairman of the Board or Chief Executive Officer
Secretary
SUBSCRIPTION FORM
To Be Executed by the Registered Holder in Order
to Exercise Warrants
The undersigned Registered Holder irrevocably
elects to exercise _______________ Warrants represented by this Warrant Certificate, and to purchase the Shares issuable upon the exercise
of such Warrants, and requests that Certificates for such Shares shall be issued in the name of
(PLEASE TYPE OR PRINT NAME AND ADDRESS)
(SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER)
and be delivered to
(PLEASE PRINT OR TYPE NAME AND ADDRESS)
and, if such number of Warrants shall not be all
the Warrants evidenced by this Warrant Certificate, that a new Warrant Certificate for the balance of such Warrants be registered in the
name of, and delivered to, the Registered Holder at the address stated below:
Dated:
(SIGNATURE)
(ADDRESS)
(TAX IDENTIFICATION NUMBER)
ASSIGNMENT
To Be Executed by the Registered Holder in Order
to Assign Warrants
For Value Received, hereby sell,
assign, and transfer unto
(PLEASE TYPE OR PRINT NAME AND ADDRESS)
(SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER)
and be delivered to
(PLEASE PRINT OR TYPE NAME AND ADDRESS)
of the Warrants represented by this Warrant Certificate,
and hereby irrevocably constitute and appoint Attorney to transfer this Warrant Certificate on the books of the Company,
with full power of substitution in the premises.
Dated:
(SIGNATURE)
NOTICE: THE SIGNATURE(S) TO THIS ASSIGNMENT
MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY
CHANGE WHATEVER.
Signature(s) Guaranteed:
By
THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION
(BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS) WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM,
PURSUANT TO S.E.C. RULE 17Ad-15 (OR ANY SUCCESSOR RULE).
Exhibit B
Legend
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS,
AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT, AND ANY APPLICABLE
STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE. IN ADDITION, SUBJECT TO ANY ADDITIONAL LIMITATIONS ON TRANSFER DESCRIBED
IN THE LETTER AGREEMENT BY AND AMONG ARCHIMEDES TECH SPAC PARTNERS II CO. (THE “COMPANY”) AND THE OTHER PARTIES THERETO, THE
SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD OR TRANSFERRED UNTIL AFTER THE DATE UPON WHICH THE COMPANY COMPLETES ITS
INITIAL BUSINESS COMBINATION (AS DEFINED IN SECTION 3.2 OF THE WARRANT AGREEMENT REFERRED TO HEREIN) EXCEPT TO A PERMITTED TRANSFEREE
(AS SPECIFIED IN THE LETTER AGREEMENT) WHO AGREES IN WRITING WITH THE COMPANY TO BE SUBJECT TO SUCH TRANSFER PROVISIONS.
SECURITIES EVIDENCED BY THIS CERTIFICATE AND ORDINARY
SHARES OF THE COMPANY ISSUED UPON EXERCISE OF SUCH SECURITIES SHALL BE ENTITLED TO REGISTRATION RIGHTS UNDER A REGISTRATION RIGHTS AGREEMENT
TO BE EXECUTED BY THE COMPANY.”
EX-4.2 — EXHIBIT 4.2
EX-4.2
Filename: tm2628316d1_ex4-2.htm · Sequence: 5
Exhibit 4.2
ASSUMPTION OF WARRANT AGREEMENT
THIS ASSUMPTION OF WARRANT
AGREEMENT (this “Agreement”), is made and entered into effective as of October 21, 2026, by and among Archimedes
Tech SPAC Partners II Co., a Cayman Islands exempted company (the “Company”), ATII Holdings
Inc. (to be renamed as Forge Nano Holdings, Inc.), a Delaware corporation (“Pubco”),
and Odyssey Transfer and Trust Company, a Minnesota corporation, as warrant agent (the “Warrant Agent”). Capitalized
terms used herein but not otherwise defined shall have the meanings given to them in the Warrant Agreement (as defined below).
WHEREAS, Archimedes Tech SPAC
Partners II Co., a Cayman Islands exempted company (the “Company”), and the Warrant Agent previously entered into that
certain Warrant Agreement, dated February 10, 2025 (the “Warrant Agreement”), pursuant to which the Warrant Agent
agreed to act on behalf of the Company in connection with the issuance, registration, transfer, exchange, redemption and exercise of,
among other Warrants, up to 11,500,000 warrants (the “Public Warrants”) underlying units issued in the Company’s
initial public offering (the “IPO”), up to 420,000 warrants (the “Private Warrants”) issued in a
private placement consummated simultaneously with the IPO, and up to 75,000 Working Capital Warrants issuable upon conversion of working
capital loans;
WHEREAS, the IPO and the private placement were
consummated on February 12, 2025;
WHEREAS, the Company has entered
into an agreement and plan of merger, dated as of April 20, 2026 (as it may be amended from time to time, the “Merger Agreement”),
by and among the Company, Pubco, ATII Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of the Company (“Merger
Sub I”), ATII Merger Sub II, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company (“Merger
Sub II”), and Forge Nano, Inc., a Delaware corporation (“Forge Nano”), which provides for a Business
Combination between the Company and Forge Nano;
WHEREAS, pursuant to the Merger
Agreement, (i) the Company will merge with and into Pubco, upon which the separate existence of the Company will cease and Pubco
will be the surviving corporation (the “Domestication Merger”) and (ii) following the Domestication Merger, (A) Merger
Sub I will merge with and into Forge Nano (the “First Company Merger”), with Forge Nano continuing as the surviving
corporation in the First Company Merger and a wholly-owned subsidiary of Pubco (the “Initial Surviving Corporation”),
and (B) immediately following the effective time of the First Company Merger, the Initial Surviving Corporation will merge with and
into Merger Sub II (the “Second Company Merger”), with Merger Sub II continuing as the surviving company in the Second
Company Merger and as a wholly-owned subsidiary of Pubco; and as a result of the Business Combination, holders of Ordinary Shares of the
Company and equity interests of Forge Nano will become holders of shares of common stock, par value $0.0001 per share, of Pubco (“Pubco
Common Stock”);
WHEREAS, upon consummation
of the Business Combination, as provided in Section 4.5 of the Warrant Agreement, the Warrants will no longer be exercisable
for Ordinary Shares of the Company but instead will be exercisable for Pubco Common Stock; and
WHEREAS, in connection with
the Business Combination, Pubco wishes to confirm the assumption of the Company’s rights, duties, covenants and other obligations
(the “Obligations”) under the Warrant Agreement;
NOW, THEREFORE, for good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:
1. Assumption of the Obligations. As of and with effect on and from the Reincorporation Effective
Time (as defined in the Merger Agreement), the Company hereby assigns to Pubco all of the Company’s rights, titles, interests and
obligations in and under the Warrant Agreement; and Pubco hereby assumes, and agrees to pay, perform, satisfy and discharge in full, as
the same become due, all of the Company’s liabilities and obligations under the Warrant Agreement arising on, from and after the
Reincorporation Effective Time.
2. Consent. The Warrant Agent hereby consents to (i) the assignment of the Warrant Agreement
by the Company to Pubco and the assumption of the Warrant Agreement by Pubco from the Company, in each case effective as of the Reincorporation
Effective Time, and (ii) the continuation of the Warrant Agreement, in full force and effect from and after the Reincorporation Effective
Time.
3. No Amendments. Except for the assumption of the Obligations by Pubco hereunder, the Warrant Agreement
shall remain unchanged and in full force and effect.
4. Miscellaneous.
(a) The Company and Pubco agree to execute such reasonable further instruments or perform such reasonable
acts which are or may become reasonably necessary to carry out the intent of this Agreement.
(b) This Agreement shall be governed by and construed under the laws of the State of New York without regard
to its conflict of laws principles.
(c) This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original,
but all of which together shall constitute one and the same instrument.
[The balance of this page is intentionally
left blank.]
IN WITNESS WHEREOF, the parties
have executed this Agreement as of the date first above written.
ARCHIMEDES TECH SPAC PARTNERS II CO.
By:
/s/
Long Long
Name: Long Long
Title: Chief Executive Officer
ATII HOLDINGS INC. (TO BE RENAMED AS FORGE NANO HOLDINGS, INC.)
By:
/s/
Long Long
Name: Long Long
Title: Chief Executive Officer
ODYSSEY TRANSFER AND TRUST COMPANY, as Warrant Agent
By:
/s/
Rebecca Paulson
Name: Rebecca Paulson
Title: President
EX-4.5 — EXHIBIT 4.5
EX-4.5
Filename: tm2628316d1_ex4-5.htm · Sequence: 6
Exhibit 4.5
WARRANT AGREEMENT
This WARRANT AGREEMENT (this
“Agreement”) is made as of October 22, 2026 between Forge Nano Holdings, Inc., a Delaware corporation (the “Company”),
and Ascent Funds International Management LLC (the “Holder”).
WHEREAS, the Holder previously
had the option or other right to acquire securities of Forge Nano, Inc., a Delaware corporation (“Old Forge Nano”),
and/or its affiliates (the “Options”), including those specified in the Amended and Restated Consulting Agreement
between the Holder and Old Forge Nano, dated September 1, 2025;
WHEREAS, on April 20,
2026, Old Forge Nano entered into an Agreement and Plan of Merger (the “Merger Agreement”) among (i) Old Forge
Nano, (ii) Archimedes Tech SPAC Partners II Co., a Cayman Islands exempted company (the “Purchaser”), (iii) the
Company, (iv) ATII Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of the Purchaser, (v) ATII Merger
Sub II LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Purchaser;
WHEREAS, in connection with
entry into the Merger Agreement, Old Forge Nano, the Company and the Holder entered into a conversion agreement, dated as of April 20,
2026 (the “Conversion Agreement”), pursuant to which the Company agreed to issue the warrants specified in this Agreement
(the “Warrants”) to the Holder; and
WHEREAS, upon exercise of
a Holder’s Warrants, such Holder shall be entitled to certain Company Earn-out Shares (as defined in the Merger Agreement).
NOW, THEREFORE, in consideration of the mutual
agreements herein contained, the parties hereto agree as follows:
1. Appointment
of Warrant Agent. The Company shall act as the warrant agent in accordance with the terms and conditions set forth in this Agreement.
2. Warrants.
2.1 Form of
Warrant. Each Warrant shall initially be issued in registered form only, and, if a physical certificate issued, shall be in substantially
the form of Exhibit A hereto, the provisions of which are incorporated herein and shall be signed by, or bear the electronic
(including by DocuSign) or facsimile signature of, an authorized officer of the Company. In the event the person whose electronic or
facsimile signature has been placed upon any Warrant shall have ceased to serve in the capacity in which such person signed the Warrant
before such Warrant is issued, it may be issued with the same effect as if he or she had not ceased to be such at the date of issuance.
All of the Public Warrants shall initially be represented by one or more book-entry certificates (each, a “Book-Entry Warrant
Certificate”).
2.2 Uncertificated
Warrants. Notwithstanding anything herein to the contrary, any Warrant may be issued in uncertificated or book-entry form on the
books and records of the Company. Any Warrant so issued shall have the same terms, force and effect as a certificated Warrant that has
been duly countersigned by Company in accordance with the terms of this Agreement.
2.3 Effect
of Countersignature. Except with respect to uncertificated Warrants as described above, unless and until countersigned by the Company
pursuant to this Agreement, a Warrant shall be invalid and of no effect and may not be exercised by the holder thereof.
2.4 Registration.
2.4.1 Warrant
Register. The Company shall maintain books (the “Warrant Register”) for the registration of original issuance
and the registration of transfer of the Warrants. Upon the initial issuance of the Warrants, the Company shall issue and register
1,211,067 Warrants in the name of the Holder.
2.4.2 Registered
Holder. Prior to due presentment for registration of transfer of any Warrant, the Company may deem and treat the person in whose
name such Warrant is then registered in the Warrant Register (such person, a “Registered Holder”) as the absolute
owner of such Warrant and of each Warrant represented thereby (notwithstanding any notation of ownership or other writing on the warrant
certificate made by anyone other than the Company), for the purpose of any exercise thereof, and for all other purposes, and the Company
shall not be affected by any notice to the contrary.
3. Terms
and Exercise of Warrants.
3.1 Warrant
Price. Each whole Warrant shall entitle the Registered Holder thereof, subject to the provisions of such Warrant and of this Agreement,
to purchase from the Company the number of shares of common stock, par value $0.0001 per share (the “Shares”), of
the Company, stated therein, at the price of $9.83 per share, subject
to the adjustments provided in Section 3.2 and Section 4 hereof. The term “Warrant Price” as used in this
Agreement refers to the price per share at which the Shares may be purchased at the time a Warrant is exercised.
3.2 Duration
of Warrants. A Warrant may only be exercised prior to December 31, 2029 (“Expiration Date”). The period of time
from the date hereof until the expiration of the Warrants shall hereafter be referred to as the “Exercise Period.”
Each outstanding Warrant not exercised on or before the Expiration Date shall become void, and all rights thereunder and all rights in
respect thereof under this Agreement shall cease at 5:00 p.m., New York City time on the Expiration Date.
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3.3 Exercise
of Warrants.
3.3.1 Payment.
Subject to the provisions of the Warrant and this Agreement, a Warrant may be exercised by the Registered Holder thereof by surrendering
it, at the office of the Company designated for such purposes, with the subscription form, as set forth in the Warrant, duly executed,
and by paying in full the Warrant Price for each Share as to which the Warrant is exercised and any and all applicable taxes due in connection
with the exercise of the Warrant, as follows:
(a) in
lawful money of the United States, by wire transfer; or
(b) by
surrendering the Warrants for that number of Shares equal to the quotient obtained by dividing (x) the product of the number of
Shares underlying the Warrants, multiplied by the difference between the Warrant Price and the Fair Market Value (as defined in this
Section 3.3.1(b)) by (y) the Fair Market Value. Solely for purposes of this Section 3.3.1(b), the “Fair Market
Value” shall mean the average reported closing price of the Share for the five (5) trading days ending on the third trading
day prior to the date of exercise;
(c) in the event
the registration statement required by Section 7.4 hereof is not effective and current within sixty (60) days from the date hereof,
by surrendering such Warrants for that number of Shares equal to the quotient obtained by dividing (x) the product of the number
of Shares underlying the Warrants, multiplied by the difference between the exercise price of the Warrants and the Fair Market Value
(as defined in this Section 3.3.1(c)) by (y) the Fair Market Value. Solely for purposes of this Section 3.3.1(c), the
“Fair Market Value” shall mean the average reported last sale price of the Shares for the five (5) trading days ending
on the third trading day prior to the date of exercise.
3.3.2 Issuance
of Shares. As soon as practicable after the exercise of any Warrant and the clearance of the funds in payment of the Warrant Price
(if any), the Company shall issue to the Registered Holder of such Warrant a certificate or certificates, or book-entry position, for
the number of Shares to which it is entitled, registered in such name or names as may be directed by it, and if such Warrant shall not
have been exercised in full, a new countersigned Warrant, or book-entry position, for the number of shares as to which such Warrant shall
not have been exercised. Notwithstanding the foregoing, in no event will the Company be required to net cash settle the Warrant exercise.
The Company shall not be obligated to issue Shares upon exercise of a Warrant unless the Shares issuable upon such Warrant exercise has
been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the Registered Holder of the
Warrants. In the event that the condition in the immediately preceding sentence is not satisfied with respect to a Warrant, the holder
of such Warrant shall not be entitled to exercise such Warrant for cash. Warrants may not be exercised by, or securities issued to, any
Registered Holder in any state in which such exercise or issuance would be unlawful. A Warrant may be fully or partially exercised during
the Exercise Period.
3.3.3 Valid
Issuance. All Shares issued upon the proper exercise of a Warrant in conformity with this Agreement shall be validly issued, fully
paid and nonassessable.
3.3.4 Date
of Issuance. Each person in whose name any book-entry position or certificate for Shares is issued shall for all purposes be deemed
to have become the holder of record of such shares on the date on which the Warrant, or book-entry position representing such Warrant,
was surrendered and payment of the Warrant Price was made, irrespective of the date of delivery of such certificate in the case of a
certificated Warrant, except that, if the date of such surrender and payment is not a day other than a Saturday, Sunday or other day
on which banking institutions are authorized or required by law to close in New York City (“Business Day”), such person
shall be deemed to have become the holder of such shares at the close of business on the next succeeding Business Day.
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3.3.5 Earn-out
Shares. Upon exercise of any Warrant, the Registered Holder of such Warrant shall be allocated a number of Company Earn-out Shares
by the Escrow Agent (as defined in the Merger Agreement) as if the Shares issued upon exercise of such Warrant pursuant to this Agreement
had been issued on the Closing Date (as defined in the Merger Agreement) as Closing Payment Shares; provided that solely for purposes
of this calculation, one Share shall be deemed to be issued upon the exercise of each Warrant and no effect shall be given to the adjustments
described in Section 4 of this Agreement. Any Company Earn-out Shares shall thereafter be disbursed in accordance with the terms,
and subject to the conditions, of the Merger Agreement (or disbursed promptly after the exercise of any such Warrant to the extent any
of the milestones described in Sections 1.18(b)(i), (ii) or (iii) of the Merger Agreement have been met prior to or concurrently
with such exercise).
3.3.6 Maximum
Percentage. A holder of a Warrant may notify the Company in writing in the event it elects to be subject to the provisions contained
in this Section 3.3.6; however, no holder of a Warrant shall be subject to this Section 3.3.6 unless he, she or it makes such
election. If the election is made by a holder, the Company shall not cause the exercise of the holder’s Warrant, and such holder
shall not have the right to exercise such Warrant, to the extent that after giving effect to such exercise, such person (together with
such person’s affiliates) or any “group” of which the holder or its affiliates is a member, would beneficially own
in excess of 4.9% or 9.8% (or such other amount as the holder may specify) (the “Maximum Percentage”) of the Shares
outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of Shares
beneficially owned by such person and its affiliates, or any “group” of which such holder and its affiliates is a
member, shall include the number of Shares issuable upon exercise of the Warrant with respect to which the determination of such sentence
is being made, but shall exclude Shares that would be issuable upon (x) exercise of the remaining, unexercised portion of the Warrant
beneficially owned by such person and its affiliates, or any “group” of which such holder and its affiliates is a
member, and (y) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company beneficially
owned by such person and its affiliates, or any “group” of which such holder and its affiliates is a member (including,
without limitation, any convertible notes or convertible preference shares or warrants) subject to a limitation on conversion or exercise
analogous to the limitation contained herein. Except as set forth in the preceding sentence, for purposes of this paragraph, beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) and the applicable regulations of the SEC. For purposes hereof, “group” has the meaning set forth
in Section 13(d) of the Exchange Act and applicable regulations of the SEC, and the percentage held by a holder of a Warrant
shall be determined in a manner consistent with the provisions of Section 13(d) of the Exchange Act. For purposes of the Warrant,
in determining the number of outstanding Shares, the holder may rely on the number of outstanding Shares as reflected in (1) the
Company’s most recent annual report on Form 10-K, quarterly report on Form 10-Q, current report on Form 8-K or other
public filing with the SEC as the case may be, (2) a more recent public announcement by the Company or (3) any other notice
by the Company setting forth the number of Shares outstanding. For any reason at any time, upon the written request of the holder of
the Warrant, the Company shall, within two (2) Business Days, confirm orally and in writing to such holder the number of Shares
then outstanding. In any case, the number of outstanding Shares shall be determined after giving effect to the conversion or exercise
of equity securities of the Company by the holder and its affiliates since the date as of which such number of outstanding shares of
Shares was reported. By written notice to the Company, the holder of a Warrant may from time to time increase or decrease the Maximum
Percentage applicable to such holder to any other percentage specified in such notice; provided, however, that any such
increase shall not be effective until the sixty-first (61st) day after such notice is delivered to the Company.
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4. Adjustments.
4.1 Share
Dividends; Share Sub-Divisions. If after the date hereof, and subject to the provisions of Section 4.6 below, the number of
outstanding Shares is increased by a share dividend payable in Shares, or by a sub-division of Shares, or other similar event, then,
on the effective date of such share dividend, split up or similar event, the number of Shares issuable on exercise of each Warrant shall
be increased in proportion to such increase in outstanding Shares. A rights offering made to all or substantially all holders of Shares
entitling holders to purchase Shares at a price less than the “Historical Fair Market Value” (as defined below) shall
be deemed a share dividend of a number of Shares equal to the product of (i) the number of Shares actually sold in such rights offering
(or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable for the Shares)
multiplied by (ii) one (1) minus the quotient of (x) the price per Share paid in such rights offering divided by (y) the
Historical Fair Market Value. For purposes of this subsection 4.1, (i) if the rights offering is for securities convertible into
or exercisable for Shares, in determining the price payable for Shares, there shall be taken into account any consideration received
for such rights, as well as any additional amount payable upon exercise or conversion and (ii) “Historical Fair Market
Value” means the volume weighted average price of the Shares during the ten (10) trading day period ending on the trading
day prior to the first date on which the Shares trade on the applicable exchange or in the applicable market, regular way, without the
right to receive such rights. No Shares shall be issued at less than their par value.
4.2 Aggregation
of Shares. If after the date hereof, the number of outstanding Shares is decreased by a consolidation, combination or reclassification
of Shares or other similar event, then, on the effective date of such consolidation, combination, reclassification or similar event,
the number of Shares issuable on exercise of each Warrant shall be decreased in proportion to such decrease in outstanding Shares.
4.3 Extraordinary
Dividends. If the Company, at any time while the Warrants are outstanding and unexpired, shall pay a dividend or make a distribution
in cash, securities or other assets to the holders of the Shares or other shares of the Company’s share capital into which the
Warrants are convertible (an “Extraordinary Dividend”), then the Warrant Price shall be decreased, effective immediately
after the effective date of such Extraordinary Dividend, by the amount of cash and the fair market value (as determined by the Company’s
Board of Directors, in good faith) of any securities or other assets paid in respect of such Extraordinary Dividend divided by all outstanding
shares of the Company at such time (whether or not any shareholders waived their right to receive such dividend); provided, however,
that none of the following shall be deemed an Extraordinary Dividend for purposes of this provision: (i) any adjustment described
in Section 4.1 above, or (ii) any cash dividends or cash distributions which, when combined on a per share basis with all other
cash dividends and cash distributions paid on the Shares during the 365-day period ending on the date of declaration of such dividend
or distribution does not exceed $0.50 per share (taking into account all of the outstanding shares of the Company at such time (whether
or not any shareholders waived their right to receive such dividend) and as adjusted to appropriately reflect any of the events referred
to in other subsections of this Section 4 and excluding cash dividends or cash distributions that resulted in an adjustment to the
Warrant Price or to the number of Shares issuable on exercise of each Warrant) but only with respect to the amount of the aggregate cash
dividends or cash distributions equal to or less than $0.50. Solely for purposes of illustration, if the Company, at a time while the
Warrants are outstanding and unexpired, pays a cash dividend of $0.35 and previously paid an aggregate of $0.40 of cash dividends and
cash distributions on the Shares during the 365-day period ending on the date of declaration of such $0.35 dividend, then the Warrant
Price will be decreased, effectively immediately after the effective date of such $0.35 dividend, by $0.25 (the absolute value of the
difference between $0.75 (the aggregate amount of all cash dividends and cash distributions paid or made in such 365-day period, including
such $0.35 dividend) and $0.50 (the greater of (x) $0.50 and (y) the aggregate amount of all cash dividends and cash distributions
paid or made in such 365-day period prior to such $0.35 dividend)). Furthermore, solely for the purposes of illustration, if there were
100,000,000 shares outstanding and the Company paid a $1.00 dividend to 17,500,000 of such shares (with the remaining 82,500,000 shares
waiving their right to receive such dividend), then no adjustment to the Warrant Price would occur as a $17.5 million dividend payment
divided by 100,000,000 shares equals $0.175 per share, which is less than $0.50 per share.
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4.4 Adjustments
in Exercise Price. Whenever the number of Shares purchasable upon the exercise of the Warrants is adjusted, as provided in Sections 4.1
and 4.2 above, the Warrant Price shall be adjusted (to the nearest cent) by multiplying such Warrant Price immediately prior to such
adjustment by a fraction (x) the numerator of which shall be the number of Shares purchasable upon the exercise of the Warrants
immediately prior to such adjustment, and (y) the denominator of which shall be the number of Shares so purchasable immediately
thereafter.
4.5 Replacement
of Warrant Shares upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding Shares (other
than a change covered by Section 4.1, 4.2 or 4.3 hereof or that solely affects the par value of the Shares), or in the case of any
merger or consolidation of the Company with or into another company (other than a consolidation or merger in which the Company is the
continuing company and that does not result in any reclassification or reorganization of the outstanding Shares), or in the case of any
sale or conveyance to another company, corporation or entity of the assets or other property of the Company as an entirety or substantially
as an entirety in connection with which the Company is dissolved, the Warrant holders shall thereafter have the right to purchase and
receive, upon the basis and upon the terms and conditions specified in the Warrants and in lieu of the Shares of the Company immediately
theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of shares or other securities
or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following
any such sale or transfer, that the Warrant holder would have received if such Warrant holder had exercised its Warrant(s) immediately
prior to such event (the “Alternative Issuance”); provided, however, that if the holders of the Shares
were entitled to exercise a right of election as to the kind or amount of securities, cash or other assets receivable upon such consolidation
or merger, then the kind and amount of securities, cash or other assets constituting the Alternative Issuance for which each Warrant
shall become exercisable shall be deemed to be the weighted average of the kind and amount received per share by the holders of the Shares
in such consolidation or merger that affirmatively make such election; provided, further, that if less than seventy percent
(70%) of the consideration receivable by the holders of the Shares in the applicable event is payable in the form of Shares in the successor
entity that is listed for trading on a national securities exchange or is quoted in an established over-the-counter market, or is to
be so listed for trading or quoted immediately following such event, and if the Registered Holder properly exercises the Warrant within
thirty (30) days following the public disclosure of the consummation of such applicable event by the Company pursuant to a current report
on Form 8-K filed with the Commission, the Warrant Price shall be reduced by an amount (in dollars) equal to the difference of (i) the
Warrant Price in effect prior to such reduction minus (ii) (A) the Per Share Consideration (as defined below) (but in no event
less than zero) minus (B) the Black-Scholes Warrant Value (as defined below). The “Black-Scholes Warrant Value”
means the value of a Warrant immediately prior to the consummation of the applicable event based on the Black-Scholes Warrant Model for
a Capped American Call on Bloomberg Financial Markets (“Bloomberg”), as calculated by an accounting, appraisal, investment
banking firm or consultant of nationally recognized standing that is, in the good faith judgment of the Board, qualified to make such
calculation. For purposes of calculating such amount, (1) the price of each Share shall be the 10-Day Average Closing Price as of
the effective date of the applicable event, (2) the assumed volatility shall be the ninety (90) day volatility obtained from the
HVT function on Bloomberg determined as of the trading day immediately prior to the day of the announcement of the applicable event,
and (3) the assumed risk-free interest rate shall correspond to the U.S. Treasury rate for a period equal to the remaining term
of the Warrant. “Per Share Consideration” means (i) if the consideration paid to holders of the Shares consists
exclusively of cash, the amount of such cash per Share, and (ii) in all other cases, the average last reported sale price of the
Shares as reported during the ten (10) trading day period ending on the trading day prior to the effective date of the applicable
event. If any reclassification also results in a change in the Shares covered by Section 4.1, 4.2 or 4.3, then such adjustment shall
be made pursuant to Sections 4.1, 4.2, 4.3, 4.4 and this Section 4.5. The provisions of this Section 4.5 shall similarly
apply to successive reclassifications, reorganizations, mergers or consolidations, sales or other transfers. In no event will the Warrant
Price be reduced to less than the par value per share issuable upon exercise of the Warrant.
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4.6 [Reserved.]
4.7 Notices
of Changes in Warrant. Upon every adjustment of the Warrant Price or the number of shares issuable upon exercise of a Warrant, the
Company shall give written notice thereof to the holders of the Warrants, which notice shall state the Warrant Price resulting from such
adjustment and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise of a Warrant, setting
forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the occurrence of any event
specified in Sections 4.1, 4.2, 4.3, 4.4 or 4.5, then, in any such event, the Company shall give written notice to each Warrant
holder, at the last address set forth for such holder in the Warrant Register, of the record date or the effective date of the event.
Failure to give such notice, or any defect therein, shall not affect the legality or validity of such event.
4.8 No
Fractional Warrants or Shares. Notwithstanding any provision contained in this Agreement to the contrary, the Company shall not issue
fractional shares upon exercise of Warrants. If the holder of any Warrant would be entitled, upon the exercise of such Warrant, to receive
a fractional interest in a share, the Company shall, upon such exercise, round down to the nearest whole number of Shares to be issued
to the Warrant holder.
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4.9 Form of
Warrant. The form of Warrant need not be changed because of any adjustment pursuant to this Section 4, and Warrants issued after
such adjustment may state the same Warrant Price and the same number of shares as is stated in the Warrants initially issued pursuant
to this Agreement. However, the Company may at any time in its sole discretion make any change in the form of Warrant that the Company
may deem appropriate and that does not affect the substance thereof, and any Warrant thereafter issued or countersigned, whether in exchange
or substitution for an outstanding Warrant or otherwise, may be in the form as so changed.
4.10 Other
Events. In case any event shall occur affecting the Company as to which none of the provisions of preceding subsections of this Section 4
is strictly applicable, but which would require an adjustment to the terms of the Warrants in order to (i) avoid an adverse impact
on the Warrants and (ii) effectuate the intent and purpose of this Section 4, then, in each such case, the Company shall appoint
a firm of independent public accountants, investment banking or other appraisal firm of recognized national standing, which shall give
its opinion as to whether or not any adjustment to the rights represented by the Warrants is necessary to effectuate the intent and purpose
of this Section 4 and, if they determine that an adjustment is necessary, the terms of such adjustment. The Company shall adjust
the terms of the Warrants in a manner that is consistent with any adjustment recommended in such opinion.
5. Transfer
and Exchange of Warrants.
5.1 Registration
of Transfer. The Company shall register the transfer, from time to time, of any outstanding Warrant upon the Warrant Register, upon
surrender of such Warrant for transfer, properly endorsed with signatures, in the case of certificated Warrants, properly guaranteed
and accompanied by appropriate instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate number
of Warrants shall be issued and the old Warrant shall be cancelled by the Company.
5.2 Procedure
for Surrender of Warrants. Warrants may be surrendered to the Company, either in certificated form or in book-entry position, together
with a written request for exchange or transfer, and thereupon the Company shall issue in exchange therefor one or more new Warrants,
or book-entry positions, as requested by the Registered Holder of the Warrants so surrendered, representing an equal aggregate number
of Warrants.
5.3 Fractional
Warrants. The Company shall not be required to effect any registration of transfer or exchange which will result in the issuance
of a warrant certificate or book-entry position for a fraction of a Warrant.
5.4 Service
Charges. No service charge shall be made for any exchange or registration of transfer of Warrants.
5.5 Legend.
The Warrants shall bear the following legend:
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS,
AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT, AND ANY APPLICABLE
STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.
8
6. [Reserved].
7. Other
Provisions Relating to Rights of Holders of Warrants.
7.1 No
Rights as Shareholder. A Warrant does not entitle the Registered Holder thereof to any of the rights of a shareholder of the Company,
including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive rights to vote or to consent
or to receive notice as shareholders in respect of the general meetings of the Company or the appointment of directors of the Company
or any other matter.
7.2 Lost,
Stolen, Mutilated, or Destroyed Warrants. If any Warrant is lost, stolen, mutilated, or destroyed, the Company may on such terms
as to indemnity or otherwise as they may in their discretion impose (which shall, in the case of a mutilated Warrant, include the surrender
thereof), issue a new Warrant of like denomination, tenor, and date as the Warrant so lost, stolen, mutilated, or destroyed. Any such
new Warrant shall constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated,
or destroyed Warrant shall be at any time enforceable by anyone.
7.3 Reservation
of Shares. The Company shall at all times reserve and keep available a number of its authorized but unissued Shares that will be
sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Agreement.
7.4 Registration
of Shares. The Company agrees that as soon as practicable, but in no event later than twenty (20) Business Days after the date hereof,
it shall use its best efforts to file with the Securities and Exchange Commission a registration statement for the registration, under
the Securities Act of 1933, as amended (the “Securities Act”), of the Shares issuable upon exercise of the Warrants,
and it shall use its best efforts to take such action as is necessary to register or qualify for sale, in those states in which the Warrants
were initially offered by the Company and in those states where holders of Warrants then reside, the Shares issuable upon exercise of
the Warrants, to the extent an exemption is not available. The Company will use its best efforts to cause the same to become effective
and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration of
the Warrants in accordance with the provisions of this Agreement. If any such registration statement has not been declared effective
by the 60th business day following the date hereof, holders of the Warrants shall have the right, during the period beginning on the
91st day after the date hereof and ending upon such registration statement being declared effective by the Securities and Exchange Commission,
and during any other period when the Company shall fail to have maintained an effective registration statement covering the Shares issuable
upon exercise of the Warrants, to exercise such Warrants on a “cashless basis” as determined in accordance with Section 3.3.1(c).
For the avoidance of any doubt, unless and until all of the Warrants have been exercised or have expired, the Company shall continue
to be obligated to comply with its registration obligations under the first three sentences of this Section 7.4.
9
8. Investment
Representations.
8.1 The
Holder is acquiring the Warrants and, upon exercise of the Warrants, the Shares issuable upon such exercise (collectively, the “Warrant
Shares”), for the Holder’s own account, for investment purposes only and not with a view towards, or for resale in connection
with, any public sale or distribution thereof.
8.2 The
Holder is an “accredited investor” as such term is defined in Rule 501(a)(3) of Regulation D, and the Holder has
not experienced a disqualifying event as enumerated pursuant to Rule 506(d) of Regulation D under the Securities Act.
8.3 The
Holder understands that the Warrant Shares are being delivered to it in reliance on specific exemptions from the registration requirements
of the United States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Holder’s
compliance with, the representations and warranties of the Holder set forth herein in order to determine the availability of such exemptions
and the eligibility of the Holder to acquire such Warrant Shares.
8.4 The
Holder did not decide to enter into this Agreement as a result of any general solicitation or general advertising within the meaning
of Rule 502(c) under the Securities Act.
8.5 The
Holder has been furnished with all materials relating to the business, finances and operations of the Company and materials relating
to the offer and sale of the Warrant Shares which have been requested by the Holder. The Holder has been afforded the opportunity to
ask questions of the executive officers and directors of the Company. The Holder understands that its investment in the Warrant Shares
involves a high degree of risk and it has sought such accounting, legal and tax advice as it has considered necessary to make an informed
investment decision with respect to the acquisition of the Warrant Shares.
8.6 The
Holder understands that no United States federal or state agency or any other government or governmental agency has passed on or made
any recommendation or endorsement of the Warrant Shares or the fairness or suitability of the investment in the Warrant Shares by the
Holder nor have such authorities passed upon or endorsed the merits of the offering of the Warrant Shares.
8.7 The
Holder understands that: (a) the Warrant Shares have not been and are not being registered under the Securities Act or any state
securities laws, and may not be offered for sale, sold, assigned or transferred unless (1) subsequently registered thereunder or
(2) sold in reliance on an exemption therefrom; and (b) except expressly described herein, neither the Company nor any other
person is under any obligation to register the Warrant Shares under the Securities Act or any state securities laws or to comply with
the terms and conditions of any exemption thereunder. While the Holder understands that Rule 144 is not available for the resale
of securities initially issued by issuers that have been at any time previously a shell company, the Holder understands that Rule 144
includes an exception to this prohibition if the following conditions are met: (i) the issuer of the securities that was formerly
a shell company has ceased to be a shell company; (ii) the issuer of the securities is subject to the reporting requirements of
Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); (iii) the
issuer of the securities has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding 12
months (or such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports; and
(iv) at least one year has elapsed from the time that the issuer filed current Form 10 type information with the SEC reflecting
its status as an entity that is not a shell company.
10
8.8 The
Holder has such knowledge and experience in financial and business matters, knows of the high degree of risk associated with investments
in the securities of companies in the development stage such as the Company, is capable of evaluating the merits and risks of an investment
in the Warrant Shares and is able to bear the economic risk of an investment in the Warrant Shares in the amount contemplated hereunder
for an indefinite period of time. The Holder has adequate means of providing for its current financial needs and contingencies and will
have no current or anticipated future needs for liquidity which would be jeopardized by the investment in the Warrant Shares. The Holder
can afford a complete loss of its investment in the Warrant Shares.
9. Taxes.
9.1 Payment
of Taxes. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company in respect of
the issuance or delivery of Shares upon the exercise of Warrants, but the Company shall not be obligated to pay any transfer taxes in
respect of the Warrants or such Shares.
10. Miscellaneous
Provisions.
10.1 Successors.
All the covenants and provisions of this Agreement by or for the benefit of the Company shall bind and inure to the benefit of its respective
successors and assigns.
10.2 Notices.
Any notice, statement or demand authorized by this Agreement to be given or made by the holder of any Warrant to or on the Company shall
be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within
five (5) days after deposit of such notice, postage prepaid, addressed, as follows:
Forge Nano Holdings, Inc.
12300 Grant St. #100
Thornton, CO 80241
Attn: Paul Lichty
Email: plichty@forgenano.com
with a copy to:
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019
Attn: Benjamin Goodchild
Email: bgoodchild@paulweiss.com
11
10.3 Applicable
Law. The validity, interpretation, and performance of this Agreement and of the Warrants shall be governed in all respects by the
laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the
substantive laws of another jurisdiction. The Company hereby agrees that any action, proceeding or claim against it arising out of or
relating in any way to this Agreement shall be brought and enforced in the courts of the State of New York or the United States
District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be
the exclusive forum for any such action, proceeding or claim. The Company hereby waives any objection to such exclusive jurisdiction
and that such courts represent an inconvenient forum. Notwithstanding the foregoing, the provisions of this paragraph are not binding
on holders of Warrants and will not apply to suits brought to enforce any liability or duty created by the Securities Act or the Exchange
Act or any other claim for which the federal district courts of the United States of America are the sole and exclusive forum. Any process
or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt
requested, postage prepaid, addressed to it at the address set forth in Section 10.3 hereof. Such mailing shall be deemed personal
service and shall be legal and binding upon the Company in any action, proceeding or claim.
10.4 Persons
Having Rights under this Agreement. Nothing in this Agreement expressed and nothing that may be implied from any of the provisions
hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the parties hereto and the
Registered Holders of the Warrants any right, remedy, or claim under or by reason of this Warrant Agreement or of any covenant, condition,
stipulation, promise, or agreement hereof. All covenants, conditions, stipulations, promises, and agreements contained in this Warrant
Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors and assigns and of the Registered Holders
of the Warrants.
10.5 Counterparts.
This Agreement may be executed in any number of original, electronic or facsimile counterparts and each of such counterparts shall for
all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. A signature
to this Agreement transmitted electronically shall have the same authority, effect, and enforceability as an original signature.
10.6 Effect
of Headings. The section headings herein are for convenience only and are not part of this Agreement and shall not affect the interpretation
thereof.
10.7 Amendments.
This Agreement may be amended by the Company hereto without the consent of any Registered Holder for the purpose of curing any ambiguity,
or of curing, correcting or supplementing any defective provision contained herein, correcting any mistake, or adding or changing any
other provisions with respect to matters or questions arising under this Agreement as the parties may deem necessary or desirable and
that the parties deem shall not adversely affect the interest of the Registered Holders. All other modifications or amendments, including
any amendment to increase the Warrant Price or shorten the Exercise Period, shall require the written consent or vote of the Registered
Holders of a majority of the then outstanding Warrants. Notwithstanding the foregoing, the Company may lower the Warrant Price or extend
the duration of the Exercise Period pursuant to Sections 3.1 and 3.2, respectively, without the consent of the Registered Holders.
12
10.8 Severability.
This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the
validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable
term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to
such invalid or unenforceable provision as may be possible and be valid and enforceable.
[signature page follows]
13
IN WITNESS WHEREOF, this Agreement has been duly
executed by the parties hereto as of the day and year first above written.
FORGE
NANO HOLDINGS, INC.
By:
/s/
Paul Lichty
Name:
Paul Lichty
Title:
Chief Executive Officer
ASCENT
FUNDS INTERNATIONAL MANAGEMENT LLC
By:
/s/
Mark Gordon
Name:
Mark Gordon
Title:
Managing Partner
[Signature Page to Warrant
Agreement]
Exhibit A
Form of Warrant
NUMBER
WARRANTS
SEE REVERSE FOR CERTAIN DEFINITIONS
THIS WARRANT WILL BE VOID IF NOT EXERCISED
PRIOR TO
THE EXPIRATION DATE (DEFINED BELOW)
WARRANT
THIS CERTIFIES THAT, ______________________
for value received is the registered holder of a warrant or warrants (the “Warrant(s)”) of FORGE NANO HOLDINGS, INC.,
a Delaware corporation (the “Company”), expiring at 5:00 p.m., New York City time, on December 31, 2029 to purchase
one fully paid and non-assessable Share, par value $0.0001 per share (“Shares”), of the Company for each whole Warrant
evidenced by this Warrant Certificate. The Warrant entitles the holder thereof to purchase from the Company such number of Shares of the
Company at the Warrant Price (as defined below), upon surrender of this Warrant Certificate and payment of the Warrant Price to the Company,
but only subject to the conditions set forth herein and in the Warrant Agreement between the Company and the holder of this Warrant. In
no event will the Company be required to net cash settle any warrant exercise. The term “Warrant Price” as used in
this Warrant Certificate refers to the price per Share at which Shares may be purchased at the time the Warrant is exercised. The initial
Warrant Price per Share is equal to $9.83 per Share. The Warrant Agreement provides that upon the occurrence of certain events the Warrant
Price and the number of Shares purchasable hereunder, set forth on the face hereof, may, subject to certain conditions, be adjusted.
No fraction of a Share will
be issued upon any exercise of a Warrant. If the holder of a Warrant would be entitled to receive a fraction of a Share upon any exercise
of a Warrant, the Company shall, upon such exercise, round down to the nearest whole number the number of Shares to be issued to such
holder.
Upon any exercise of the
Warrant for less than the total number of Shares provided for herein, there shall be issued to the registered holder hereof or the registered
holder’s assignee a new Warrant Certificate covering the number of Shares for which the Warrant has not been exercised.
Warrant Certificates, when
surrendered to the Company by the registered holder in person or by attorney duly authorized in writing, may be exchanged in the manner
and subject to the limitations provided in the Warrant Agreement, but without payment of any service charge, for another Warrant Certificate
or Warrant Certificates of like tenor and evidencing in the aggregate a like number of Warrants.
Exhibit A-1
Upon due presentment for
registration of transfer of this Warrant Certificate to the Company, a new Warrant Certificate or Warrant Certificates of like tenor
and evidencing in the aggregate a like number of Warrants shall be issued to the transferee in exchange for this Warrant Certificate,
subject to the limitations provided in the Warrant Agreement, without charge except for any applicable tax or other governmental charge
imposed in connection therewith.
The Company may deem and
treat the registered holder as the absolute owner of this Warrant Certificate (notwithstanding any notation of ownership or other writing
hereon made by anyone), for the purpose of any exercise hereof, of any distribution to the registered holder, and for all other purposes,
and the Company shall not be affected by any notice to the contrary.
Neither the Warrants nor
this Warrant Certificate entitles the registered holder to any of the rights of a shareholder of the Company.
Witness the electronic or facsimile signatures
of its duly authorized officers.
Chairman of the Board or Chief Executive
Officer Secretary
Exhibit A-2
SUBSCRIPTION
FORM
To Be Executed by the Registered Holder in Order to Exercise Warrants
The undersigned Registered Holder irrevocably
elects to exercise ______________ Warrants represented by this Warrant Certificate, and to purchase the Shares issuable upon the exercise
of such Warrants, and requests that Certificates for such Shares shall be issued in the name of
(PLEASE TYPE OR PRINT NAME AND ADDRESS)
(SOCIAL SECURITY OR TAX IDENTIFICATION
NUMBER)
and be delivered to
(PLEASE PRINT OR TYPE NAME AND ADDRESS)
and, if such number of Warrants shall not be
all the Warrants evidenced by this Warrant Certificate, that a new Warrant Certificate for the balance of such Warrants be registered
in the name of, and delivered to, the Registered Holder at the address stated below:
Dated:
(SIGNATURE)
(ADDRESS)
(TAX IDENTIFICATION NUMBER)
ASSIGNMENT
To Be Executed by the Registered Holder in Order
to Assign Warrants
For Value Received, ____________ hereby sell, assign, and transfer
unto
(PLEASE TYPE OR PRINT
NAME AND ADDRESS)
(SOCIAL SECURITY
OR TAX IDENTIFICATION NUMBER)
and be delivered to
(PLEASE PRINT OR
TYPE NAME AND ADDRESS)
__________________ of the Warrants represented
by this Warrant Certificate, and hereby irrevocably constitute and appoint _______________ Attorney to transfer this Warrant Certificate
on the books of the Company, with full power of substitution in the premises.
Dated:
(SIGNATURE)
NOTICE: THE SIGNATURE(S) TO THIS ASSIGNMENT
MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY
CHANGE WHATEVER.
Signature(s) Guaranteed:
By
THE SIGNATURE(S) MUST BE GUARANTEED BY AN
ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS) WITH MEMBERSHIP IN AN APPROVED
SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15 (OR ANY SUCCESSOR RULE).
EX-4.6 — EXHIBIT 4.6
EX-4.6
Filename: tm2628316d1_ex4-6.htm · Sequence: 7
Exhibit 4.6
WARRANT AGREEMENT
This WARRANT AGREEMENT (this
“Agreement”) is made as of October 22, 2026 between Forge Nano Holdings, Inc., a Delaware corporation (the “Company”),
and Ascent Funds International Management LLC (the “Holder”).
WHEREAS, the Holder previously
had the option or other right to acquire securities of Forge Nano, Inc., a Delaware corporation (“Old Forge Nano”),
and/or its affiliates (the “Options”), including those specified in the Amended and Restated Consulting Agreement between
the Holder and Old Forge Nano, dated September 1, 2025;
WHEREAS, on April 20, 2026,
Old Forge Nano entered into an Agreement and Plan of Merger (the “Merger Agreement”) among (i) Old Forge Nano, (ii)
Archimedes Tech SPAC Partners II Co., a Cayman Islands exempted company (the “Purchaser”), (iii) the Company, (iv)
ATII Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of the Purchaser, (v) ATII Merger Sub II LLC, a Delaware limited
liability company and a wholly-owned subsidiary of the Purchaser;
WHEREAS, in connection with
entry into the Merger Agreement, Old Forge Nano, the Company and the Holder entered into a conversion agreement, dated as of April 20,
2026 (the “Conversion Agreement”), pursuant to which the Company agreed to issue the warrants specified in this Agreement
(the “Warrants”) to the Holder; and
WHEREAS, upon exercise of
a Holder’s Warrants, such Holder shall be entitled to certain Company Earn-out Shares (as defined in the Merger Agreement).
NOW, THEREFORE, in consideration of the mutual
agreements herein contained, the parties hereto agree as follows:
1.
Appointment of Warrant Agent. The Company shall act as the warrant agent in accordance with the terms and conditions set
forth in this Agreement.
2.
Warrants.
2.1
Form of Warrant. Each Warrant shall initially be issued in registered form only, and, if a physical certificate issued,
shall be in substantially the form of Exhibit A hereto, the provisions of which are incorporated herein and shall be signed
by, or bear the electronic (including by DocuSign) or facsimile signature of, an authorized officer of the Company. In the event the person
whose electronic or facsimile signature has been placed upon any Warrant shall have ceased to serve in the capacity in which such person
signed the Warrant before such Warrant is issued, it may be issued with the same effect as if he or she had not ceased to be such at the
date of issuance. All of the Public Warrants shall initially be represented by one or more book-entry certificates (each, a “Book-Entry
Warrant Certificate”).
2.2
Uncertificated Warrants. Notwithstanding anything herein to the contrary, any Warrant may be issued in uncertificated or
book-entry form on the books and records of the Company. Any Warrant so issued shall have the same terms, force and effect as a certificated
Warrant that has been duly countersigned by Company in accordance with the terms of this Agreement.
2.3
Effect of Countersignature. Except with respect to uncertificated Warrants as described above, unless and until countersigned
by the Company pursuant to this Agreement, a Warrant shall be invalid and of no effect and may not be exercised by the holder thereof.
2.4
Registration.
2.4.1
Warrant Register. The Company shall maintain books (the “Warrant Register”) for the registration of original
issuance and the registration of transfer of the Warrants. Upon the initial issuance of the Warrants, the Company shall issue and register
2,351,238 Warrants in the name of the Holder.
2.4.2
Registered Holder. Prior to due presentment for registration of transfer of any Warrant, the Company may deem and treat
the person in whose name such Warrant is then registered in the Warrant Register (such person, a “Registered Holder”)
as the absolute owner of such Warrant and of each Warrant represented thereby (notwithstanding any notation of ownership or other writing
on the warrant certificate made by anyone other than the Company), for the purpose of any exercise thereof, and for all other purposes,
and the Company shall not be affected by any notice to the contrary.
3.
Terms and Exercise of Warrants.
3.1
Warrant Price. Each whole Warrant shall entitle the Registered Holder thereof, subject to the provisions of such Warrant
and of this Agreement, to purchase from the Company the number of shares of common stock, par value $0.0001 per share (the “Shares”),
of the Company, stated therein, at the price of $3.40 per share, subject to the adjustments provided in Section 3.2 and Section 4
hereof. The term “Warrant Price” as used in this Agreement refers to the price per share at which the Shares may be
purchased at the time a Warrant is exercised.
3.2
Duration of Warrants. A Warrant may only be exercised prior to December 31, 2028 (“Expiration Date”),
unless extended to December 31, 2029 in the sole discretion of the Holder effective upon the Holder’s delivery of written notice
to the Company of the Holder’s intent to extend the Expiration Date to December 31, 2029 in exchange for increasing by 25% the Warrant
Price per share applicable to the Warrant from $3.40 (subject to the adjustments as provided in Section 4 hereof) to $4.25 (subject to
adjustments as provided in Section 4 hereof) if the Warrant is exercised between January 1, 2029 and December 31, 2029. The period of
time from the date hereof until the expiration of the Warrants shall hereafter be referred to as the “Exercise Period.”
Each outstanding Warrant not exercised on or before the Expiration Date shall become void, and all rights thereunder and all rights in
respect thereof under this Agreement shall cease at 5:00 p.m., New York City time on the Expiration Date.
3.3
Exercise of Warrants.
3.3.1
Payment. Subject to the provisions of the Warrant and this Agreement, a Warrant may be exercised by the Registered Holder
thereof by surrendering it, at the office of the Company designated for such purposes, with the subscription form, as set forth in the
Warrant, duly executed, and by paying in full the Warrant Price for each Share as to which the Warrant is exercised and any and all applicable
taxes due in connection with the exercise of the Warrant, as follows:
(a)
in lawful money of the United States, by wire transfer; or
2
(b)
by surrendering the Warrants for that number of Shares equal to the quotient obtained by dividing (x) the product of the number
of Shares underlying the Warrants, multiplied by the difference between the Warrant Price and the Fair Market Value (as defined in this
Section 3.3.1(b)) by (y) the Fair Market Value. Solely for purposes of this Section 3.3.1(b), the “Fair Market
Value” shall mean the average reported closing price of the Share for the five (5) trading days ending on the third trading
day prior to the date of exercise;
(c) in the event
the registration statement required by Section 7.4 hereof is not effective and current within sixty (60) days from the date hereof, by
surrendering such Warrants for that number of Shares equal to the quotient obtained by dividing (x) the product of the number of Shares
underlying the Warrants, multiplied by the difference between the exercise price of the Warrants and the Fair Market Value (as defined
in this Section 3.3.1(c)) by (y) the Fair Market Value. Solely for purposes of this Section 3.3.1(c), the “Fair Market Value”
shall mean the average reported last sale price of the Shares for the five (5) trading days ending on the third trading day prior to the
date of exercise.
3.3.2
Issuance of Shares. As soon as practicable after the exercise of any Warrant and the clearance of the funds in payment of
the Warrant Price (if any), the Company shall issue to the Registered Holder of such Warrant a certificate or certificates, or book-entry
position, for the number of Shares to which it is entitled, registered in such name or names as may be directed by it, and if such Warrant
shall not have been exercised in full, a new countersigned Warrant, or book-entry position, for the number of shares as to which such
Warrant shall not have been exercised. Notwithstanding the foregoing, in no event will the Company be required to net cash settle the
Warrant exercise. The Company shall not be obligated to issue Shares upon exercise of a Warrant unless the Shares issuable upon such Warrant
exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the Registered Holder
of the Warrants. In the event that the condition in the immediately preceding sentence is not satisfied with respect to a Warrant, the
holder of such Warrant shall not be entitled to exercise such Warrant for cash. Warrants may not be exercised by, or securities issued
to, any Registered Holder in any state in which such exercise or issuance would be unlawful. A Warrant may be fully or partially exercised
during the Exercise Period.
3.3.3
Valid Issuance. All Shares issued upon the proper exercise of a Warrant in conformity with this Agreement shall be validly
issued, fully paid and nonassessable.
3.3.4
Date of Issuance. Each person in whose name any book-entry position or certificate for Shares is issued shall for all purposes
be deemed to have become the holder of record of such shares on the date on which the Warrant, or book-entry position representing such
Warrant, was surrendered and payment of the Warrant Price was made, irrespective of the date of delivery of such certificate in the case
of a certificated Warrant, except that, if the date of such surrender and payment is not a day other than a Saturday, Sunday or other
day on which banking institutions are authorized or required by law to close in New York City (“Business Day”), such
person shall be deemed to have become the holder of such shares at the close of business on the next succeeding Business Day.
3
3.3.5
Earn-out Shares. Upon exercise of any Warrant, the Registered Holder of such Warrant shall be allocated a number of Company
Earn-out Shares by the Escrow Agent (as defined in the Merger Agreement) as if the Shares issued upon exercise of such Warrant pursuant
to this Agreement had been issued on the Closing Date (as defined in the Merger Agreement) as Closing Payment Shares; provided that solely
for purposes of this calculation, one Share shall be deemed to be issued upon the exercise of each Warrant and no effect shall be given
to the adjustments described in Section 4 of this Agreement. Any Company Earn-out Shares shall thereafter be disbursed in accordance with
the terms, and subject to the conditions, of the Merger Agreement (or disbursed promptly after the exercise of any such Warrant to the
extent any of the milestones described in Sections 1.18(b)(i), (ii) or (iii) of the Merger Agreement have been met prior to or concurrently
with such exercise).
3.3.6
Maximum Percentage. A holder of a Warrant may notify the Company in writing in the event it elects to be subject to the
provisions contained in this Section 3.3.6; however, no holder of a Warrant shall be subject to this Section 3.3.6 unless he,
she or it makes such election. If the election is made by a holder, the Company shall not cause the exercise of the holder’s Warrant,
and such holder shall not have the right to exercise such Warrant, to the extent that after giving effect to such exercise, such person
(together with such person’s affiliates) or any “group” of which the holder or its affiliates is a member, would beneficially
own in excess of 4.9% or 9.8% (or such other amount as the holder may specify) (the “Maximum Percentage”) of the Shares
outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of Shares beneficially
owned by such person and its affiliates, or any “group” of which such holder and its affiliates is a member, shall
include the number of Shares issuable upon exercise of the Warrant with respect to which the determination of such sentence is being made,
but shall exclude Shares that would be issuable upon (x) exercise of the remaining, unexercised portion of the Warrant beneficially
owned by such person and its affiliates, or any “group” of which such holder and its affiliates is a member, and (y) exercise
or conversion of the unexercised or unconverted portion of any other securities of the Company beneficially owned by such person and its
affiliates, or any “group” of which such holder and its affiliates is a member (including, without limitation, any
convertible notes or convertible preference shares or warrants) subject to a limitation on conversion or exercise analogous to the limitation
contained herein. Except as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated
in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the
applicable regulations of the SEC. For purposes hereof, “group” has the meaning set forth in Section 13(d) of
the Exchange Act and applicable regulations of the SEC, and the percentage held by a holder of a Warrant shall be determined in a manner
consistent with the provisions of Section 13(d) of the Exchange Act. For purposes of the Warrant, in determining the number of outstanding
Shares, the holder may rely on the number of outstanding Shares as reflected in (1) the Company’s most recent annual report
on Form 10-K, quarterly report on Form 10-Q, current report on Form 8-K or other public filing with the SEC as the case may be, (2) a
more recent public announcement by the Company or (3) any other notice by the Company setting forth the number of Shares outstanding.
For any reason at any time, upon the written request of the holder of the Warrant, the Company shall, within two (2) Business Days,
confirm orally and in writing to such holder the number of Shares then outstanding. In any case, the number of outstanding Shares shall
be determined after giving effect to the conversion or exercise of equity securities of the Company by the holder and its affiliates since
the date as of which such number of outstanding shares of Shares was reported. By written notice to the Company, the holder of a Warrant
may from time to time increase or decrease the Maximum Percentage applicable to such holder to any other percentage specified in such
notice; provided, however, that any such increase shall not be effective until the sixty-first (61st) day after such notice
is delivered to the Company.
4
4.
Adjustments.
4.1
Share Dividends; Share Sub-Divisions. If after the date hereof, and subject to the provisions of Section 4.6 below,
the number of outstanding Shares is increased by a share dividend payable in Shares, or by a sub-division of Shares, or other similar
event, then, on the effective date of such share dividend, split up or similar event, the number of Shares issuable on exercise of each
Warrant shall be increased in proportion to such increase in outstanding Shares. A rights offering made to all or substantially all holders
of Shares entitling holders to purchase Shares at a price less than the “Historical Fair Market Value” (as defined
below) shall be deemed a share dividend of a number of Shares equal to the product of (i) the number of Shares actually sold in such
rights offering (or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable for
the Shares) multiplied by (ii) one (1) minus the quotient of (x) the price per Share paid in such rights offering divided
by (y) the Historical Fair Market Value. For purposes of this subsection 4.1, (i) if the rights offering is for securities convertible
into or exercisable for Shares, in determining the price payable for Shares, there shall be taken into account any consideration received
for such rights, as well as any additional amount payable upon exercise or conversion and (ii) “Historical Fair Market Value”
means the volume weighted average price of the Shares during the ten (10) trading day period ending on the trading day prior to the first
date on which the Shares trade on the applicable exchange or in the applicable market, regular way, without the right to receive such
rights. No Shares shall be issued at less than their par value.
4.2
Aggregation of Shares. If after the date hereof, the number of outstanding Shares is decreased by a consolidation,
combination or reclassification of Shares or other similar event, then, on the effective date of such consolidation, combination, reclassification
or similar event, the number of Shares issuable on exercise of each Warrant shall be decreased in proportion to such decrease in outstanding
Shares.
5
4.3
Extraordinary Dividends. If the Company, at any time while the Warrants are outstanding and unexpired, shall pay
a dividend or make a distribution in cash, securities or other assets to the holders of the Shares or other shares of the Company’s
share capital into which the Warrants are convertible (an “Extraordinary Dividend”), then the Warrant Price shall be
decreased, effective immediately after the effective date of such Extraordinary Dividend, by the amount of cash and the fair market value
(as determined by the Company’s Board of Directors, in good faith) of any securities or other assets paid in respect of such Extraordinary
Dividend divided by all outstanding shares of the Company at such time (whether or not any shareholders waived their right to receive
such dividend); provided, however, that none of the following shall be deemed an Extraordinary Dividend for purposes of
this provision: (i) any adjustment described in Section 4.1 above, or (ii) any cash dividends or cash distributions which,
when combined on a per share basis with all other cash dividends and cash distributions paid on the Shares during the 365-day period ending
on the date of declaration of such dividend or distribution does not exceed $0.50 per share (taking into account all of the outstanding
shares of the Company at such time (whether or not any shareholders waived their right to receive such dividend) and as adjusted to appropriately
reflect any of the events referred to in other subsections of this Section 4 and excluding cash dividends or cash distributions that
resulted in an adjustment to the Warrant Price or to the number of Shares issuable on exercise of each Warrant) but only with respect
to the amount of the aggregate cash dividends or cash distributions equal to or less than $0.50. Solely for purposes of illustration,
if the Company, at a time while the Warrants are outstanding and unexpired, pays a cash dividend of $0.35 and previously paid an aggregate
of $0.40 of cash dividends and cash distributions on the Shares during the 365-day period ending on the date of declaration of such $0.35
dividend, then the Warrant Price will be decreased, effectively immediately after the effective date of such $0.35 dividend, by $0.25
(the absolute value of the difference between $0.75 (the aggregate amount of all cash dividends and cash distributions paid or made in
such 365-day period, including such $0.35 dividend) and $0.50 (the greater of (x) $0.50 and (y) the aggregate amount of all
cash dividends and cash distributions paid or made in such 365-day period prior to such $0.35 dividend)). Furthermore, solely for the
purposes of illustration, if there were 100,000,000 shares outstanding and the Company paid a $1.00 dividend to 17,500,000 of such shares
(with the remaining 82,500,000 shares waiving their right to receive such dividend), then no adjustment to the Warrant Price would occur
as a $17.5 million dividend payment divided by 100,000,000 shares equals $0.175 per share, which is less than $0.50 per share.
4.4
Adjustments in Exercise Price. Whenever the number of Shares purchasable upon the exercise of the Warrants is adjusted,
as provided in Sections 4.1 and 4.2 above, the Warrant Price shall be adjusted (to the nearest cent) by multiplying such Warrant
Price immediately prior to such adjustment by a fraction (x) the numerator of which shall be the number of Shares purchasable upon
the exercise of the Warrants immediately prior to such adjustment, and (y) the denominator of which shall be the number of Shares
so purchasable immediately thereafter.
6
4.5
Replacement of Warrant Shares upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding
Shares (other than a change covered by Section 4.1, 4.2 or 4.3 hereof or that solely affects the par value of the Shares), or in
the case of any merger or consolidation of the Company with or into another company (other than a consolidation or merger in which the
Company is the continuing company and that does not result in any reclassification or reorganization of the outstanding Shares), or in
the case of any sale or conveyance to another company, corporation or entity of the assets or other property of the Company as an entirety
or substantially as an entirety in connection with which the Company is dissolved, the Warrant holders shall thereafter have the right
to purchase and receive, upon the basis and upon the terms and conditions specified in the Warrants and in lieu of the Shares of the Company
immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of shares
or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon
a dissolution following any such sale or transfer, that the Warrant holder would have received if such Warrant holder had exercised its
Warrant(s) immediately prior to such event (the “Alternative Issuance”); provided, however, that if the
holders of the Shares were entitled to exercise a right of election as to the kind or amount of securities, cash or other assets receivable
upon such consolidation or merger, then the kind and amount of securities, cash or other assets constituting the Alternative Issuance
for which each Warrant shall become exercisable shall be deemed to be the weighted average of the kind and amount received per share by
the holders of the Shares in such consolidation or merger that affirmatively make such election; provided, further, that
if less than seventy percent (70%) of the consideration receivable by the holders of the Shares in the applicable event is payable in
the form of Shares in the successor entity that is listed for trading on a national securities exchange or is quoted in an established
over-the-counter market, or is to be so listed for trading or quoted immediately following such event, and if the Registered Holder properly
exercises the Warrant within thirty (30) days following the public disclosure of the consummation of such applicable event by the Company
pursuant to a current report on Form 8-K filed with the Commission, the Warrant Price shall be reduced by an amount (in dollars) equal
to the difference of (i) the Warrant Price in effect prior to such reduction minus (ii) (A) the Per Share Consideration
(as defined below) (but in no event less than zero) minus (B) the Black-Scholes Warrant Value (as defined below). The “Black-Scholes
Warrant Value” means the value of a Warrant immediately prior to the consummation of the applicable event based on the Black-Scholes
Warrant Model for a Capped American Call on Bloomberg Financial Markets (“Bloomberg”), as calculated by an accounting,
appraisal, investment banking firm or consultant of nationally recognized standing that is, in the good faith judgment of the Board, qualified
to make such calculation. For purposes of calculating such amount, (1) the price of each Share shall be the 10-Day Average Closing Price
as of the effective date of the applicable event, (2) the assumed volatility shall be the ninety (90) day volatility obtained from
the HVT function on Bloomberg determined as of the trading day immediately prior to the day of the announcement of the applicable event,
and (3) the assumed risk-free interest rate shall correspond to the U.S. Treasury rate for a period equal to the remaining term of
the Warrant. “Per Share Consideration” means (i) if the consideration paid to holders of the Shares consists exclusively
of cash, the amount of such cash per Share, and (ii) in all other cases, the average last reported sale price of the Shares as reported
during the ten (10) trading day period ending on the trading day prior to the effective date of the applicable event. If any reclassification
also results in a change in the Shares covered by Section 4.1, 4.2 or 4.3, then such adjustment shall be made pursuant to Sections 4.1,
4.2, 4.3, 4.4 and this Section 4.5. The provisions of this Section 4.5 shall similarly apply to successive reclassifications,
reorganizations, mergers or consolidations, sales or other transfers. In no event will the Warrant Price be reduced to less than the par
value per share issuable upon exercise of the Warrant.
4.6
[Reserved.]
4.7
Notices of Changes in Warrant. Upon every adjustment of the Warrant Price or the number of shares issuable upon exercise
of a Warrant, the Company shall give written notice thereof to the holders of the Warrants, which notice shall state the Warrant Price
resulting from such adjustment and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise
of a Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the
occurrence of any event specified in Sections 4.1, 4.2, 4.3, 4.4 or 4.5, then, in any such event, the Company shall give written
notice to each Warrant holder, at the last address set forth for such holder in the Warrant Register, of the record date or the effective
date of the event. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such event.
7
4.8
No Fractional Warrants or Shares. Notwithstanding any provision contained in this Agreement to the contrary, the Company
shall not issue fractional shares upon exercise of Warrants. If the holder of any Warrant would be entitled, upon the exercise of such
Warrant, to receive a fractional interest in a share, the Company shall, upon such exercise, round down to the nearest whole number of
Shares to be issued to the Warrant holder.
4.9
Form of Warrant. The form of Warrant need not be changed because of any adjustment pursuant to this Section 4, and
Warrants issued after such adjustment may state the same Warrant Price and the same number of shares as is stated in the Warrants initially
issued pursuant to this Agreement. However, the Company may at any time in its sole discretion make any change in the form of Warrant
that the Company may deem appropriate and that does not affect the substance thereof, and any Warrant thereafter issued or countersigned,
whether in exchange or substitution for an outstanding Warrant or otherwise, may be in the form as so changed.
4.10
Other Events. In case any event shall occur affecting the Company as to which none of the provisions of preceding subsections
of this Section 4 is strictly applicable, but which would require an adjustment to the terms of the Warrants in order to (i) avoid
an adverse impact on the Warrants and (ii) effectuate the intent and purpose of this Section 4, then, in each such case, the
Company shall appoint a firm of independent public accountants, investment banking or other appraisal firm of recognized national standing,
which shall give its opinion as to whether or not any adjustment to the rights represented by the Warrants is necessary to effectuate
the intent and purpose of this Section 4 and, if they determine that an adjustment is necessary, the terms of such adjustment. The
Company shall adjust the terms of the Warrants in a manner that is consistent with any adjustment recommended in such opinion.
5.
Transfer and Exchange of Warrants.
5.1
Registration of Transfer. The Company shall register the transfer, from time to time, of any outstanding Warrant upon the
Warrant Register, upon surrender of such Warrant for transfer, properly endorsed with signatures, in the case of certificated Warrants,
properly guaranteed and accompanied by appropriate instructions for transfer. Upon any such transfer, a new Warrant representing an equal
aggregate number of Warrants shall be issued and the old Warrant shall be cancelled by the Company.
5.2
Procedure for Surrender of Warrants. Warrants may be surrendered to the Company, either in certificated form or in book-entry
position, together with a written request for exchange or transfer, and thereupon the Company shall issue in exchange therefor one or
more new Warrants, or book-entry positions, as requested by the Registered Holder of the Warrants so surrendered, representing an equal
aggregate number of Warrants.
5.3
Fractional Warrants. The Company shall not be required to effect any registration of transfer or exchange which will result
in the issuance of a warrant certificate or book-entry position for a fraction of a Warrant.
5.4
Service Charges. No service charge shall be made for any exchange or registration of transfer of Warrants.
8
5.5
Legend. The Warrants shall bear the following legend:
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS,
AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT, AND ANY APPLICABLE STATE
SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.
6.
[Reserved].
7.
Other Provisions Relating to Rights of Holders of Warrants.
7.1
No Rights as Shareholder. A Warrant does not entitle the Registered Holder thereof to any of the rights of a shareholder
of the Company, including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive rights
to vote or to consent or to receive notice as shareholders in respect of the general meetings of the Company or the appointment of directors
of the Company or any other matter.
7.2
Lost, Stolen, Mutilated, or Destroyed Warrants. If any Warrant is lost, stolen, mutilated, or destroyed, the Company may
on such terms as to indemnity or otherwise as they may in their discretion impose (which shall, in the case of a mutilated Warrant, include
the surrender thereof), issue a new Warrant of like denomination, tenor, and date as the Warrant so lost, stolen, mutilated, or destroyed.
Any such new Warrant shall constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated,
or destroyed Warrant shall be at any time enforceable by anyone.
7.3
Reservation of Shares. The Company shall at all times reserve and keep available a number of its authorized but unissued
Shares that will be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Agreement.
7.4
Registration of Shares. The Company agrees that as soon as practicable, but in no event later than twenty (20) Business
Days after the date hereof, it shall use its best efforts to file with the Securities and Exchange Commission a registration statement
for the registration, under the Securities Act of 1933, as amended (the “Securities Act”), of the Shares issuable upon
exercise of the Warrants, and it shall use its best efforts to take such action as is necessary to register or qualify for sale, in those
states in which the Warrants were initially offered by the Company and in those states where holders of Warrants then reside, the Shares
issuable upon exercise of the Warrants, to the extent an exemption is not available. The Company will use its best efforts to cause the
same to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto,
until the expiration of the Warrants in accordance with the provisions of this Agreement. If any such registration statement has not been
declared effective by the 60th business day following the date hereof, holders of the Warrants shall have the right, during the period
beginning on the 91st day after the date hereof and ending upon such registration statement being declared effective by the Securities
and Exchange Commission, and during any other period when the Company shall fail to have maintained an effective registration statement
covering the Shares issuable upon exercise of the Warrants, to exercise such Warrants on a “cashless basis” as determined
in accordance with Section 3.3.1(c). For the avoidance of any doubt, unless and until all of the Warrants have been exercised or have
expired, the Company shall continue to be obligated to comply with its registration obligations under the first three sentences of this
Section 7.4.
9
8.
Investment Representations.
8.1
The Holder is acquiring the Warrants and, upon exercise of the Warrants, the Shares issuable upon such exercise (collectively,
the “Warrant Shares”), for the Holder’s own account, for investment purposes only and not with a view towards,
or for resale in connection with, any public sale or distribution thereof.
8.2
The Holder is an “accredited investor” as such term is defined in Rule 501(a)(3) of Regulation D, and the Holder has
not experienced a disqualifying event as enumerated pursuant to Rule 506(d) of Regulation D under the Securities Act.
8.3
The Holder understands that the Warrant Shares are being delivered to it in reliance on specific exemptions from the registration
requirements of the United States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and
the Holder’s compliance with, the representations and warranties of the Holder set forth herein in order to determine the availability
of such exemptions and the eligibility of the Holder to acquire such Warrant Shares.
8.4
The Holder did not decide to enter into this Agreement as a result of any general solicitation or general advertising within the
meaning of Rule 502(c) under the Securities Act.
8.5
The Holder has been furnished with all materials relating to the business, finances and operations of the Company and materials
relating to the offer and sale of the Warrant Shares which have been requested by the Holder. The Holder has been afforded the opportunity
to ask questions of the executive officers and directors of the Company. The Holder understands that its investment in the Warrant Shares
involves a high degree of risk and it has sought such accounting, legal and tax advice as it has considered necessary to make an informed
investment decision with respect to the acquisition of the Warrant Shares.
8.6
The Holder understands that no United States federal or state agency or any other government or governmental agency has passed
on or made any recommendation or endorsement of the Warrant Shares or the fairness or suitability of the investment in the Warrant Shares
by the Holder nor have such authorities passed upon or endorsed the merits of the offering of the Warrant Shares.
8.7
The Holder understands that: (a) the Warrant Shares have not been and are not being registered under the Securities Act or any
state securities laws, and may not be offered for sale, sold, assigned or transferred unless (1) subsequently registered thereunder or
(2) sold in reliance on an exemption therefrom; and (b) except expressly described herein, neither the Company nor any other person is
under any obligation to register the Warrant Shares under the Securities Act or any state securities laws or to comply with the terms
and conditions of any exemption thereunder. While the Holder understands that Rule 144 is not available for the resale of securities initially
issued by issuers that have been at any time previously a shell company, the Holder understands that Rule 144 includes an exception to
this prohibition if the following conditions are met: (i) the issuer of the securities that was formerly a shell company has ceased to
be a shell company; (ii) the issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”); (iii) the issuer of the securities has filed all Exchange Act
reports and material required to be filed, as applicable, during the preceding 12 months (or such shorter period that the issuer was required
to file such reports and materials), other than Form 8-K reports; and (iv) at least one year has elapsed from the time that the issuer
filed current Form 10 type information with the SEC reflecting its status as an entity that is not a shell company.
10
8.8
The Holder has such knowledge and experience in financial and business matters, knows of the high degree of risk associated with
investments in the securities of companies in the development stage such as the Company, is capable of evaluating the merits and risks
of an investment in the Warrant Shares and is able to bear the economic risk of an investment in the Warrant Shares in the amount contemplated
hereunder for an indefinite period of time. The Holder has adequate means of providing for its current financial needs and contingencies
and will have no current or anticipated future needs for liquidity which would be jeopardized by the investment in the Warrant Shares.
The Holder can afford a complete loss of its investment in the Warrant Shares.
9.
Taxes.
9.1
Payment of Taxes. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company
in respect of the issuance or delivery of Shares upon the exercise of Warrants, but the Company shall not be obligated to pay any transfer
taxes in respect of the Warrants or such Shares.
10.
Miscellaneous Provisions.
10.1
Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company shall bind and inure
to the benefit of its respective successors and assigns.
10.2
Notices. Any notice, statement or demand authorized by this Agreement to be given or made by the holder of any Warrant to
or on the Company shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private
courier service within five (5) days after deposit of such notice, postage prepaid, addressed, as follows:
Forge Nano Holdings, Inc.
12300 Grant St. #100
Thornton, CO 80241
Attn: Paul Lichty Email: plichty@forgenano.com
with a copy to:
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019
Attn: Benjamin Goodchild
Email: bgoodchild@paulweiss.com
11
10.3
Applicable Law. The validity, interpretation, and performance of this Agreement and of the Warrants shall be governed in
all respects by the laws of the State of New York, without giving effect to conflicts of law principles that would result in the
application of the substantive laws of another jurisdiction. The Company hereby agrees that any action, proceeding or claim against it
arising out of or relating in any way to this Agreement shall be brought and enforced in the courts of the State of New York or the
United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction
shall be the exclusive forum for any such action, proceeding or claim. The Company hereby waives any objection to such exclusive jurisdiction
and that such courts represent an inconvenient forum. Notwithstanding the foregoing, the provisions of this paragraph are not binding
on holders of Warrants and will not apply to suits brought to enforce any liability or duty created by the Securities Act or the Exchange
Act or any other claim for which the federal district courts of the United States of America are the sole and exclusive forum. Any process
or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt
requested, postage prepaid, addressed to it at the address set forth in Section 10.3 hereof. Such mailing shall be deemed personal
service and shall be legal and binding upon the Company in any action, proceeding or claim.
10.4
Persons Having Rights under this Agreement. Nothing in this Agreement expressed and nothing that may be implied from any
of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the parties
hereto and the Registered Holders of the Warrants any right, remedy, or claim under or by reason of this Warrant Agreement or of any covenant,
condition, stipulation, promise, or agreement hereof. All covenants, conditions, stipulations, promises, and agreements contained in this
Warrant Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors and assigns and of the Registered
Holders of the Warrants.
10.5
Counterparts. This Agreement may be executed in any number of original, electronic or facsimile counterparts and each of
such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and
the same instrument. A signature to this Agreement transmitted electronically shall have the same authority, effect, and enforceability
as an original signature.
10.6
Effect of Headings. The section headings herein are for convenience only and are not part of this Agreement and shall not
affect the interpretation thereof.
10.7
Amendments. This Agreement may be amended by the Company hereto without the consent of any Registered Holder for the purpose
of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained herein, correcting any mistake, or
adding or changing any other provisions with respect to matters or questions arising under this Agreement as the parties may deem necessary
or desirable and that the parties deem shall not adversely affect the interest of the Registered Holders. All other modifications or amendments,
including any amendment to increase the Warrant Price or shorten the Exercise Period, shall require the written consent or vote of the
Registered Holders of a majority of the then outstanding Warrants. Notwithstanding the foregoing, the Company may lower the Warrant Price
or extend the duration of the Exercise Period pursuant to Sections 3.1 and 3.2, respectively, without the consent of the Registered
Holders.
12
10.8
Severability. This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision
hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu
of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement
a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.
[signature page follows]
13
IN WITNESS WHEREOF, this Agreement has been duly
executed by the parties hereto as of the day and year first above written.
FORGE
NANO HOLDINGS, INC.
By:
/s/ Paul Lichty
Name:
Paul Lichty
Title:
Chief Executive Officer
ASCENT
FUNDS INTERNATIONAL MANAGEMENT LLC
By:
/s/ Mark Gordon
Name:
Mark Gordon
Title:
Managing Partner
[Signature Page to Warrant Agreement]
Exhibit A
Form of Warrant
NUMBER
WARRANTS
SEE REVERSE FOR CERTAIN DEFINITIONS
THIS WARRANT WILL BE VOID IF NOT EXERCISED
PRIOR TO
THE EXPIRATION DATE (DEFINED BELOW)
WARRANT
THIS CERTIFIES THAT, ______________________
for value received is the registered holder of a warrant or warrants (the “Warrant(s)”) of FORGE NANO HOLDINGS, INC.,
a Delaware corporation (the “Company”), expiring at 5:00 p.m., New York City time, on December 31, 2028 to purchase
one fully paid and non-assessable Share, par value $0.0001 per share (“Shares”), of the Company for each whole Warrant
evidenced by this Warrant Certificate. The Warrant entitles the holder thereof to purchase from the Company such number of Shares of the
Company at the Warrant Price (as defined below), upon surrender of this Warrant Certificate and payment of the Warrant Price to the Company,
but only subject to the conditions set forth herein and in the Warrant Agreement between the Company and the holder of this Warrant. In
no event will the Company be required to net cash settle any warrant exercise. The term “Warrant Price” as used in
this Warrant Certificate refers to the price per Share at which Shares may be purchased at the time the Warrant is exercised. The initial
Warrant Price per Share is equal to $3.40 per Share. The Warrant Agreement provides that upon the occurrence of certain events the Warrant
Price and the number of Shares purchasable hereunder, set forth on the face hereof, may, subject to certain conditions, be adjusted.
No fraction of a Share will
be issued upon any exercise of a Warrant. If the holder of a Warrant would be entitled to receive a fraction of a Share upon any exercise
of a Warrant, the Company shall, upon such exercise, round down to the nearest whole number the number of Shares to be issued to such
holder.
Upon any exercise of the Warrant
for less than the total number of Shares provided for herein, there shall be issued to the registered holder hereof or the registered
holder’s assignee a new Warrant Certificate covering the number of Shares for which the Warrant has not been exercised.
Warrant Certificates, when
surrendered to the Company by the registered holder in person or by attorney duly authorized in writing, may be exchanged in the manner
and subject to the limitations provided in the Warrant Agreement, but without payment of any service charge, for another Warrant Certificate
or Warrant Certificates of like tenor and evidencing in the aggregate a like number of Warrants.
Exhibit A-1
Upon due presentment for registration
of transfer of this Warrant Certificate to the Company, a new Warrant Certificate or Warrant Certificates of like tenor and evidencing
in the aggregate a like number of Warrants shall be issued to the transferee in exchange for this Warrant Certificate, subject to the
limitations provided in the Warrant Agreement, without charge except for any applicable tax or other governmental charge imposed in connection
therewith.
The Company may deem and treat
the registered holder as the absolute owner of this Warrant Certificate (notwithstanding any notation of ownership or other writing hereon
made by anyone), for the purpose of any exercise hereof, of any distribution to the registered holder, and for all other purposes, and
the Company shall not be affected by any notice to the contrary.
Neither the Warrants nor this
Warrant Certificate entitles the registered holder to any of the rights of a shareholder of the Company.
Witness the electronic or facsimile signatures
of its duly authorized officers.
Chairman of the Board or Chief Executive Officer Secretary
Exhibit A-2
SUBSCRIPTION FORM
To Be Executed by the Registered Holder in Order to Exercise Warrants
The undersigned Registered Holder irrevocably
elects to exercise ______________ Warrants represented by this Warrant Certificate, and to purchase the Shares issuable upon the exercise
of such Warrants, and requests that Certificates for such Shares shall be issued in the name of
(PLEASE TYPE OR PRINT NAME AND ADDRESS)
(SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER)
and be delivered to
(PLEASE PRINT OR TYPE NAME AND ADDRESS)
and, if such number of Warrants shall not be all
the Warrants evidenced by this Warrant Certificate, that a new Warrant Certificate for the balance of such Warrants be registered in the
name of, and delivered to, the Registered Holder at the address stated below:
Dated:
(SIGNATURE)
(ADDRESS)
(TAX IDENTIFICATION NUMBER)
ASSIGNMENT
To Be Executed by the Registered Holder in Order to Assign Warrants
For Value Received, ____________ hereby sell, assign, and transfer
unto
(PLEASE TYPE OR PRINT NAME AND ADDRESS)
(SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER)
and be delivered to
(PLEASE PRINT OR TYPE NAME AND ADDRESS)
__________________ of the Warrants represented
by this Warrant Certificate, and hereby irrevocably constitute and appoint _______________ Attorney to transfer this Warrant Certificate
on the books of the Company, with full power of substitution in the premises.
Dated:
(SIGNATURE)
NOTICE: THE SIGNATURE(S) TO THIS ASSIGNMENT MUST
CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE
WHATEVER.
Signature(s) Guaranteed:
By
THE
SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS)
WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15 (OR ANY SUCCESSOR RULE).
EX-10.2 — EXHIBIT 10.2
EX-10.2
Filename: tm2628316d1_ex10-2.htm · Sequence: 8
Exhibit 10.2
SUBSCRIPTION
AGREEMENT
This SUBSCRIPTION AGREEMENT
(this “Subscription Agreement” or “Agreement”) is entered into this __ day of _______, 2026, by
and between ATII Holdings Inc., a Delaware corporation (the “Company”), Forge Nano, Inc., a Delaware
corporation (“Forge Nano”), the undersigned (“Subscriber” or “you”) and, solely
for purposes of Section 8 hereof, Archimedes Tech SPAC Partners II Co., a Cayman Islands exempted company limited by shares (the
“SPAC”). Defined terms used but not otherwise defined herein shall have the respective meanings ascribed thereto in
the Transaction Agreement (as defined below).
WHEREAS, the Company is a
wholly owned subsidiary of SPAC;
WHEREAS, the Company, Forge
Nano, the SPAC and the other parties named therein have entered into an agreement and plan of merger on April 20, 2026 (as it may
be amended, the “Transaction Agreement”), pursuant to which, among other things, (i) SPAC will merge into the
Company (the “Reincorporation”), (ii) at least one day following the effective time of the Reincorporation,
Merger Sub I, a wholly-owned subsidiary of the Company, will merge with and into Forge Nano, and Forge Nano will continue as the surviving
corporation (the “Initial Surviving Corporation”) and as a wholly-owned subsidiary of the Company (the “First
Company Merger”) and (iii) immediately following the effective time of the First Company Merger, the Initial Surviving
Corporation will merge with and into Merger Sub II, and Merger Sub II will continue as the surviving company and as a wholly-owned subsidiary
of the Company (the “Second Company Merger” and together with the Reincorporation and the First Company Merger, the
“Transaction”);
WHEREAS, in connection with
and contingent on the closing of the Transaction (the “Transaction Closing”), and pursuant to the terms and conditions
hereof, Subscriber desires to subscribe for and purchase from the Company that number of the Company’s shares of common stock,
par value $0.0001 per share (the “Common Stock”), equal to (i) the aggregate purchase price set forth on the
signature page hereto (the “Purchase Price”), divided by (ii) $10.00 (the “Per Share Price”);
the shares of Common Stock to be purchased pursuant to this Agreement are referred to herein as the “Securities”;
WHEREAS, the Company desires
to issue and sell to Subscriber at the Closing the Securities (as defined below) in consideration of the payment of the Purchase Price
by or on behalf of Subscriber to the Company on or prior to the Closing (as defined below);
WHEREAS, in connection with
the Transaction, the Company has entered into a separate subscription agreement (the “Initial Subscription Agreement”),
dated as of April 20, 2026, in the form attached to the Transaction Agreement with a certain institutional “accredited investor”
(within the meaning of Rule 501(a) under the Securities Act of 1933, as amended (the “Securities Act”)
or “qualified institutional buyer” (within the meaning of Rule 144A under the Securities Act) (the “Initial
Subscriber”), pursuant to which the Initial Subscriber has agreed to purchase on the closing date of the Transaction (the “Closing
Date”) shares of Common Stock on and subject to the terms set forth in the Initial Subscription Agreement; and
WHEREAS, in connection with
the Transaction, certain other institutional “accredited investors” (within the meaning of Rule 501(a) under
the Securities Act) or “qualified institutional buyers” (within the meaning of Rule 144A under the Securities Act)
(the “Other Subscribers”) are entering into separate subscription agreements with the Company substantially similar
to this Subscription Agreement (“Other Subscription Agreements”), pursuant to which such Other Subscribers, and Subscriber
pursuant to this Subscription Agreement, have agreed, severally and not jointly, to purchase on the closing date of the Transaction (the
“Closing Date”) shares of Common Stock at the Per Share Price (the “Offering”).
NOW, THEREFORE, in consideration
of the foregoing and the mutual representations, warranties and covenants, and pursuant to the terms and subject to the conditions, herein
contained, and intending to be legally bound hereby, the parties hereto hereby agree as follows:
1. Subscription.
1.1 Subject
to the terms and conditions hereof, Subscriber hereby subscribes for and agrees to purchase from the Company at the Closing, and the
Company hereby agrees to issue and sell to Subscriber, at the Closing, upon the payment of the Purchase Price, the Securities on the
terms and conditions set forth herein (such subscription and issuance, the “Subscription”).
1.2 If
at any time on or before twelve (12)-month anniversary of the Closing Date, the Company issues any shares of Common Stock to any person
(the “New Securities”), other than an Exempt Issuance, then the Company shall promptly, but in no case more than ten
(10) business days following such issuance, provide the Subscriber with written notice thereof (the “MFN Notice”),
along with the terms of any agreement with respect to such issuance of New Securities. In the event that the Subscriber determines in
good faith that the terms, rights, or privileges provided to such New Securities in connection with the issuance of such New Securities
(collectively, the “New Security Terms”) are more favorable in any material respect than those provided to the Securities
or to the Subscriber in connection with the Closing (collectively, the “Subscription Terms”), the Subscriber shall
notify the Company of such deviation in writing within ten (10) business days of the receipt of the MFN Notice. Promptly after
receipt of such written notice from the Subscriber, the Company agrees to take any and all actions that are necessary or advisable to
amend and restate the terms of the Securities and this Subscription Agreement, or otherwise enter into one or more side letters or other
agreements with the Subscriber, such that the New Security Terms are not more favorable in any material respect than the Subscription
Terms. For purposes of this Section 1.2, “Exempt Issuance” means the issuance of (a) any securities of the Company
to employees, officers or directors, consultants, contractors, vendors or other agents of the Company or its subsidiaries pursuant to
any share or option plan duly adopted for such purpose or any other compensatory arrangement with a director, executive officer, employee
or agent approved by a majority of the non-employee members of the Company’s board of directors or a majority of the members of
a committee of non-employee directors established for such purpose for services rendered to the Company or its subsidiaries, (b) securities
pursuant to the Initial Subscription Agreement or the Transaction Agreement and securities upon the exercise or exchange of or conversion
of any securities issued pursuant to the Initial Subscription Agreement or the Transaction Agreement and/or other securities exercisable
or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of the Transaction Closing (the “Closing
Date”), provided that such securities have not been amended since the Closing Date to increase the number of such securities
or to decrease the exercise price, exchange price or conversion price of such securities (other than in connection with share consolidations,
share divisions and automatic adjustments to such terms pursuant to anti-dilution or similar provisions of such securities which are
not more favorable to the holder thereof than the anti-dilution and similar provisions set forth herein) or to extend the term of such
securities, (c) any securities of the Company at or prior to the Closing Date to the investors listed on Schedule B hereto, in
each case including any “affiliate” (as defined in Rule 144 under the Securities Act) thereof, for aggregate proceeds
not exceeding $60 million, (d) the underlying shares, and (e) securities issued pursuant to any merger, acquisition or strategic
transaction or partnership, provided that (i) such securities are issued as “restricted securities” (as defined in
Rule 144) or are issued pursuant to an effective registration statement pursuant to the Securities Act and (ii) any such
issuance shall only be to a person (or to direct or indirect the equityholders and/or debtholders of a person) which is, itself or through
its subsidiaries, an operating company or an owner of an asset that the Company determines in good faith is similar, reasonably related,
incidental or ancillary to the then business or operations of the Company and its subsidiaries or their assets or is otherwise to be
used or useful in such business or operations, but any such Exempt Issuance shall not include a transaction in which the Company is issuing
securities (x) primarily for the purpose of raising capital, including an at-the-market offering, or (y) to an entity whose
primary business is investing in securities (excluding, for the avoidance of doubt, any holding company or parent of a person described
above).
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2. Representations,
Warranties and Agreements.
2.1 Subscriber’s
Representations, Warranties and Agreements. To induce the Company to issue the Securities to Subscriber, Subscriber hereby represents
and warrants to the Company and Forge Nano and agrees with the Company and Forge Nano as follows:
2.1.1 If
Subscriber is an entity, Subscriber has been duly formed or incorporated and is validly existing and in good standing under the laws
of its jurisdiction of incorporation or formation, with power and authority to enter into, deliver and perform its obligations under
this Subscription Agreement. If Subscriber is an individual, Subscriber has the authority to enter into, deliver and perform Subscriber’s
obligations under this Subscription Agreement.
2.1.2 This
Subscription Agreement has been duly authorized, executed and delivered by Subscriber. If Subscriber is an individual, the signature
on this Subscription Agreement is genuine, and Subscriber has legal competence and capacity to execute the same. This Subscription Agreement
constitutes a valid and binding obligation of Subscriber, enforceable against Subscriber in accordance with its terms, except as may
be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws
relating to or affecting the rights of creditors generally, and (ii) principles of equity, whether considered at law or equity.
2.1.3 Assuming
the accuracy of the Company’s and Forge Nano’s representations and warranties as set forth in Sections 2.2 and 2.3, respectively,
hereof, the execution, delivery and performance by Subscriber of this Subscription Agreement and the consummation of the transactions
contemplated herein do not and will not (i) conflict with or result in a breach or violation of any of the terms or provisions
of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property
or assets of Subscriber or any of its subsidiaries pursuant to the terms of any indenture, mortgage, deed of trust, loan agreement, lease,
license or other agreement or instrument to which Subscriber is a party or by which Subscriber is bound or to which any of the property
or assets of Subscriber is subject, which would reasonably be expected to have a material adverse effect on the ability of Subscriber
to enter into and perform its obligations under this Subscription Agreement (a “Subscriber Material Adverse Effect”);
(ii) if Subscriber is not an individual, result in any violation of the provisions of the organizational documents of Subscriber
or any of its subsidiaries in any material respect; or (iii) result in any violation of any statute or any judgment, order, rule or
regulation of any court or government or governmental, tribunal, judicial, administrative federal, state, local, or foreign or any agency,
bureau, board, commission instrumentality or authority thereof, including any state’s attorney general or any court or arbitrator
(public or private) (“Authority”), having jurisdiction over Subscriber or any of its subsidiaries or any of their
respective properties that would reasonably be expected to have a Subscriber Material Adverse Effect.
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2.1.4 The
Subscriber (i) is a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) or an
“accredited investor” (within the meaning of Rule 501(a) under the Securities Act), in each case, satisfying
the applicable requirements set forth on Schedule A, (ii) is acquiring all of the Securities only for his, her or its own
account and not for the account of others, or if the Subscriber, or the investment advisor to which Subscriber has delegated decision
making authority over its investments, is subscribing for the Securities as a fiduciary or agent for one or more investment accounts,
the Subscriber has full investment discretion with respect to each such account, and the full power and authority to make the acknowledgements,
representations and agreements herein on behalf of each owner of each such account, and (iii) is not acquiring the Securities with
a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act or the applicable laws
of any jurisdiction (and shall provide the requested information set forth on Schedule A). If the Subscriber is an entity, the
Subscriber is not an entity formed for the specific purpose of acquiring the Securities.
2.1.5 Subscriber
understands and agrees that the Securities are being offered in a transaction not involving any public offering within the meaning of
the Securities Act and that the Securities have not been registered under the Securities Act. Subscriber understands and agrees that
the Securities may not be resold, transferred, pledged or otherwise disposed of by Subscriber absent an effective registration statement
under the Securities Act with respect to the Securities except (i) to the Company or a subsidiary thereof, or (ii) pursuant
to another applicable exemption from the registration requirements of the Securities Act that is available and that any book entries
representing the Securities shall contain a restrictive legend to such effect. Subscriber understands and agrees that the Securities
will not be eligible for resale pursuant to Rule 144A promulgated under the Securities Act. Subscriber understands and agrees that
the Securities will be subject to the foregoing transfer restrictions and, as a result of these transfer restrictions, Subscriber may
not be able to readily resell the Securities and may be required to bear the financial risk of an investment in the Securities for an
indefinite period of time, Subscriber understands that it has been advised to consult legal, tax and accounting counsel prior to making
any offer, resale, transfer, pledge or other disposition of any of the Securities.
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2.1.6 Subscriber
understands and agrees that Subscriber is purchasing the Securities directly from the Company. Subscriber further acknowledges that there
have been no representations, warranties, covenants and agreements made to Subscriber by the Company or any of its officers or directors,
expressly or by implication, other than those representations, warranties, covenants and agreements included in this Subscription Agreement,
and Subscriber is not relying on any representations, warranties or covenants other than those expressly set forth in this Subscription
Agreement.
2.1.7 Subscriber
represents and warrants that its acquisition and holding of the Securities will not constitute or result in a non-exempt prohibited transaction
under Section 406 of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), Section 4975
of the Internal Revenue Code of 1986, as amended, or any applicable similar law.
2.1.8 In
making its decision to purchase the Securities, Subscriber represents that it has relied solely upon independent investigation made by
Subscriber and the representations, warranties, and covenants of the Company contained in this Subscription Agreement. Subscriber acknowledges
and agrees that Subscriber has received and has had an adequate opportunity to review, such financial and other information as Subscriber
deems necessary in order to make an investment decision with respect to the Securities and made its own assessment and is satisfied concerning
the relevant tax and other economic considerations relevant to Subscriber’s investment in the Securities. Without limiting the
generality of the foregoing, Subscriber acknowledges that it has had the opportunity to review the documents provided to Subscriber by
the Company, including (collectively, the “Disclosure Documents”): (i) the final prospectus of the SPAC, dated
as of February 10, 2025 and filed with the Securities and Exchange Commission (the “Commission”) (File Nos.
333-282885) (the “Prospectus”), (ii) each SEC Document (as defined below) through the date of this Subscription
Agreement, (iii) the Transaction Agreement, a copy of which will be filed by the SPAC with the Commission and (iv) the investor
presentation by the SPAC and Forge Nano (the “Investor Presentation”), a copy of which will be furnished by the SPAC
to the Commission. Subscriber represents and agrees that Subscriber and its professional advisor(s), if any, have had the full opportunity
to ask the Company’s management questions, receive such answers and obtain such information as Subscriber and its professional
advisor(s), if any, have deemed necessary to make an investment decision with respect to the Securities. The Subscriber further acknowledges
that, in purchasing the Securities, Subscriber is not relying upon any projections contained in the Investor Presentation.
2.1.9 Subscriber
became aware of this offering of the Securities solely (a) by means of direct contact from the Company, Forge Nano, or a representative
of the Company or Forge Nano, including the Placement Agent (as defined below), or (b) directly from the Company as a result of
a pre-existing, substantial relationship with the Company, and the Securities were offered to Subscriber solely by direct contact between
Subscriber and either the Company or Forge Nano, or a representative of the Company or Forge Nano, including the Placement Agent. Subscriber
did not become aware of this offering of the Securities, nor were the Securities offered to Subscriber, by any other means. Subscriber
acknowledges that the Company represents and warrants that the Securities (i) were not offered by any form of general solicitation
or general advertising and (ii) are not being offered in a manner involving a public offering under, or in a distribution in violation
of, the Securities Act, or any state securities laws.
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2.1.10 Subscriber
acknowledges that it is aware that there are substantial risks incident to the purchase and ownership of the Securities. Subscriber has
such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment
in the Securities, and Subscriber has sought such accounting, legal and tax advice as Subscriber has considered necessary to make an
informed investment decision. Subscriber understands and acknowledges that it (i) is a sophisticated investor, experienced in investing
in equity transactions and capable of evaluating investment risks independently, both in general and with regard to all transactions
and investment strategies involving a security or securities and (ii) has exercised independent judgment in evaluating its participation
in the purchase of the Securities.
2.1.11 Subscriber
represents and acknowledges that Subscriber has such knowledge and experience in financial and business matters as to be capable of evaluating
the merits and risks of the investment in the Securities, has analyzed and fully considered the risks of an investment in the Securities
and determined that the Securities are a suitable investment for Subscriber and that Subscriber is able at this time and in the foreseeable
future to bear the economic risk of a total loss of Subscriber’s investment in the Company. Subscriber further acknowledges specifically
that a possibility of total loss of investment exists.
2.1.12 Subscriber
understands and agrees that no federal or state agency has passed upon or endorsed the merits of the offering of the Securities or made
any findings or determination as to the fairness of this investment.
2.1.13 Subscriber
represents and warrants that Subscriber is not (i) a person or entity named on the List of Specially Designated Nationals and Blocked
Persons, the Executive Order 13599 List, the Foreign Sanctions Evaders List, or the Sectoral Sanctions Identification List, each of which
is administered by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) or in any Executive
Order issued by the President of the United States and administered by OFAC (“OFAC List”), or a person or entity prohibited
by any OFAC sanctions program, (ii) owned or controlled by, or acting on behalf of, a person, that is named on an OFAC List; (iii) organized,
incorporated, established, located, resident or born in, or a citizen, national, or the government, including any political subdivision,
agency, or instrumentality thereof, of any country or territory embargoed or subject to substantial trade restrictions by the United
States; (iv) a Designated National as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515, or (v) a
non-U.S. shell bank or providing banking services indirectly to a non-U.S. shell bank (collectively, a “Prohibited Investor”).
Subscriber agrees to provide law enforcement agencies, if requested thereby, such records as required by applicable law, provided that
Subscriber is permitted to do so under applicable law. Subscriber represents that if it is a financial institution subject to the Bank
Secrecy Act (31 U.S.C. Section 5311 et seq.) (the “BSA”), as amended by the USA PATRIOT Act of 2001 (the “PATRIOT
Act”), and its implementing regulations (collectively, the “BSA/PATRIOT Act”), that Subscriber, directly
or indirectly through a third party administrator, maintains policies and procedures reasonably designed to comply with applicable obligations
under the BSA/PATRIOT Act. Subscriber also represents that, to the extent required, it, directly or indirectly through a third party
administrator, maintains policies and procedures reasonably designed for the screening of its investors against the OFAC sanctions programs,
including the OFAC List, and to otherwise ensure compliance with OFAC-administered sanctions programs. Subscriber further represents
and warrants that, to the extent required, it, directly or indirectly through a third-party administrator, maintains policies and procedures
reasonably designed to ensure that the funds held by Subscriber and used to purchase the Securities were legally derived.
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2.1.14 On
the date the Purchase Price will be required to be funded pursuant to Section 3.1, Subscriber will have sufficient immediately
available funds to pay the Purchase Price pursuant to Section 3.1.
2.1.15 Subscriber
represents that no disqualifying event described in Rule 506(d)(1)(i)-(viii) under the Securities Act (a “Disqualification
Event”) is applicable to Subscriber or any of its Rule 506(d) Related Parties (as defined below), except, if applicable,
for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable. Subscriber hereby
agrees that it shall notify the Company promptly in writing in the event a Disqualification Event becomes applicable to Subscriber or
any of its Rule 506(d) Related Parties, except, if applicable, for a Disqualification Event as to which Rule 506(d)(2)(ii) or
(iii) or (d)(3) is applicable. For purposes of this Section 2.1.15, “Rule 506(d) Related Party”
shall mean a person or entity that is a direct beneficial owner of Subscriber’s securities for purposes of Rule 506(d) under
the Securities Act.
2.1.16 No
broker, finder or other financial consultant has acted on behalf of Subscriber in connection with this Subscription Agreement or the
transactions contemplated hereby in such a way as to create any liability on the Company or Forge Nano.
2.1.17 Except
as expressly disclosed in a Schedule 13D or Schedule 13G (or amendments thereto) filed by such Subscriber with the Commission with respect
to the beneficial ownership of the equity securities of the SPAC prior to the date hereof, Subscriber is not currently (and at all times
through Closing will refrain from being or becoming) a member of a “group” (within the meaning of Section 13(d)(3) or
Section 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or any successor
provision) acting for the purpose of acquiring, holding or disposing of equity securities of the SPAC (within the meaning of Rule 13d-5(b)(1) under
the Exchange Act).
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2.1.18 If
Subscriber is not a United States person as defined by Section 7701(a)(3) of the Internal Revenue Code of 1986, as amended
(any such subscriber, a “Foreign Purchaser”), then Subscriber acknowledges the potential for Forge Nano to be interpreted
to be a Technology, Infrastructure and Data business (“TID”) under definitions provided by U.S. Council on Foreign
Investment in the United States (“CFIUS”), and, assuming the accuracy of Company’s and Forge Nano’s representations,
warranties and agreements herein, the Subscriber does not and will not obtain any of the following rights, other than through the voting
of shares, as a result of the transaction under this Subscription Agreement:
(i) The
right to appoint a board member or observer. No such right shall be offered or obtained.
(ii) Access
to material non-public technical information (as defined in 31 C.F.R. § 801.208) – includes information that “is
not available in the public domain and is necessary to design, fabricate, develop, test, produce, or manufacture a critical technology,
including processes, techniques, or methods.” The term does not include financial information regarding the performance of the
business. No such right shall be offered or obtained.
(iii) Involvement
in substantive decision making (as defined in 31 C.F.R §801.204) – captures a broad category of rights, including consulting
with a decision maker on significant matters. No such right shall be offered or obtained.
(A) “Involvement”
includes the right or ability to participate in decision making, including by (a) providing input into a final decision, (b) consulting
with or providing advice to a decision maker, (c) participating on a committee with decision making authority, (d) advising
on the appointment of officers or employees with substantive decision making authority, and (e) exercising special approval or
veto rights.
(B) “Substantive
decision making” means the process through which decisions regarding significant matters affecting an entity are undertaken, including,
with respect to (a) corporate strategy and business development, (b) supply arrangements, (c) research and development,
including location and budget allocation, (d) manufacturing locations, (e) access to critical technologies or material nonpublic
technical information, including pursuant to a customer, vendor, or joint venture agreement, (f) physical and cyber security protocols,
including the storage and protection of critical technologies, and (g) strategic partnerships.
2.2 Company’s
Representations, Warranties and Agreements. To induce Subscriber to purchase the Securities, the Company hereby represents and warrants
to Subscriber and agrees with Subscriber as follows:
2.2.1 The
Company is a Delaware corporation, duly formed, validly existing and in good standing under the Laws of the State of Delaware, with the
requisite corporate power and authority to own, lease and operate its properties and conduct its business as presently conducted and
to enter into, deliver and perform its obligations under this Subscription Agreement.
2.2.2 The
Securities have been duly authorized and, when issued and delivered to Subscriber against full payment for the Securities in accordance
with the terms of this Subscription Agreement, and registered with the Company’s transfer agent, the Securities will be validly
issued, fully paid, non-assessable and free and clear of any liens or other restrictions whatsoever (other than those arising under state
or federal securities laws or as set forth herein), and will not be issued in violation of or subject to any preemptive or similar rights
created under the Company’s organizational documents or any agreement or other instrument to which the Company is a party or by
which it is otherwise bound.
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2.2.3 This
Subscription Agreement has been duly authorized, executed and delivered by the Company and is a valid and binding obligation of the Company,
enforceable against it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, and (ii) principles
of equity, whether considered at law or equity.
2.2.4 The
execution, delivery and performance of this Subscription Agreement (including compliance by the Company with all of the provisions hereof),
the issuance and sale of the Securities and the consummation of the certain other transactions contemplated herein will not (i) conflict
with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation
or imposition of any lien, charge or encumbrance upon any of the property or assets of the Company or any of its subsidiaries pursuant
to the terms of any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the
Company or any of its subsidiaries is a party or by which the Company or any of its subsidiaries is bound or to which any of the property
or assets of the Company or any of its subsidiaries is subject, which would, individually or in the aggregate, reasonably be expected
to have a material adverse effect on the business, properties, assets, liabilities, operations, financial condition, prospects, stockholders’
equity or results of operations of the Company or any of its subsidiaries or materially and adversely affect the validity of the Securities
or the legal authority or ability of the Company to comply in all material respects with the terms of this Subscription Agreement (a
“Company Material Adverse Effect”); (ii) result in any violation of the provisions of the organizational documents
of the Company or any of its subsidiaries in any material respect; or (iii) result in any violation of any statute or any judgment,
order, rule or regulation of any Authority having jurisdiction over the Company or any of its subsidiaries or any of their respective
properties that would reasonably be expected to have a Company Material Adverse Effect.
2.2.5 Assuming
the accuracy of the representations and warranties of the Subscriber set forth in Section 2.1, the Company is not required to obtain
any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any Authority with competent
jurisdiction, self-regulatory organization (including the Nasdaq Stock Market, LLC (“Nasdaq”)) or other person in
connection with the execution, delivery and performance of this Subscription Agreement or the issuance of the Securities, other than
(i) filings required by applicable state securities laws, (ii) filings required by Antitrust Laws (iii) the filing
of the Registration Statement (as defined below) pursuant to Section 6, (iv) filings required by the Securities Act, the
Exchange Act, and the rules of the Commission, including Company’s registration statement on Form S-4 with respect
to the Transaction and the proxy statement/prospectus included therein (the “Form S-4”), (v) filings required
by Nasdaq, including with respect to obtaining approval of the Transaction by the stockholders of SPAC, (vi) filings required to
consummate the Transaction as provided under the Transaction Agreement, (vii) filings in connection with or as a result of any
publicly available written guidance, comments, requirements or requests of the staff of the Commission under the Securities Act and (viii) those
the failure of which to obtain would not have a Company Material Adverse Effect.
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2.2.6 Neither
the Company, nor any person acting on its behalf has, directly or indirectly, made any offers or sales of any Company security or solicited
any offers to buy any security, under circumstances that would adversely affect reliance by the Company on Section 4(a)(2) of
the Securities Act for the exemption from registration for the transactions contemplated hereby or would require registration of the
issuance or sale of the Securities under the Securities Act.
2.2.7 Neither
the Company nor any person acting on its behalf has conducted any general solicitation or general advertising (as those terms are used
in Regulation D under the Securities Act) in connection with the offer or sale of any of the Securities and neither the Company, nor
any person acting on its behalf has offered any of the Securities in a manner involving any public offering under, or in a distribution
in violation of, the Securities Act or any state securities laws.
2.2.8 The
Company has not taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization,
receivership, liquidation, administration or winding up or failed to pay its debts when due, nor does the Company have any knowledge
or reason to believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or seek to commence
an administration.
2.2.9 As
of the date hereof, except as set forth in the SEC Documents (as defined below), the Other Subscription Agreements, the Transaction Agreement
and any promissory notes issued by the SPAC’s sponsor or its affiliate to the SPAC for working capital purposes as described in
the SEC Documents (the “Sponsor Loans”), there are no outstanding options, warrants or other rights to subscribe for,
purchase or acquire from the Company any Common Stock or other equity interests in the Company, or securities convertible into or exchangeable
or exercisable for such equity interests. As of the date hereof, other than any subsidiary created for purposes of the Transaction, the
Company has no subsidiaries and does not own, directly or indirectly, interests or investments (whether equity or debt) in any person,
whether incorporated or unincorporated. There are no stockholder agreements, voting trusts or other agreements or understandings to which
the Company is a party or by which it is bound relating to the voting of any securities of the Company, other than (A) as set forth
in the SPAC’s filings with the Commission, together with any amendments, restatements or supplements thereto (the “SEC
Documents”) and (B) as contemplated by the Transaction Agreement. Except as disclosed in the SEC Documents, the Company
has no outstanding indebtedness and will not have any outstanding long-term indebtedness as of immediately prior to the Closing (excluding
any Sponsor Loans).
2.2.10 Assuming
the accuracy of Subscriber’s representations and warranties set forth in this Subscription Agreement, no registration under the
Securities Act is required for the offer and sale of the Securities by the Company to Subscriber and the Securities are not being offered
in a manner involving a public offering under, or in a distribution in violation of, the Securities Act or any state securities laws.
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2.2.11 Except
as disclosed in the SEC Documents, the SPAC has made all filings required to be filed by it with the Commission and, as of their respective
dates, each of the SEC Documents complied in all material respects with the requirements of the Securities Act and the Exchange Act,
and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Documents, when filed, contained any
untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading; provided, that the Company makes no
such representation or warranty with respect to any information relating to Forge Nano or any of its affiliates included in any SEC Document
or filed as an exhibit thereto. Each of the financial statements of the SPAC included in the SEC Documents comply in all material respects
with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the
time of filing and fairly present in all material respects the financial position of the SPAC as of and for the dates thereof and the
results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit
adjustments. As of the date hereof, there are no outstanding or unresolved comments in comment letters from the Staff of the Commission
with respect to any of the SEC Documents.
2.2.12 Other
than the Other Subscription Agreements, the Transaction Agreement and any other agreement expressly contemplated by the Transaction Agreement,
neither the Company nor the SPAC has entered into any side letter or similar agreement with any Other Subscriber or any other investor
in connection with such Other Subscriber’s or investor’s investment in the Company. No Other Subscription Agreement includes
a price per Security different from this Subscription Agreement or other terms, rights or conditions that are more advantageous (economically
or otherwise) in any material respect to any such Other Subscriber than Subscriber hereunder, and such Other Subscription Agreements
have not been amended or modified in any material respect following the date of this Subscription Agreement in any manner that materially
benefits the Other Subscriber thereunder unless Subscriber has been granted the same benefits.
2.2.13 The
Company is not, and immediately after receipt of payment for the Securities will not be, an “investment company” within the
meaning of the Investment Company Act of 1940, as amended.
2.2.14 As
of the date of this Agreement the Company has not received any written communication from any Authority that alleges that the Company
is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation
would not, individually or in the aggregate, be reasonably expected to have a Company Material Adverse Effect.
2.2.15 Except
for such matters as have not had and would not be reasonably expected to have, individually or in the aggregate, a Company Material Adverse
Effect, there is no (i) action, claim, inquiry, arbitration, investigation, litigation or other proceeding pending, or, to the
knowledge of the Company, threatened against the Company or (ii) judgment, decree, injunction, ruling or order of any Authority
outstanding against the Company.
11
2.2.16 Except
for discussions specifically regarding the offer and sale of the Securities and the Investor Presentation, the Company confirms that
neither it nor any other person acting on its behalf has provided Subscriber or its agents or counsel with any information that constitutes
or could reasonably be expected to constitute material, nonpublic information concerning the Company, the SPAC or any of their subsidiaries,
other than with respect to the Transaction and the transactions contemplated by this Subscription Agreement or the Other Subscription
Agreements. Except with respect to the Transaction and the transactions contemplated by this Subscription Agreement and the Other Subscription
Agreements, no event or circumstance has occurred which, under applicable law, rule or regulation, requires public disclosure or
announcement by the Company but which has not been so publicly disclosed.
2.2.17 [Reserved].
2.2.18 With
respect to the distribution of information to Subscriber (if a Foreign Purchaser) or any Other Subscriber that are Foreign Purchasers,
the Company has and will comply with the regulations associated with the CFIUS. Without limiting the foregoing, the Company represents,
warrants and agrees that it has not provided and does not intend to provide and will take measure to prevent the provision to any Foreign
Purchasers any (i) access to any material non-public technical information (as defined in 31 C.F.R. §801.208) in the possession
of the Company, or (ii) involvement, other than through the voting of shares, in substantive decision-making of the Company regarding
the use, development, acquisition or release of critical technology (as defined in 31 C.F.R §801.204).
2.3 Forge
Nano’s Representations, Warranties and Agreements. To induce Subscriber to purchase the Securities, Forge Nano hereby represents
and warrants to Subscriber and agrees with Subscriber as follows:
2.3.1 Forge
Nano is a corporation duly incorporated, validly existing and in good standing under the Laws of the State of Delaware, with the requisite
corporate power and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into,
deliver and perform its obligations under this Subscription Agreement, except where the failure to have such power or authority would
not, individually or in the aggregate, reasonably be expected to have a Forge Nano Material Adverse Effect (as defined below).
2.3.2 This
Subscription Agreement has been duly authorized, executed and delivered by Forge Nano and is a valid and binding obligation of Forge
Nano, enforceable against it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, and (ii) principles
of equity, whether considered at law or equity.
12
2.3.3 The
execution, delivery and performance of this Subscription Agreement (including compliance by Forge Nano with all of the provisions hereof),
the issuance and sale of the Securities and the consummation of the certain other transactions contemplated herein will not (i) conflict
with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation
or imposition of any lien, charge or encumbrance upon any of the property or assets of Forge Nano or any of its subsidiaries pursuant
to the terms of any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which Forge
Nano or any of its subsidiaries is a party or by which Forge Nano or any of its subsidiaries is bound or to which any of the property
or assets of Forge Nano or any of its subsidiaries is subject, which would, individually or in the aggregate, reasonably be expected
to have a material adverse effect on the business, properties, assets, liabilities, operations, financial condition, prospects, stockholders’
equity or results of operations of Forge Nano or any of its subsidiaries or materially and adversely affect the validity of the Securities
or the legal authority or ability of Forge Nano to comply in all material respects with the terms of this Subscription Agreement (an
“Forge Nano Material Adverse Effect”); (ii) result in any violation of the provisions of the organizational
documents of Forge Nano or any of its subsidiaries which would, individually or in the aggregate, reasonably be expected to have a Forge
Nano Material Adverse Effect; or (iii) result in any violation of any statute or any judgment, order, rule or regulation
of any Authority having jurisdiction over Forge Nano or any of its subsidiaries or any of its properties that would reasonably be expected
to have, individually or in the aggregate, a Forge Nano Material Adverse Effect.
2.3.4 Neither
Forge Nano, nor any person acting on its behalf has, directly or indirectly, made any offers or sales of any Company security or solicited
any offers to buy any security, under circumstances that would adversely affect reliance by the Company on Section 4(a)(2) of
the Securities Act for the exemption from registration for the transactions contemplated hereby or would require registration of the
issuance or sale of the Securities under the Securities Act.
2.3.5 Neither
Forge Nano nor any person acting on its behalf has conducted any general solicitation or general advertising (as those terms are used
in Regulation D under the Securities Act) in connection with the offer or sale of any of the Securities and neither Forge Nano, nor any
person acting on its behalf has offered any of the Securities in a manner involving any public offering under, or in a distribution in
violation of, the Securities Act or any state securities laws.
2.3.6 Forge
Nano has not taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization, receivership,
liquidation, administration or winding up or failed to pay its debts when due, nor does Forge Nano have any knowledge or reason to believe
that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or seek to commence an administration.
2.3.7 Assuming
the accuracy of Subscriber’s representations and warranties set forth in this Subscription Agreement, no registration under the
Securities Act is required for the offer and sale of the Securities and the Securities are not being offered in a manner involving a
public offering under, or in a distribution in violation of, the Securities Act or any state securities laws.
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2.3.8 Other
than the Initial Subscription Agreement and the Other Subscription Agreements, the Transaction Agreement and any other agreement expressly
contemplated by the Transaction Agreement, Forge Nano has not entered into any side letter or similar agreement with any Other Subscriber
or any other investor in connection with such Other Subscriber’s or investor’s investment in Forge Nano (in each case for
investments that will occur on or about the time of the Subscriber’s investment). Other than the Initial Subscription Agreement,
no Other Subscription Agreement includes a price per Security different from this Subscription Agreement or other terms, rights or conditions
that are more advantageous (economically or otherwise) in any material respect to any such Other Subscriber than Subscriber hereunder,
and such Other Subscription Agreements have not been amended or modified in any material respect following the date of this Subscription
Agreement in any manner that materially benefits the Other Subscriber thereunder unless Subscriber has been granted the same benefits.
2.3.9 Forge
Nano is not, and immediately after receipt of payment for the Securities will not be, an “investment company” within the
meaning of the Investment Company Act of 1940, as amended.
2.3.10 As
of the date of this Agreement, Forge Nano has not received any written communication from any Authority that alleges that Forge Nano
is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or violation
would not, individually or in the aggregate, be reasonably expected to have an Forge Nano Material Adverse Effect.
2.3.11 Except
for such matters as have not had and would not be reasonably expected to have, individually or in the aggregate, a Forge Nano Material
Adverse Effect as of the date of this Subscription Agreement, there is no (i) action, claim, inquiry, arbitration, investigation,
litigation or other proceeding pending, or, to the knowledge of Forge Nano, threatened against Forge Nano or (ii) judgment, decree,
injunction, ruling or order of any Authority outstanding against Forge Nano.
2.3.12 Except
for discussions specifically regarding the offer and sale of the Securities and the Investor Presentation, Forge Nano confirms that neither
it nor any other person acting on its behalf has provided Subscriber or its agents or counsel with any information that constitutes or
could reasonably be expected to constitute material, nonpublic information concerning Forge Nano or any of its subsidiaries, other than
with respect to the Transaction and the transactions contemplated by this Subscription Agreement or the Other Subscription Agreements.
Except with respect to the Transaction and the transactions contemplated by this Subscription Agreement and the Other Subscription Agreements,
no event or circumstance has occurred which, under applicable law, rule or regulation, requires public disclosure at or before
the date hereof or announcement by Forge Nano but which has not been so publicly disclosed.
14
2.3.13 With
respect to the distribution of information to Subscriber (if a Foreign Purchaser) or any Other Subscriber that are Foreign Purchasers,
Forge Nano has and will comply with the regulations associated with the CFIUS. Without limiting the foregoing, Forge Nano represents,
warrants and agrees that it has not provided and does not intend to provide and will take measure to prevent the provision to any Foreign
Purchasers any (i) access to any material non-public technical information (as defined in 31 C.F.R. §801.208) in the possession
of Forge Nano, or (ii) involvement, other than through the voting of shares, in substantive decision-making of Forge Nano regarding
the use, development, acquisition or release of critical technology (as defined in 31 C.F.R §801.204).
3. Settlement
Date and Delivery.
3.1 Closing.
The closing of the Subscription contemplated hereby (the “Closing”) is contingent upon the substantially concurrent
consummation of the Transaction, as provided for by the Transaction Agreement. The Closing shall occur on the closing date of, and immediately
prior to, or simultaneously with, the consummation of the Transaction. Upon written notice from (or on behalf of) the Company to Subscriber
(the “Notice”) that the Company reasonably expects the closing of the Transaction to take place on a date that is
not less than five (5) business days from the date of the Notice, Subscriber shall deliver to the Company, not less than two (2) business
days prior to the scheduled closing date specified in the Notice (the “Scheduled Closing Date”), to be held in escrow
until the Closing, the Purchase Price for the Securities by wire transfer of United States dollars in immediately available funds to
the account specified by the Company in the Notice, which at the Closing will be released to the Company against delivery by the Company
promptly after the Closing to Subscriber of the Securities in book-entry form (or in certificated form if indicated by Subscriber on
Subscriber’s signature page hereto), free and clear of any liens or other restrictions (other than those arising under this
Subscription Agreement or applicable securities laws). Not later than one (1) business day after the Closing, the Company shall
deliver to Subscriber the Securities in book entry form, in the name of Subscriber (or its nominee in accordance with its delivery instructions)
or to a custodian designated by Subscriber, as applicable. In the event the Closing does not occur within five (5) business days
of the Scheduled Closing Date, the Company shall promptly (but not later than two (2) business days thereafter) return the Purchase
Price to Subscriber by wire transfer of U.S. dollars in immediately available funds to the account specified by Subscriber, and any book-entries
for the Securities shall be deemed repurchased and cancelled. Unless this Subscription Agreement is terminated pursuant to Section 5
below, the failure of the Closing to occur on or after the Scheduled Closing Date shall not terminate this Subscription Agreement or
otherwise relieve any party of any of its obligations hereunder. For purposes of this Subscription Agreement, “business day”
means any day that, in New York, New York, is neither a legal holiday nor a day on which commercial banking institutions are generally
authorized or required by law or regulation to close (excluding as a result of “stay at home”, “shelter-in-place”,
“non-essential employee” or any other similar orders or restrictions or the closure of any physical branch locations at the
direction of any governmental authority so long as the electronic funds transfer systems, including for wire transfers, of commercial
banking institutions in New York, New York are generally open for use by customers on such day).
15
3.2 Conditions
to Closing.
3.2.1 The
Closing shall be subject to the satisfaction or valid waiver by the Company and Forge Nano, on the one hand, or Subscriber, on the other,
of the conditions that, on the Closing Date:
(i) No
Authority shall have enacted, issued, promulgated, enforced or entered any law, rule, regulation, judgment, decree, executive order or
award (whether temporary preliminary or permanent) which is then in effect and has the effect of making the transactions contemplated
hereby illegal or otherwise prohibiting or enjoining the consummation of the transactions contemplated hereby.
(ii) Transaction
Closing shall be substantially concurrent with the Closing.
3.2.2 The
Closing shall also be subject to the satisfaction or valid waiver by the Subscriber of the conditions that, on the Closing Date:
(i) The
Company and Forge Nano shall have performed, satisfied and complied in all material respects with all agreements, conditions and covenants
required by this Subscription Agreement to be performed by the Company or Forge Nano at or prior to the Closing.
(ii) All
representations and warranties of Company and Forge Nano contained in this Subscription Agreement shall be true and correct in all material
respects (other than representations and warranties that are qualified as to materiality or Company Material Adverse Effect or Forge
Nano Material Adverse Effect, as applicable, which representations and warranties shall be true in all respects) at and as of the Closing
Date (except for representations and warranties made as of a specific date, which shall be true and correct in all material respects
(other than representations and warranties that are qualified as to materiality or Company Material Adverse Effect or Forge Nano Material
Adverse Effect, as applicable, which representations and warranties shall be true in all respects) as of such date), and consummation
of the Closing shall constitute a reaffirmation by the Company and Forge Nano of each of the representations, warranties and agreements
of the Company and Forge Nano contained in this Subscription Agreement as of the Closing Date.
(iii) The
Company shall have filed with Nasdaq an application or for the listing of the Securities and Nasdaq shall have raised no objection with
respect thereto, subject to official notice of issuance.
(iv) Other
than with respect to the Initial Subscription Agreement, there shall have been no amendment, waiver or modification to the Other Subscription
Agreements that materially benefits (economically or otherwise) the Other Subscribers thereunder unless this Subscription Agreement shall
have been amended to reflect the same terms.
16
(v) No
suspension of the qualification of the Securities for offering or sale or trading of the Common Stock on the Nasdaq shall have occurred
and be continuing.
(vi) No
amendments, modifications or waivers to the terms of the Transaction Agreement (as it exists on the date hereof as provided to Subscriber)
shall have occurred, in each case, in a manner that would reasonably be expected to materially and adversely affect the economic benefits
that Subscriber would reasonably expect to receive under this Subscription Agreement (unless Subscriber has provided its written consent
thereto).
3.2.3 The
Closing shall also be subject to the satisfaction or valid waiver by each of the Company and Forge Nano of the conditions that, on the
Closing Date:
(i) Subscriber
shall have performed, satisfied and complied in all material respects with all agreements, conditions and covenants required by this
Subscription Agreement to be performed by Subscriber at or prior to the Closing.
(ii) All
representations and warranties of Subscriber contained in this Subscription Agreement shall be true and correct in all material respects
(other than representations and warranties that are qualified as to materiality or Subscriber Material Adverse Effect, which representations
and warranties shall be true in all respects) at and as of the Closing Date (except for representations and warranties made as of a specific
date, which shall be true and correct in all material respects (other than representations and warranties that are qualified as to materiality
or Subscriber Material Adverse Effect, which representations and warranties shall be true in all respects) as of such date), and consummation
of the Closing shall constitute a reaffirmation by the Subscriber of each of the representations, warranties and agreements of the Subscriber
contained in this Subscription Agreement as of the Closing Date.
4. Transfer
Restrictions.
4.1 After
the Closing, the Securities may only be resold, transferred, pledged or otherwise disposed of in compliance with state and federal securities
laws and pursuant to an effective registration statement, Rule 144 under the Securities Act (“Rule 144”)
or pursuant to another applicable exemption from the registration requirements of the Securities Act, to the Company or to an affiliate
of Subscriber. As a condition of transfer (other than pursuant to an effective registration statement pursuant to Rule 144 or pursuant
to another applicable exemption from the registration requirements of the Securities Act), any such transferee shall agree in writing
to be bound by the terms of this Subscription Agreement and shall have the rights and obligations of Subscriber under this Agreement.
4.2 Notwithstanding
anything to the contrary, the Company and Forge Nano acknowledge that the Securities may be pledged by Subscriber in connection with
a bona fide margin agreement, which shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and Subscriber
effecting a pledge of the Securities shall not be required to provide the Company or Forge Nano with any notice thereof; provided, however,
that neither the Company nor its counsel shall be required to take any action (or refrain from taking any action) in connection with
any such pledge, other than providing any such lender of such margin agreement with an acknowledgment that the Securities are not subject
to any contractual lock up or prohibition on pledging, the form of such acknowledgment to be reasonably acceptable to the Company in
all respects; provided further that the Subscriber and its pledgee shall be required to comply with other provisions of this Section 4
in order to effect a sale, transfer or assignment of Securities to a pledgee.
17
4.3 Subject
to applicable requirements of the Securities Act and the interpretations of the Commission thereunder and any requirements of the Company’s
transfer agent, the Company shall use commercially reasonable efforts to ensure that instruments, whether certificated or uncertificated,
evidencing the Securities shall not contain any legend (including the legend set forth in Section 4.4 below) (i) following
any sale of such Securities pursuant to Rule 144, (ii) if such Securities are eligible for sale under Rule 144 without
the requirement for the Company to be in compliance with the current public information required under Rule 144 (including under
Rule 144(i)) and without volume or manner-of-sale restrictions, and in each case, Subscriber provides the Company with an undertaking
to effect any sales or other transfers in accordance with the Securities Act, or (iii) if such legend is not required under applicable
requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission).
4.4 Subscriber
agrees to the imprinting, so long as is required by this Section 4, of a legend on any of the Securities in the following
form:
THIS SECURITY HAS NOT BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR
SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN
A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS.
4.5 [Reserved].
4.6 The
Company will use its commercially reasonable efforts to make all Securities eligible on the Direct Registration System of the Depository
Trust Company so that Subscriber can, subject to Section 4.3, move shares to respective prime broker accounts and sell without
restriction.
18
5. Termination.
Except for the provisions of Sections 5, 7, 8 and 9 and the provisions of this Agreement providing for the return of funds previously
delivered in the event the Closing does not occur, all of which shall survive any termination hereunder, this Subscription Agreement
shall terminate and be void and of no further force and effect, and all rights and obligations of the parties hereunder shall terminate
without any further liability on the part of any party in respect thereof, upon the earliest to occur of (i) such date and time
as the Transaction Agreement is terminated in accordance with its terms, (ii) upon the mutual written agreement of each of the
parties hereto to terminate this Subscription Agreement, (iii) at the election of Subscriber, if the Closing shall not have occurred
on or before the Outside Date (as defined in the Transaction Agreement), or (iv) if any of the conditions to Closing set forth
in Section 3.2 are not satisfied on or prior to the Closing Date and, as a result thereof, the transactions contemplated by this
Subscription Agreement are not consummated at the Closing; provided, that, subject to the limitations set forth in Section 8, nothing
herein will relieve any party from liability for any willful breach hereof prior to the time of termination, and each party will be entitled
to any remedies at law or in equity to recover losses, liabilities or damages arising from such breach. The Company shall notify Subscriber
of the termination of the Transaction Agreement promptly after the termination of such agreement. Upon the termination hereof in accordance
with this Section 5, any monies paid by Subscriber to the Company in connection herewith shall promptly (and in any event within
two (2) business days) be returned in full to Subscriber by wire transfer of U.S. dollars in immediately available funds to the
account specified by Subscriber, without any deduction for or on account of any tax withholding except as required by law, charges or
set-off, whether or not the Transactions shall have been consummated.
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6. Registration
Rights.
6.1 The
Company agrees that within thirty (30) days after the Closing Date, the Company will file with the Commission (at the Company’s
sole cost and expense) a registration statement to register under and in accordance with the provisions of the Securities Act, the resale
of all of the Registrable Securities (as defined below) on Form S-3 or Form S-1 (which in either case shall be filed pursuant
to Rule 415 under the Securities Act as a secondary-only registration statement), which shall be on Form S-3 if the Company
is then eligible for such short form, or any similar or successor short form registration or, if the Company is not then eligible for
such short form registration or would not be able to register for resale all of the Registrable Securities on Form S-3, on Form S-1
or any similar or successor long form registration (the “Registration Statement”). The Company will provide a draft
of the Registration Statement to Subscriber for review at least two (2) business days in advance of the filing the Registration
Statement, and shall advise Subscriber promptly upon the Registration Statement being declared effective by the Commission. The Company
shall use its commercially reasonable efforts to have the Registration Statement declared effective by the Commission as soon as practicable
after the filing thereof, but no later than the earlier of (i) sixty (60) calendar days (or ninety (90) calendar days if the Commission
notifies the Company that it will “review” the Registration Statement) following the Closing Date and (ii) the fifth
(5th) business day after the date the Company is notified in writing by the Commission that the Registration Statement will
not be “reviewed” or will not be subject to further review (such earlier date, the “Effectiveness Deadline”);
provided, however, that the Company’s obligations to include the Registrable Securities of Subscriber in the Registration Statement
are contingent upon Subscriber furnishing in writing to the Company such information regarding Subscriber, the securities of the Company
held by Subscriber and the intended method of disposition of the Registrable Securities as shall be reasonably requested by the Company
to effect the registration of the Registrable Securities, and Subscriber shall execute such documents in connection with such registration
as the Company may reasonably request that are customary of a selling shareholder in similar situations. Notwithstanding the foregoing,
if the Commission prevents the Company from including any or all of the Common Stock proposed to be registered under the Registration
Statement due to limitations on the use of Rule 415 under the Securities Act for the resale of the Registrable Securities by the
Subscribers or otherwise, the Company shall use its best efforts to ensure that the Commission determines that the offering contemplated
by the Registration Statement is a bona fide secondary offering and not an offering “by or on behalf of the issuer” as defined
in Rule 415 of the Securities Act. If the Company is unsuccessful in the efforts described in the preceding sentence then the Company
shall cause such Registration Statement to register for resale such number of Registrable Securities which is equal to the maximum number
of Common Stock as is permitted by the Commission. In such event, the number of Registrable Securities to be registered for each selling
shareholder named in the Registration Statement shall be reduced pro rata among all such selling shareholders and as promptly as practicable
after being permitted to register additional Securities under Rule 415 under the Securities Act, the Company shall amend the Registration
Statement or file a new Registration Statement to register such additional Registrable Securities that were not included in the initial
Registration Statement and cause such amendment or Registration Statement to become effective as promptly as practicable. In no event
shall the Subscriber be identified as a statutory underwriter in the Registration Statement unless requested by the Commission; provided,
that if the Commission requests that the Subscriber be identified as a statutory underwriter in the Registration Statement, the Subscriber
will have the option, in its sole and absolute discretion, to either (i) have an opportunity to withdraw from the Registration
Statement, in which case the Company’s obligation to register the Subscriber’s Registrable Securities will be deemed satisfied,
or (ii) be included as such in the Registration Statement. The Company will use its commercially reasonable efforts to maintain
the continuous effectiveness of the Registration Statement until the earliest of (x) such time as when all of Subscriber’s
securities included therein cease to be Registrable Securities, (y) such time as when all of Subscriber’s Registrable Securities
(as defined below) included in such Registration Statement have actually been sold and (z) three years from the Closing Date. The
Company will use its commercially reasonable efforts to cause the removal of all restrictive legends from any Registrable Securities
being sold under the Registration Statement at the time of sale of such Registrable Securities upon the receipt from the Subscriber of
such supporting documentation, if any, as requested by the Company. The Company will use commercially reasonable efforts to file all
reports, and provide all customary and reasonable cooperation, reasonably necessary to enable Subscriber to resell Registrable Securities
pursuant to the Registration Statement and Rule 144, qualify the Registrable Securities for listing on the applicable stock exchange
and update or amend the Registration Statement as necessary to include Registrable Securities. “Registrable Securities”
shall mean, as of any date of determination, the Securities and any other equity security issued or issuable with respect to the Securities
by way of share split, dividend, distribution, recapitalization, merger, exchange, replacement or similar event, provided, however, that
such securities shall cease to be Registrable Securities at the earliest of (A) three (3) years after the Closing Date, (B) the
date all Securities held by Subscriber may be sold by Subscriber without volume or manner of sale limitations pursuant to Rule 144
and without the requirement for the Company to be in compliance with the current public information required under Rule 144(c)(1) (or
Rule 144(i)(2), if applicable), (C) the date on which such securities have actually been sold by Subscriber, or (D) when
such securities shall have ceased to be outstanding. Notwithstanding the foregoing, Subscriber shall not be required to sign any form
of lock-up agreement in connection with the Registration Statement. Subscriber may deliver written notice (an “Opt-Out Notice”)
to the Company requesting that Subscriber not receive notices from the Company otherwise required by this Section 6.1; provided,
however, that Subscriber may later revoke any such Opt-Out Notice in writing. Following receipt of an Opt-Out Notice from Subscriber
(unless subsequently revoked), (i) the Company shall not deliver any such notices to Subscriber and Subscriber shall no longer
be entitled to the rights associated with any such notice and (ii) Subscriber will notify the Company in writing at least three
(3) business days in advance of each intended use of an effective Registration Statement, and if a notice of a Suspension Event
(as defined below) was previously delivered (or would have been delivered but for the provisions of this Section 6.1) and the related
suspension period remains in effect, the Company will so notify Subscriber, within two (2) business days after Subscriber’s
notification to the Company, by delivering to Subscriber a copy of such previous notice of Suspension Event, and thereafter will provide
Subscriber with the related notice of the conclusion of such Suspension Event promptly following its availability.
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6.2 At
its expense the Company shall:
6.2.1 except
for such times as the Company is permitted hereunder to suspend the use of the prospectus forming part of a Registration Statement, use
its commercially reasonable efforts to keep such registration, and any qualification, exemption or compliance under state securities
laws that the Company determines to obtain in connection with such registration, continuously effective with respect to Subscriber, and
to keep the applicable Registration Statement or any subsequent shelf registration statement free of any material misstatements or omissions,
until all Securities acquired by Subscriber hereunder cease to be Registrable Securities or such shorter period upon which Subscriber
has notified the Company that such Registrable Securities have actually been sold, or otherwise when such Registration Statement is no
longer required to be effective under this Section 6;
6.2.2 subject
to an Opt-Out Notice, advise Subscriber within three (3) business days: (A) of the issuance by the Commission of any stop
order suspending the effectiveness of any Registration Statement or the initiation of any proceedings for such purpose; (B) of
the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities included
therein for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and (C) subject to the
provisions in this Subscription Agreement, of the occurrence of any event that requires the making of any changes in any Registration
Statement or prospectus included therein so that, as of such date, the statements therein are not misleading and do not omit to state
a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in the light
of the circumstances under which they were made) not misleading. Notwithstanding anything to the contrary set forth herein, the Company
shall not, when so advising Subscriber of such events, provide Subscriber with any material, nonpublic information regarding the Company
other than to the extent that providing notice to Subscriber of the occurrence of the events listed in (A) through (C) above
constitutes material, nonpublic information regarding the Company;
21
6.2.3 use
its commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of any Registration Statement
as promptly as reasonably practicable;
6.2.4 upon
the occurrence of any event contemplated in Section 6.2.2, except for such times as the Company is permitted hereunder to suspend,
and has suspended, the use of a prospectus forming part of a Registration Statement, the Company shall use its commercially reasonable
efforts to as promptly as reasonably practicable prepare a post-effective amendment to such Registration Statement or a supplement to
the related prospectus, or file any other required document so that, as thereafter delivered to purchasers of the Registrable Securities
included therein, such prospectus will not include any untrue statement of a material fact or omit to state any material fact necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading;
6.2.5 use
its commercially reasonable efforts to cause all Securities to be listed on each securities exchange or market, if any, on which the
Common Stock issued by the Company have been listed; and
6.2.6 use
its commercially reasonable efforts to take all other steps necessary to effect the registration of the Registrable Securities contemplated
hereby.
6.3 Notwithstanding
anything to the contrary in this Subscription Agreement, the Company shall be entitled to delay or postpone the effectiveness of the
Registration Statement, and from time to time to require Subscriber not to sell under the Registration Statement or to suspend the effectiveness
thereof, (i) if any information (e.g., compensation data) is not readily available and the non-disclosure of which in the Registration
Statement would be expected, in the reasonable determination of the Company’s board of directors, upon the advice of external legal
counsel, to cause the Registration Statement to fail to comply with applicable disclosure requirements, (ii) at any time the Company
is required to file a post-effective amendment to the Registration Statement and the Commission has not declared such amendment effective
or (iii) if the negotiation or consummation of a transaction by the Company or its subsidiaries is pending or an event has occurred,
which negotiation, consummation or event, the Company’s board of directors reasonably believes, upon the advice of external legal
counsel, would require additional disclosure by the Company in the Registration Statement of material non-public information that the
Company has a bona fide business purpose for keeping confidential and the non-disclosure of which in the Registration Statement would
be expected, in the reasonable determination of the Company’s board of directors, upon the advice of external legal counsel, to
cause the Registration Statement to fail to comply with applicable disclosure requirements (each such circumstance, a “Suspension
Event”); provided, however, the Company shall not so delay filing or so suspend the use of the Registration Statement on more
than two (2) occasions or for a period of more than sixty (60) consecutive days or more than a total of ninety (90) calendar days,
in each case in any three hundred sixty (360) day period. Upon receipt of any written notice from the Company of the happening of any
Suspension Event during the period that the Registration Statement is effective or if as a result of a Suspension Event the Registration
Statement or related prospectus contains any untrue statement of a material fact or omits to state any material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under which they were made (in the case of the
prospectus) not misleading, Subscriber agrees that (i) it will immediately discontinue offers and sales of the Registrable Securities
under the Registration Statement (excluding, for the avoidance of doubt, sales conducted pursuant to Rule 144) until such Subscriber
receives copies of a supplemental or amended prospectus (which the Company agrees to promptly prepare after the completion of the Suspension
Event) that corrects the misstatement(s) or omission(s) referred to above and receives notice that any post-effective amendment
has become effective or unless otherwise notified by the Company that it may resume such offers and sales, and (ii) it will maintain
the confidentiality of any information included in such written notice delivered by the Company unless otherwise required by law or subpoena.
If so directed by the Company, Subscriber will deliver to the Company or, in such Subscriber’s sole discretion destroy, all copies
of the prospectus covering the Registrable Securities in such Subscriber’s possession; provided, however, that this obligation
to deliver or destroy all copies of the prospectus covering the Registrable Securities shall not apply (i) to the extent such Subscriber
is required to retain a copy of such prospectus (a) in order to comply with applicable legal, regulatory, self-regulatory or professional
requirements or (b) in accordance with a bona fide pre-existing document retention policy or (ii) to copies stored electronically
on archival servers as a result of automatic data back-up.
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6.4 The
Company shall indemnify, defend and hold harmless Subscriber (to the extent a seller under the Registration Statement), and any of its
officers, directors, agents, partners, members, stockholders, affiliates, managers, investment advisers and employees, and each person
who controls Subscriber (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the
officers, directors, members, managers, partners, agents and employees of each such controlling person, to the fullest extent permitted
by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including reasonable out-of-pocket external
attorneys’ fees and expenses incurred in connection with defending or investigating any such action or claim) and expenses (collectively,
“Losses”), as incurred, that arise out of or are based upon any untrue or alleged untrue statement of a material fact
contained in the Registration Statement, any prospectus included in the Registration Statement or any form of prospectus or in any amendment
or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus or form of prospectus
or supplement thereto, in the light of the circumstances under which they were made) not misleading, except insofar as and to the extent,
but only to the extent, that such untrue statements, alleged untrue statements, omissions or alleged omissions are based upon information
regarding Subscriber furnished in writing to the Company by such Subscriber expressly for use therein in connection with the registration
of the Common Stock; provided, however, that the indemnification contained in this Section 6 shall not apply to amounts paid in
settlement of any Losses if such settlement is effected without the consent of the Company, nor shall the Company be liable for any Losses
to the extent they arise out of or are based upon a violation which occurs (A) in reliance upon and in conformity with written
information furnished by such Subscriber, (B) in connection with any failure of such person to deliver or cause to be delivered
a prospectus made available by the Company in a timely manner, (C) as a result of offers or sales effected by or on behalf of any
person by means of a “free writing prospectus” (as defined in Rule 405 under the Securities Act) that was not authorized
in writing by the Company, or (D) in connection with any offers or sales effected by or on behalf of such Subscriber in violation
of Section 6.3 hereof. Subscriber shall notify the Company promptly of the institution of any proceeding arising from or in connection
with the transactions contemplated by this Section 6 of which Subscriber becomes aware, provided that a failure by Subscriber to
provide such notice shall not impact Subscriber’s right to be indemnified hereunder unless the Company is actually prejudiced thereby.
Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of an indemnified party and
shall survive the transfer of the Securities by Subscriber.
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6.5 Subscriber
shall (severally and not jointly with any Other Subscriber) indemnify and hold harmless the Company, its directors, officers, agents
and employees, and each person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20
of the Exchange Act), to the fullest extent permitted by applicable law, from and against all Losses, as incurred, arising out of or
are based upon any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any prospectus included
in the Registration Statement, or any form of prospectus, or in any amendment or supplement thereto or in any preliminary prospectus,
or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make
the statements therein (in the case of any prospectus, or any form of prospectus or supplement thereto, in light of the circumstances
under which they were made) not misleading to the extent, but only to the extent, that such untrue statements or omissions are based
solely upon information regarding Subscriber furnished in writing to the Company by Subscriber expressly for use therein; provided, however,
that the indemnification contained in this Section 6 shall not apply to amounts paid in settlement of any Losses if such settlement
is effected without the consent of Subscriber. In no event shall the liability of Subscriber be greater in amount than the dollar amount
of the net proceeds received by Subscriber upon the sale of the Registrable Securities giving rise to such indemnification obligation.
The Company shall notify Subscriber promptly of the institution of any proceeding arising from or in connection with the transactions
contemplated by this Section 6 of which the Company becomes aware, provided that a failure by the Company to provide such notice
shall not impact the Company’s right to be indemnified hereunder unless Subscriber is actually prejudiced thereby. Such indemnity
shall remain in full force and effect regardless of any investigation made by or on behalf of an indemnified party and shall survive
the transfer of the Securities by Subscriber.
6.6 If
the indemnification provided under this Section 6 from the indemnifying party is unavailable or insufficient to hold harmless an
indemnified party in respect of any losses, claims, damages, liabilities and expenses referred to herein, then the indemnifying party,
in lieu of indemnifying the indemnified party, shall contribute to the amount paid or payable by the indemnified party as a result of
such losses, claims, damages, liabilities and expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying
party and the indemnified party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party
and indemnified party shall be determined by reference to, among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission to state a material fact, was made by, or relates to information
supplied by, such indemnifying party or indemnified party, and the indemnifying party’s and indemnified party’s relative
intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as
a result of the losses or other liabilities referred to above shall be deemed to include, subject to the limitations set forth in this
Section 6, any legal or other fees, charges or expenses reasonably incurred by such party in connection with any investigation
or proceeding. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution pursuant to this Section 6 from any person who was not guilty of such fraudulent misrepresentation.
Each indemnifying party’s obligation to make a contribution pursuant to this Section 6.6 shall be individual, not joint and
several, and in no event shall the liability of Subscriber hereunder be greater in amount than the dollar amount of the net proceeds
received by Subscriber upon the sale of the Registrable Securities giving rise to such indemnification obligation.
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7. Miscellaneous.
7.1 Further
Assurances. At the Closing, the parties hereto shall execute and deliver such additional documents and take such additional actions
as the parties reasonably may deem to be practical and necessary in order to consummate the Subscription as contemplated by this Subscription
Agreement.
7.1.1 Subscriber
acknowledges that the Company, Forge Nano and others will rely on the acknowledgments, understandings, agreements, representations and
warranties contained in this Subscription Agreement. Subscriber agrees to promptly notify the Company and Forge Nano if any of the acknowledgments,
understandings, agreements, representations and warranties made by Subscriber set forth herein are no longer accurate in all material
respects.
7.1.2 Each
of the Company, Forge Nano and Subscriber is entitled to rely upon this Subscription Agreement and is irrevocably authorized to produce
this Subscription Agreement or a copy hereof to any interested party in any administrative or legal proceeding or official inquiry with
respect to the matters covered hereby, in each case, to the extent required by applicable law.
7.1.3 The
Company may request from Subscriber such additional information as the Company may deem reasonably necessary to evaluate the eligibility
of Subscriber to acquire the Securities, and Subscriber shall use reasonable best efforts to promptly provide such information as may
be reasonably requested, to the extent readily available and to the extent consistent with its internal policies and procedures, provided
that the Company agrees to keep confidential any such information provided by Subscriber.
7.2 Notices.
Any notice or communication required or permitted hereunder shall be in writing and either delivered personally, emailed or sent by overnight
mail via a reputable overnight carrier, or sent by certified or registered mail, postage prepaid, and shall be deemed to be given and
received (a) when so delivered personally, (b) when sent, with affirmative confirmation of receipt, if sent by email, (c) one
(1) business day after being sent, if sent by reputable, internationally recognized overnight courier service or (d) three
(3) business days after the date of mailing by registered or certified mail (prepaid and return receipt requested), in any case,
to the address below or to such other address or addresses as such person may hereafter designate by notice given hereunder:
(i) if
to Subscriber, to such address or addresses set forth on the signature page hereto;
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(ii) if
to the Company (prior to the Closing), to:
ATII Holdings Inc.
2093 Philadelphia Pike #1968
Claymont, DE 19703
Attn: *******
E-mail: *******
with a required copy to (which copy shall not constitute
notice):
Loeb & Loeb LLP
345 Park Avenue, 19th Floor
New York, NY 10154
Attention: *******
E-mail: *******
(iii) if
to Forge Nano, to:
Forge Nano, Inc.
12300 Grant Street, Suite 110
Thornton, CO 80241
Attn: Michael Kleinberg
Telephone No.: *******
E-mail: *******
with a required copy to (which copy shall not constitute
notice):
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019-6064
Attn: *******
Telephone No.: *******
E-mail: *******
(iv) if
to the Company (following the Closing), to:
Forge Nano Holdings Inc.
12300 Grant Street, Suite 110
Thornton, CO 80241
Attn: *******
Telephone No.: *******
E-mail: *******
with a required copy to (which copy shall not constitute
notice):
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019-6064
Attn: *******
Telephone No.: *******
E-mail: *******
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7.3 Entire
Agreement. This Subscription Agreement constitutes the entire agreement, and supersedes all other prior agreements, understandings,
representations and warranties, both written and oral, among the parties, with respect to the subject matter hereof (other than any confidentiality
agreement entered into by the Company and Subscriber in connection with the Offering).
7.4 Modifications
and Amendments. This Subscription Agreement may not be modified, waived or terminated except by an instrument in writing, signed
by the parties hereto.
7.5 Waivers
and Consents. The terms and provisions of this Subscription Agreement may be waived, or consent for the departure therefrom granted,
only by a written document executed by the party against whom enforcement of such waiver or consent is sought. No such waiver or consent
shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Subscription Agreement,
whether or not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it
was given, and shall not constitute a continuing waiver or consent. No failure or delay by a party hereto in exercising any right, power
or remedy under this Subscription Agreement, and no course of dealing between the parties hereto, shall operate as a waiver of any such
right, power or remedy of such party. No single or partial exercise of any right, power or remedy under this Subscription Agreement by
a party hereto, nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, shall preclude such party
from any other or further exercise thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy
by a party hereto shall not constitute a waiver of the right of such party to pursue other available remedies. No notice to or demand
on a party not expressly required under this Subscription Agreement shall entitle the party receiving such notice or demand to any other
or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the party giving such notice or
demand to any other or further action in any circumstances without such notice or demand.
7.6 Assignment.
Neither this Subscription Agreement nor any rights, interests or obligations that may accrue to the Subscriber hereunder (other than
the Securities acquired hereunder by Subscriber, if any, after the Closing) may be transferred or assigned without the prior written
consent of the Company, and any purported transfer or assignment without such consent shall be null and void ab initio; provided,
however, Subscriber may transfer or assign its rights, interests and obligations hereunder to a controlled affiliate of Subscriber
or another investment fund or account managed or advised by the same manager as Subscriber (or a related party or affiliate) that can
satisfy the requirements of Section 2.1.4 and the other representations and warranties in Section 2.1; provided, further,
that no such transfer or assignment without the prior express written consent of the Company shall release Subscriber of its obligations
hereunder and such transferee(s) or assignee(s), as applicable, agrees in writing to be bound by the terms hereof as if it were
the original Subscriber party hereto.
7.7 Benefit.
Except as otherwise provided herein, this Subscription Agreement shall be binding upon, and inure to the benefit of the parties hereto
and their heirs, executors, administrators, successors, legal representatives, and permitted assigns, and the agreements, representations,
warranties, covenants and acknowledgments contained herein shall be deemed to be made by, and be binding upon, such heirs, executors,
administrators, successors, legal representatives and permitted assigns. Except as expressly provided for herein, this Subscription Agreement
shall not confer rights or remedies upon any person other than the parties hereto and their respective successors and permitted assigns.
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7.8 Governing
Law. This Subscription Agreement, and any claim or cause of action hereunder based upon, arising out of or related to this Subscription
Agreement (whether based on law, in equity, in contract, in tort or any other theory) or the negotiation, execution, performance or enforcement
of this Subscription Agreement, shall be governed by and construed in accordance with the laws of the State of New York, without giving
effect to the principles of conflicts of law thereof.
7.9 Consent
to Jurisdiction; Waiver of Jury Trial. The parties hereto agree to submit any matter or dispute resulting from or arising out of
the execution, performance, interpretation, breach or termination of this Agreement to the exclusive jurisdiction of federal or state
courts within the County of New York, State of New York (and any appellate courts thereof) (the “Specified Courts”).
Each of the parties agrees that service of any process, summons, notice or document in the manner set forth in Section 7.2 hereof
or in such other manner as may be permitted by applicable law, shall be effective service of process for any proceeding with respect
to any matters to which it has submitted to jurisdiction in this Section 7.9. Each of the parties hereto irrevocably and unconditionally
agrees that it is subject to, and hereby submits to, the personal jurisdiction of the Specified Courts for any action, suit or proceeding
arising out of this Subscription Agreement or the transactions contemplated hereunder and waives any objection to the laying of venue
in the Specified Courts (the United States District Court for the Southern District of New York, or the applicable New York state courts
if the federal jurisdictional standards are not satisfied), and hereby further irrevocably and unconditionally waives and agrees not
to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient
forum. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ITS RIGHTS TO A TRIAL BY JURY.
7.10 Non-Reliance
and Exculpation. Subscriber acknowledges that it is not relying upon, and has not relied upon, any statement, representation or warranty
made by any person other than the statements, representations and warranties of the Company expressly contained in Section 2.2
of this Subscription Agreement, in making its investment or decision to invest in the Company. Subscriber further acknowledges and agrees
that no Other Subscriber pursuant to Other Subscription Agreements (including the controlling persons, members, officers, directors,
partners, agents, employees or other representatives of any such Other Subscriber) shall be liable to Subscriber pursuant to this Subscription
Agreement for any action heretofore or hereafter taken or omitted to be taken by any of them in connection with the purchase of the Securities.
7.11 Severability.
If any provision of this Subscription Agreement shall be invalid, illegal or unenforceable, the validity, legality or enforceability
of the remaining provisions of this Subscription Agreement shall not in any way be affected or impaired thereby and shall continue in
full force and effect. Upon such determination that any provision is invalid, illegal or unenforceable, the parties will substitute for
any invalid, illegal or unenforceable provision a suitable and equitable provision that carries out so far as may be valid, legal and
enforceable, the intent and purpose of such invalid, illegal or unenforceable provision.
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7.12 Survival
of Representations and Warranties. All representations and warranties made by the parties hereto in this Subscription Agreement or
in any other agreement, certificate or instrument provided for or contemplated hereby, shall survive the Closing until the expiration
of any statute of limitations under applicable law.
7.13 Expenses.
Each of the parties hereto shall pay all of its own expenses in connection with this Subscription Agreement and the transactions contemplated
herein.
7.14 Headings
and Captions. The headings and captions of the various subdivisions of this Subscription Agreement are for convenience of reference
only and shall in no way modify or affect the meaning or construction of any of the terms or provisions hereof.
7.15 Counterparts.
This Subscription Agreement may be executed in one or more counterparts (including by facsimile or electronic mail or in .pdf), all of
which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed
by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event
that any signature is delivered by facsimile transmission or any other form of electronic delivery, such signature shall create a valid
and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such
signature page were an original thereof.
7.16 Construction.
The words “include,” “includes,” and “including” will be deemed to be followed
by “without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to include any other
gender, and words in the singular form will be construed to include the plural and vice versa, unless the context otherwise requires.
The words “this Subscription Agreement,” “herein,” “hereof,” “hereby,”
“hereunder,” and words of similar import refer to this Subscription Agreement as a whole and not to any particular
subdivision unless expressly so limited. The parties hereto intend that each representation, warranty, and covenant contained herein
will have independent significance. If any party hereto has breached any representation, warranty, or covenant contained herein in any
respect, the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the
relative levels of specificity) which such party hereto has not breached will not detract from or mitigate the fact that such party hereto
is in breach of the first representation, warranty, or covenant. All references in this Subscription Agreement to numbers of shares,
per share amounts and purchase prices shall be appropriately adjusted to reflect any stock split, stock dividend, stock combination,
recapitalization or the like occurring after the date hereof. As used in this Subscription Agreement, the term: (x) “person”
shall refer to any individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind; and (y) “affiliate”
shall mean, with respect to any specified person, any other person or group of persons acting together that, directly or indirectly,
through one or more intermediaries controls, is controlled by or is under common control with such specified person (where the term “control”
(and any correlative terms) means the possession, direct or indirect, of the power to direct or cause the direction of the management
and policies of such person, whether through the ownership of voting securities, by contract or otherwise).
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7.17 Mutual
Drafting. This Subscription Agreement is the joint product of Subscriber, the Company and Forge Nano and each provision hereof has
been subject to the mutual consultation, negotiation and agreement of such parties and shall not be construed for or against any party
hereto.
7.18 Remedies.
7.18.1 The
parties agree that irreparable damage would occur if this Subscription Agreement was not performed in accordance with its specific terms
or was otherwise breached and that money damages or other legal remedies would not be an adequate remedy for any such damage. It is accordingly
agreed that the parties hereto shall be entitled to equitable relief, including in the form of an injunction or injunctions, to prevent
breaches or threatened breaches of this Subscription Agreement and to enforce specifically the terms and provisions of this Subscription
Agreement in an appropriate court of competent jurisdiction as set forth in Section 7.9, this being in addition to any other remedy
to which any party is entitled at law or in equity, including money damages. The right to specific enforcement shall include the right
of the parties hereto to cause to cause the other parties hereto to cause the transactions contemplated hereby to be consummated on the
terms and subject to the conditions and limitations set forth in this Subscription Agreement. The parties hereto further agree (i) to
waive any requirement for the security or posting of any bond in connection with any such equitable remedy, (ii) not to assert
that a remedy of specific enforcement pursuant to this Section 7.18 is unenforceable, invalid, contrary to applicable law or inequitable
for any reason and (iii) to waive any defenses in any action for specific performance, including the defense that a remedy at law
would be adequate.
7.18.2 The
parties acknowledge and agree that this Section 7.18 is an integral part of the transactions contemplated hereby and without that
right, the parties hereto would not have entered into this Subscription Agreement.
8. Disclosure.
8.1 The
SPAC shall, by 5:30 p.m., New York City time, on the first (1st ) business day immediately following the date of this Subscription
Agreement file a Current Report on Form 8-K with the Commission (the time of such filing, “Disclosure Time”)
disclosing and describing all material terms of the transactions contemplated hereby and the Transaction Agreement, and a form of this
Subscription Agreement will be filed with the Commission as an exhibit thereto. From and after the Disclosure Time, the Company represents
to Subscriber that it shall have publicly disclosed all material, non-public information delivered to Subscriber by the Company, Forge
Nano or any of their officers, directors, employees or agents in connection with the transactions contemplated by the Subscription Agreement
and the Transaction Agreement, and Subscriber shall no longer be subject to any confidentiality or similar obligations under any current
agreement, whether written or oral with Company or any of their affiliates, relating to the transactions contemplated by this Subscription
Agreement and the Transaction Agreement.
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8.2 Notwithstanding
anything in this Subscription Agreement to the contrary, none of the SPAC, the Company or Forge Nano shall publicly disclose the name
of Subscriber or any of its affiliates, or include the name of Subscriber or any of its affiliates in any press release or in any filing
with the Commission or any regulatory agency or trading market, without the prior written consent of Subscriber, except (i) as
required by the federal securities law in connection with the Registration Statement, and (ii) to the extent such disclosure is
required by law, at the request of the Staff of the Commission or regulatory agency or under the regulations of Nasdaq, in which case
under clause (i) or (ii) above, the Company shall provide Subscriber with prior written notice of such disclosure, and shall
reasonably consult with the Subscriber regarding such disclosure.
9. Trust
Account Waiver. Subscriber acknowledges that the SPAC is a blank check company with the powers and privileges to effect a merger,
asset acquisition, reorganization or similar business combination involving the SPAC and one or more businesses or assets. Subscriber
further acknowledges that, as described in the Prospectus available at www.sec.gov, substantially all of the SPAC’s assets consist
of the cash proceeds of SPAC’s initial public offering (including overallotment securities sold by the SPAC’s underwriter
thereafter) and private placements of its securities, and substantially all of those proceeds have been deposited in a trust account
(the “Trust Account”) for the benefit of SPAC, its public shareholders and the underwriters of SPAC’s initial
public offering. Except with respect to interest earned on the funds held in the Trust Account that may be released to SPAC to pay its
tax obligations, if any, the cash in the Trust Account may be disbursed only for the purposes set forth in the Prospectus. For and in
consideration of the SPAC entering into this Subscription Agreement, the receipt and sufficiency of which are hereby acknowledged, Subscriber,
on behalf of itself and its representatives, hereby irrevocably waives any and all right, title and interest, or any claim of any kind
they now have or may have in the future, in or to any monies held in the Trust Account or distributions therefrom to the SPAC’s
public stockholders, and agrees not to seek recourse against the Trust Account for any claims in connection with, as a result of, or
arising out of, this Subscription Agreement or the transactions contemplated hereby; provided, however, that nothing in
this Section 9 (x) shall serve to limit or prohibit Subscriber’s right to pursue a claim against SPAC for legal
relief against assets held outside the Trust Account (other than distributions to the SPAC’s public stockholders), for specific
performance or other equitable relief, (y) shall serve to limit or prohibit any claims that Subscriber may have in the future against
SPAC’s assets or funds that are not held in the Trust Account (including any funds that have been released from the Trust Account
(other than distributions to the SPAC’s public stockholders) and any assets that have been purchased or acquired with any such
funds) or (z) shall be deemed to limit any Subscriber’s right, title, interest or claim to the Trust Account by virtue of
such Subscriber’s record or beneficial ownership of securities of the SPAC acquired by any means other than pursuant to this Subscription
Agreement, including but not limited to any redemption right with respect to any such securities of the SPAC.
10. Reliance.
10.1 Subscriber
acknowledges that the Company and BTIG, LLC (the “Placement Agent”) will rely on the acknowledgements, understandings,
agreements, representations and warranties of Subscriber contained in this Subscription Agreement. Subscriber agrees to promptly notify
the Company and BTIG, LLC if it becomes aware that any of the acknowledgments, understandings, agreements, representations and warranties
of Subscriber set forth herein are no longer accurate in all material respects. Subscriber acknowledges and agrees that the purchase
by Subscriber of Securities from the Company will constitute a reaffirmation of the acknowledgments, understandings, agreements, representations
and warranties herein (as modified by any such notice) by Subscriber as of the time of such purchase. The Company acknowledges that Subscriber
and BTIG, LLC will rely on the acknowledgments, understandings, agreements, representations and warranties of the Company contained in
this Subscription Agreement.
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10.2 Each
of the Company and BTIG, LLC and Subscriber is irrevocably authorized to produce this Subscription Agreement or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby to the extent
required by law or regulatory bodies.
Subscriber agrees that BTIG,
LLC shall not be liable to it (including in contract, tort, under federal or state securities laws or otherwise) for any action heretofore
or hereafter taken or omitted to be taken by any of them in good faith in connection with the transactions contemplated herein and the
purchase and sale of the Securities hereunder. On behalf of Subscriber and its affiliates, Subscriber releases BTIG, LLC in respect of
any Losses related to the transactions contemplated herein and the purchase and sale of Securities hereunder. Subscriber agrees not to
commence any litigation or bring any claim against BTIG, LLC in any court or other forum which relates to, may arise out of, or is in
connection with, the transactions contemplated herein and the purchase and sale of the Securities hereunder absent BTIG’s gross
negligence and willful misconduct. The undertaking is given freely and after obtaining independent legal advice. Subscriber acknowledges
that BTIG, LLC will receive a fee from SPAC with respect to the sale of Securities and a deferred underwriting commission in connection
with the SPAC’s initial public offering.
[Signature Pages Follow]
32
IN
WITNESS WHEREOF, each of the Company, Forge Nano, SPAC and Subscriber has executed or caused this Subscription Agreement to
be executed by its duly authorized representative as of the date first set forth above.
ATII HOLDINGS INC.
By:
Name:
Title:
FORGE NANO, INC.
By:
Name:
Title:
SOLELY FOR PURPOSES OF SECTION 8
Archimedes
Tech SPAC Partners II Co.
By:
Name:
Title:
[Signature page to Subscription Agreement]
Accepted and agreed as of the date first set
forth above.
SUBSCRIBER:
Name
of Subscriber:
Name
of Joint Subscriber, if applicable
(Please
print)
(Please
print)
Signature
of Subscriber:
Signature
of Joint Subscriber, if applicable:
By:
By:
Name:
Name:
Title:
Title:
If
there are joint investors, please check one:
¨
Joint
Tenants with Rights of Survivorship
¨
Community
Property
¨
Tenants-in-Common
Subscriber’s
Joint
Subscriber’s EIN:
EIN:
Business
Address-Street:
Mailing
Address-Street (if different):
City,
State, Zip:
City,
State, Zip:
Country:
Country:
Attn:
Attn:
Telephone
No.:
Telephone
No.:
Facsimile
No:
Facsimile
No:
Address:
Address:
Aggregate Purchase Price: $
Subscriber must pay the Purchase Price by wire
transfer of U.S. dollars in immediately available funds to the account specified by the Company in the Notice.
If Subscriber wants certificated Securities rather
than book-entry form, indicate here: _________
[Signature page to Subscription Agreement]
SCHEDULE
A
ELIGIBILITY REPRESENTATIONS OF SUBSCRIBER
This Schedule A should be completed by Subscriber
and constitutes a part of the Subscription Agreement.
A. QUALIFIED
INSTITUTIONAL BUYER STATUS
(Please check the applicable subparagraphs):
1. ¨
Subscriber is a “qualified institutional buyer” (as defined in Rule 144A
under the Securities Act of 1933, as amended (the “Securities Act”) (a
“QIB”)).
2. ¨
Subscriber is subscribing for the Securities as a fiduciary or agent for one or more investor
accounts, and each owner of such account is a QIB.
*** OR ***
B. INSTITUTIONAL
ACCREDITED INVESTOR STATUS
(Please check the applicable subparagraphs):
1. ¨
Subscriber is an institutional “accredited investor” (within the meaning of Rule 501(a) under
the Securities Act), and have marked and initialed the appropriate box on the following page indicating
the provision under which we qualify as an institutional “accredited investor.”
2. ¨
Subscriber is not a natural person.
*** AND ***
C. AFFILIATE
STATUS
(Please check the applicable box) SUBSCRIBER:
¨ is:
¨ is
not
an “affiliate” (as defined
in Rule 144 under the Securities Act) of the Company or acting on behalf of an affiliate of the Company.
Rule 501(a), in relevant part, states that
an “accredited investor” shall mean any person who comes within any of the below listed categories, or who the issuer reasonably
believes comes within any of the below listed categories, at the time of the sale of the securities to that person. Subscriber has indicated,
by marking and initialing the appropriate box below, the provision(s) below which apply to Subscriber and under which Subscriber
accordingly qualifies as an “accredited investor.”
Sch. A-1
¨ Any
bank as defined in section 3(a)(2) of the Securities Act, or any savings and loan association
or other institution as defined in section 3(a)(5)(A) of the Securities Act whether
acting in its individual or fiduciary capacity;
¨ Any
broker or dealer registered pursuant to section 15 of the Exchange Act;
¨ Any
investment adviser registered pursuant to section 203 of the Investment Advisers Act of 1940
or registered pursuant to the laws of a state;
¨ Any
investment adviser relying on the exemption from registering with the Commission under section
203(l) or (m) of the Investment Advisers Act of 1940;
¨ Any
insurance company as defined in section 2(a)(13) of the Securities Act;
¨ Any
investment company registered under the Investment Company Act or a business development
company as defined in section 2(a) (48) of the Investment Company Act;
¨ Any
Small Business Investment Company licensed by the U.S. Small Business Administration under
section 301(c) or (d) of the Small Business Investment Act of 1958;
¨ Any
Rural Business Investment Company as defined in section 384A of the Consolidated Farm and
Rural Development Act;
¨ Any
plan established and maintained by a state, its political subdivisions, or any agency or
instrumentality of a state or its political subdivisions for the benefit of its employees,
if such plan has total assets in excess of $5,000,000;
¨ Any
employee benefit plan within the meaning of the Employee Retirement Income Security Act of
1974 (“ERISA”), if (i) the investment decision is made by a plan
fiduciary, as defined in section 3(21) of ERISA, which is either a bank, a savings and loan
association, an insurance company, or a registered investment adviser, (ii) the employee
benefit plan has total assets in excess of $5,000,000 or, (iii) the plan is a self-directed
plan, with investment decisions made solely by persons that are “accredited investors”;
¨ Any
private business development company as defined in section 202(a)(22) of the Investment Advisers
Act of 1940;
¨ Any
(i) corporation, limited liability company or partnership, (ii) Massachusetts
or similar business trust, or (iii) organization described in section 501(c)(3) of
the Internal Revenue Code, in each case that was not formed for the specific purpose of acquiring
the securities offered and that has total assets in excess of $5,000,000;
Sch. A-2
¨ Any
trust, with total assets in excess of $5,000,000, not formed for the specific purpose of
acquiring the securities offered, whose purchase is directed by a sophisticated person as
described in section 230.506(b)(2)(ii) of Regulation D under the Securities Act;
¨ Any
entity, other than an entity described in the categories of “accredited investors”
above, not formed for the specific purpose of acquiring the securities offered, owning investments
in excess of $5,000,000;
¨ Any
“family office,” as defined under the Investment Advisers Act that satisfies
all of the following conditions: (i) with assets under management in excess of $5,000,000,
(ii) that is not formed for the specific purpose of acquiring the securities offered
and (iii) whose prospective investment is directed by a person who has such knowledge
and experience in financial and business matters that such family office is capable of evaluating
the merits and risks of the prospective investment;
¨ Any
“family client,” as defined under the Investment Advisers Act, of a family office
meeting the requirements in the previous paragraph and whose prospective investment in the
issuer is directed by such family office pursuant to the previous paragraph; or
¨ Any
entity in which all of the equity owners are accredited investors.
¨ I
have an individual net worth, or joint net worth with my spouse or spousal equivalent, of
more than $1,000,000 exclusive of the value of my primary residence.
(For purposes of determining net worth,
exclude the value of your primary residence as well as the amount of indebtedness secured by your primary residence, up to the fair market
value. Any amount in excess of the fair market value of your primary residence must be included as a liability. In the event the indebtedness
on your primary residence was increased in the 60 days preceding the completion of this Agreement, the amount of the increase must be
included as a liability in the net worth calculation. For this purpose, “joint net worth” can be the aggregate net worth
of the investor and spouse or spousal equivalent; assets need not be held jointly to be included in the calculation. Reliance on the
joint net worth standard described herein does not require that the securities be purchased jointly. For this purpose, “spousal
equivalent” means a cohabitant occupying a relationship generally equivalent to that of a spouse.)
☐ I
have an individual income in excess of $200,000, or joint income with my spouse or spousal
equivalent in excess of $300,000, in each of the 2 most recent years and I have a reasonable
expectation of reaching the same income level in the current year.
☐ I
hold, in good standing, 1 or more professional certifications or designations or credentials
from an accredited educational institution that the SEC has designated as qualifying an individual
for accredited investor status and which the SEC has posted as qualifying. (For this purpose,
the SEC has posted the following qualifying professional certifications: holders in good
standing of FINRA Series 7, Series 65, and Series 82 licenses.)
Sch. A-3
SCHEDULE B
EXEMPT ISSUANCES
(A) Samsung
SDI Co., Ltd.;
(B) Bowon
M&P Co., Ltd.*; and
(C) direct
or indirect equity holders of Forge Nano, Inc.
*Of the $60 million permitted pursuant to clause
(c) of the definition of Exemption Issuance, no more than $20 million of such proceeds shall come from Bowon M&P Co., Ltd.
and its affiliates.
Sch. B-1
EX-10.3 — EXHIBIT 10.3
EX-10.3
Filename: tm2628316d1_ex10-3.htm · Sequence: 9
Exhibit 10.3
Execution Version
AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT
by and among
ATII HOLDINGS INC.
and
THE STOCKHOLDERS THAT ARE SIGNATORIES HERETO
Dated as of October 22, 2026
TABLE OF CONTENTS
Page
Article
1
Certain Definitions
Section 1.01. Definitions
1
Article
2
Registration Rights
Section 2.01. Demand Registrations
4
Section 2.02. Piggyback Registrations
7
Section 2.03. Allocation of Securities Included in Registration Statement
8
Section 2.04. Registration Procedures
10
Section 2.05. Registration Expenses
14
Section 2.06. Certain Limitations on Registration Rights
15
Section 2.07. Limitations on Sale or Distribution of Other Securities
15
Section 2.08. No Required Sale
15
Section 2.09. Indemnification
15
Article
3
Underwritten Offerings
Section 3.01. Requested Underwritten Offerings
18
Section 3.02. Piggyback Underwritten Offerings
18
Article
4
General
Section 4.01. Adjustments Affecting Registrable Securities
19
Section 4.02. Rule 144
19
Section 4.03. Nominees for Beneficial Owners
19
Section 4.04. Amendments and Waivers
19
Section 4.05. Notices
19
Section 4.06. Successors and Assigns
20
Section 4.07. Termination
20
Section 4.08. Entire Agreement
20
Section 4.09. Governing Law; Jurisdiction; Waiver of Jury Trial
20
Section 4.10. Interpretation; Construction
20
Section 4.11. Counterparts
21
Section 4.12. Severability
21
Section 4.13. Specific Enforcement
21
Section 4.14. Further Assurances
21
Section 4.15. Opt-Out Requests
21
Section 4.16. Original Registration Rights Agreement
21
Exhibit A Joinder Agreement
i
Execution Version
AMENDED AND RESTATED REGISTRATION
RIGHTS AGREEMENT, dated as of October 22, 2026 (as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”),
is made and entered into by and among (i) ATII Holdings, Inc., a Delaware corporation (the “Company”), (ii) the stockholders
of the Company party hereto (the “Stockholders”) and (iii) any person or entity who hereafter becomes a party to this
Agreement pursuant to Section 4.06 of this Agreement (each, a “Holder” and collectively with the Stockholders, the
“Holders”).
RECITALS:
WHEREAS, the Company
has entered into an Agreement and Plan of Merger, dated as of April 20, 2026 (as amended from time to time on or prior to the date hereof,
the “Merger Agreement”), among (i) the Company, (ii) Archimedes Tech SPAC Partners II Co., a Cayman Islands
exempted company (the “Purchaser”), (iii) Forge Nano, Inc., a Delaware corporation (“Forge Nano”),
(iv) ATII Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of the Purchaser (“Merger Sub I”),
(v) ATII Merger Sub II, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Purchaser (“Merger Sub
II”), pursuant to which (i) the Purchaser merged with and into the Company, with the Company continuing as the surviving corporation,
(ii) Merger Sub I merged with and into Forge Nano, with Forge Nano continuing as the surviving corporation (the “First Company
Merger”), and immediately thereafter, Forge Nano merged with and into Merger Sub II, with Merger Sub II continuing as
the surviving company (the “Second Company Merger” and together with the First Company Merger, the “Company
Mergers”);
WHEREAS, the Purchaser,
Archimedes Tech SPAC Sponsors II LLC, a Delaware limited liability company and a Stockholder (the “Sponsor”), BTIG,
LLC and the other parties thereto are parties to that certain Registration Rights Agreement, dated as of February 10, 2025 (the “Original
Registration Rights Agreement”), which shall be amended and restated by this Agreement;
WHEREAS, following
the closing of the Company Mergers (the “Closing”), the Sponsor and the other Stockholders own shares of common stock,
par value $0.0001 per share, of the Company (the “Common Stock”) and Common Stock Equivalents (as defined herein);
WHEREAS, in connection
with the Company Mergers, the Company has agreed to provide the registration rights set forth in this Agreement.
NOW, THEREFORE, in
consideration of the premises and of the mutual covenants and obligations hereinafter set forth, the parties hereto hereby agree as follows:
Article
1
Certain Definitions
Section 1.01.
Definitions. As used herein, the following terms shall have the following meanings:
“Additional Piggyback
Rights” has the meaning ascribed to such term in Section 2.03(a).
“Affiliate”
means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by or is under common control
with, such Person. For the purposes of this definition “control” (including, with correlative meanings, the terms “controlling”,
“controlled by” and “under common control with”), with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of such specified Person, whether through the
ownership of voting securities, by contract or otherwise. For the avoidance of doubt, neither the Company nor any Person controlled by
the Company shall be deemed to be an Affiliate of any Holder.
“Agreement”
has the meaning ascribed to such term in the Preamble.
“Automatic shelf
registration statement” has the meaning ascribed to such term in Section 2.04.
“Business Day”
means a day, other than Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by law
to close.
“Claims”
has the meaning ascribed to such term in Section 2.09(a).
“Common Stock”
has the meaning ascribed to such term in the recitals.
“Common Stock Equivalents”
means all options, warrants and other securities convertible into, or exchangeable or exercisable for (at any time or upon the occurrence
of any event or contingency and without regard to any vesting or other conditions to which such securities may be subject) shares of Common
Stock (including any note or debt security convertible into or exchangeable for shares of Common Stock).
“Company”
has the meaning ascribed to such term in the Preamble.
“Demand Exercise
Notice” has the meaning ascribed to such term in Section 2.01(b)(i).
“Demand Registration”
has the meaning ascribed to such term in Section 2.01(b)(i).
“Demand Registration
Period” has the meaning ascribed to such term in Section 2.01(b)(i).
“Demand Registration
Request” has the meaning ascribed to such term in Section 2.01(b)(i).
“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC issued under such Act, as they may from
time to time be in effect.
“Expenses”
means any and all fees and expenses incident to the Company’s performance of or compliance with Article 2, including: (i) SEC, stock
exchange, FINRA and all other registration and filing fees and all listing fees and fees with respect to the inclusion of securities on
The Nasdaq Stock Market or on any other U.S. or non-U.S. securities market on which the Registrable Securities are listed or quoted, (ii)
fees and expenses of compliance with state securities or “blue sky” laws of any state or jurisdiction of the United States
or compliance with the securities laws of foreign jurisdictions and in connection with the preparation of a “blue sky” survey,
including reasonable fees and expenses of outside “blue sky” counsel and securities counsel in foreign jurisdictions, (iii)
word processing, printing and copying expenses, (iv) messenger and delivery expenses, (v) expenses incurred in connection with any
road show, (vi) fees and disbursements of counsel for the Company, (vii) with respect to each registration or underwritten offering, the
reasonable fees and disbursements of one counsel for the Participating Holder(s) collectively (selected by the holders of a majority of
the Registrable Securities held by such Participating Holder(s)), together in each case with any local counsel, provided that expenses
payable by the Company pursuant to this clause (vii) shall not exceed (1) $150,000 for the first registration pursuant to this Agreement
and (2) $100,000 for each subsequent registration, (viii) fees and disbursements of all independent public accountants (including the
expenses of any opinion and/or audit/review and/or “comfort” letter and updates thereof) and fees and expenses of other Persons,
including special experts, retained by the Company, (ix) fees and expenses payable to a Qualified Independent Underwriter (but expressly
excluding any underwriting discounts and commissions), (x) fees and expenses of any transfer agent or custodian, (xi) any other fees and
disbursements of underwriters, if any, customarily paid by issuers or sellers of securities, including reasonable fees and expenses of
counsel for the underwriters in connection with any filing with or review by FINRA (but expressly excluding any underwriting discounts
and commissions) and (xii) rating agency fees and expenses.
“FINRA”
means the Financial Industry Regulatory Authority, Inc.
“Initiating Holders”
has the meaning ascribed to such term in Section 2.01(b)(i).
“Joinder Agreement”
means a writing in the form set forth in Exhibit A hereto whereby a new Holder of Registrable Securities becomes a party to, and agrees
to be bound, to the same extent as its transferor, as applicable, by the terms of this Agreement.
2
“Majority Participating
Holders” means Participating Holders holding more than 50% of the Registrable Securities proposed to be included in any offering
of Registrable Securities by such Participating Holders pursuant to Section 2.01 or Section 2.02.
“Manager”
means the lead managing underwriter of an underwritten offering.
“Minimum Threshold”
means $50.0 million.
“Opt-Out Request”
has the meaning ascribed to such term in Section 4.16.
“Participating Holders”
means all Holders of Registrable Securities which are proposed to be included in any offering of Registrable Securities pursuant to Section
2.01 or Section 2.02.
“Person”
means any individual, firm, corporation, company, limited liability company, partnership, trust, joint stock company, business trust,
incorporated or unincorporated association, joint venture, governmental authority or other legal entity of any nature whatsoever.
“Piggyback Notice”
has the meaning ascribed to such term in Section 2.02(a).
“Piggyback Shares”
has the meaning ascribed to such term in Section 2.03(a)(ii).
“Postponement Period”
has the meaning ascribed to such term in Section 2.01(c).
“Qualified Independent
Underwriter” means a “qualified independent underwriter” within the meaning of FINRA Rule 5121.
“Registrable Securities”
means (a) any shares of Common Stock and Common Stock Equivalents held by the Holders at any time (including those held as a result of,
or issuable upon, the conversion or exercise of Common Stock Equivalents), whether now owned or acquired by the Holders at a later time,
(b) any shares of Common Stock issued or issuable, directly or indirectly, in exchange for or with respect to the Common Stock referenced
in clause (a) above by way of stock dividend, stock split or combination of shares or in connection with a reclassification, recapitalization,
merger, share exchange, consolidation or other reorganization and (c) any securities issued in replacement of or exchange for any securities
described in clause (a) or (b) above. For purposes of this Agreement, a Person will be deemed to be a holder of Registrable Securities
whenever such Person has the right to acquire, directly or indirectly, such Registrable Securities (including upon conversion, exercise
or exchange of any equity interests but disregarding any restrictions or limitations upon the exercise of such right), whether or not
such acquisition has actually been effected, and such Person shall not be required to convert, exercise or exchange such equity interests
(or otherwise acquire such Registrable Securities) to participate in any registered offering hereunder until the closing of such offering.
As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when (A) a registration statement
with respect to the sale of such securities shall have been declared effective under the Securities Act and such securities shall have
been disposed of in accordance with such registration statement, (B) such securities shall have been disposed of in compliance with the
requirements of Rule 144, (C) such securities have been sold in a public offering of securities or (D) such securities have ceased to
be outstanding.
“Rule 144”
have the meaning ascribed to such term in Section 4.02.
“SEC” means
the U.S. Securities and Exchange Commission or such other federal agency which at such time administers the Securities Act.
“Section 2.03(a)
Sale Number” has the meaning ascribed to such term in Section 2.03(a).
“Section 2.03(b)
Sale Number” has the meaning ascribed to such term in Section 2.03(b).
“Section 2.03(c)
Sale Number” has the meaning ascribed to such term in Section 2.03(c).
3
“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations of the SEC issued under such Act, as they may from time to
time be in effect.
“Shelf Registrable
Securities” has the meaning ascribed to such term in Section 2.01(a)(ii).
“Shelf Registration
Statement” has the meaning ascribed to such term in Section 2.01(a)(i).
“Shelf Underwriting”
has the meaning ascribed to such term in Section 2.01(a)(ii).
“Shelf Underwriting
Initiating Holders” has the meaning ascribed to such term in Section 2.01(a)(ii).
“Shelf Underwriting
Notice” has the meaning ascribed to such term in Section 2.01(a)(ii).
“Shelf Underwriting
Request” has the meaning ascribed to such term in Section 2.01(a)(ii).
“Subsidiary”
means any direct or indirect subsidiary of the Company on the date hereof and any direct or indirect subsidiary of the Company organized
or acquired after the date hereof.
“Underwritten Block
Trade” has the meaning ascribed to such term in Section 2.01(a)(ii).
“Valid Business Reason”
has the meaning ascribed to such term in Section 2.01(c).
“WKSI”
means a “well-known seasoned issuer” (as defined in Rule 405 of the Securities Act).
Article
2
Registration Rights
Section 2.01.
Demand Registrations. (a) (i) As soon as practicable but no later than thirty (30) calendar days following the closing of the
Company Mergers (the “Filing Date”), the Company shall prepare and file with the SEC a shelf registration statement
under Rule 415 of the Securities Act (such registration statement, a “Shelf Registration Statement”) covering the resale
of all the Registrable Securities (determined as of two business days prior to such filing) on a delayed or continuous basis and shall
use its commercially reasonable efforts to have such Shelf Registration Statement declared effective as soon as practicable after the
filing thereof and no later than the earlier of (x) sixty (60) calendar days (or ninety (90) calendar days if the SEC notifies the Company
that it will “review” the Shelf Registration Statement) following the date hereof and (y) the fifth (5th) business day after
the date the Company is notified in writing by the SEC that such Shelf Registration Statement will not be “reviewed” or will
not be subject to further review. Such Shelf Registration Statement shall provide for the resale of the Registrable Securities included
therein pursuant to any method or combination of methods legally available to, and requested by, any Holder named therein. The Company
shall maintain the Shelf Registration Statement in accordance with the terms hereof, and shall prepare and file with the SEC such amendments,
including post-effective amendments, and supplements as may be necessary to keep a Shelf Registration Statement continuously effective,
available for use to permit all Holders named therein to sell their Registrable Securities included therein and in compliance with the
provisions of the Securities Act until such time as there are no longer any Registrable Securities.
4
(ii)
Subject to Section 2.01(c) and the provisions below with respect to the Minimum Threshold, following the expiration of any applicable
lock-up restrictions, each Holder (or Holders) shall have the right at any time and from time to time to elect to sell all or any part
of its Registrable Securities pursuant to an underwritten offering pursuant to the Shelf Registration Statement by delivering a written
request therefor to the Company specifying the number of Registrable Securities to be included in such registration and the intended method
of distribution thereof. The Holder or Holders shall make such election by delivering to the Company a written request (a “Shelf
Underwriting Request”) for such underwritten offering specifying the number of Registrable Securities that the Holder or Holders
desire to sell pursuant to such underwritten offering (the “Shelf Underwriting”). With respect to any Shelf Underwriting
Request, the Holder or Holders making such demand shall be referred to as the “Shelf Underwriting Initiating Holders”.
As promptly as practicable, but no later than two (2) Business Days after receipt of a Shelf Underwriting Request, the Company shall give
written notice (the “Shelf Underwriting Notice”) of such Shelf Underwriting Request to the Holders of record of other
Registrable Securities registered on such Shelf Registration Statement (“Shelf Registrable Securities”). The Company,
subject to Sections 2.03 and 2.06, shall include in such Shelf Underwriting (x) the Registrable Securities of the Shelf Underwriting Initiating
Holders and (y) the Shelf Registrable Securities of any other Holder of Shelf Registrable Securities which shall have made a written request
to the Company for inclusion in such Shelf Underwriting (which request shall specify the maximum number of Shelf Registrable Securities
intended to be disposed of by such Holder) within five (5) days after the receipt of the Shelf Underwriting Notice. The Company shall,
as expeditiously as possible (and in any event within fifteen (15) Business Days after the receipt of a Shelf Underwriting Request), but
subject to Section 2.01(b), use its reasonable best efforts to effect such Shelf Underwriting. The Company shall, at the request of any
Shelf Underwriting Initiating Holder or any other Holder of Registrable Securities registered on such Shelf Registration Statement, file
any prospectus supplement or, if the applicable Shelf Registration Statement is an automatic shelf registration statement, any post-effective
amendments and otherwise take any action necessary to include therein all disclosure and language deemed necessary or advisable by the
Shelf Underwriting Initiating Holders or any other Holder of Shelf Registrable Securities to effect such Shelf Underwriting. Notwithstanding
anything to the contrary in this Section 2.01(a)(ii), each Shelf Underwriting must include, in the aggregate, Registrable Securities having
an aggregate market value of at least the Minimum Threshold (based on the Registrable Securities included in such Shelf Underwriting by
all Participating Holders). In connection with any Shelf Underwriting (including an Underwritten Block Trade), the Shelf Underwriting
Initiating Holders shall have the right to designate the Manager and each other managing underwriter in connection with any such Shelf
Underwriting or Underwritten Block Trade; provided that in each case, each such underwriter is reasonably satisfactory to the Company,
which approval shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, if a Shelf Underwriting Initiating Holder
wishes to engage in an underwritten block trade or similar transaction or other transaction with a 2-day or less marketing period (collectively,
“Underwritten Block Trade”) off of a Shelf Registration Statement, then notwithstanding the foregoing time periods,
such Shelf Underwriting Initiating Holder only needs to notify the Company and the Holders of the Underwritten Block Trade five (5) Business
Days prior to the day such offering is to commence and the other Holders of record of other Registrable Securities shall not be entitled
to notice of such Underwritten Block Trade and shall not be entitled to participate in such Underwritten Block Trade. The Holders shall
be entitled to, and shall have one (1) Business Day from receipt of such notice to determine whether to, participate in such Underwritten
Block Trade.
(b) (i)
If the Shelf Registration Statement required to be filed pursuant to Section 2.01(a) is not available for use by the Holders other than
pursuant to Section 2.01(c) (a “Demand Registration Period”), then, at any time and from time to time during such
Demand Registration Period, each Holder (or Holders) shall have the right to require the Company to effect one or more registration statements
under the Securities Act covering all or any part of its Registrable Securities by delivering a written request therefor to the Company
specifying the number of Registrable Securities to be included in such registration and the intended method of distribution thereof.
Any such request by any Holder or Holders pursuant to this Section 2.01(b)(i) is referred to herein as a “Demand Registration
Request,” and the registration so requested is referred to herein as a “Demand Registration” (with respect
to any Demand Registration, the Investor(s) making such demand for registration being referred to as the “Initiating Holders”).
Subject to Section 2.01(c), each Holder shall be entitled to request (and the Company shall be required to effect) an unlimited number
of Demand Registrations pursuant to this Section 2.01(b). The Company shall give written notice (the “Demand Exercise Notice”)
of such Demand Registration Request to each of the Holders of record of Registrable Securities in accordance with Section 2.02, and,
subject to Sections 2.03 and 2.06, shall include in a Demand Registration (x) the Registrable Securities of the Initiating Holders and
(y) the Registrable Securities of any other Holder of Registrable Securities which shall have made a written request to the Company for
inclusion in such registration pursuant to Section 2.02. Notwithstanding anything to the contrary in this Section 2.01(b)(i), each Demand
Registration must include, in the aggregate, Registrable Securities having an aggregate market value of at least the Minimum Threshold
(based on the Registrable Securities included in such Demand Registration by all Holders participating in such Demand Registration).
In connection with any Demand Registration, the Initiating Holder shall have the right to designate the Manager and each other managing
underwriter in connection with any underwritten offering pursuant to such registration; provided that in each case, each
such underwriter is reasonably satisfactory to the Company, which approval shall not be unreasonably withheld or delayed.
5
(ii)
The Company shall, as expeditiously as possible, but subject to Section 2.01(c), use its reasonable best efforts to (x) file or
confidentially submit with the SEC (no later than (A) sixty (60) days from the Company’s receipt of the applicable Demand Registration
Request if the Demand Registration is on Form S-1 or similar long-form registration or (B) thirty (30) days from the Company’s receipt
of the applicable Demand Registration Request if the Demand Registration is on Form S-3 or any similar short-form registration), (y) cause
to be declared effective as soon as reasonably practicable such registration statement under the Securities Act that includes the Registrable
Securities which the Company has been so requested to register for distribution in accordance with the intended method of distribution,
and (z) if requested by the Initiating Holders, obtain acceleration of the effective date of the registration statement relating to such
registration.
(c) Notwithstanding
anything to the contrary in Section 2.01(a) or Section 2.01(b), the Shelf Underwriting and Demand Registration rights granted in Section
2.01(a) and Section 2.01(b) are subject to the following limitations: (i) the Company shall not be required to file or confidentially
submit a registration statement pursuant to Section 2.01(b) or cause a registration statement filed or confidentially submitted pursuant
to Section 2.01(b) to be declared effective within a period of ninety (90) days after the effective date of any other registration statement
of the Company filed pursuant to the Securities Act (other than a Form S-4, Form S-8 or a comparable form or an equivalent registration
form then in effect); (ii) the Company shall not be required to effect more than three (3) Demand Registrations or Shelf Underwritings
on Form S-1 or any similar long-form registration statement at the request of the Holders in any twelve-month period; and (iii) if the
Chief Executive Officer or Chief Financial Officer of the Company, in his or her good faith judgment, determines that any registration
of Registrable Securities or Shelf Underwriting should not be made or continued because it would materially and adversely interfere with
any existing or potential financing, acquisition, corporate reorganization, merger, share exchange or other transaction or event involving
the Company or any of its subsidiaries or would otherwise result in the public disclosure of information that the Company in good faith
has a bona fide business purpose for keeping confidential (a “Valid Business Reason”), then (x) the Company may postpone
filing or confidentially submitting a registration statement relating to a Demand Registration Request or a prospectus supplement relating
to a Shelf Underwriting Request until five (5) Business Days after such Valid Business Reason no longer exists, but in no event for more
than sixty (60) days after the date the Chief Executive Officer or Chief Financial Officer of the Company determines a Valid Business
Reason exists or (y) if a registration statement has been filed or confidentially submitted relating to a Demand Registration Request
or a prospectus supplement has been filed relating to a Shelf Underwriting Request, if the Valid Business Reason has not resulted in
whole or in part from actions taken or omitted to be taken by the Company (other than actions taken or omitted with the consent of the
Initiating Holder (not to be unreasonably withheld or delayed)), the Company may, to the extent determined in the good faith judgment
of the Chief Executive Officer or Chief Financial Officer of the Company to be reasonably necessary to avoid interference with any of
the transactions described above, suspend use of or, if required by the SEC, cause such registration statement to be withdrawn and its
effectiveness terminated or may postpone amending or supplementing such registration statement until five (5) Business Days after such
Valid Business Reason no longer exists, but in no event for more than sixty (60) days after the date the Chief Executive Officer or Chief
Financial Officer of the Company determines a Valid Business Reason exists (such period of postponement or withdrawal under this clause
(iii), the “Postponement Period”). The Company shall give written notice to the Initiating Holders or Shelf Underwriting
Initiating Holders and any other Holders that have requested registration pursuant to Section 2.02 of its determination to postpone or
suspend use of or withdraw a registration statement and of the fact that the Valid Business Reason for such postponement or suspension
or withdrawal no longer exists, in each case, promptly after the occurrence thereof; provided, however, that the Company
shall not be entitled to more than two (2) Postponement Periods during any twelve (12) month period.
6
Each Holder of Registrable
Securities agrees that, upon receipt of any notice from the Company that the Company has determined to suspend use of, withdraw, terminate
or postpone amending or supplementing any registration statement pursuant to clause (c)(iii) above, such Holder will discontinue its disposition
of Registrable Securities pursuant to such registration statement. If the Company shall have suspended use of, withdrawn or terminated
a registration statement filed under Section 2.01(b)(i) (whether pursuant to clause (c)(iii) above or as a result of any stop order, injunction
or other order or requirement of the SEC or any other governmental agency or court), the Company shall not be considered to have effected
a Demand Registration for the purposes of this Agreement and such request shall not count as a Demand Registration Request under this
Agreement until the Company shall have permitted use of such suspended registration statement or filed a new registration statement covering
the Registrable Securities covered by the withdrawn or terminated registration statement and such registration statement shall have been
declared effective and shall not have been withdrawn. If the Company shall give any notice of suspension, withdrawal or postponement of
a registration statement, the Company shall, not later than five (5) Business Days after the Valid Business Reason that caused such suspension,
withdrawal or postponement no longer exists (but, with respect to a suspension, withdrawal or postponement pursuant to clause (c)(iii)
above, in no event later than sixty (60) days after the date of the suspension, postponement or withdrawal), as applicable, permit use
of such suspended registration statement or use its reasonable best efforts to effect the registration under the Securities Act of the
Registrable Securities covered by the withdrawn or postponed registration statement in accordance with this Section 2.01 (unless the Initiating
Holders or Shelf Underwriting Initiating Holders shall have withdrawn such request, in which case the Company shall not be considered
to have effected a Demand Registration for the purposes of this Agreement and such request shall not count as a Demand Registration Request
under this Agreement), and following such permission or such effectiveness such registration shall no longer be deemed to be suspended,
withdrawn or postponed pursuant to clause (iv) of Section 2.01(c) above.
(d)
No Demand Registration shall be deemed to have occurred for purposes of Section 2.01(b) (i) if the registration statement relating
thereto (x) does not become effective, (y) is not maintained effective for a period of at least one hundred eighty (180) days after the
effective date thereof or such shorter period during which all Registrable Securities included in such Registration Statement have actually
been sold (provided, however, that such period shall be extended for a period of time equal to the period any Holder of
Registrable Securities refrains from selling any securities included in such Registration Statement at the request of the Company or an
underwriter of the Company), or (z) is subject to a stop order, injunction, or similar order or requirement of the SEC during such period,
(ii) for each Initiating Holder, if less than seventy five percent (75%) of the Registrable Securities requested by such Initiating Holder
to be included in such Demand Registration are not so included pursuant to Section 2.03, (iii) if the method of disposition is a firm
commitment underwritten public offering and less than seventy five percent (75%) of the applicable Registrable Securities have not been
sold pursuant thereto (excluding any Registrable Securities included for sale in the underwriters’ overallotment option) or (iv)
if the conditions to closing specified in any underwriting agreement, purchase agreement or similar agreement entered into in connection
with the registration relating to such request are not satisfied (other than as a result of a default or breach thereunder by such Initiating
Holder(s) or its Affiliates or are otherwise waived by such Initiating Holder(s)).
(e)
Any Initiating Holder may withdraw or revoke a Demand Registration Request delivered by such Initiating Holder at any time prior
to the effectiveness of such Demand Registration by giving written notice to the Company of such withdrawal or revocation and such Demand
Registration shall have no further force or effect and such request shall not count as a Demand Registration Request under this Agreement.
Section 2.02.
Piggyback Registrations. (a) If the Company proposes or is required to register any of its Common Stock for its own account
or for the account of any other shareholder under the Securities Act (other than pursuant to registrations on Form S-4 or Form S-8 or
any similar successor forms thereto), the Company shall give written notice (the “Piggyback Notice”) of its intention
to do so to each of the Holders of record of Registrable Securities, at least five (5) Business Days prior to the filing of any registration
statement under the Securities Act. Notwithstanding the foregoing, the Company may delay any Piggyback Notice until after filing a registration
statement, so long as all recipients of such notice have five (5) days to determine whether to participate in an offering pursuant to
such registration statement. Upon the written request of any such Holder, made within five (5) days following the receipt of any such
Piggyback Notice (which request shall specify the maximum number of Registrable Securities intended to be disposed of by such Holder and
the intended method of distribution thereof), the Company shall, subject to Sections 2.02(c), 2.03 and 2.06 hereof, use its reasonable
best efforts to cause all such Registrable Securities, the Holders of which have so requested the registration thereof, to be registered
under the Securities Act with the securities which the Company at the time proposes to register to permit the sale or other disposition
by the Holders (in accordance with the intended method of distribution thereof) of the Registrable Securities to be so registered, including,
if necessary, by filing with the SEC a post-effective amendment or a supplement to the registration statement filed by the Company or
the prospectus related thereto. There is no limitation on the number of such piggyback registrations which the Company is obligated to
effect pursuant to the preceding sentence. No registration of Registrable Securities effected under this Section 2.02(a) shall relieve
the Company of its obligations to effect Demand Registrations under Section 2.01 hereof. For the avoidance of doubt, this Section 2.02
shall not apply to any Underwritten Block Trade.
7
(b) Other
than in connection with a Demand Registration or a Shelf Underwriting, at any time after giving a Piggyback Notice and prior to the effective
date of the registration statement filed in connection with such registration, if the Company shall determine for any reason not to register
or to delay registration of such Common Stock, the Company may, at its election, give written notice of such determination to all Holders
of record of Registrable Securities and (x) in the case of a determination not to register, shall be relieved of its obligation to register
any Registrable Securities in connection with such abandoned registration, without prejudice, however, to the rights of Holders under
Section 2.01, and (y) in the case of a determination to delay such registration of its Common Stock, shall be permitted to delay the
registration of such Registrable Securities for the same period as the delay in registering such other Common Stock.
(c) Any Holder shall have the right to withdraw its request for inclusion of its Registrable Securities in any registration statement
pursuant to this Section 2.02 by giving written notice to the Company of its request to withdraw; provided, however, that
such request must be made in writing prior to the earlier of the execution by such Holder of the underwriting agreement or the execution
by such Holder of the custody agreement with respect to such registration or as otherwise required by the underwriters.
Section 2.03. Allocation of Securities Included in Registration Statement. (a) If any requested registration or offering made pursuant to
Section 2.01 (including a Shelf Underwriting) involves an underwritten offering and the Manager of such offering shall advise the Company
in good faith that, in its view, the number of securities requested to be included in such underwritten offering by the Holders of Registrable
Securities, the Company or any other Persons exercising contractual registration rights (“Additional Piggyback Rights”)
exceeds the largest number of securities (the “Section 2.03(a) Sale Number”) that can be sold in an orderly manner
in such underwritten offering within a price range acceptable to the Initiating Holders and the Majority Participating Holders, the Company
shall include in such underwritten offering:
(i)
first, all Registrable Securities requested to be included in such underwritten offering by the Holders thereof (including pursuant
to the exercise of piggyback rights pursuant to Section 2.02); provided, however, that if the number of such Registrable
Securities exceeds the Section 2.03(a) Sale Number, the number of such Registrable Securities (not to exceed the Section 2.03(a) Sale
Number) to be included in such underwritten offering shall be allocated on a pro rata basis among all Holders (including each Initiating
Holder) requesting that Registrable Securities be included in such underwritten offering (including pursuant to the exercise of piggyback
rights pursuant to Section 2.02), based on the number of Registrable Securities then owned by each such Holder requesting inclusion in
relation to the aggregate number of Registrable Securities owned by all Holders requesting inclusion; and
(ii)
second, to the extent that the number of Registrable Securities to be included pursuant to clause (i) of this Section 2.03(a) is
less than the Section 2.03(a) Sale Number, any securities that the Company proposes to register for its own account, up to the Section
2.03(a) Sale Number; and
(iii)
third, to the extent that the number of securities to be included pursuant to clauses (i) and (ii) of this Section 2.03(a) is less
than the Section 2.03(a) Sale Number, the remaining securities to be included in such underwritten offering shall be allocated on a pro
rata basis among all Persons other than Holders requesting that securities be included in such underwritten offering pursuant to the exercise
of Additional Piggyback Rights (“Piggyback Shares”), based on the aggregate number of Piggyback Shares then owned by
each Person requesting inclusion in relation to the aggregate number of Piggyback Shares owned by all Persons requesting inclusion, up
to the Section 2.03(a) Sale Number.
(b) If any registration or offering made pursuant to Section 2.02 involves an underwritten primary offering on behalf of the Company
and the Manager shall advise the Company that, in its view, the number of securities requested to be included in such underwritten offering
by the Holders of Registrable Securities, the Company or any other Persons exercising Additional Piggyback Rights exceeds the largest
number of securities (the “Section 2.03(b) Sale Number”) that can be sold in an orderly manner in such underwritten
offering within a price range acceptable to the Company, the Company shall include in such underwritten offering:
(i)
first, all equity securities that the Company proposes to register for its own account; and
8
(ii)
second, to the extent that the number of securities to be included pursuant to clause (i) of this Section 2.03(b) is less than
the Section 2.03(b) Sale Number, the remaining Registrable Securities to be included in such underwritten offering shall be allocated
on a pro rata basis among all Holders requesting that Registrable Securities be included in such underwritten offering pursuant to the
exercise of piggyback rights pursuant to Section 2.02(a), based on the aggregate number of Registrable Securities then owned by each such
Holder requesting inclusion in relation to the aggregate number of Registrable Securities owned by all Holders requesting inclusion, up
to the Section 2.03(b) Sale Number; and (iii) third, to the extent that the number of securities to be included pursuant to clauses (i)
and (ii) of this Section 2.03(b) is less than the Section 2.03(b) Sale Number, the remaining securities to be included in such underwritten
offering shall be allocated on a pro rata basis among all Persons requesting that Piggyback Shares be included in such underwritten offering
pursuant to the exercise of Additional Piggyback Rights, based on the aggregate number of Piggyback Shares then owned by each Person requesting
inclusion in relation to the aggregate number of Piggyback Shares owned by all Persons requesting inclusion, up to the Section 2.03(b)
Sale Number.
(c) If any registration pursuant to Section 2.02 involves an underwritten offering that was initially requested by any Person(s) (other
than a Holder) to whom the Company has granted registration rights which are not inconsistent with the rights granted in, and do not otherwise
conflict with the terms of, this Agreement and the Manager shall advise the Company that, in its view, the number of securities requested
to be included in such underwritten offering exceeds the largest number of securities (the “Section 2.03(c) Sale Number”)
that can be sold in an orderly manner in such underwritten offering within a price range acceptable to the Company, the Company shall
include in such underwritten offering:
(i)
first, the shares requested to be included in such underwritten offering shall be allocated on a pro rata basis among such Person(s)
requesting the registration and all Holders requesting that Registrable Securities be included in such underwritten offering pursuant
to the exercise of piggyback rights pursuant to Section 2.02(a), based on the aggregate number of securities or Registrable Securities,
as applicable, then owned by each of the foregoing requesting inclusion in relation to the aggregate number of securities or Registrable
Securities, as applicable, owned by all such Persons and Holders requesting inclusion, up to the Section 2.03(c) Sale Number; and
(ii)
second, to the extent that the number of securities to be included pursuant to clause (i) of this Section 2.03(c) is less than
the Section 2.03(c) Sale Number, the remaining securities to be included in such underwritten offering shall be allocated on a pro rata
basis among all Persons requesting that Piggyback Shares be included in such underwritten offering pursuant to the exercise of Additional
Piggyback Rights, based on the aggregate number of Piggyback Shares then owned by each Person requesting inclusion in relation to the
aggregate number of Piggyback Shares owned by all Persons requesting inclusion, up to the Section 2.03(c) Sale Number; and (iii) third,
to the extent that the number of securities to be included pursuant to clauses (i) and (ii) of this Section 2.03(c) is less than the Section
2.03(c)Sale Number, any equity securities that the Company proposes to register for its own account, up to the Section 2.03(c) Sale Number.
(d) If, as a result of the proration provisions set forth in clauses (a), (b) or (c) of this Section 2.03, any Holder shall not be
entitled to include all Registrable Securities in an underwritten offering that such Holder has requested be included, such Holder may
elect to withdraw such Holder’s request to include Registrable Securities in the registration to which such underwritten offering
relates or may reduce the number requested to be included; provided, however, that (x) such request must be made in writing
prior to the earlier of such Holder’s execution of the underwriting agreement or such Holder’s execution of the custody agreement
with respect to such registration and (y) such withdrawal or reduction shall be irrevocable and, after making such withdrawal or reduction,
such Holder shall no longer have any right to include Registrable Securities in the registration as to which such withdrawal or reduction
was made to the extent of the Registrable Securities so withdrawn or reduced.
9
Section 2.04.
Registration Procedures. If and whenever the Company is required by the provisions of this Agreement to effect or cause the
registration of and/or participate in any offering or sale of any Registrable Securities under the Securities Act as provided in this
Agreement (or use reasonable best efforts to accomplish the same), the Company shall, as expeditiously as possible:
(a)
prepare and file all filings with the SEC and FINRA required for the consummation of the offering, including preparing and filing
with the SEC a registration statement on an appropriate registration form of the SEC for the disposition of such Registrable Securities
in accordance with the intended method of disposition thereof, which registration form (i) shall be selected by the Company (except as
provided for in a Demand Registration Request) and (ii) shall, in the case of a shelf registration, be available for the sale of the Registrable
Securities by the selling Holders thereof and such registration statement shall comply as to form in all material respects with the requirements
of the applicable registration form and include all financial statements required by the SEC to be filed therewith, and the Company shall
use its reasonable best efforts to cause such registration statement to become effective and remain continuously effective for such period
as required by this Agreement (provided, however, that as far in advance as reasonably practicable before filing a registration
statement or prospectus or any amendments or supplements thereto, or comparable statements under securities or state “blue sky”
laws of any jurisdiction, or any free writing prospectus related thereto, the Company will furnish to the Holders participating in the
planned offering and to the Manager, if any, copies of all such documents proposed to be filed (including all exhibits thereto), which
documents will be subject to their reasonable review and reasonable comment and the Company shall not file any registration statement
or amendment thereto, any prospectus or supplement thereto or any free writing prospectus related thereto to which the Initiating Holders,
the Majority Participating Holders or the underwriters, if any, shall reasonably object); provided, however, that, notwithstanding
the foregoing, in no event shall the Company be required to file any document with the SEC which in the view of the Company or its counsel
contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make any
statement therein not misleading;
(b)
(i) prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection
therewith and such free writing prospectuses and Exchange Act reports as may be necessary to keep such registration statement continuously
effective for such period as required by this Agreement and to comply with the provisions of the Securities Act with respect to the sale
or other disposition of all Registrable Securities covered by such registration statement, and any prospectus so supplemented to be filed
pursuant to Rule 424 under the Securities Act, in accordance with the intended methods of disposition by the seller or sellers thereof
set forth in such registration statement and (ii) provide notice to such sellers of Registrable Securities and the Manager, if any, of
the Company’s reasonable determination that a post-effective amendment to a registration statement would be appropriate;
(c)
furnish, without charge, to each Participating Holder and each underwriter, if any, of the securities covered by such registration
statement such number of copies of such registration statement, each amendment and supplement thereto (in each case including all exhibits),
the prospectus included in such registration statement (including each preliminary prospectus and any summary prospectus) and any other
prospectus filed under Rule 424 under the Securities Act, each free writing prospectus utilized in connection therewith, in each case,
in conformity with the requirements of the Securities Act, and other documents, as such seller and underwriter may reasonably request
in order to facilitate the public sale or other disposition of the Registrable Securities owned by such seller (the Company hereby consenting
to the use in accordance with all applicable laws of each such registration statement (or amendment or post-effective amendment thereto)
and each such prospectus (or preliminary prospectus or supplement thereto) or free writing prospectus by each such Participating Holder
and the underwriters, if any, in connection with the offering and sale of the Registrable Securities covered by such registration statement
or prospectus);
(d)
use its reasonable best efforts to register or qualify the Registrable Securities covered by such registration statement under
such other securities or state “blue sky” laws of such jurisdictions as any sellers of Registrable Securities or any managing
underwriter, if any, shall reasonably request in writing, and do any and all other acts and things which may be reasonably necessary or
advisable to enable such sellers or underwriter, if any, to consummate the disposition of the Registrable Securities in such jurisdictions
(including keeping such registration or qualification in effect for so long as such registration statement remains in effect), except
that in no event shall the Company be required to qualify to do business as a foreign corporation in any jurisdiction where it would not,
but for the requirements of this paragraph (d), be required to be so qualified, to subject itself to taxation in any such jurisdiction
or to consent to general service of process in any such jurisdiction;
10
(e)
promptly notify each Participating Holder and each managing underwriter, if any: (i) when the registration statement, any pre-effective
amendment, the prospectus or any prospectus supplement related thereto, any post-effective amendment to the registration statement or
any free writing prospectus has been filed with the SEC and, with respect to the registration statement or any post-effective amendment,
when the same has become effective; (ii) of any request by the SEC or state securities authority for amendments or supplements to the
registration statement or the prospectus related thereto or for additional information; (iii) of the issuance by the SEC of any stop order
suspending the effectiveness of the registration statement or the initiation of any proceedings for that purpose; (iv) of the receipt
by the Company of any notification with respect to the suspension of the qualification of any Registrable Securities for sale under the
securities or state “blue sky” laws of any jurisdiction or the initiation of any proceeding for such purpose; (v) of the existence
of any fact of which the Company becomes aware which results in the registration statement or any amendment thereto, the prospectus related
thereto or any supplement thereto, any document incorporated therein by reference, any free writing prospectus or the information conveyed
at the time of sale to any purchaser containing an untrue statement of a material fact or omitting to state a material fact required to
be stated therein or necessary to make any statement therein not misleading; and (vi) if at any time the representations and warranties
contemplated by any underwriting agreement, securities sale agreement, or other similar agreement, relating to the offering shall cease
to be true and correct in all material respects (unless otherwise qualified by materiality in which case such representations and warranties
shall cease to be true and correct in all respects); and, if the notification relates to an event described in clause (v), unless the
Company has declared that a Postponement Period exists, the Company shall promptly prepare and furnish to each such seller and each underwriter,
if any, a reasonable number of copies of a prospectus supplemented or amended so that, as thereafter delivered to the purchasers of such
Registrable Securities, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein in the light of the circumstances under which they were made not misleading;
(f)
comply (and continue to comply) with all applicable rules and regulations of the SEC (including maintaining disclosure controls
and procedures (as defined in Exchange Act Rule 13a-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule
13a-15(f)) in accordance with the Exchange Act), and make generally available to its security holders (including by way of filings with
the SEC), as soon as reasonably practicable after the effective date of the registration statement, an earnings statement (which need
not be audited) covering the period of at least twelve (12) consecutive months beginning with the first day of the Company’s first
calendar quarter after the effective date of the registration statement, which earnings statement shall satisfy the provisions of Section
11(a) of the Securities Act and Rule 158 thereunder;
(g)
(i) (A) use its reasonable best efforts to cause all such Registrable Securities covered by such registration statement to be listed
on the principal securities exchange on which similar securities issued by the Company are then listed, if the listing of such Registrable
Securities is then permitted under the rules of such exchange, or (B) if no similar securities are then so listed, use its reasonable
best efforts to either cause all such Registrable Securities to be listed on a national securities exchange or to secure designation of
all such Registrable Securities as a Nasdaq Stock Market “national market system security” within the meaning of Rule 11Aa2-1
of the Exchange Act or, failing that, secure Nasdaq Stock Market authorization for such shares and, without limiting the generality of
the foregoing, take all actions that may be required by the Company as the issuer of such Registrable Securities in order to facilitate
the managing underwriter’s arranging for the registration of at least two market makers as such with respect to such shares with
FINRA, and (ii) comply (and continue to comply) with the requirements of any self-regulatory organization applicable to the Company, including
all corporate governance requirements;
(h)
cause its senior management, officers and employees to participate in, and to otherwise facilitate and cooperate with the preparation
of the registration statement and prospectus and any amendments or supplements thereto (including participating in meetings, drafting
sessions, due diligence sessions and rating agency presentations) taking into account the Company’s reasonable business needs;
(i)
provide and cause to be maintained a transfer agent and registrar for all such Registrable Securities covered by such registration
statement not later than the effective date of such registration statement and, in the case of any secondary equity offering, provide
and enter into any reasonable agreements with a custodian for the Registrable Securities;
(j)
enter into such customary agreements (including, if applicable, an underwriting agreement) and take such other actions as the Initiating
Holder or the Majority Participating Holders or the underwriters shall reasonably request in order to expedite or facilitate the disposition
of such Registrable Securities (it being understood that the Holders of the Registrable Securities which are to be distributed by any
underwriters shall be parties to any such underwriting agreement and may, at their option, require that the Company make for the benefit
of such Holders the representations, warranties and covenants of the Company which are being made to and for the benefit of such underwriters);
11
(k)
use its reasonable best efforts (i) to obtain opinions from the Company’s counsel, including local and/or regulatory counsel,
and a “comfort” letter and updates thereof from the independent public accountants who have certified the financial statements
of the Company (and/or any other financial statements) included or incorporated by reference in such registration statement, in each case,
in customary form and covering such matters as are customarily covered by such opinions and “comfort” letters (including,
in the case of such “comfort” letter, events subsequent to the date of such financial statements) delivered to underwriters
in underwritten public offerings, which opinions and letters shall be dated the dates such opinions and “comfort” letters
are customarily dated and otherwise reasonably satisfactory to the underwriters, if any, and (ii) furnish to each Participating Holder
and to each underwriter, if any, a copy of such opinions and letters addressed to such underwriter;
(l)
deliver promptly to counsel for the Majority Participating Holders and to each managing underwriter, if any, copies of all correspondence
between the SEC and the Company, its counsel or auditors and all memoranda relating to discussions with the SEC or its staff with respect
to the registration statement, and, upon receipt of such confidentiality agreements as the Company may reasonably request, make reasonably
available for inspection by counsel for the Majority Participating Holders, by counsel for any underwriter participating in any disposition
to be effected pursuant to such registration statement and by any attorney, accountant or other agent retained by the Majority Participating
Holders or any such underwriter, during regular business hours, all pertinent financial and other records, pertinent corporate documents
and properties of the Company, and cause all of the Company’s officers, directors and employees to supply all information reasonably
requested by any such counsel for the Majority Participating Holders, counsel for an underwriter, attorney, accountant or agent in connection
with such registration statement;
(m)
use its reasonable best efforts to prevent the issuance or obtain the prompt withdrawal of any order suspending the effectiveness
of the registration statement, or the prompt lifting of any suspension of the qualification of any of the Registrable Securities for sale
in any jurisdiction, in each case, as promptly as reasonably practicable;
(n)
provide a CUSIP number for all Registrable Securities, not later than the effective date of the registration statement;
(o)
use its reasonable best efforts to make available its senior management for participation in “road shows” and other
marketing efforts and otherwise provide reasonable assistance to the underwriters (taking into account the Company’s reasonable
business needs and the requirements of the marketing process) in the marketing of Registrable Securities in any underwritten offering;
(p)
promptly prior to the filing of any document which is to be incorporated by reference into the registration statement or the prospectus
(after the initial filing or confidential submission of such registration statement), and prior to the filing or use of any free writing
prospectus, provide copies of such document to counsel for the Majority Participating Holders and to each managing underwriter, if any,
and make the Company’s representatives reasonably available for discussion of such document and make such changes in such document
concerning the information regarding the Participating Holders contained therein prior to the filing thereof as counsel for the Majority
Participating Holders or underwriters may reasonably request (provided, however, that, notwithstanding the foregoing, in
no event shall the Company be required to file or confidentially submit any document with the SEC which in the view of the Company or
its counsel contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary
to make any statement therein not misleading);
(q)
furnish to counsel for the Majority Participating Holders and to each managing underwriter, without charge, upon request, at least
one conformed copy of the registration statement and any post-effective amendments or supplements thereto, including financial statements
and schedules, all documents incorporated therein by reference, the prospectus contained in such registration statement (including each
preliminary prospectus and any summary prospectus), any other prospectus and prospectus supplement filed under Rule 424 under the Securities
Act and all exhibits (including those incorporated by reference) and any free writing prospectus utilized in connection therewith;
12
(r)
cooperate with the Participating Holders and the managing underwriter, if any, to facilitate the timely preparation and delivery
of certificates not bearing any restrictive legends representing the Registrable Securities to be sold, and cause such Registrable Securities
to be issued in such denominations and registered in such names in accordance with the underwriting agreement upon any sale of Registrable
Securities to the underwriters or, if not an underwritten offering, in accordance with the instructions of the Participating Holders and
instruct any transfer agent and registrar of Registrable Securities to release any stop transfer orders in respect thereof (and, in the
case of Registrable Securities registered on a Shelf Registration Statement, at the request of any Holder, prepare and deliver certificates
representing such Registrable Securities not bearing any restrictive legends and deliver or cause to be delivered an opinion or instructions
to the transfer agent in order to allow such Registrable Securities to be sold from time to time);
(s)
include in any prospectus or prospectus supplement if requested by any managing underwriter updated financial or business information
for the Company’s most recent period or current quarterly period (including estimated results or ranges of results) if required
for purposes of marketing the offering in the view of the managing underwriter;
(t)
take no direct or indirect action prohibited by Regulation M under the Exchange Act; provided, however, that to the
extent that any prohibition is applicable to the Company, the Company will use its reasonable best efforts to make any such prohibition
inapplicable;
(u)
use its reasonable best efforts to cause the Registrable Securities covered by the applicable registration statement to be registered
with or approved by such other governmental agencies or authorities as may be necessary to enable the Participating Holders or the underwriters,
if any, to consummate the disposition of such Registrable Securities;
(v)
take all such other commercially reasonable actions as are necessary or advisable in order to expedite or facilitate the disposition
of such Registrable Securities;
(w)
take all reasonable action to ensure that any free writing prospectus utilized in connection with any registration covered by Section
2.01 or 2.02 complies in all material respects with the Securities Act, is filed in accordance with the Securities Act to the extent required
thereby, is retained in accordance with the Securities Act to the extent required thereby and, when taken together with the related prospectus,
prospectus supplement and related documents, will not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;
(x)
in connection with any underwritten offering, if at any time the information conveyed to a purchaser at the time of sale includes
any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading, promptly file with the SEC such amendments or supplements to such
information as may be necessary so that the statements as so amended or supplemented will not, in the light of the circumstances, be misleading;
(y)
to the extent required by the rules and regulations of FINRA, retain a Qualified Independent Underwriter acceptable to the managing
underwriter; and
(z)
use reasonable best efforts to cooperate with the managing underwriters, Participating Holders, any indemnitee of the Company and
their respective counsel in connection with the preparation and filing of any applications, notices, registrations and responses to requests
for additional information with FINRA, Nasdaq Global Market, or any other national securities exchange on which the shares of Common Stock
are listed.
To the extent the Company
is a WKSI at the time any Demand Registration Request is submitted to the Company, the Company shall file an automatic shelf registration
statement (as defined in Rule 405 under the Securities Act) (an “automatic shelf registration statement”) on Form S-3
which covers those Registrable Securities which are requested to be registered. If the Company does not pay the filing fee covering the
Registrable Securities at the time the automatic shelf registration statement is filed, the Company agrees to pay such fee at such time
or times as the Registrable Securities are to be sold in compliance with the SEC rules. If at any time when the Company is required to
re-evaluate its WKSI status the Company determines that it is not a WKSI, the Company shall use its reasonable best efforts to refile
the shelf registration statement on Form S-3 and, if such form is not available, Form S-1 and keep such registration statement effective
during the period which such registration statement is required to be kept effective.
13
If the Company files any shelf
registration statement for the benefit of the holders of any of its securities other than the Holders, and the Holders do not request
that their Registrable Securities be included in such Shelf Registration Statement, the Company agrees that it shall include in such registration
statement such disclosures as may be required by Rule 430B under the Securities Act (referring to the unnamed selling security holders
in a generic manner by identifying the initial offering of the securities to the Holders) in order to ensure that the Holders may be added
to such shelf registration statement at a later time through the filing of a prospectus supplement rather than a post-effective amendment.
The Company may require as
a condition precedent to the Company’s obligations under this Section 2.04 that each Participating Holder as to which any registration
is being effected (i) furnish the Company such information regarding such seller and the distribution of such securities as the Company
may from time to time reasonably request (including as required under state securities laws), provided that such information is
necessary for the Company to consummate such registration and shall be used only in connection with such registration and (ii) provide
any underwriters participating in the distribution of such securities such information as the underwriters may request and execute and
deliver any agreements, certificates or other documents as the underwriters may request.
Each Holder of Registrable
Securities agrees that upon receipt of any notice from the Company of the happening of any event of the kind described in clause (v) of
paragraph (e) of this Section 2.04, such Holder will discontinue such Holder’s disposition of Registrable Securities pursuant to
the registration statement covering such Registrable Securities until such Holder’s receipt of the copies of the supplemented or
amended prospectus contemplated by paragraph (e) of this Section 2.04 and, if so directed by the Company, will deliver to the Company
(at the Company’s expense) all copies, other than permanent file copies, then in such Holder’s possession of the prospectus
covering such Registrable Securities that was in effect at the time of receipt of such notice. In the event the Company shall give any
such notice, the applicable period mentioned in paragraph (b) of this Section 2.04 shall be extended by the number of days during such
period from and including the date of the giving of such notice to and including the date when each Participating Holder covered by such
registration statement shall have received the copies of the supplemented or amended prospectus contemplated by paragraph (e) of this
Section 2.04.
The Company agrees not to
file or make any amendment to any registration statement with respect to any Registrable Securities, or any amendment of or supplement
to the prospectus, or any free writing prospectus, which amendment refers to any Holder covered thereby by name, or otherwise identifies
such Holder, without the consent of such Holder, such consent not to be unreasonably withheld or delayed, unless such disclosure is required
by law, in which case the Company shall provide written notice to such Holders no less than five (5) Business Days prior to the filing.
Section 2.05.
Registration Expenses. (a) The Company shall pay all Expenses with respect to any registration or offering of Registrable Securities
pursuant to Article 2, whether or not a registration statement becomes effective or the offering is consummated.
(b)
Notwithstanding the foregoing, (x) the provisions of this Section 2.05 shall be deemed amended to the extent necessary to cause
these expense provisions to comply with state “blue sky” laws of each state in which the offering is made and (y) in connection
with any underwritten offering hereunder, each Participating Holder shall pay all underwriting discounts and commissions and any transfer
taxes, if any, attributable to the sale of such Registrable Securities, pro rata with respect to payments of discounts and commissions
in accordance with the number of shares sold in the offering by such Participating Holder.
14
Section 2.06.
Certain Limitations on Registration Rights. In the case of any registration under Section 2.01 involving an underwritten offering,
or, in the case of a registration under Section 2.02, if the Company has determined to enter into an underwriting agreement in connection
therewith, all securities to be included in such underwritten offering shall be subject to such underwriting agreement and no Person may
participate in such underwritten offering unless such Person (i) agrees to sell such Person’s securities on the basis provided therein
and completes and executes all reasonable questionnaires, and other documents (including custody agreements and powers of attorney) which
must be executed in connection therewith; provided, however, that all such documents shall be consistent with the provisions
hereof and (ii) provides such other information to the Company or the underwriter as may be necessary to register such Person’s
securities.
Section 2.07.
Limitations on Sale or Distribution of Other Securities. (a) Each Holder agrees, to the extent requested by the Manager of
any underwritten public offering pursuant to a registration or offering effected pursuant to Section 2.01 (including any Shelf Underwriting
pursuant to Section 2.01) or Section 2.02 (including any offering effected by the Company for its own account ), not to sell, transfer
or otherwise dispose of, including any sale pursuant to Rule 144, any Common Stock or Common Stock Equivalents (other than as part of
such underwritten public offering) during the time period reasonably requested by the Manager, not to exceed the period from seven days
prior to the pricing date of such offering until ninety (90) days after the pricing date of such offering or such shorter period as the
Manager, the Company or any executive officer or director of the Company shall agree to and subject to customary carve-outs and exceptions.
(b)
The Company hereby agrees that, in connection with an offering pursuant to Section 2.01 (including any Shelf Underwriting pursuant
to Section 2.01(e)) or 2.02, the Company shall not sell, transfer, or otherwise dispose of, any Common Stock or Common Stock Equivalent
(other than as part of such underwritten public offering, a registration on Form S-4 or Form S-8 or any successor or similar form which
is (x) then in effect or (y) shall become effective upon the conversion, exchange or exercise of any then outstanding Common
Stock Equivalent), until a period from seven days prior to the pricing date of such offering until ninety (90) days after the pricing
date of such offering or such shorter period as the Manager, the Company or any executive officer or director of the Company shall agree
to and subject to customary carve-outs and exceptions.
Section 2.08.
No Required Sale. Nothing in this Agreement shall be deemed to create an independent obligation on the part of any Holder to
sell any Registrable Securities pursuant to any effective registration statement. A Holder is not required to include any of its Registrable
Securities in any registration statement, is not required to sell any of its Registrable Securities which are included in any effective
registration statement, and may sell any of its Registrable Securities in any manner in compliance with applicable law (subject to applicable
lock-up restrictions) even if such shares are already included on an effective registration statement.
Section 2.09.
Indemnification. (a) In the event of any registration or offer and sale of any securities of the Company under the Securities
Act pursuant to this Article 2, the Company will (without limitation as to time), and hereby agrees to, and hereby does, indemnify and
hold harmless, to the fullest extent permitted by law, each Participating Holder, its directors, officers, employees, stockholders, members,
general and limited partners, agents, affiliates, representatives, successors and assigns (and the directors, officers, employees, stockholders,
members, general and limited partners, agents, affiliates, representatives, successors and assigns thereof), each other Person who participates
as a seller (and its directors, officers, employees, stockholders, members, general and limited partners, agents, affiliates, representatives,
successors and assigns), underwriter or Qualified Independent Underwriter, if any, in the offering or sale of such securities, each officer,
director, employee, stockholder, managing director, agent, affiliate, representative, successor, assign or partner of such underwriter
or Qualified Independent Underwriter, and each other Person, if any, who controls (within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act) such seller or any such underwriter or Qualified Independent Underwriter and each director, officer,
employee, stockholder, managing director, agent, affiliate, representative, successor, assign or partner of such controlling Person, from
and against any and all losses, claims, damages or liabilities, joint or several, actions or proceedings (whether commenced or threatened)
and expenses (including reasonable fees of counsel and any amounts paid in any settlement effected with the Company’s consent) to
which each such indemnified party may become subject under the Securities Act or otherwise in respect thereof (collectively, “Claims”),
insofar as such Claims arise out of, are based upon, relate to or are in connection with (i) any untrue statement or alleged untrue statement
of a material fact contained in any registration statement under which such securities were registered under the Securities Act or the
omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary, final or summary
prospectus or any amendment or supplement thereto, together with the documents incorporated by reference therein, or any free writing
prospectus utilized in connection therewith, or the omission or alleged omission to state therein a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading,
or (iii) any untrue statement or alleged untrue statement of a material fact in the information conveyed by the Company or any underwriter
to any purchaser at the time of the sale to such purchaser, or the omission or alleged omission to state therein a material fact required
to be stated therein, and the Company will reimburse any such indemnified party for any legal or other expenses reasonably incurred by
such indemnified party in connection with investigating or defending any such Claim as such expenses are incurred; provided, however,
that the Company shall not be liable to any such indemnified party in any such case to the extent such Claim arises out of or is based
upon any untrue statement or alleged untrue statement of a material fact or omission or alleged omission of a material fact made in such
registration statement or amendment thereof or supplement thereto or in any such prospectus or any preliminary, final or summary prospectus
or free writing prospectus in reliance upon and in conformity with written information furnished to the Company by or on behalf of such
indemnified party specifically for use therein. Such indemnity and reimbursement of expenses shall remain in full force and effect regardless
of any investigation made by or on behalf of such indemnified party and shall survive the transfer of such securities by such seller.
15
(b)
Each Participating Holder shall, severally and not jointly, indemnify and hold harmless (in the same manner and to the same extent
as set forth in paragraph (a) of this Section 2.09) to the extent permitted by law the Company, its officers and its directors, each Person
controlling the Company within the meaning of the Securities Act and all other prospective sellers and their directors, officers, stockholders,
fiduciaries, managing directors, agents, affiliates, representatives, successors, assigns or general and limited partners and respective
controlling Persons with respect to any untrue statement or alleged untrue statement of any material fact in, or omission or alleged omission
of any material fact from, such registration statement, any preliminary, final or summary prospectus contained therein, or any amendment
or supplement thereto, or any free writing prospectus utilized in connection therewith, if such statement or alleged statement or omission
or alleged omission was made in reliance upon and in conformity with written information furnished to the Company or its representatives
by or on behalf of such Participating Holder specifically for use therein, and each such Participating Holder shall reimburse such indemnified
party for any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any
such Claim as such expenses are incurred; provided, however, that the aggregate amount which any such Participating Holder
shall be required to pay pursuant to this Section 2.09 (including pursuant to indemnity, contribution or otherwise) shall in no case be
greater than the amount of the net proceeds received by such Participating Holder upon the sale of the Registrable Securities pursuant
to the registration statement giving rise to such Claim; provided, further, that such Participating Holder shall not be
liable in any such case to the extent that prior to the filing or confidential submission of any such registration statement or prospectus
or amendment thereof or supplement thereto, or any free writing prospectus utilized in connection therewith, such Participating Holder
has furnished in writing to the Company information expressly for use in such registration statement or prospectus or any amendment thereof
or supplement thereto or free writing prospectus which corrected or made not misleading information previously furnished to the Company.
The Company and each Participating Holder hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Participating
Holders to the contrary, for all purposes of this Agreement, the only information furnished or to be furnished to the Company for use
in any such registration statement, preliminary, final or summary prospectus or amendment or supplement thereto, or any free writing prospectus,
are statements specifically relating to (i) the beneficial ownership of shares of Common Stock by such Participating Holder and its Affiliates
and (ii) the name and address of such Participating Holder. If any additional information about such Holder or the plan of distribution
(other than for an underwritten offering) is required by law to be disclosed in any such document, then such Holder shall not unreasonably
withhold its agreement referred to in the immediately preceding sentence. Such indemnity and reimbursement of expenses shall remain in
full force and effect regardless of any investigation made by or on behalf of such indemnified party and shall survive the transfer of
such securities by such Holder.
(c)
Indemnification similar to that specified in the preceding paragraphs (a) and (b) of this Section 2.09 (with appropriate modifications)
shall be given by the Company and each Participating Holder with respect to any required registration or other qualification of securities
under any applicable securities and state “blue sky” laws.
16
(d)
Any Person entitled to indemnification under this Agreement shall notify promptly the indemnifying party in writing of the commencement
of any action or proceeding with respect to which a claim for indemnification may be made pursuant to this Section 2.09, but the failure
of any indemnified party to provide such notice shall not relieve the indemnifying party of its obligations under the preceding paragraphs
of this Section 2.09, except to the extent the indemnifying party is materially and actually prejudiced thereby and shall not relieve
the indemnifying party from any liability which it may have to any indemnified party otherwise than under this Section 2.09. In case any
action or proceeding is brought against an indemnified party and such indemnified party shall have notified the indemnifying party of
the commencement thereof (as required above), the indemnifying party shall be entitled to participate therein and, unless in the reasonable
opinion of outside counsel to the indemnified party a conflict of interest between such indemnified and indemnifying parties exists in
respect of such Claim, to assume the defense thereof jointly with any other indemnifying party similarly notified, to the extent that
it chooses, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified
party that it so chooses, the indemnifying party shall not be liable to such indemnified party for any legal or other expenses subsequently
incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided,
however, that (i) if the indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding
within twenty (20) days after receiving notice from such indemnified party that the indemnified party believes it has failed to do so;
or (ii) if such indemnified party who is a defendant in any action or proceeding which is also brought against the indemnifying party
reasonably shall have concluded that there may be one or more legal or equitable defenses available to such indemnified party which are
not available to the indemnifying party or which may conflict with or be different from those available to another indemnified party with
respect to such Claim; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards
of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set
forth above (but with no more than one firm of counsel for all indemnified parties in each jurisdiction, except to the extent any indemnified
party or parties reasonably shall have made a conclusion described in clause (ii) or (iii) above) and the indemnifying party shall be
liable for any expenses therefor. No indemnifying party shall be liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for the plaintiff, such indemnifying party agrees to indemnify
each indemnified party from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. No indemnifying
party shall, without the written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry of
any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified party is an actual or potential party to such action or claim) unless such settlement, compromise
or judgment (A) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and
(B) does not include a statement as to or an admission of fault or culpability, by or on behalf of any indemnified party.
(e)
If for any reason the foregoing indemnity is unavailable, unenforceable or is insufficient to hold harmless an indemnified party
under Sections 2.09(a), (b) or (c), then each applicable indemnifying party shall contribute to the amount paid or payable to such indemnified
party as a result of any Claim in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one
hand, and the indemnified party, on the other hand, with respect to such Claim. The relative fault shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information supplied by the indemnifying party or the indemnified party and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such untrue statement or omission. If, however, the allocation provided in
the second preceding sentence is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults but also the relative
benefits of the indemnifying party and the indemnified party as well as any other relevant equitable considerations. The parties hereto
agree that it would not be just and equitable if any contribution pursuant to this Section 2.09(e) were to be determined by pro rata allocation
or by any other method of allocation which does not take account of the equitable considerations referred to in the preceding sentences
of this Section 2.09(e). The amount paid or payable in respect of any Claim shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending any such Claim. No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation. Notwithstanding anything in this Section 2.09(e) to the contrary, no indemnifying party (other than the
Company) shall be required pursuant to this Section 2.09(e) to contribute any amount greater than the amount of the net proceeds received
by such indemnifying party from the sale of Registrable Securities pursuant to the registration statement giving rise to such Claim, less
the amount of any indemnification payment made by such indemnifying party pursuant to Sections 2.09(b) and (c). In addition, no Holder
of Registrable Securities or any Affiliate thereof shall be required to pay any amount under this Section 2.09(e) unless such Person or
entity would have been required to pay an amount pursuant to Section 2.09(b) if it had been applicable in accordance with its terms.
17
(f)
The indemnity and contribution agreements contained herein shall be in addition to any other rights to indemnification or contribution
which any indemnified party may have pursuant to law or contract and shall remain operative and in full force and effect regardless of
any investigation made or omitted by or on behalf of any indemnified party and shall survive the transfer of the Registrable Securities
by any such party.
(g)
The indemnification and contribution required by this Section 2.09 shall be made by periodic payments of the amount thereof during
the course of the investigation or defense, as and when bills are received or expense, loss, damage or liability is incurred.
Article
3
Underwritten Offerings
Section 3.01.
Requested Underwritten Offerings. If requested by the underwriters for any underwritten offering pursuant to a registration
requested under Section 2.01, the Company shall enter into a customary underwriting agreement with the underwriters. Such underwriting
agreement shall (i) be satisfactory in form and substance to the Initiating Holders and the Majority Participating Holders, (ii) contain
terms not inconsistent with the provisions of this Agreement and (iii) contain such representations and warranties by, and such other
agreements on the part of, the Company and such other terms as are generally prevailing in agreements of that type, including indemnities
and contribution agreements on substantially the same terms as those contained herein or as otherwise customary for the lead underwriter.
Every Participating Holder shall be a party to such underwriting agreement. Each Participating Holder shall not be required to make any
representations or warranties to or agreements with the Company or the underwriters other than customary representations of a selling
shareholder, including representations, warranties or agreements regarding its ownership of and title to the Registrable Securities, any
written information specifically provided by such Participating Holder for inclusion in the registration statement and its intended method
of distribution; and any liability of such Participating Holder to any underwriter or other Person under such underwriting agreement for
indemnity, contribution or otherwise shall in no case be greater than the amount of the net proceeds received by such Participating Holder
upon the sale of Registrable Securities pursuant to such registration statement and in no event shall relate to anything other than information
about such Holder specifically provided by such Holder for use in the registration statement and prospectus.
Section 3.02.
Piggyback Underwritten Offerings. In the case of a registration pursuant to Section 2.02, if the Company shall have determined
to enter into an underwriting agreement in connection therewith, all of the Participating Holders’ Registrable Securities to be
included in such registration shall be subject to such underwriting agreement. Each such Participating Holder shall not be required to
make any representations or warranties to or agreements with the Company or the underwriters other than customary representations of a
selling shareholder, including representations, warranties or agreements regarding its ownership of and title to the Registrable Securities,
any written information specifically provided by such Participating Holder for inclusion in the registration statement and its intended
method of distribution; and any liability of such Participating Holder to any underwriter or other Person under such underwriting agreement
shall in no case be greater than the amount of the net proceeds received by such Participating Holder upon the sale of Registrable Securities
pursuant to such registration statement and in no event shall relate to anything other than information about such Holder specifically
provided by such Holder for use in the registration statement and prospectus.
18
Article
4
General
Section 4.01.
Adjustments Affecting Registrable Securities. The provisions of this Agreement shall apply, to the full extent set forth herein
with respect to the Registrable Securities, to any and all shares of capital stock of the Company, any successor or assign of the Company
(whether by merger, share exchange, consolidation, sale of assets or otherwise) or any Subsidiary or parent company of the Company which
may be issued in respect of, in exchange for or in substitution of, Registrable Securities and shall be appropriately adjusted for any
stock dividends, splits, reverse splits, combinations, recapitalizations and the like occurring after the date hereof.
Section 4.02.
Rule 144. The Company covenants that (i) so long as it remains subject to the reporting provisions of the Exchange Act, it
will timely file the reports required to be filed by it under the Securities Act or the Exchange Act (including, but not limited to, the
reports under Sections 13 and 15(d) of the Exchange Act referred to in subparagraph (c)(1)(i) of Rule 144 under the Securities Act, as
such Rule may be amended (“Rule 144”)) or, if the Company is not required to file such reports, it will, upon the request
of any Holder, make publicly available other information so long as necessary to permit sales by such Holder under Rule 144, or any similar
rules or regulations hereafter adopted by the SEC, and (ii) it will take such further action as any Holder may reasonably request, all
to the extent required from time to time to enable such Holder to sell Registrable Securities without registration under the Securities
Act within the limitation of the exemptions provided by Rule 144, or any similar rule or regulation hereafter adopted by the SEC. Upon
the request of any Holder of Registrable Securities, the Company will promptly deliver to such Holder a written statement as to whether
it has complied with such requirements.
Section 4.03.
Nominees for Beneficial Owners. If Registrable Securities are held by a nominee for the beneficial owner thereof, the beneficial
owner thereof may, at its option, be treated as the Holder of such Registrable Securities for purposes of any request or other action
by any Holder or Holders of Registrable Securities pursuant to this Agreement (or any determination of any number or percentage of shares
constituting Registrable Securities held by any Holder or Holders of Registrable Securities contemplated by this Agreement); provided,
however, that the Company shall have received evidence reasonably satisfactory to it of such beneficial ownership.
Section 4.04.
Amendments and Waivers. Except as otherwise provided herein, no modification, amendment or waiver of any provision of this
Agreement shall be effective against the Company or any Holder unless such modification, amendment or waiver is approved in writing by
the Company and the Holders holding a majority of the Registrable Securities then held by all Holders; provided that notwithstanding
the foregoing, any amendment hereto or waiver hereof that adversely affects one Holder, solely in its capacity as a Holder of Registrable
Securities, in a manner that is materially different from the other Holders (in such capacity) shall require the consent of the Holder
so affected. No waiver of any of the provisions of this Agreement shall be deemed to or shall constitute a waiver of any other provision
hereof (whether or not similar). No failure or delay on the part of any party in exercising any right, power or privilege hereunder shall
operate as a waiver thereof or of any other or future exercise of any such right, power or privilege.
Section 4.05.
Notices. All notices, demands and other communications to be given or delivered under or by reason of the provisions of this
Agreement shall be in writing and shall be deemed to have been given (i) if personally delivered, on the date of delivery, (ii) if delivered
by express courier service of national standing (with charges prepaid), on the Business Day following the date of delivery to such courier
service, (iii) if deposited in the United States mail, first-class postage prepaid, on the fifth (5th) Business Day following the date
of such deposit, (iv) if delivered by facsimile transmission, upon confirmation of successful transmission, (x) on the date of such transmission,
if such transmission is completed at or prior to 5:00 p.m., local time of the recipient party on a Business Day, and (y) on the next Business
Day following the date of transmission, if such transmission is completed after 5:00 p.m., local time of the recipient party, or is transmitted
on a day that is not a Business Day, or (v) if via e-mail communication, on the date of delivery. All notices, demands and other communications
hereunder shall be delivered as set forth below and to any subsequent holder of Stock subject to this Agreement at such address as indicated
by the Company’s records, or pursuant to such other instructions as may be designated in writing by the party to receive such notice:
if to the Company, to:
ATII Holdings Inc.
12300 Grant St. #100
Thornton, CO 80241
Attn: Paul Lichty, CEO
E-mail: plichty@forgenano.com with a copy
to:
Paul, Weiss, Rifkind, Wharton & Garrison
LLP
1285 Avenue of the Americas
New York, New York 10019-6064
Attn: Benjamin M. Goodchild
E-mail: bgoodchild@paulweiss.com
19
if to any Holder, to the address set forth opposite
the name of such Holder on the signature pages hereto or such other address indicated in the records of the Company.
Section 4.06. Successors and Assigns. Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit
of and be enforceable by the parties hereto and the respective successors, permitted assigns, heirs and personal representatives of the
parties hereto, whether so expressed or not. This Agreement may not be assigned by the Company without the prior written consent of the
Holders. No Holder shall have the right to assign all or part of its or his rights and obligations under this Agreement to any Person
without the consent of the Company (not to be unreasonably withheld or delayed) unless such Person duly executes and delivers to the Company
a Joinder Agreement. Upon any such assignment, such assignee shall have and be able to exercise and enforce all rights of the assigning
Holder which are assigned to it and, to the extent such rights are assigned, any reference to the assigning Holder shall be treated as
a reference to the assignee. If any Holder shall acquire additional Registrable Securities, such Registrable Securities shall be subject
to all of the terms, and entitled to all the benefits, of this Agreement. Additional Persons may become parties to this Agreement as Holders
with the consent of the Company (not to be unreasonably withheld or delayed), by executing and delivering to the Company the Joinder Agreement.
Section 4.07. Termination. (a) The obligations of the Company and a Holder under this Agreement, in each case solely with respect to such
Holder, will terminate upon the earlier of:
(i)
the first date on which such Holder no longer holds any Registrable Securities; or
(ii)
the first date on which such the Holder is eligible to sell its Registrable Securities pursuant to Rule 144 (without limitation
as to volume or manner of sale).
(b) Notwithstanding clause (a) above, Section 2.05, Section 2.09, Section 4.09 and Section 4.13 shall survive termination of this Agreement.
Section 4.08. Entire
Agreement. This Agreement and the other documents referred to herein or delivered pursuant hereto which form part hereof constitute
the entire agreement and understanding between the parties hereto and supersedes all prior agreements and understandings relating to
the subject matter hereof.
Section 4.09. Governing Law; Jurisdiction; Waiver of Jury Trial. (a) This Agreement will be governed by, and construed in accordance with,
the laws of the State of New York, without giving effect to the principles of conflict of laws thereof.
(b) Any
suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement
may be brought against any of the parties in the United States District Court for the Southern District of New York or any New York state
court located in New York, New York, and each of the parties hereby consents to the exclusive jurisdiction of such court (and of the
appropriate appellate courts) in any such suit, action or proceeding and waives any objection to venue laid therein. Process in any such
suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT.
Section 4.10. Interpretation;
Construction. (a) The table of contents and headings in this Agreement are for convenience of reference only, do not constitute part
of this Agreement and shall not be deemed to limit or otherwise affect any of the provisions hereof. Where a reference in this Agreement
is made to a Section, such reference shall be to a Section of this Agreement unless otherwise indicated. Whenever the words “include,”
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without
limitation.”
20
(b) The
parties have participated jointly in negotiating and drafting this Agreement. In the event that an ambiguity or a question of intent
or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof
shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement.
Section 4.11. Counterparts.
This Agreement may be executed and delivered in any number of separate counterparts (including by facsimile or electronic mail), each
of which shall be an original, but all of which together shall constitute one and the same agreement.
Section 4.12. Severability.
The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the
validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to any person
or any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision shall be substituted therefor in order to carry
out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder
of this Agreement and the application of such provision to other persons or circumstances shall not be affected by such invalidity or
unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application
thereof, in any other jurisdiction.
Section 4.13. Specific Enforcement. It is agreed and understood that monetary damages would not adequately compensate an injured party for
the breach of this Agreement by any party hereto and, accordingly, that this Agreement shall be specifically enforceable, in addition
to any other remedy to which such injured party is entitled at law or in equity, and that any breach of this Agreement shall be the proper
subject of a temporary or permanent injunction or restraining order. Further, each party hereto waives any claim or defense that there
is an adequate remedy at law for such breach or threatened breach or an award of specific performance is not an appropriate remedy for
any reason at law or equity and agrees that a party’s rights would be materially and adversely affected if the obligations of the
other parties under this Agreement were not carried out in accordance with the terms and conditions hereof. Each party further agrees
that no party shall be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition to obtain
any remedy referred to in this Section 4.13, and each party irrevocably waives any right it may have to require the obtaining, furnishing
or posting of any such bond or similar instrument.
Section 4.14. Further
Assurances. Each party hereto shall do and perform or cause to be done and performed all such further acts and things and shall execute
and deliver all such other agreements, certificates, instruments, and documents as any other party hereto reasonably may request in order
to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.
Section 4.15. Opt-Out
Requests. Each Holder shall have the right, at any time and from time to time (including after receiving information regarding any
potential public offering), to elect to not receive any notice that the Company or any other Holders otherwise are required to deliver
pursuant to this Agreement by delivering to the Company a written statement signed by such Holder that it does not want to receive any
notices hereunder (an “Opt-Out Request”); in which case and notwithstanding anything to the contrary in this Agreement
the Company and other Holders shall not be required to, and shall not, deliver any notice or other information required to be provided
to Holders hereunder to the extent that the Company or such other Holders reasonably expect would result in a Holder acquiring material
non-public information within the meaning of Regulation FD promulgated under the Exchange Act. An Opt-Out Request may state a date on
which it expires or, if no such date is specified, shall remain in effect indefinitely. A Holder who previously has given the Company
an Opt-Out Request may revoke such request at any time, and there shall be no limit on the ability of a Holder to issue and revoke subsequent
Opt-Out Requests; provided that each Holder shall use commercially reasonable efforts to minimize the administrative burden on
the Company arising in connection with any such Opt-Out Requests.
Section 4.16. Original
Registration Rights Agreement. The Sponsor hereby agrees that upon effectiveness of this Agreement by the Sponsor, the Original Registration
Rights Agreement shall be automatically terminated and superseded in its entirety by this Agreement.
[Remainder of Page Intentionally Left Blank]
21
IN WITNESS WHEREOF, the parties
hereto have duly executed this Agreement as of the date first above written.
THE COMPANY:
ATII HOLDINGS INC.
By:
/s/ Long Long
Name: Long Long
Title: Chief Executive Officer
[Signature Page to Amended and Restated Registration Rights Agreement]
HOLDER:
ARCHIMEDES TECH SPAC SPONSORS
II LLC
By:
/s/ Long Long
Name: Long Long
Title: Managing Member
HOLDER:
THE DAVID M. KING REVOCABLE TRUST
OF 2020
By:
/s/ David M. King
Name: David M. King
Title: Director of Technology
HOLDER:
Don Kaiser
By:
/s/ Donald Kaiser
Name: Donald Kaiser
Title: COO
HOLDER:
Curtis Zimmermann
By:
/s/ Curtis James Zimmermann
Name: Curtis James Zimmermann
Title: Chief Legal Counsel
HOLDER:
Paul Lichty
By:
/s/ Paul Lichty
Name: Paul Lichty
Title: CEO
HOLDER:
Michael Danner
By:
/s/ Michael Danner
Name: Michael Danner
HOLDER:
James Trevey
By:
/s/ James Trevey
Name: James Trevey
Title: CTO
[Signature Page to Amended and Restated Registration Rights Agreement]
HOLDER:
Michael Kleinberg
By:
/s/ Michael Kleinberg
Name: Michael Kleinberg
Title: CFO
HOLDER:
Ascent Funds
By:
/s/ Mark Gordon
Name: Mark Gordon
Title: Managing Partner
HOLDER:
Eugene and Josephine Danner 2012
Dynasty Trust
By:
/s/ Thomas Graner
Name: Thomas Graner
Title: Trustee
HOLDER:
HANWHA AEROSPACE USA LLC
By:
/s/ Sun Kim
Name: Sun Kim
Title: Senior Executive Vice President
HOLDER:
Hanwha Aerospace Co., Ltd.
By:
/s/ Jaeil Son
Name: Jaeil Son
Title: Chief Executive Officer
HOLDER:
Inclusive Futures, LP
By:
/s/ Sherri Rossoff
Name: Sherri Rossoff
Title: Authorized Signatory, RockCreek Group LP
HOLDER:
GENERAL MOTORS VENTURES LLC
By:
/s/ Kevin McCabe
Name: Kevin McCabe
Title: President
[Signature Page to Amended and Restated Registration Rights Agreement]
HOLDER:
CC Energy Storage II, LLC
By: Catalus Capital Management, LLC,
its manager
By:
/s/ Michael Freeburg
Name: Michael Freeburg
Title: Member
VOLKSWAGEN GROUP OF AMERICA INVESTMENTS,
LLC
By:
/s/ Kevin Duke
Name: Kevin Duke
Title: VP & Secretary
HOLDER:
HzO, Inc.
By:
/s/ Kamal Bherwani
Name: Kamal Bherwani
Title: Executive Chairman
LG CHEM FUND I LLC
By: LG Technology Ventures LLC, its
Manager
By:
/s/ Dong-Su Kim
Name: Dong-Su Kim
Title: Chief Executive Officer
HOLDER:
Mitsui Kinzoku – SBI Material
Innovation Fund
By:
/s/ Yoshitaka Kitao
Name: Yoshitaka Kitao
Title: Representative Director
HOLDER:
OIC Growth Funds
By:
/s/ Jeremy Glick
Name: Jeremy Glick
Title: Investment Partner
[Signature Page to Amended and Restated Registration Rights Agreement]
Exhibit A
JOINDER AGREEMENT
This Joinder Agreement (this
“Joinder Agreement”) is made as of [__], by [and among [__] (the “Transferring Holder”) and]
[__] (the “New Holder”), in accordance with that certain Amended and Restated Registration Rights Agreement,
dated as of [__], 2026 (as amended from time to time, the “Agreement”), by and among ATII HOLDINGS INC. (the “Company”)
and the other Holders party thereto.
WHEREAS, the Agreement
requires the New Holder to become a party to the Agreement by executing this Joinder Agreement, and upon the New Holder signing this Joinder
Agreement, the Agreement will be deemed to be amended to include the New Holder as a Holder thereunder;
NOW, THEREFORE, in
consideration of the foregoing, and of the representations, warranties, covenants and agreements contained herein, and intending to be
legally bound hereby, the parties hereto agree as follows:
Section 1. Party to the
Agreement. By execution of this Joinder Agreement, as of the date hereof the New Holder is hereby made a party to the Agreement as
a Holder. The New Holder hereby agrees to become a party to the Agreement and to be bound by, and subject to, all of the representations,
covenants, terms and conditions of the Agreement in the same manner as if the New Holder were an original signatory to the Agreement.
Execution and delivery of this Joinder Agreement by the New Holder shall also constitute execution and delivery by the New Holder of the
Agreement, without further action of any party.
Section 2. Defined Terms.
Capitalized terms used but not defined herein shall have the meanings set forth in the Agreement unless otherwise noted.
Section 3. Representations
and Warranties of the New Holder.
3.1. Authorization. The
New Holder has all requisite power and authority and has taken all action necessary in order to duly and validly approve the New Holder’s
execution and delivery of, and performance of its obligations under, this Joinder Agreement. This Joinder Agreement has been duly executed
and delivered by the New Holder and constitutes a legal, valid and binding agreement of the New Holder, enforceable against the New Holder
in accordance with its terms.
3.2. No Conflict. The
New Holder is not under any obligation or restriction, nor shall it assume any such obligation or restriction, that does or would materially
interfere or conflict with the performance of its obligations under this Joinder Agreement.
Section 4. Further Assurances.
The parties agree to execute and deliver any further instruments or perform any acts which are or may become necessary to effectuate the
purposes of this Joinder Agreement.
Section 5. Governing Law.
This Joinder Agreement will be governed by, and construed in accordance with, the laws of the State of New York, without giving effect
to the principles of conflict of laws thereof.
Section 6. Counterparts.
This Joinder Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same amendatory
instrument.
Section 7. Entire Agreement.
This Joinder Agreement and the Agreement contain the entire understanding, whether oral or written, of the parties hereto with respect
to the matters covered hereby. Any amendment or change in this Joinder Agreement shall not be valid unless made in writing and signed
by each of the parties hereto.
[Signature pages follow]
A-1
IN WITNESS WHEREOF,
intending to be legally bound hereby, the undersigned parties have executed this Joinder Agreement as of the date first above written.
[TRANSFERRING HOLDER]
[_____]
By:
Name:
Title:
NEW HOLDER
[_____]
By:
Name:
Title:
NEW HOLDER
[_____]
By:
Name:
Title:
Notice Address: [_____________________]
[_____]
[_____]
Attn: [ ]
Facsimile: [ ]
Accepted and Agreed to as of
the date first written above:
COMPANY
[ATII HOLDINGS INC.]
By:
Name:
Title:
A-2
EX-10.4 — EXHIBIT 10.4
EX-10.4
Filename: tm2628316d1_ex10-4.htm · Sequence: 10
Exhibit 10.4
Execution Version
FORM OF
LOCK-UP AGREEMENT
[__], 2026
Forge Nano, Inc.
12300 Grant St. #100
Thornton, CO 80241
Attn: Paul Lichty, CEO
E-mail: [*****]
Re: Lock-Up Agreement (this “Agreement”)
Reference is made to that
certain Agreement and Plan of Merger, dated as of the date hereof, as may be amended, supplemented or otherwise modified from time to
time (the “Merger Agreement”), by and among (i) Archimedes Tech SPAC Partners II Co., a Cayman Islands
exempted company (the “Purchaser”), (ii) ATII Holdings Inc., a Delaware corporation and a wholly-owned
subsidiary of the Purchaser (“Pubco”), (iii) ATII Merger Sub Inc., a Delaware corporation and a wholly-owned
subsidiary of the Purchaser (“Merger Sub I”), (iv) ATII Merger Sub II LLC, a Delaware limited liability
company and a wholly-owned subsidiary of the Purchaser (“Merger Sub II”) and (v) Forge Nano, Inc.,
a Delaware corporation (the “Company”). Capitalized terms used herein and not otherwise defined shall have
the meanings set forth in the Merger Agreement.
As a material inducement
for, and a condition to the willingness of, Pubco to enter into the Merger Agreement and to consummate the transactions contemplated
thereby, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the undersigned (together with the
undersigned’s affiliated Persons set forth on Schedule A hereto entitled to receive Merger Consideration pursuant to
the Merger Agreement, the “Subject Party”) hereby agrees as follows:
1. Definitions.
For purposes of this Agreement, the following terms shall have the following meanings:
(a) “Affiliate”
means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with such
Person. For purposes of this definition, “control,” when used with respect to any specified Person, means the power to direct
or cause the direction of the management and policies of such Person, directly or indirectly, whether through ownership of voting securities
or partnership or other ownership interests or by Contract or otherwise, and the terms “controlling”, “under common
control with” and “controlled by” have correlative meanings to the foregoing.
(b) “Beneficially
Own” means, with respect to any Subject Shares, having “beneficial ownership” as determined pursuant to Rule 13d3
promulgated under the Exchange Act.
(c) “Disability”
means (i) the inability of the Subject Party, by reason of bona fide physical or mental injury, illness or other similar cause,
to perform the duties and responsibilities of the Subject Party’s provision of services to the Target Companies for a period of
at least 180 days or more during any 365-day period and where such injury, illness or other similar cause is reasonably anticipated to
continue to prevent the Subject Party from operating or functioning in a similar capacity after such 180-day period, which determination
shall be made by a licensed independent physician reasonably agreed in writing by Pubco and the Subject Party (or his or her authorized
representative or power-of-attorney), or (ii) if the Subject Party is a participant in a long-term disability plan of Pubco or any
of its Subsidiaries or Affiliates, the determination of disability under such plan also will be considered “Disability” for
purposes of this Agreement.
(d) “Hedge”
means to acquire any option or right or any equivalent contract to, directly or indirectly (including through one or more synthetic transactions),
sell or otherwise dispose of the economic interest in Lock-Up Shares, or to enter into any swap, hedge, synthetic arrangement or any
other agreement, including any short sales of Lock-Up Shares, purchase of, or entry into, any put or call option, forward, swap or other
derivative positions, transactions or instruments, that directly or indirectly Transfers, in whole or in part, the economic interest
in Lock-Up Shares, including the establishment or increase of any “put equivalent position” or liquidation or a decrease
of a “call equivalent position” in Lock-Up Shares within the meaning of Section 16 of the Exchange Act. When used as
a noun, “Hedge” has a correlative meaning.
(e) “Lock-Up
Period” means the period commencing on the date hereof and ending at the earlier of (i) 11:59 p.m. (Eastern Time)
on the six (6) month anniversary of the Closing Date or (ii)11:59 p.m. (Eastern Time) on the date on which the last reported
sale price of the shares of Pubco Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations,
reorganizations, recapitalizations and other similar transactions) for any twenty (20) trading days within any thirty (30) trading day
period after the consummation of the First Company Merger pursuant to the Merger Agreement.
(f) “Lock-Up
Shares” means, during the Lock-Up Period, one hundred percent (100%) of the Subject Shares.
(g) “Share
Certificate” means a certificate evidencing Lock-Up Shares.
(h) “Subject
Shares” means the aggregate Merger Consideration, comprised of shares of Pubco Common Stock, received by the Subject Party
pursuant to the Merger Agreement, whether such shares of Pubco Common Stock are owned directly or otherwise Beneficially Owned by the
Subject Party.
(i) “Transfer”
means, with respect to any Subject Shares or a right attributable thereto or interest therein, any direct or indirect sale, exchange,
assignment, transfer (including by merger, conversion or operation of law), gift or other disposition of such Subject Shares, whether
voluntary, involuntary or by operation of law and including by means of any Hedge, or a charge, mortgage, pledge of or granting of any
other form of security interest in any such Subject Shares or interest therein (or such right attributable thereto). For the avoidance
of doubt, a Transfer shall include any of the foregoing actions by the Subject Party who is not a natural person or by any equityholder
in any such Subject Party that is not a natural person continuing up the ownership chain to and including a natural person.
2
2. Transfer
Restrictions. During the period beginning as of the date hereof and continuing until the expiration of the Lock-Up Period, and subject
to the exceptions in Sections 3, 4, 5 and 6, hereof, the Subject Party shall not Transfer, permit or
cause the Transfer of, any Lock-Up Shares (whether or not any transaction is to be settled by delivery of Lock-Up Shares or such other
securities, in cash or otherwise), or make a public announcement of any intention to effect such a Transfer. Any purported Transfer that
does not comply with the terms of this Agreement shall be null and void . For the avoidance of doubt, this Agreement does not purport
to restrict any Transfer of shares of Pubco Common Stock (i) acquired in open market transactions by the Subject Party (whether
prior to, on or after the Closing Date), or (ii) that are Subject Shares but no longer qualify as Lock-Up Shares.
3. Permitted
Transfers. Notwithstanding anything to the contrary in this Agreement, the Subject Party may Transfer the Subject Party’s Lock-Up
Shares only in the following circumstances:
(a) to
Pubco’s directors or officers or any affiliates or family members of Pubco’s directors or officers;
(b) if
the Subject Party is an individual, by gift to a member of the Subject Party’s Immediate Family or to a trust, the beneficiary
of which is a member of such Subject Party’s Immediate Family or an affiliate of such person, or to a charitable organization;
provided that in the case of an Immediate Family member that is a trust, such trust does not require or permit the distribution
of any of the Lock-Up Shares other than to the Subject Party and/or the Subject Party’s Immediate Family members; provided,
further, that any such Transfer shall be for bona fide estate planning purposes and does not involve a disposition for value;
(c) if
the Subject Party is an individual, by virtue of laws of descent and distribution upon death of Subject Party or otherwise in connection
with Transfers by will, other testamentary document or intestate succession to the legal representative, heir, beneficiary or a member
of the Immediate Family of the Subject Party;
(d) if
required pursuant to any Applicable Law or a final and non-appealable Governmental Order of any Governmental Authority (including by
Transfers by operation of law pursuant to a qualified domestic order, divorce settlement, or divorce decree or separation agreement or
wind-up or dissolution of a legal entity);
(e) to
a nominee or custodian of a person or entity to whom a disposition or transfer would be permissible under clauses (a) through (d) above;
and
provided that in the case of any Transfer
pursuant to clauses (a)-(d), each transferee shall execute and deliver to Pubco a lock-up letter substantially in the form of this Agreement
as a condition to the effectiveness of such Transfer.
4. Termination.
This Agreement shall terminate upon the earlier of (i) the expiration of the Lock-Up Period, (ii) the termination of the Merger
Agreement in accordance with Section 8.1 of the Merger Agreement, and (iii) to the extent that the Subject Party is employed
by the Company as of the date hereof, the termination of such employment of the Subject Party by Pubco (or its Affiliate) without Cause
(as defined in the Subject Party’s employment agreement).
3
5. Pubco
Transactions. Notwithstanding anything to the contrary in this Agreement, the Subject Party shall be permitted to Transfer the Lock-Up
Shares to a third party pursuant to a tender or exchange offer for shares of Pubco Common Stock or other transaction involving shares
of Pubco Common Stock, including, without limitation, a merger, consolidation, stock exchange, reorganization or other business combination
or similar transaction, involving a change of control or similar extraordinary transaction of Pubco that, in each case, has been approved
by the board of directors of Pubco (including, without limitation, entering into any lock-up, voting or similar agreement pursuant to
which the Subject Party may agree to Transfer the Subject Party’s Lock-Up Shares in connection with any such transaction, or vote
any of the Subject Party’s Lock-Up Shares in favor of any such transaction); provided that all of the Subject Party’s
Lock-Up Shares that are not so Transferred remain subject to this Agreement; and provided, further, that it shall be a condition
of the Transfer that if such transaction is not completed, any of the Subject Party’s Lock-Up Shares shall remain subject to the
restrictions herein.
6. Stop
Transfer Instructions. In furtherance of the foregoing, Pubco and any duly appointed transfer agent for the registration or Transfer
of the securities described herein are hereby authorized to decline to make any Transfer of securities if such Transfer would constitute
a violation or breach of this Agreement. The Subject Party agrees and hereby consents to the entry of stop transfer instructions with
Pubco’s transfer agent and registrar against the Transfer of the applicable portion of the Subject Shares that, at such time during
the Lock-Up Period, constitutes Lock-Up Shares except in compliance with and as contemplated by Sections 3, 4 and
5. The Subject Party further understands and acknowledges that this Agreement is irrevocable and shall be binding upon its heirs,
legal representatives, successors and assigns.
7. (a) Legends.
The Subject Party acknowledges that, to the extent applicable, each Share Certificate shall be endorsed with the legend substantially
in the form set forth below, as well as any additional legend imposed or required by Applicable Law.
THE SHARES REPRESENTED BY THIS CERTIFICATE
ARE SUBJECT TO RESTRICTIONS ON SALE OR TRANSFER CONTAINED IN A LOCK-UP AGREEMENT, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF PUBCO.
(b) Pubco
will take all actions necessary to have the Lock-Up Legend and all stop transfer instructions removed from each applicable portion of
the Subject Shares on the date such portion no longer constitutes Lock-Up Shares. In connection with any removal of the Lock-Up Legend
and stop transfer instructions pursuant to this paragraph, if required by Pubco’s transfer agent and registrar, Pubco will, at
its expense, promptly cause an opinion of counsel to be delivered to and maintained with such transfer agent and registrar, together
with any other authorizations, certificates and directions required by such transfer agent and registrar, that authorize and direct the
transfer agent and registrar to issue such Subject Shares without a Lock-Up Legend.
8. Representations,
Warranties and Acknowledgments.
(a) Each
party hereby represents and warrants to the other party that it has full power and authority to enter into this Agreement.
4
(b) The
Subject Party represents and warrants that, when the Lock-Up Shares are issued to the Subject Party, the Subject Party will have, and,
except as contemplated by Sections 3, 4 and 5 above, will retain for the duration of the Lock-Up Period good
and marketable title to its Subject Shares, free and clear of all liens, encumbrances, and claims whatsoever (other than arising or as
expressly permitted under this Agreement or under applicable securities laws).
(c) The
Subject Party understands that his, her, their or its entry into this Agreement is a condition to the Subject Party’s entitlement
to receive the Subject Shares and that Pubco is relying upon this Agreement in performing its respective obligations that are subject
to such condition.
9. [Reserved].
10. Notices.
All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly
given (i) on the date of service if served personally on the party to whom notice is to be given; (ii) on the day of transmission
if sent via electronic mail transmission to the electronic mail address given below (provided no rejection notice is received by the
sender); (iii) on the day after delivery to Federal Express or similar overnight courier or the Express Mail service maintained
by the United States Postal Service; or (iv) on the fifth (5th) day after mailing, if mailed to the party to whom notice
is to be given, by first class mail, registered or certified, postage prepaid and properly addressed, to the party as follows:
If to Pubco:
Forge Nano, Inc.
12300 Grant St. #100
Thornton, CO 80241
Attn: Paul Lichty, CEO
E-mail: [*****]
with a copy to:
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, New York 10019-6064
Attn: Benjamin M. Goodchild
E-mail: bgoodchild@paulweiss.com
If to the Subject Party:
To the address set forth on the signature page attached hereto.
Any party may change its
address for the purpose of this Section 10 by giving the other parties written notice of its new address in the manner set
forth above.
5
11. Miscellaneous.
(a) Captions.
The captions in this Agreement are for convenience only and shall not be considered a part of or affect the construction or interpretation
of any provision of this Agreement.
(b) Severability.
If any term or other provision of this Agreement is invalid, illegal, or incapable of being enforced as a result of any Applicable Law
or public policy, all other terms or provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic
or legal substance of the transactions contemplated hereby is not affected in any manner material to any party. Upon such determination
that any term or other provision is invalid, illegal, or incapable of being enforced, the parties hereto shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the parties as closely as possible.
(c) Entire
Agreement; Amendments and Waivers. This Agreement represents the entire understanding and agreement among the parties hereto with
respect to the subject matter hereof and, except as explicitly set forth herein, supersedes all prior and contemporaneous representations,
warranties, understandings and agreements, both written and oral, with respect to such subject matter. This Agreement can be amended,
supplemented or changed, and any provision hereof can be waived, only by written instrument making specific reference to this Agreement
signed by the party against whom enforcement of any such amendment, supplement, modification or waiver is sought. The waiver by any party
hereto of a breach of any provision of this Agreement shall not operate or be construed as a further or continuing waiver of such breach
or as a waiver of any other or subsequent breach. No failure on the part of any party to exercise, and no delay in exercising, any right,
power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy
by such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. Except as otherwise
expressly provided herein, remedies hereunder are cumulative and are not exclusive of any other remedies provided by Applicable Law.
(d) Assignment;
Binding Effect. Neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned by any of the parties
hereto, in whole or in part (whether by operation of law or otherwise), without the prior written consent of the other parties, and any
attempt to make any such assignment without such consent shall be null and void. This Agreement shall be binding upon and inure solely
to the benefit of Pubco, the Subject Party and their respective successors and permitted assigns, and nothing in this Agreement, express
or implied, is intended to or shall confer upon any other Person any right, benefit or remedy of any nature whatsoever under or by reason
of this Agreement.
(e) Governing
Law. This Agreement, and all proceedings (whether based on contract, tort or otherwise) arising out of or relating to this Agreement
or the actions of the parties in the negotiation, administration, performance and enforcement hereof, shall be governed by, and construed
and enforced in accordance with, the Applicable Laws of the State of Delaware, without regard to any choice or conflict of law provision
or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the Applicable Laws of
any jurisdiction other than the State of Delaware. In addition, each of the parties hereto irrevocably (i) submits to the personal
jurisdiction of the Specified Courts (as defined in the Merger Agreement), (ii) agrees that it will not attempt to deny or defeat
such personal jurisdiction by motion or other request for leave from any such court, (iii) waives any objection to the laying of
venue of any Proceeding relating to this Agreement or the transactions contemplated hereby in such court, (iv) waives and agrees
not to plead or claim in any such court that any Proceeding relating to this Agreement or the transactions contemplated hereby brought
in any such court has been brought in an inconvenient forum, and (v) agrees that it will not bring any Proceeding relating to this
Agreement or the transactions contemplated hereby in any court other than the Specified Courts. Each party agrees that service of process
upon such party in any such Proceeding shall be effective if notice is given in accordance with Section 10.
6
(f) Waiver
of Jury Trial. EACH PARTY HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY WITH RESPECT TO ANY ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SEEK TO ENFORCE THAT FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 11(f).
(g) Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and
all of which, when taken together, will be deemed to constitute one and the same agreement.
(h) Electronic
Signatures. Each party hereby consents to receipt of this Agreement in electronic form and understands and agrees that this Agreement
may be signed electronically. In the event that any signature is delivered by electronic mail, or otherwise by electronic transmission
evidencing an intent to sign this Agreement, such electronic mail or other electronic transmission shall create a valid and binding obligation
of the applicable party with the same force and effect as if such signature were an original. Execution and delivery of this Agreement
by electronic mail or other electronic transmission is legal, valid and binding for all purposes.
[Signature Pages Follow]
7
IN WITNESS WHEREOF, the parties
hereto have executed and delivered this Agreement as of the date first written above.
Very truly yours,
SUBJECT PARTY:
By:
Name:
(please print full name)
Address:
(please print mailing address)
ACCEPTED AND AGREED TO:
FORGE NANO, INC.
By:
Name:
(please print full name)
Address:
12300 Grant St. #100
Thornton, CO 80241
(please print mailing address)
[Signature Page to Lock-Up Agreement]
EX-10.5 — EXHIBIT 10.5
EX-10.5
Filename: tm2628316d1_ex10-5.htm · Sequence: 11
Exhibit 10.5
INDEMNIFICATION
AGREEMENT
This Indemnification Agreement
(“Agreement”) is made as of October ____, 2026 by and between Forge Nano Holdings, Inc., a Delaware corporation
(the “Company”), and ______________ (“Indemnitee”). This Agreement supersedes and replaces any and all previous
Agreements between the Company and Indemnitee covering the subject matter of this Agreement.
RECITALS
WHEREAS, the Board of Directors
of the Company (the “Board”) believes that highly competent persons have become more reluctant to serve publicly held corporations
as directors, officers or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification
against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;
WHEREAS, the Board has determined
that, to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability
insurance to protect persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance
has been a customary and widespread practice among U.S.-based corporations and other business enterprises, the Company believes that,
given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more
exclusions. At the same time, directors, officers and other persons in service to corporations or business enterprises are being increasingly
subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought
only against the Company or business enterprise itself. The Amended and Restated Bylaws of the Company (as amended from time to time,
the “Bylaws”) require indemnification of the officers and directors of the Company, and the Restated Certificate of Incorporation
of the Company (as amended from time to time, the “Certificate of Incorporation”) authorizes the Company to provide such
indemnification. Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware
(the “DGCL”). The Bylaws and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive,
and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other
persons with respect to indemnification;
WHEREAS, the uncertainties
relating to such insurance and to indemnification may increase the difficulty of attracting and retaining such persons;
WHEREAS, the Board has determined
that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company and its stockholders
and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;
WHEREAS, it is reasonable,
prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons
to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that
they will not be so indemnified;
WHEREAS, this Agreement is
a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws and any resolutions adopted pursuant thereto, as well
as any rights of Indemnitee under any directors’ and officers’ liability insurance policy, and this Agreement shall not be
deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder; and
WHEREAS, Indemnitee
does not regard the protection available under the Certificate of Incorporation, the Bylaws and insurance as adequate in the present
circumstances and may not be willing to serve or continue to serve as an officer or director without adequate protection, and the Company
desires Indemnitee to serve or continue to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional
service for or on behalf of the Company on the condition that Indemnitee be so indemnified.
NOW, THEREFORE, in consideration
of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:
Section 1. Services
to the Company. Indemnitee agrees to serve as a director or officer of the Company or, at the request of the Company, as a director,
officer, employee, agent or fiduciary of another corporation, partnership, joint venture, trust or other enterprise. Indemnitee may at
any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation
of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in such position. This Agreement
shall not be deemed an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee. Indemnitee
specifically acknowledges that Indemnitee’s employment with the Company (or any of its subsidiaries or any Enterprise), if any,
is at will, and the Indemnitee may be discharged at any time for any reason, with or without cause, except as may be otherwise provided
in any written employment contract between Indemnitee and the Company (or any of its subsidiaries or any Enterprise), other applicable
formal severance policies duly adopted by the Board, or, with respect to service as a director or officer of the Company, by the Certificate
of Incorporation, the Bylaws, and the DGCL. The foregoing notwithstanding, this Agreement shall continue in force after Indemnitee has
ceased to serve as a director or officer of the Company or, at the request of the Company, as a director, officer, employee, agent or
fiduciary of another corporation, partnership, joint venture, trust or other enterprise, as provided in Section 16 hereof.
Section 2. Definitions.
As used in this Agreement:
(a) References
to “agent” shall mean any person who is or was a director, officer, or employee of the Company or a subsidiary of the Company
or other person authorized by the Company to act for the Company, to include such person serving in such capacity as a director, officer,
employee, fiduciary or other official of another corporation, partnership, limited liability company, joint venture, trust or other enterprise
at the request of, for the convenience of, or to represent the interests of the Company or a subsidiary of the Company.
(b) A
“Change in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following
events:
i. Acquisition
of Stock by Third Party. Any Person (as defined below) is or becomes the Beneficial Owner (as defined below), directly or indirectly,
of securities of the Company representing 20% or more of the combined voting power of the Company’s then outstanding securities
unless the change in relative Beneficial Ownership of the Company’s securities by any Person results solely from a reduction in
the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors; provided, however,
that Alyeska Master Fund, L.P. and its affiliates shall not constitute a Person for purposes of this Section 2(b)(i) unless
and until they hold securities of the Company representing more than 30% of the combined voting power of the Company’s then outstanding
securities, and for such purpose any securities issuable upon exercise of any warrant held by Alyeska Master Fund, L.P. or its affiliates
shall not be deemed outstanding or beneficially owned until issued;
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ii. Change
in Board of Directors. During any period of two (2) consecutive years (not including any period prior to the execution of this Agreement),
individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person
who has entered into an agreement with the Company to effect a transaction described in Sections 2(b)(i), 2(b)(iii) or 2(b)(iv))
whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds
of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election
was previously so approved, cease for any reason to constitute at least a majority of the members of the Board;
iii. Corporate
Transactions. The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation
which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to
represent (either by remaining outstanding or by being converted into voting securities of the Surviving Entity) more than 50% of the
combined voting power of the voting securities of the Surviving Entity outstanding immediately after such merger or consolidation and
with the power to elect at least a majority of the board of directors or other governing body of such Surviving Entity;
iv. Liquidation.
The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all of the Company’s assets; and
v. Other
Events. There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A
of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined
below), whether or not the Company is then subject to such reporting requirement.
For purposes of this Section 2(b), the following terms shall
have the following meanings:
(A) “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.
(B) “Person”
shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person shall exclude
(i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and
(iii) any entity owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company.
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(C) “Beneficial
Owner” shall have the meaning given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial
Owner shall exclude any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger
of the Company with another entity.
(D) “Surviving
Entity” shall mean the surviving entity in a merger or consolidation or any entity that controls, directly or indirectly, such
surviving entity.
(c) “Corporate
Status” describes the status of a person who is or was a director, trustee, partner, managing member, officer, employee, agent
or fiduciary of the Company or of any other corporation, limited liability company, partnership or joint venture, trust or other enterprise
which such person is or was serving at the request of the Company.
(d) “Disinterested
Director” shall mean a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification
is sought by Indemnitee.
(e) “Enterprise”
shall mean the Company and any other corporation, limited liability company, partnership, joint venture, trust or other enterprise of
which Indemnitee is or was serving at the request of the Company as a director, officer, trustee, partner, managing member, employee,
agent or fiduciary.
(f) “Expenses”
shall include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees and other costs of experts and other
professionals, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service
fees, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under
this Agreement, ERISA excise taxes and penalties, and all other disbursements, obligations or expenses of the types customarily incurred
in connection with, or as a result of, prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to
be a deponent or witness in, or otherwise participating in, a Proceeding. Expenses also shall include (i) Expenses incurred
in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs
relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, (ii) Expenses incurred in connection with recovery
under any directors’ and officers’ liability insurance policies maintained by the Company, regardless of whether Indemnitee
is ultimately determined to be entitled to such indemnification, advancement or Expenses or insurance recovery, as the case may be, and
(iii) for purposes of Section 14(d) only, Expenses incurred by Indemnitee in connection with the interpretation, enforcement
or defense of Indemnitee’s rights under this Agreement, the Certificate of Incorporation, the Bylaws or under any directors’
and officers’ liability insurance policies maintained by the Company, by litigation or otherwise. The parties agree that for the
purposes of any advancement of Expenses for which Indemnitee has made written demand to the Company in accordance with this Agreement,
all Expenses included in such demand that are certified by affidavit of Indemnitee’s counsel as being reasonable in the good faith
judgment of such counsel shall be presumed conclusively to be reasonable. Expenses, however, shall not include amounts paid in settlement
by Indemnitee or the amount of judgments or fines against Indemnitee.
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(g) “Independent
Counsel” shall mean a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently
is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such
party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification
agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional
conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement. The Company agrees to pay the reasonable fees and expenses of the Independent Counsel
referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or
relating to this Agreement or its engagement pursuant hereto.
(h) The
term “Proceeding” shall include any threatened, pending or completed action, suit, claim, counterclaim, cross-claim, arbitration,
mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or
completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative, legislative,
regulatory or investigative (formal or informal) nature, including any appeal therefrom, in which Indemnitee was, is or will be involved
as a party, potential party, non-party witness or otherwise by reason of Indemnitee’s Corporate Status, by reason of any action
taken by Indemnitee (or a failure to take action by Indemnitee) or of any action (or failure to act) on Indemnitee’s part while
acting pursuant to Indemnitee’s Corporate Status, in each case whether or not serving in such capacity at the time any liability
or Expense is incurred for which indemnification, reimbursement, or advancement of Expenses can be provided under this Agreement. If
the Indemnitee believes in good faith that a given situation may lead to or culminate in the institution of a Proceeding, this shall
be considered a Proceeding under this paragraph.
(i) Reference
to “other enterprise” shall include employee benefit plans; references to “fines” shall include any excise tax
assessed with respect to any employee benefit plan; references to “serving at the request of the Company” shall include any
service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer,
employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and
in a manner Indemnitee reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan
shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement.
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Section 3. Indemnity
in Third-Party Proceedings. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee
is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company
to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee shall be indemnified to the fullest extent permitted
by applicable law against all Expenses, judgments, fines and amounts paid in settlement (including all interest, assessments and other
charges paid or payable in connection with or in respect of such Expenses, judgments, fines and amounts paid in settlement) actually
and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding or any claim, issue or matter
therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests
of the Company and, in the case of a criminal Proceeding had no reasonable cause to believe that Indemnitee’s conduct was unlawful.
The parties hereto intend that this Agreement shall provide to the fullest extent permitted by law for indemnification in excess of that
expressly permitted by statute, including, without limitation, any indemnification provided by the Certificate of Incorporation, the
Bylaws, vote of the Company’s stockholders or disinterested directors or applicable law.
Section 4. Indemnity
in Proceedings by or in the Right of the Company. The Company shall indemnify Indemnitee in accordance with the provisions of this
Section 4 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the
Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified to the fullest extent
permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection
with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed
to be in or not opposed to the best interests of the Company. No indemnification for Expenses shall be made under this Section 4
in respect of any claim, issue or matter as to which Indemnitee shall have been ultimately determined by final judicial decision of a
court of competent jurisdiction from which there is no further right to appeal to be liable to the Company, unless and only to the extent
that the Delaware Court (as hereinafter defined) or any court in which the Proceeding was brought shall determine upon application that,
despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled
to indemnification.
Section 5. Indemnification
for Expenses of a Party Who Is Wholly or Partly Successful. Notwithstanding any other provisions of this Agreement, to the fullest
extent permitted by applicable law and to the extent that Indemnitee is a party to (or a participant in) and is successful, on the merits
or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify
Indemnitee against all Expenses actually and reasonably incurred by or on behalf of Indemnitee in connection therewith. If Indemnitee
is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims,
issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by
Indemnitee or on Indemnitee’s behalf in connection with or related to each successfully resolved claim, issue or matter to the
fullest extent permitted by law. For purposes of this Section 5 and without limitation, the termination of any claim, issue or matter
in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.
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Section 6. Indemnification
For Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the fullest extent permitted by applicable law
and to the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status, a witness, is or was made (or asked) to respond
to discovery requests in any Proceeding, or otherwise asked to participate in any Proceeding to which Indemnitee is not a party, Indemnitee
shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection
therewith.
Section 7. Partial
Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a
portion of Expenses, judgments, fines, penalties or amounts paid in settlement actually and reasonably incurred in connection with any
Proceeding, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof
to which Indemnitee is entitled.
Section 8. Additional
Indemnification.
(a) Notwithstanding
any limitation in Sections 3, 4, or 5, the Company shall indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee
is, or is threatened to be made, a party to or a participant in any Proceeding (including a Proceeding by or in the right of the Company
to procure a judgment in its favor) by reason of Indemnitee’s Corporate Status.
(b) For
purposes of Section 8(a), the meaning of the phrase “to the fullest extent permitted by applicable law” shall include,
but not be limited to:
i. to
the fullest extent permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or
the corresponding provision of any amendment to or replacement of the DGCL, and
ii. to
the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement
that increase the extent to which a corporation may indemnify its officers and directors.
Section 9. Exclusions.
Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnification
payment in connection with any claim involving Indemnitee:
(a) for
which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with
respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; or
(b) for
(i) an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within
the meaning of Section 16(b) of the Exchange Act (as defined in Section 2(b) hereof) or similar provisions of state
statutory law or common law, (ii) any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based
compensation or of any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case under
the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304
of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), or the payment to the Company of profits arising from the purchase
and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act), or (iii) any reimbursement (such
Proceeding, a “Clawback Proceeding”) of the Company by Indemnitee of any compensation pursuant to any compensation recoupment
or clawback policy adopted by the Board or the compensation committee of the Board, including but not limited to any such policy adopted
to comply with stock exchange listing requirements implementing Section 10D of the Exchange Act (a “Clawback Policy”);
or
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(c) except
as provided in Section 14(d) of this Agreement, in connection with any Proceeding (or any part of any Proceeding) initiated
by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors,
officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to
its initiation, (ii) such payment arises in connection with any mandatory counterclaim or cross claim brought or raised by Indemnitee
in any Proceeding (or any part of any Proceeding), or (iii) the Company provides the indemnification, in its sole discretion, pursuant
to the powers vested in the Company under applicable law.
(d) In
furtherance of Section 9(b)(iii), Indemnitee hereby agrees to abide by the terms of any Clawback Policy, including, without
limitation, by returning any compensation to the Company to the extent required by, and in a manner permitted by, the Clawback Policy,
and hereby understands and agrees that Indemnitee shall not be entitled to any (x) indemnification for any liability (including
any amounts owed by Indemnitee in a judgment or settlement of any Clawback Proceeding) or loss (including judgments, fines, taxes, penalties
or amounts paid in settlement by or on behalf of Indemnitee) incurred by Indemnitee in connection with any Clawback Proceeding or (y) indemnification
or advancement of Expenses (including attorneys’ fees) from the Company or any subsidiary of the Company incurred by Indemnitee
in connection with any Clawback Proceeding; provided, however, that if Indemnitee is successful on the merits in the defense of any claim
asserted against Indemnitee in a Clawback Proceeding, Indemnitee shall be indemnified for the Expenses (including attorneys’
fees) Indemnitee reasonably incurred to defend such claim. Indemnitee hereby knowingly, voluntarily and intentionally waives, and agrees
not to assert any claim regarding, all indemnification, advancement of Expenses and other rights to which Indemnitee is now or becomes
entitled under this Agreement, the Certificate of Incorporation, the Bylaws, the governing documents of each subsidiary of the Company
and the DGCL, in each case to the extent such waiver and agreement is necessary to give effect to the preceding sentence of this paragraph.
Indemnitee agrees and acknowledges that the compensation Indemnitee has received or will receive from the Company or any of its subsidiaries
constitutes fair and adequate consideration in exchange for the waiver and agreement provided by Indemnitee in this paragraph.
Section 10. Advances
of Expenses. Notwithstanding any provision of this Agreement to the contrary (other than Section 14(d)), the Company shall advance,
to the extent not prohibited by law, the Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding (or any part
of any Proceeding) not initiated by Indemnitee or any Proceeding initiated by Indemnitee with the prior approval of the Board as provided
in Section 9(c), and such advancement shall be made within 30 days after the receipt by the Company of a statement or statements
requesting such advances from time to time, whether prior to or after final disposition of any Proceeding. Advances shall be unsecured
and interest free. Advances shall be made without regard to Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s
ultimate entitlement to indemnification under the other provisions of this Agreement. In accordance with Section 14(d), advances
shall include any and all reasonable Expenses incurred pursuing an action to enforce this right of advancement, including Expenses incurred
preparing and forwarding statements to the Company to support the advances claimed. The Indemnitee shall qualify for advances upon the
execution and delivery to the Company of this Agreement, which shall constitute an undertaking providing that the Indemnitee undertakes
to repay the amounts advanced (without interest) by the Company pursuant to this Section 10, if and only to the extent that it is
ultimately determined by final judicial decision of a court of competent jurisdiction from which there is no further right to appeal
that Indemnitee is not entitled to be indemnified by the Company. No other form of undertaking shall be required other than the execution
of this Agreement. This Section 10 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 9;
provided, that this Section 10 shall apply to any Proceeding referenced in Section 9(b)(i) or 9(b)(ii) prior to a
final judicial decision of a court of competent jurisdiction from which there is no further right to appeal that Indemnitee is not entitled
to be indemnified by the Company with respect thereto.
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Section 11. Procedure
for Notification and Defense of Claim.
(a) Indemnitee
shall notify the Company in writing of any matter with respect to which Indemnitee intends to seek indemnification or advancement of
Expenses hereunder as soon as reasonably practicable following the receipt by Indemnitee of written notice thereof. The written notification
to the Company shall include a description of the nature of the Proceeding and the facts underlying the Proceeding. To obtain indemnification
under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation
and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee
is entitled to indemnification following the final disposition of such Proceeding. The omission by Indemnitee to notify the Company hereunder
will not relieve the Company from any liability which it may have to Indemnitee hereunder or otherwise than under this Agreement, and
any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights under this Agreement. The Secretary of
the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested
indemnification.
(b) The
Company will be entitled to participate in the Proceeding at its own expense.
(c) Except
as otherwise provided in this Section 11(c), to the extent that it may wish, the Company, jointly with any other indemnifying party
similarly notified, shall be entitled to assume the defense of any Proceeding of which Indemnitee notifies the Company, with counsel
reasonably satisfactory to Indemnitee. After notice from the Company to Indemnitee of its election so to assume such defense, the Company
shall not be liable to Indemnitee under this Agreement for any fees or expenses of counsel subsequently incurred by Indemnitee in connection
with the defense thereof, except as otherwise provided below. Indemnitee shall have the right to employ Indemnitee’s own counsel
in such Proceeding, but the fees and expenses of such counsel incurred after notice from the Company of its assumption of the defense
thereof shall be at the expense of Indemnitee unless (i) the employment of counsel by Indemnitee has been authorized by the Company,
(ii) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the
conduct of the defense of such Proceeding, (iii) after a Change in Control, the employment of such counsel by Indemnitee has been
approved by Independent Counsel selected in the manner provided in Section 12(b), mutatis mutandis, or (iv) the Company shall
not, within 60 days after receipt of notice from Indemnitee, in fact have employed counsel to assume the defense of such Proceeding,
in each of which cases the fees and expenses of Indemnitee’s counsel shall be Expenses subject to advancement pursuant to Section 10
and indemnification pursuant to this Agreement. The Company shall not be entitled to assume the defense of any Proceeding brought by
or in the right of the Company or as to which Indemnitee shall have reached the conclusion provided for in clause (ii) above.
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(d) The
Company shall not, without Indemnitee’s prior written consent, settle any Proceeding (in whole or in part) unless such settlement
(i) solely involves the payment of money by persons other than Indemnitee, (ii) includes an unconditional release of Indemnitee
from all liability arising from or relating to the matters that are the subject of such Proceeding and (iii) does not impose any
penalty, limitation or disclosure obligation on Indemnitee or constitute or impose any admission or acknowledgment of fault or culpability
with respect to Indemnitee.
(e) The
Company shall not be liable under this Agreement to indemnify Indemnitee for any amounts paid in settlement of any Proceeding effected
without the Company’s prior written consent; provided, that if a Change in Control has occurred, the Company shall be liable to
indemnify Indemnitee for any amounts paid in settlement of any Proceeding if such settlement has been approved by Independent Counsel
selected in the manner provided in Section 12(b), mutatis mutandis. Neither the Company nor Indemnitee shall unreasonably withhold
any consent required under this Section 11.
Section 12. Procedure
Upon Application for Indemnification.
(a) Upon
written request by Indemnitee for indemnification pursuant to Section 11(a), a determination, if required by applicable law, with
respect to Indemnitee’s entitlement thereto shall be made in the specific case: (i) if a Change in Control shall have occurred,
by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; or (ii) if a Change
in Control shall not have occurred, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the
Board, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less
than a quorum of the Board, (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent
Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee or (D) if so directed by the Board,
by the stockholders of the Company; and, if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee
shall be made within 10 days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination
with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable
advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably
available to Indemnitee and reasonably necessary to such determination. Any costs or Expenses (including attorneys’ fees and disbursements)
incurred by or on behalf of Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne
by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies
and agrees to hold Indemnitee harmless therefrom. The Company promptly will advise Indemnitee in writing with respect to any determination
that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has
been denied.
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(b) In
the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 12(a) hereof,
the Independent Counsel shall be selected as provided in this Section 12(b). If a Change in Control shall not have occurred, the
Independent Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee advising Indemnitee of the
identity of the Independent Counsel so selected. If a Change in Control shall have occurred, the Independent Counsel shall be selected
by Indemnitee (unless Indemnitee shall request that such selection be made by the Board, in which event the preceding sentence shall
apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In
either event, Indemnitee or the Company, as the case may be, may, within 10 days after such written notice of selection shall have
been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that
such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent
Counsel” as defined in Section 2 of this Agreement, and the objection shall set forth with particularity the factual basis
of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection
is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection
is withdrawn or the Delaware Court has determined that such objection is without merit. If, within 20 days after the later of submission
by Indemnitee of a written request for indemnification pursuant to Section 11(a) hereof and the final disposition of the Proceeding,
no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the Delaware Court
for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent
Counsel and/or for the appointment as Independent Counsel of a person selected by such court or by such other person as such court shall
designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel
under Section 12(a) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 14(a) of
this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to
the applicable standards of professional conduct then prevailing).
(c) If
the Company disputes a portion of the amounts for which indemnification is requested, the undisputed portion shall be paid and only the
disputed portion withheld pending resolution of any such dispute.
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Section 13. Presumptions
and Effect of Certain Proceedings.
(a) In
making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination
shall, to the fullest extent not prohibited by law, presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee
has submitted a request for indemnification in accordance with Section 11(a) of this Agreement, and the Company shall, to the
fullest extent not prohibited by law, have the burden of proof to overcome that presumption in connection with the making by any person,
persons or entity of any determination contrary to that presumption. Neither the failure of the Company (including by its directors or
Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification
is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company
(including by its directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense
to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.
(b) Subject
to Section 14(e), if the person, persons or entity empowered or selected under Section 12 of this Agreement to determine whether
Indemnitee is entitled to indemnification shall not have made a determination within 60 days after receipt by the Company of the request
therefor, the requisite determination of entitlement to indemnification shall, to the fullest extent not prohibited by law, be deemed
to have been made and Indemnitee shall be entitled to such indemnification, absent (i) actual fraud by Indemnitee in the request
for indemnification or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 60-day period
may be extended for a reasonable time, not to exceed an additional 30 days, if the person, persons or entity making the determination
with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation
and/or information relating thereto; and provided, further, that the foregoing provisions of this Section 13(b) shall not apply
(i) if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 12(a) of
this Agreement and if (A) within 15 days after receipt by the Company of the request for such determination the Board has resolved
to submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within 75 days after
such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within 15 days after such
receipt for the purpose of making such determination, such meeting is held for such purpose within 60 days after having been so called
and such determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent
Counsel pursuant to Section 12(a) of this Agreement.
(c) The
termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea
of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely
affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which
Indemnitee reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding,
that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.
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(d) For
purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action
is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee
by the directors or officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or
on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser, financial
advisor or other expert selected with reasonable care by or on behalf of the Enterprise. The provisions of this Section 13(d) shall
not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable
standard of conduct set forth in this Agreement.
(e) The
knowledge and/or actions, or failure to act, of any director, officer, trustee, partner, managing member, fiduciary, agent or employee
of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.
Section 14. Remedies
of Indemnitee.
(a) Subject
to Section 14(e), in the event that (i) a determination is made pursuant to Section 12 of this Agreement that Indemnitee
is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 10
of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 12(a) of
this Agreement within 60 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is
not made pursuant to Sections 5, 6 or 7 or the second to last sentence of Section 12(a) of this Agreement within 10 days
after receipt by the Company of a written request therefor, (v) payment of indemnification pursuant to Section 3, 4 or 8 of
this Agreement is not made within 10 days after a determination has been made that Indemnitee is entitled to indemnification, or (vi) the
Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any
litigation or other action or Proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be
provided to the Indemnitee hereunder, Indemnitee shall be entitled to an adjudication by a court of Indemnitee’s entitlement
to such indemnification or advancement of Expenses. Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in
arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association.
The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.
(b) In
the event that a determination shall have been made pursuant to Section 12(a) of this Agreement that Indemnitee is not entitled
to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 14 shall be conducted in all respects
as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.
In any judicial proceeding or arbitration commenced pursuant to this Section 14 the Company shall have the burden of proving Indemnitee
is not entitled to indemnification or advancement of Expenses, as the case may be.
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(c) If
a determination shall have been made pursuant to Section 12(a), or deemed to have been made pursuant to Section 13(b), of this
Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding
or arbitration commenced pursuant to this Section 14, absent (i) actual fraud by Indemnitee in the request for indemnification
or (ii) a prohibition of such indemnification under applicable law.
(d) The
Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding or arbitration commenced
pursuant to this Section 14 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement. It is the
intent of the Company that, to the fullest extent permitted by law, the Indemnitee not be required to incur legal fees or other Expenses
associated with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement by litigation or otherwise
because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Indemnitee hereunder.
The Company shall, to the fullest extent permitted by law, indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee,
shall (within 10 days after receipt by the Company of a written request therefor) advance, to the extent not prohibited by law, such
Expenses to Indemnitee, which are incurred by or on behalf of Indemnitee in connection with any action brought by Indemnitee for indemnification
or advancement of Expenses from the Company under this Agreement or under any directors’ and officers’ liability insurance
policies maintained by the Company if, in the case of indemnification, Indemnitee is wholly successful on the underlying claims;
if Indemnitee is not wholly successful on the underlying claims, then such indemnification shall be only to the extent Indemnitee is
successful on such underlying claims or otherwise as permitted by law, whichever is greater.
(e) Notwithstanding
anything in this Agreement to the contrary, no determination as to entitlement of Indemnitee to indemnification under this Agreement
shall be required to be made prior to the final disposition of the Proceeding.
(f) In
any suit brought by the Company to recover an advancement of Expenses, (i) the Company shall be entitled to recover such Expenses
only upon the final determination described in Section 10, (ii) the Company shall have the burden of proving that Indemnitee
is not entitled to be indemnified for such Expenses and (iii) the Company shall indemnify Indemnitee against all Expenses actually
and reasonably incurred by or on behalf of Indemnitee in connection with such suit to the extent Indemnitee is successful, on the merits
or otherwise, in whole or in part, in the defense thereof.
Section 15. Non-Exclusivity;
Survival of Rights; Insurance; Subrogation.
(a) The
rights of indemnification and to receive advancement of Expenses as provided by this Agreement (i) shall not be deemed exclusive
of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws,
any agreement, a vote of stockholders or a resolution of directors, or otherwise and (ii) shall be interpreted independently of,
and without reference to, any other such rights to which Indemnitee may at any time be entitled. No amendment, alteration or repeal of
this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action
taken or omitted by Indemnitee in Indemnitee’s Corporate Status prior to such amendment, alteration or repeal. To the extent that
a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would
be afforded currently under the Bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this
Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other
right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder
or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other right or remedy.
-14-
(b) To
the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees,
or agents of the Enterprise, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the
maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies. If, at the
time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and officer liability insurance in
effect, the Company shall give prompt notice of such claim or of the commencement of a Proceeding, as the case may be, to the insurers
in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable
action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with
the terms of such policies.
(c) In
the event of any payment made by the Company under this Agreement, the Company shall be subrogated to the extent of such payment to all
of the rights of recovery of Indemnitee (excluding insurance obtained on Indemnitee’s own behalf), who shall execute all papers
required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company
to bring suit to enforce such rights.
(d) The
Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (or for which advancement
is provided hereunder) if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy,
contract, agreement or otherwise.
(e) The
Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company
as a director, officer, trustee, partner, managing member, fiduciary, employee or agent of any other corporation, limited liability company,
partnership, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received
as indemnification or advancement of Expenses from such other corporation, limited liability company, partnership, joint venture, trust
or other enterprise.
Section 16. Duration
of Agreement. All agreements and obligations of the Company contained herein shall continue during the period Indemnitee serves as
a director or officer of the Company or, at the request of the Company, as a director, officer, employee, agent or fiduciary of another
corporation, partnership, joint venture, trust or other enterprise, and shall continue thereafter with respect to any possible claims
based on Indemnitee’s Corporate Status. The indemnification and advancement of Expenses rights provided by or granted pursuant
to this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including
any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets
of the Company), shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or of
any other Enterprise, and shall inure to the benefit of Indemnitee and Indemnitee’s spouse, assigns, heirs, devisees, executors
and administrators and other legal representatives. The Company shall require and shall cause any successor (whether direct or indirect
by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company to, by written
agreement, expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required
to perform if no such succession had taken place.
-15-
Section 17. Severability.
Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in violation
of applicable law. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation,
each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is
not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the
fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to
applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions
of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held
to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect
to the intent manifested thereby.
Section 18. Enforcement.
(a) The
Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order
to induce Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this
Agreement in serving or continuing to serve as a director or officer of the Company.
(b) This
Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior
agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided,
however, that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws, any directors’
and officers’ insurance maintained by the Company and applicable law, and shall not be deemed a substitute therefor, nor to diminish
or abrogate any rights of Indemnitee thereunder.
Section 19. Modification
and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by the parties
hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of
this Agreement nor shall any waiver constitute a continuing waiver.
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Section 20. Notice
by Indemnitee. Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena,
complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or
advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation
which it may have to the Indemnitee under this Agreement or otherwise.
Section 21. Notices.
All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly
given if (a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed,
(b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed,
or (c) mailed by reputable overnight courier and receipted for by the party to whom said notice or other communication shall have
been directed:
(a) If
to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide
to the Company.
(b) If
to the Company to:
Forge Nano Holdings, Inc.
12300 Grant St. #100
Thornton, CO 80241
Attn: Paul Lichty, CEO
E-mail: [*****]
With a copy (which shall not constitute
notice) to:
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, New York 10019-6064
Attn: Benjamin M. Goodchild
E-mail: bgoodchild@paulweiss.com
or to any other address as may have been furnished to Indemnitee by
the Company.
Section 22. Contribution.
To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee
for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether
for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim
relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances
of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or
transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers,
employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).
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Section 23. Applicable
Law and Consent to Jurisdiction. This Agreement and the legal relations among the parties shall be governed by, and construed and
enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect to
any arbitration commenced by Indemnitee pursuant to Section 14(a) of this Agreement, the Company and Indemnitee hereby irrevocably
and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought
only in the Court of Chancery of the State of Delaware (the “Delaware Court”), and not in any other state or federal court
in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware
Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) consent to service according
to the notice provisions in Section 21, having the same legal force and validity as if served on such party personally within the
State of Delaware, (iv) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (v) waive,
and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an
improper or inconvenient forum.
Section 24. Identical
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an
original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against
whom enforceability is sought needs to be produced to evidence the existence of this Agreement.
Section 25. Miscellaneous.
Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate. The headings of this Agreement
are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.
IN WITNESS WHEREOF, the parties
have caused this Agreement to be signed as of the day and year first above written.
FORGE NANO HOLDINGS, INC.
INDEMNITEE
By:
Name:
Name:
Office:
Address:
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EX-10.6 — EXHIBIT 10.6
EX-10.6
Filename: tm2628316d1_ex10-6.htm · Sequence: 12
Exhibit 10.6
FORGE NANO HOLDINGS, INC.
2026 OMNIBUS INCENTIVE COMPENSATION PLAN
SECTION 1. Purpose. The purpose of this
2026 Omnibus Incentive Compensation Plan (the “Plan”) is to enable the Company (as defined below) to grant equity compensation
awards and other types of incentive compensation. The Plan is intended to replace the Prior Plan (as defined below), which shall be automatically
terminated and replaced and superseded by the Plan on the Effective Date (as defined below). Notwithstanding the foregoing, any awards
granted under the Prior Plan shall remain in effect pursuant to their terms.
SECTION 2. Definitions. As used herein,
the following terms shall have the meanings set forth below:
“Affiliate” means (a) any entity
that, directly or indirectly, is controlled by, controls or is under common control with, the Company and (b) any entity in which
the Company has a significant equity interest, in either case, as determined by the Committee.
“Applicable Exchange” means the NASDAQ
or any other national stock exchange or quotation system on which the Shares may be listed or quoted.
“Applicable Law” means legal requirements
relating to the Plan under U.S. Federal and state corporate law, U.S. Federal and state securities law, the Code, the Applicable Exchange
and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted.
“Award” means any award that is permitted
under Section 6 and granted under the Plan.
“Award Agreement” means any written
or electronic agreement, contract or other instrument or document evidencing any Award.
“Board” means the Board of Directors
of the Company.
“Cash Incentive Award” means an Award
that is settled in cash and the value of which is set by the Committee but is not calculated by reference to the Fair Market Value of
a Share.
“Change of Control” means the occurrence
of any of the following events:
(i) during
any period of twenty-four (24) consecutive calendar months, individuals who were Directors on the first day of such period (the
“Incumbent Directors”) cease for any reason to constitute a majority of the non-employee members of the Board; provided,
however, that any individual becoming a Director subsequent to the first day of such period whose election, or nomination for
election, by the Company’s stockholders was approved by a vote of at least a majority of the Incumbent Directors shall be considered
as though such individual were an Incumbent Director, but excluding, for purposes of this proviso, any such individual whose initial
assumption of office occurs as a result of, or in connection with, an actual or threatened proxy contest with respect to the election
or removal of Directors or other actual or threatened solicitation of proxies or consents by or on behalf of any Person or Persons (whether
or not acting in concert) other than the Board;
2
(ii) the
consummation of (A) a merger, consolidation, statutory share exchange or similar form of transaction involving (x) the Company
or (y) any of its Subsidiaries, but in the case of this clause (y) only if Company Voting Securities (as defined below)
are issued or issuable (a “Reorganization”) or (B) the sale or other similar disposition of all or substantially all
the assets of the Company to an entity that is not an Affiliate (a “Sale”), in each case, if such Reorganization or Sale
requires the approval of the Company’s stockholders under the law of the Company’s jurisdiction of organization (whether
such approval is required for such Reorganization or Sale or for the issuance of securities of the Company in such Reorganization or
Sale), unless, immediately following such Reorganization or Sale, (1) all or substantially all the Persons who were the “beneficial
owners” (as used in Rule 13d-3 under the Exchange Act (or a successor rule thereto)) of the securities eligible to vote
for the election of the Board (“Company Voting Securities”) outstanding immediately prior to the consummation of such Reorganization
or Sale continue to beneficially own, directly or indirectly, more than 50% of the combined voting power of the then outstanding voting
securities of the corporation or other entity resulting from such Reorganization or Sale (including a corporation or other entity that,
as a result of such transaction, owns the Company or all or substantially all the Company’s assets either directly or through one
or more subsidiaries) (the “Continuing Company”) in substantially the same proportions as their ownership, immediately prior
to the consummation of such Reorganization or Sale, of the outstanding Company Voting Securities (excluding, for such purposes, any outstanding
voting securities of the Continuing Company that such beneficial owners hold immediately following the consummation of the Reorganization
or Sale as a result of their ownership prior to such consummation of voting securities of any corporation or other entity involved in
or forming part of such Reorganization or Sale other than the Company), (2) no Person (excluding any employee benefit plan (or related
trust) sponsored or maintained by the Continuing Company or any entity controlled by the Continuing Company) beneficially owns, directly
or indirectly, 50% or more of the combined voting power of the then outstanding voting securities of the Continuing Company and (3) at
least a majority of the members of the board of directors of the Continuing Company were Incumbent Directors at the time of the execution
of the definitive agreement providing for such Reorganization or Sale or, in the absence of such an agreement, at the time at which approval
of the Board was obtained for such Reorganization or Sale;
(iii) the
stockholders of the Company approve a plan of complete liquidation or dissolution of the Company unless such liquidation or dissolution
is part of a transaction or series of transactions described in paragraph (ii) above that does not otherwise constitute a Change
of Control; or
(iv) any
Person, corporation or other entity (other than (A) the Company or (B) any trustee or other fiduciary holding securities under
an employee benefit plan of the Company or an Affiliate) becomes the beneficial owner, directly or indirectly, of securities of the Company
representing 50% or more of the combined voting power of the Company Voting Securities; provided, however, that for purposes
of this subparagraph (iv), the following acquisitions shall not constitute a Change of Control: any acquisition (w) directly
from the Company, (x) by any employee benefit plan (or related trust) sponsored or maintained by the Company or an Affiliate, (y) by
an underwriter temporarily holding such Company Voting Securities pursuant to an offering of such securities or any acquisition by a
pledgee of Company Voting Securities holding such securities as collateral or temporarily holding such securities upon foreclosure of
the underlying obligation or (z) pursuant to a Reorganization or Sale that does not constitute a Change of Control for purposes
of subparagraph (ii) above.
3
“Code” means the Internal Revenue Code
of 1986, as amended from time to time, or any successor statute thereto, and the regulations promulgated thereunder.
“Committee” means the Compensation Committee
of the Board or a subcommittee thereof, or such other committee of the Board as may be designated by the Board to administer the Plan.
“Company” means Forge Nano Holdings, Inc.,
a corporation organized under the laws of Delaware, together with any successor thereto.
“Director” means any non-employee member
of the Board, but solely in his or her capacity as such a member of the Board.
“DSU” means a deferred share unit Award
that is granted under Section 6(d) and that represents an unfunded and unsecured promise to deliver Shares, cash, other securities,
other Awards or other property, but is not subject to vesting conditions, in accordance with the terms of the applicable Award Agreement.
“Effective Date” shall have the meaning
specified in Section 11.
“Eligible Person” means any current
or prospective director, officer, employee or consultant (including any prospective director, officer, employee or consultant) of the
Company or its Affiliates who is an “employee” within the meaning of Form S-8 under the Exchange Act, as in effect from
time to time.
“Exchange Act” means the Securities
Exchange Act of 1934, as amended from time to time, or any successor statute thereto, and the regulations promulgated thereunder.
“Exercise Price” means (a) in the
case of each Option, the price specified in the applicable Award Agreement as the price-per-Share at which Shares may be purchased pursuant
to such Option or (b) in the case of each SAR, the price specified in the applicable Award Agreement as the reference price-per-Share
used to calculate the amount payable to the Participant pursuant to such SAR.
“Expiration Date” shall have the meaning
specified in Section 11.
“Fair Market Value” means, except as
otherwise provided in the applicable Award Agreement, (a) with respect to any property other than Shares, the fair market value
of such property determined by such methods or procedures as shall be established from time to time by the Committee and (b) with
respect to Shares, as of any date, (i) the closing per-share sales price of Shares as reported by the Applicable Exchange for such
stock exchange for such date or if there were no sales on such date, on the closest preceding date on which there were sales of Shares
or (ii) in the event there shall be no public market for the Shares on such date, the fair market value of the Shares as determined
in good faith by the Committee.
4
“Incentive Stock Option” means an option
to purchase Shares from the Company that (a) is granted under Section 6(b) of the Plan and (b) is intended to qualify
for special Federal income tax treatment pursuant to Sections 421 and 422 of the Code, as now constituted or subsequently amended,
or pursuant to a successor provision of the Code, and which is so designated in the applicable Award Agreement.
“Independent Director” means a member
of the Board (a) who is neither an employee of the Company or any Affiliate, and (b) who, at the time of acting, is a “Non-Employee
Director” within the meaning of Rule 16b-3.
“Nonqualified Stock Option” means an
option to purchase Shares from the Company that (a) is granted under Section 6(b) of the Plan and (b) is not an Incentive
Stock Option.
“Option” means an Incentive Stock Option
or a Nonqualified Stock Option or both, as the context requires.
“Participant” means any Eligible Person
who is selected by the Committee to receive an Award or who receives a Substitute Award.
“Performance Criteria” means the criterion
or criteria that the Committee shall select for purposes of any Award and shall be based on the attainment of specific levels of performance
of the Company or any of its Subsidiaries, Affiliates, divisions or operational units, or any combination of the foregoing, which may
include any of the following: (A) share price; (B) net income or earnings before or after taxes (including earnings before
interest, taxes, depreciation and/or amortization); (C) operating income, (D) earnings per share (including specified types
or categories thereof); (E) cash flow (including specified types or categories thereof); (F) revenues (including specified
types or categories thereof); (G) return measures (including specified types or categories thereof); (H) shareholder return
measures (including specified types or categories thereof); (I) sales or product volume; (J) working capital; (K) gross
or net profitability/profit margins (including profitability of an identifiable business unit or product); (L) objective measures
of productivity or operating efficiency; (M) costs (including specified types or categories thereof); (N) expenses (including
specified types or categories thereof); (O) product unit and pricing targets; (P) credit rating or borrowing levels; (Q) market
share (in the aggregate or by segment); (R) level or amount of acquisitions; (S) economic, enterprise, book, economic book
or intrinsic book value (including on a per share basis); (T) improvements in capital structure; (U) customer satisfaction
survey results and (V) implementation or completion of critical projects.
5
“Person” means a “person”
or “group” within the meaning of Sections 3(a)(9), 13(d) and 14(d) of the Exchange Act.
“Plan” shall have the meaning specified
in Section 1.
“Prior Plan” means the Company’s
Forge Nano, Inc. 2017 Equity Incentive Plan.
“Restricted Share” means a Share that
is granted under Section 6(d) of the Plan that is subject to certain transfer restrictions, forfeiture provisions and/or other
terms and conditions specified herein and in the applicable Award Agreement.
“RSU” means a restricted stock unit
Award that is granted under Section 6(d) of the Plan and is designated as such in the applicable Award Agreement and that represents
an unfunded and unsecured promise to deliver Shares, cash, other securities, other Awards or other property, subject to the satisfaction
of the applicable vesting conditions, in accordance with the terms of the applicable Award Agreement.
“Rule 16b-3” means Rule 16b-3
under the Exchange Act or any successor rule or regulation thereto as in effect from time to time.
“SAR” means a stock appreciation right
Award that is granted under Section 6(c) of the Plan and that represents an unfunded and unsecured promise to deliver Shares,
cash, other securities, other Awards or other property equal in value to the excess, if any, of the Fair Market Value per Share over
the Exercise Price per Share of the SAR, subject to the terms of the applicable Award Agreement.
“SEC” means the Securities and Exchange
Commission or any successor thereto and shall include the staff thereof.
“Shares” means shares of common stock
of the Company, $0.01 par value, or such other securities of the Company (a) into which such shares shall be changed by reason of
a recapitalization, merger, consolidation, split-up, combination, exchange of shares or other similar transaction or (b) as may
be determined by the Committee pursuant to Section 4(d).
“Subsidiary” means any entity in which
the Company, directly or indirectly, possesses fifty percent (50%) or more of the total combined voting power of all classes of its stock.
“Substitute Awards” shall have the meaning
specified in Section 4(e).
“Treasury Regulations” means all proposed,
temporary and final regulations promulgated under the Code, as such regulations may be amended from time to time (including corresponding
provisions of succeeding regulations).
SECTION 3. Administration.
(a) Composition of the Committee.
The Plan shall be administered by the Committee, which shall be composed of one or more directors, as determined by the Board. The members
of the Committee shall be Independent Directors, unless otherwise determined by the Board.
6
(b) Authority
of the Committee. Subject to the terms of the Plan and Applicable Law, and in addition to the other express powers and authorizations
conferred on the Committee by the Plan, the Committee shall have sole and plenary authority to administer the Plan, including the authority
to (i) designate Participants, (ii) determine all terms and conditions of Awards, (iii) interpret, administer, reconcile
any inconsistency in, correct any default in and supply any omission in, the Plan and any instrument or agreement relating to, or Award
made under, the Plan, (iv) establish, amend, suspend or waive such rules and regulations and appoint such agents as it shall
deem appropriate for the proper administration of the Plan, (v) accelerate the vesting or exercisability of, payment for or lapse
of restrictions on, Awards, and (vi) make any other determination and take any other action that the Committee deems necessary or
desirable for the administration of the Plan.
(c) Committee
Decisions. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations and other decisions
under or with respect to the Plan or any Award shall be within the sole and plenary discretion of the Committee, may be made at any time
and shall be final, conclusive and binding upon all Persons, including the Company, any Affiliate, any Participant, any holder or beneficiary
of any Award and any stockholder.
(d) Indemnification.
No member of the Board, the Committee or any employee of the Company (each such person, a “Covered Person”) shall be liable
for any action taken or omitted to be taken or any determination made in good faith with respect to the Plan or any Award. Each Covered
Person shall be indemnified and held harmless by the Company from and against (i) any loss, cost, liability or expense (including
attorneys’ fees) that may be imposed upon or incurred by such Covered Person in connection with or resulting from any action, suit
or proceeding to which such Covered Person may be a party or in which such Covered Person may be involved by reason of any action taken
or omitted to be taken under the Plan or any Award Agreement and (ii) any and all amounts paid by such Covered Person, with the
Company’s approval, in settlement thereof, or paid by such Covered Person in satisfaction of any judgment in any such action, suit
or proceeding against such Covered Person; provided that the Company shall have the right, at its own expense, to assume and defend
any such action, suit or proceeding, and, once the Company gives notice of its intent to assume the defense, the Company shall have sole
control over such defense with counsel of the Company’s choice. The foregoing right of indemnification shall not be available to
a Covered Person to the extent that a court of competent jurisdiction in a final judgment or other final adjudication, in either case
not subject to further appeal, determines that the acts or omissions of such Covered Person giving rise to the indemnification claim
resulted from such Covered Person’s bad faith, fraud or willful criminal act or omission or that such right of indemnification
is otherwise prohibited by law or by the Company’s documents of incorporation, in each case, as may be amended from time to time.
The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which Covered Persons may be
entitled under the Company’s documents of incorporation, as a matter of law, or otherwise, or any other power that the Company
may have to indemnify such persons or hold them harmless.
7
(e) Delegation
of Authority to Senior Officers. Subject to the terms of Applicable Law, the Committee may delegate to one or more officers of the
Company the authority to make grants of Awards to current and prospective Eligible Persons and all necessary and appropriate decisions
and determinations with respect thereto, subject to any conditions or requirements imposed by the Committee on the exercise of such delegated
authority.
(f) Awards
to Independent Directors. The Board may, in its sole and plenary discretion, at any time and from time to time, grant Awards to Independent
Directors or administer the Plan with respect to such Awards. In any such case, the Board shall have all the authority and responsibility
granted to the Committee herein.
SECTION 4. Shares Subject to the Plan.
(a) Share Limits. (i) Subject to adjustment as provided in Section 4(d), the maximum number of Shares that
may be issued pursuant to Awards shall be equal to 12,865,558 (the “Share Limit”); provided, that, the Share Limit
shall be increased on each January 1 that occurs following the Effective Date and prior to the Expiration Date in an amount equal
to the lesser of (x) 5% of the number of outstanding Shares as of the last day of the immediately preceding calendar year and (y) such
number of Shares determined by the Committee.
(ii) Subject
to adjustment as provided in Section 4(d), the maximum number of Shares that may be delivered upon the exercise of Incentive Stock
Options shall be equal to 12,865,558 (the “ISO Limit”).
(b) Share
Usage. If, after the Effective Date, (A) any Award is forfeited, or otherwise expires, terminates or is canceled without the
issuance of all Shares subject thereto, (B) any Award is settled other than wholly by issuance of Shares (including cash settlement)
or (C) Shares are surrendered or tendered to the Company in payment of any taxes withheld in respect of an Award (other than an
Option or SAR), then, in each such case, the number of Shares subject to such Award that were not issued, or were tendered or substituted,
with respect to such Award shall not be treated as issued for purposes of reducing the Share Limit; provided, however,
that Shares (W) surrendered or tendered to the Company in payment of the Exercise Price of an Option, (X) surrendered or tendered
to the Company in payment of any taxes withheld in respect of Options or SARs, (Y) subject to a SAR that are not issued in connection
with its stock settlement on exercise with respect to the Exercise Price thereof, or (Z) reacquired by the Company on the open market
or otherwise using cash proceeds from the exercise of Options shall, in the case of clauses (W), (X), (Y) and (Z), be deemed issued
for purposes of the Share Limit.
(c) Independent
Director Limit. No Director may be paid or granted, in any fiscal year, cash compensation and equity awards (including any Awards
issued under the Plan) with an aggregate value greater than (i) $1,500,000, in the case of any Director who also serves as the Chairman
of the Board, and (ii) $750,000, in the case of any other Director (in each case, with the value of each Award (or any other equity
award) based on its grant date fair value (determined in accordance with U.S. generally accepted accounting principles)) (such limits,
collectively, the “Director Pay Limit”). Any cash compensation paid or Awards (or any other equity awards) granted to an
individual for his or her services as an employee, or for his or her services as a consultant (other than as a Director), will not be
subject to the Director Pay Limit. Any such compensation that is deferred will be counted toward the Director Pay Limit for the year
in which it was first earned, and not when paid or settled (if later).
8
(d) Adjustments
for Changes in Capitalization and Similar Events. (i) In the event of any extraordinary dividend or other extraordinary
distribution (whether in the form of cash, Shares, other securities or other property), recapitalization, rights offering, stock split,
reverse stock split, split-up or spin-off, the Committee shall equitably adjust, in the manner the Committee determines appropriate,
any or all of (A) the number of Shares or other securities of the Company (or number and kind of other securities or property) with
respect to which Awards may be granted, including the Share Limit and the ISO Limit, and (B) the terms of any outstanding Award
so as to prevent the enlargement or diminishment of the benefits provided thereunder, including (1) the number of Shares or other
securities of the Company (or number and kind of other securities or property) subject to such Award or to which such Award relates,
(2) the Exercise Price, if applicable, with respect to such Award and (3) the vesting terms (including performance goals) applicable
to such Award.
(ii) Subject
to Section 4(d)(i), in the event of any reorganization, merger, consolidation, combination, repurchase or exchange of Shares or
other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company or other
similar corporate transaction or event (including any Change of Control) or other unusual, extraordinarily or non-recurring event (including
a change in Applicable Law or accounting standards) affects the Shares, the Company, its Affiliates or the Company’s financial
statements, the Committee may (A) equitably adjust any or all of (1) the number of Shares or other securities of the Company
(or number and kind of other securities or property) with respect to which Awards may be granted, including the Share Limit and the ISO
Limit, and (2) the terms of any outstanding Award, including (X) the number of Shares or other securities of the Company (or
number and kind of other securities or property) subject to such Award or to which such Awards relates (including through the assumption
of such Award by another entity or substitution of such Award for an award issued by another entity), (Y) the Exercise Price, if
applicable, with respect to such Award and (Z) the vesting terms (including performance goals) applicable to such Award, (B) make
provision for a cash payment to the holder of an outstanding Award in consideration for the cancelation of such Award, including, in
the case of an outstanding Option or SAR, a cash payment to the holder of such Option or SAR in consideration for the cancelation of
such Option or SAR in an amount equal to the excess, if any, of the Fair Market Value (as of a date specified by the Committee) of the
Shares subject to such Option or SAR over the aggregate Exercise Price of such Option or SAR, (C) cancel and terminate any Option
or SAR having a per-Share Exercise Price equal to, or in excess of, the Fair Market Value of a Share subject to such Option or SAR without
any payment or consideration therefor or (D) in the case of an outstanding Option or SAR, establishing a date upon which such Award
will expire unless exercised prior thereto.
(e) Substitute
Awards. Awards may be granted under the Plan in assumption of, or in substitution for, outstanding awards previously granted by the
Company or any of its Affiliates or a company acquired by the Company or any of its Affiliates or with which the Company or any of its
Affiliates combines (“Substitute Awards”); provided, however, that in no event may any Substitute Award be
granted in a manner that would violate the prohibitions on repricing of Options and SARs set forth in Section 7(d). The number of
Shares underlying any Substitute Awards shall not be counted against the Share Limit; provided, however, that Substitute
Awards issued or intended as Incentive Stock Options shall be counted against the ISO Limit.
9
(f) Sources
of Shares Deliverable Under Awards. Any Shares delivered pursuant to an Award may consist, in whole or in part, of authorized and
unissued Shares, treasury Shares or Shares reacquired by the Company in any manner.
SECTION 5. Eligibility. Any Eligible
Person shall be eligible to receive an Award.
SECTION 6. Awards. (a) Types
of Awards. Awards may be made under the Plan in the form of (i) Options (including Incentive Stock Options), (ii) SARs,
(iii) Restricted Shares, (iv) RSUs and DSUs, (v) Cash Incentive Awards, or (vi) other equity based or equity related
Awards that the Committee determines are consistent with the purpose of the Plan and the interests of the Company. The Committee shall
determine all terms and conditions of each Award (including any Performance Criteria applicable thereto), which shall be set forth in
the applicable Award Agreement.
(b) Options.
(i) General. Each Option shall be a Nonqualified Stock Option unless the applicable Award Agreement expressly states
that the Option is intended to be an Incentive Stock Option. In the case of Incentive Stock Options, the terms and conditions of such
Awards shall be subject to and comply with such rules as may be prescribed by Section 421 and 422 of the Code and any regulations
related thereto, as may be amended from time to time. If, for any reason, an Option intended to be an Incentive Stock Option (or any
portion thereof) shall not qualify as an Incentive Stock Option, then, to the extent of such nonqualification, such Option (or portion
thereof) shall be regarded as a Nonqualified Stock Option appropriately granted under the Plan.
(ii) Exercise
Price. The Exercise Price of each Share covered by each Option shall be not less than 100% of the Fair Market Value of such Share
(determined as of the date the Option is granted); provided, however, that in the case of each Incentive Stock Option granted
to an employee who, at the time of the grant of such Option, owns stock representing more than 10% of the voting power of all classes
of stock of the Company or any Affiliate, the per-Share Exercise Price shall be no less than 110% of the Fair Market Value per Share
on the date of the grant.
(iii) Vesting
and Exercise. Except as otherwise specified in the applicable Award Agreement, each Option may only be exercised to the extent that
it has vested at the time of exercise. Each Option shall be deemed to be exercised when notice of such exercise has been given to the
Company in accordance with the terms of the applicable Award Agreement and full payment pursuant to Section 6(b)(iv) for the
Shares with respect to which the Option is exercised has been received by the Company.
(iv) Payment.
No Shares shall be delivered pursuant to any exercise of an Option until payment in full of the aggregate Exercise Price therefor is
received by the Company. Such payments may be made in cash (or its equivalent) or, in the Committee’s discretion, through any other
method (or combination of methods) approved by the Committee.
10
(v) Expiration.
Except as otherwise set forth in the applicable Award Agreement or required by Applicable Law, each Option shall expire immediately,
without any payment, upon the earlier of (A) the tenth anniversary of the date the Option is granted and (B) three months after
the date the Participant who is holding the Option ceases to be a director, officer, employee or consultant of the Company or one of
its Affiliates.
(vi) $100,000
Per Year Limitation for Incentive Stock Options. To the extent that the aggregate Fair Market Value (determined as of the date of
grant) of Shares for which Incentive Stock Options are exercisable for the first time by any Participant during any calendar year (under
all plans of the Company) exceeds $100,000, such excess Incentive Stock Options shall be treated as Nonqualified Stock Options.
(c) SARs.
(i) Exercise
Price. The Exercise Price of each Share covered by a SAR shall be not less than 100% of the Fair Market Value of such Share (determined
as of the date the SAR is granted).
(ii) Rights
on Exercise. Except as otherwise specified in the applicable Award Agreement, each SAR may only be exercised to the extent that it
has vested at the time of exercise. Each SAR shall entitle the Participant to receive an amount upon exercise equal to the excess, if
any, of the Fair Market Value of a Share on the date of exercise of the SAR over the Exercise Price thereof.
(iii) Expiration.
Except as otherwise set forth in the applicable Award Agreement or required by Applicable Law, each SAR shall expire immediately, without
any payment, upon the earlier of (A) the tenth anniversary of the date the SAR is granted and (B) three months after the date
the Participant who is holding the SAR ceases to be a director, officer, employee or consultant of the Company or one of its Affiliates.
(d) Restricted
Shares and RSUs/DSUs.
(i) Restricted
Shares. Each Restricted Share shall be subject to the transfer restrictions and vesting and forfeiture provisions set forth in the
applicable Award Agreement. If certificates representing Restricted Shares are registered in the name of the applicable Participant,
such certificates shall bear an appropriate legend referring to the terms, conditions and restrictions applicable to such Restricted
Shares, and the Company may, at its discretion, retain physical possession of such certificates until such time as all applicable restrictions
lapse.
(ii) RSUs/DSUs.
Each RSU and DSU shall be granted with respect to a specified number of Shares (or a number of Shares determined pursuant to a specified
formula) or shall have a value equal to the Fair Market Value of a specified number of Shares (or a number of Shares determined pursuant
to a specified formula). RSUs and DSUs shall be paid in cash, Shares, other securities, other Awards or other property, upon the vesting
thereof or such other date (or upon such other event) specified in the applicable Award Agreement.
11
(e) Cash
Incentive Awards. The Committee shall determine the applicable Performance Criteria and other payment conditions with respect to
each Cash Incentive Award. The Committee may, in its discretion, reduce or increase the amount of any payment otherwise to be made in
connection with Cash Incentive Awards.
(f) Other
Stock-Based Awards. The Committee shall have authority to grant to Participants other equity-based or equity-related Awards (whether
payable in cash, equity or otherwise), including fully vested Shares, in such amounts and subject to such terms and conditions as the
Committee shall determine.
SECTION 7. General Award Terms. (a) Minimum
Vesting. Awards granted under the Plan (other than cash-based Awards) shall vest no earlier than the first anniversary of the date
on which the Award is granted; provided that the Committee may grant Awards in respect of up to a maximum of 5% of the Plan Share
Limit (as such limit may be increased pursuant to Section 4(a) and subject to adjustment under Section 4(d)) that shall
not be subject to the foregoing minimum vesting requirement. The foregoing minimum vesting requirement shall not apply to (i) Awards
granted to Directors, (ii) Awards that vest or become exercisable due to death, disability, retirement, termination of employment
or in connection with a Change of Control, (iii) Substitute Awards, or (iv) Awards settled in Shares in lieu of fully vested
cash-based Awards that were subject to the forgoing minimum vesting requirement.
(b) Dividends
and Dividend Equivalents. Any Award (other than an Option, SAR or Cash Incentive Award) may provide the Participant with dividends
or dividend equivalents, payable in cash, Shares, other securities, other Awards or other property, on a current or deferred or vested
or unvested basis, including (i) payment directly to the Participant, (ii) withholding of such amounts by the Company subject
to vesting of the Award or (iii) reinvestment in additional Shares, Restricted Shares or other Awards; provided, however,
that any dividends or dividend equivalents with respect to Awards subject to performance-based vesting requirements shall be accumulated
in a manner determined by the Committee until such Award is earned and such dividends and dividend equivalents shall not be paid if such
vesting requirements of the underlying Award are not satisfied.
(c) Clawback/Forfeiture.
The Committee shall have full authority to implement any policies and procedures necessary to comply with Section 10D of the Exchange
Act and any rules promulgated thereunder and any other regulatory regimes. Notwithstanding anything to the contrary contained herein,
the Committee may cancel an Award if the Participant, without the consent of the Company, (A) has engaged in or engages in activity
that is in conflict with or adverse to the interests of the Company or any Affiliate while providing services to the Company or any Affiliate,
including fraud or conduct contributing to any financial restatements or irregularities or (B) violates a non-competition, non-solicitation,
non-disparagement, non-disclosure or other similar agreement with the Company or any Affiliate, as determined by the Committee, or if
the Participant’s service is terminated for Cause (as defined in an applicable employment agreement or award agreement). In any
such event the Committee may determine that the Participant will forfeit any compensation, gain or other value realized thereafter on
the vesting, exercise or settlement of such Award, the sale or other transfer of such Award, or the sale of Shares acquired in respect
of such Award, and must promptly repay such amounts to the Company. If the Participant receives any amount in excess of what the Participant
should have received under the terms of the Award for any reason (including without limitation by reason of a financial restatement,
mistake in calculations or other administrative error), all as determined by the Committee, then the Participant shall be required to
promptly repay any such excess amount to the Company. In addition, the Company shall retain the right to bring an action at equity or
law to enjoin the Participant’s activity and recover damages resulting from such activity. Further, to the extent required by applicable
law (including, without limitation, Section 304 of the Sarbanes-Oxley Act and Section 954 of the Dodd-Frank Wall Street Reform
and Consumer Protection Act) and/or the rules and regulations of the NASDAQ or any other securities exchange or inter-dealer quotation
service on which the Shares are listed or quoted, or if so required pursuant to a written policy adopted by the Company, Awards shall
be subject (including on a retroactive basis) to clawback, forfeiture or similar requirements (and such requirements shall be deemed
incorporated by reference into all outstanding Award Agreements).
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(d) Repricing.
Notwithstanding anything herein to the contrary, in no event may any Option or SAR (i) be amended to decrease the Exercise Price
thereof, (ii) be canceled at a time when its Exercise Price exceeds the Fair Market Value of the underlying Shares in exchange for
another Award, award under any other equity- compensation plan or any cash payment or (iii) be subject to any action that would
be treated, for accounting purposes, as a “repricing” of such Option or SAR, unless such amendment, cancelation or action
is approved by the Company’s stockholders. For the avoidance of doubt, an adjustment to the Exercise Price of an Option or SAR
that is made in accordance with Section 4(d) shall not be considered a reduction in Exercise Price or “repricing”
of such Option or SAR.
SECTION 8. Change of Control. With respect
to each Award, the applicable Award Agreement shall specify the effect (if any) of a Change of Control upon such Award.
SECTION 9. General Provisions. (a) Nontransferability.
During the Participant’s lifetime, each Award (and any rights and obligations thereunder) shall be exercisable only by the Participant,
or, if permissible under Applicable Law, by the Participant’s legal guardian or representative, and no Award (or any rights and
obligations thereunder) may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant otherwise
than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer
or encumbrance shall be void and unenforceable against the Company or any Affiliate; provided that the designation of a beneficiary
shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. All terms and conditions of the Plan
and the applicable Award Agreements shall be binding upon any permitted successors and assigns.
(b) No
Rights to Awards. No Participant or other Person shall have any claim to be granted any Award, and there is no obligation for uniformity
of treatment of Participants or holders or beneficiaries of Awards. The terms and conditions of Awards and the Committee’s determinations
and interpretations with respect thereto need not be the same with respect to each Participant and may be made selectively among Participants,
whether or not such Participants are similarly situated.
13
(c) Share
Certificates. All certificates for Shares or other securities of the Company or any Affiliate delivered under the Plan pursuant to
any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable
under the Plan, the applicable Award Agreement or the rules, regulations and other requirements of the SEC, the Applicable Exchange and
any Applicable Law and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to
such restrictions. Notwithstanding any other provision of the Plan, unless otherwise determined by the Committee or required by any Applicable
Law, the Company shall not deliver to any Participant certificates evidencing Shares issues in connection with any Award and instead
such Shares shall be recorded in the books of the Company (or, as applicable, its transfer agent or stock plan administrator).
(d) Withholding.
A Participant may be required to pay to the Company or any Affiliate, and the Company or any Affiliate shall have the right and is hereby
authorized to withhold from any Award, from any payment due or transfer made under any Award or under the Plan or from any compensation
or other amount owing to a Participant, the amount (in cash, Shares, other securities, other Awards or other property) of any applicable
withholding taxes in respect of an Award, its exercise or any payment or transfer under an Award or under the Plan and to take such other
action as may be necessary in the opinion of the Committee or the Company to satisfy all obligations for the payment of such taxes, except
to the extent such withholding would result in penalties under Section 409A of the Code. Without limiting the generality of the
foregoing, subject to the Committee’s prior approval, a Participant may satisfy, in whole or in part, such withholding liability
by having the Company withhold from the number of Shares otherwise issuable pursuant to the Award, a number of Shares having a Fair Market
Value equal to such withholding liability; provided that, in the event Shares are so withheld in connection with the vesting of
an Award of Restricted Shares, such withheld Shares shall be immediately cancelled by the Company and shall not constitute treasury Shares.
(e) Section 409A.
(i) It is intended that the provisions of the Plan comply with Section 409A of the Code, and all provisions of the Plan
shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A
of the Code.
(ii) No
Participant or the creditors or beneficiaries of a Participant shall have the right to subject any deferred compensation (within the
meaning of Section 409A of the Code) payable under the Plan to any anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, attachment or garnishment. Except as permitted under Section 409A of the Code, any deferred compensation (within the
meaning of Section 409A of the Code) payable to any Participant or for the benefit of any Participant under the Plan may not be
reduced by, or offset against, any amount owing by any such Participant to the Company or any of its Affiliates.
14
(iii) If,
at the time of a Participant’s separation from service (within the meaning of Section 409A of the Code), (A) such Participant
shall be a specified employee (within the meaning of Section 409A of the Code and using the identification methodology selected
by the Company from time to time) and (B) the Company shall make a good faith determination that an amount payable pursuant to an
Award constitutes deferred compensation (within the meaning of Section 409A of the Code) the payment of which is required to be
delayed pursuant to the six-month delay rule set forth in Section 409A of the Code in order to avoid taxes or penalties under
Section 409A of the Code, then the Company shall not pay such amount on the otherwise scheduled payment date but shall instead pay
it on the first business day after such six-month period. Such amount shall be paid without interest, unless otherwise determined by
the Committee, in its sole discretion, or as otherwise provided in any applicable employment agreement between the Company and the relevant
Participant. For purposes of Section 409A, any right to a series of installment payments under any Award shall be treated as a right
to a series of separate payments.
(iv) Notwithstanding
any provision of the Plan to the contrary, in light of the uncertainty with respect to the proper application of Section 409A of
the Code, the Company reserves the right to make amendments to any Award as the Company deems necessary or desirable to avoid the imposition
of taxes or penalties under Section 409A of the Code. In any case, a Participant shall be solely responsible and liable for the
satisfaction of all taxes and penalties that may be imposed on such Participant or for such Participant’s account in connection
with an Award (including any taxes and penalties under Section 409A of the Code), and neither the Company nor any of its Affiliates
shall have any obligation to indemnify or otherwise hold such Participant harmless from any or all of such taxes or penalties.
(f) Award
Agreements. Each Award hereunder shall be evidenced by an Award Agreement, which shall be delivered to the Participant and shall
specify the terms and conditions of the Award and any rules applicable thereto. In the event of any conflict between the terms of
the Plan and any Award Agreement or employment, change-in-control, severance or other agreement in effect with the Participant, the terms
of the Plan shall control.
(g) No
Limit on Other Compensation Arrangements. Nothing contained in the Plan shall prevent the Company or any Affiliate from adopting
or continuing in effect other compensation arrangements (including other equity-based awards and cash incentive awards), and such arrangements
may be either generally applicable or applicable only in specific cases.
(h) No
Right to Employment. The grant of an Award shall not be construed as giving a Participant the right to be retained as a director,
officer, employee or consultant of or to the Company or any Affiliate, nor shall it be construed as giving a Participant any rights to
continued service on the Board. Further, the Company or an Affiliate may at any time dismiss a Participant from employment or discontinue
any directorship or consulting relationship, free from any liability or any claim under the Plan, unless otherwise expressly provided
in the Plan or in any Award Agreement.
(i) No
Rights as Stockholder. No Participant or holder or beneficiary of any Award shall have any rights as a stockholder with respect to
any Shares to be distributed under the Plan until he or she has become the holder of such Shares. In connection with each grant of Restricted
Shares, except as provided in the applicable Award Agreement, the Participant shall be entitled to the rights of a stockholder (including
the right to vote) in respect of such Restricted Shares. Except as otherwise provided in Section 4(d) or the applicable Award
Agreement, no adjustments shall be made for dividends or distributions on (whether ordinary or extraordinary, and whether in cash, Shares,
other securities or other property), or other events relating to, Shares subject to an Award for which the record date is prior to the
date such Shares are delivered.
15
(j) Governing
Law. The validity, construction and effect of the Plan and any rules and regulations relating to the Plan and any Award Agreement
shall be determined in accordance with the laws of the State of Delaware, without giving effect to the conflict of laws provisions thereof.
(k) Severability.
If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or as
to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall
be construed or deemed amended to conform to the Applicable Laws, or if it cannot be construed or deemed amended without, in the determination
of the Committee, materially altering the intent of the Plan or the Award, such provision shall be construed or deemed stricken as to
such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect.
(l) Other
Laws; Restrictions on Transfer of Shares. The Committee may refuse to issue or transfer any Shares or other consideration under an
Award if it determines that the issuance or transfer of such Shares or such other consideration might violate any Applicable Law or entitle
the Company to recover the same under Section 16(b) of the Exchange Act, and any payment tendered to the Company by a Participant,
other holder or beneficiary in connection with the exercise of such Award shall be promptly refunded to the relevant Participant, holder
or beneficiary.
(m) No
Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind
or a fiduciary relationship between the Company or any Affiliate, on one hand, and a Participant or any other Person, on the other. To
the extent that any Person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such right shall
be no greater than the right of any unsecured general creditor of the Company or such Affiliate.
(n) No
Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash, other securities or other property shall be paid or transferred in lieu of any fractional Shares or whether such fractional
Shares or any rights thereto shall be canceled, terminated or otherwise eliminated.
(o) Headings
and Construction. Headings are given to the Sections and subsections of the Plan solely as a convenience to facilitate reference.
Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision
thereof. Whenever the words “include”, “includes” or “including” are used in the Plan, they shall
be deemed to be followed by the words “but not limited to”, and the word “or” shall not be deemed to be exclusive.
16
(p) Termination
of Service. Unless set forth in an applicable Award Agreement, the Committee, in its sole discretion, shall determine the effect
of all matters and questions related to the termination of a Participant’s employment with the Company or any Affiliate.
(q) Lock-Up
Agreements. The Committee may require a Participant receiving Shares pursuant to the Plan, as a condition precedent to receipt of
such Shares, to enter into a shareholder agreement or “lock-up” agreement in such form as the Committee shall determine is
necessary or desirable to further the Company’s interests.
(r) Restrictive
Covenants. The Committee may impose restrictions on any Award with respect to non-competition, non-solicitation, non-disparagement,
non-disclosure or other restrictive covenants as it deems necessary or appropriate in its sole discretion.
SECTION 10. Amendment and Termination.
(a) Amendments to the Plan. Subject to any Applicable Law, the Plan may be amended, modified or terminated by the Board
without the approval of the stockholders of the Company, except that stockholder approval shall be required for any amendment that would
(i) increase the Plan Share Limit, the Plan ISO Limit or the Director Pay Limit (except for increases pursuant to an adjustment
under Section 4(d)) , (ii) expand the class of employees or other individuals eligible to participate in the Plan, (iii) extend
the Expiration Date or (iv) result in any amendment, cancellation or action described in Section 7(d) being permitted
without the approval of the Company’s stockholders. No amendment, modification or termination of the Plan may, without the consent
of the Participant to whom any Award shall previously have been granted, materially and adversely affect the rights of such Participant
(or his or her transferee) under such Award, unless otherwise provided in the applicable Award Agreement.
(b) Amendments
to Awards. The Committee may waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or
terminate any Award previously granted, prospectively or retroactively; provided, however, that, except as set forth in
the Plan, unless otherwise provided in the applicable Award Agreement, any such waiver, amendment, alteration, suspension, discontinuance,
cancelation or termination that would materially and adversely impair the rights of any Participant or any holder or beneficiary of any
Award previously granted shall not to that extent be effective without the consent of the applicable Participant, holder or beneficiary.
SECTION 11. Term of the Plan. The Plan
shall be effective as of the date of its adoption by the Board and approval by the Company’s stockholders (the “Effective
Date”). No Award shall be granted under the Plan after the tenth anniversary of the Effective Date (the “Expiration Date”).
Unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award granted hereunder, and the authority of
the Board or the Committee to amend, alter, adjust, suspend, discontinue or terminate any such Award or to waive any conditions or rights
under any such Award, shall nevertheless continue thereafter.
EX-10.14 — EXHIBIT 10.14
EX-10.14
Filename: tm2628316d1_ex10-14.htm · Sequence: 13
Exhibit 10.14
Forge
Nano Holdings Inc.
2026
Omnibus Incentive Compensation Plan
Notice
of RSU Grant
Participant: [__]
# of Shares Underlying RSUs: [__]
Date of Grant: [__]
Vesting Schedule: The RSUs shall vest in accordance with the terms of the Award Agreement
attached hereto as Annex I. Upon vesting, the RSUs shall no longer be subject to cancellation
pursuant to Section 3 of the Award Agreement (but shall remain subject to recoupment pursuant to Section 6
of the Award Agreement).
By signing your name below, you accept the RSUs
and acknowledge and agree that the RSUs are granted under and governed by the terms and conditions of the Forge Nano Holdings Inc. 2026
Omnibus Incentive Compensation Plan, the Award Agreement set forth on Annex I and the restrictive covenants set forth on
Exhibit A thereto, each of which are hereby made a part of this document.
[PARTICIPANT]
FORGE NANO
HOLDINGS INC.
By:
Title:
ANNEX I
FORGE NANO HOLDINGS INC.
2026 OMNIBUS INCENTIVE COMPENSATION PLAN
RESTRICTED STOCK UNIT AWARD AGREEMENT
Pursuant to the Notice of
RSU Grant (“Grant Notice”) and this Award Agreement, Forge Nano Holdings Inc. (together with its Subsidiaries, whether
existing or thereafter acquired or formed, and any and all successor entities, the “Company”) has granted the Participant
Restricted Stock Units (the “RSUs”) under the Forge Nano Holdings Inc. 2026 Omnibus Incentive Compensation Plan (the
“Plan”) with respect to the number of Shares indicated in the Grant Notice (the “Award”). Each
RSU represents the right to receive one Share. The RSUs are granted to the Participant effective as of the Date of Grant. Capitalized
terms not explicitly defined in this Award Agreement or in the Grant Notice but defined in the Plan shall have the same definitions as
in the Plan.
1. Vesting;
Settlement.
(a) Vesting.
The RSUs shall vest in equal installments upon each of the first [●] anniversaries of the
Date of Grant, subject to the Participant’s continued Service through each such date (each such date, a “Vesting Date”).
(b) Settlement.
Subject to the provisions of this Award Agreement, promptly following the applicable Vesting Date (and no later than the thirtieth (30th)
day following the applicable Vesting Date), the Participant shall receive the number of Shares that correspond to the number of RSUs
that have vested in accordance with Section 1(a), less any Shares withheld by the Company pursuant to Section 5 below. Upon
such delivery, such Shares shall be fully assignable, saleable and transferable by the Participant, provided that any such assignment,
sale, transfer or other alienation with respect to such Shares shall be in accordance with applicable securities laws.
2. Dividend
Equivalents. The Participant will be credited with any dividend equivalents that may be paid with respect to any Shares underlying
the RSUs. However, unless otherwise provided by the Committee, the Participant will not be entitled to receive such dividend equivalents
unless and until the Participant becomes the record owner of the Shares underlying the RSUs, at which time accrued dividend equivalents
shall be paid pursuant to Section 7(b) of the Plan.
3. Termination
of Service. In the event of the Participant’s termination of Service at any time, all unvested RSUs shall be canceled immediately
and the Participant shall not be entitled to receive any payments with respect thereto.
4. Rights
as a Stockholder. The Participant shall have no voting rights with respect to the RSUs unless and until the Participant becomes
the record owner of the Shares underlying the RSUs.
5. Tax
Withholding. The Participant shall be solely responsible for any applicable taxes (including, without limitation, income and
excise taxes) and penalties, and any interest that accrues thereon, that the Participant incurs in connection with the receipt, vesting
or settlement of any RSU granted hereunder. Without limiting Section 1(b), the Company shall be authorized to withhold from the
Award the amount (in cash or Shares, or any combination thereof) of applicable withholding taxes due in respect of the Award, its settlement
or any payment or transfer under the Award and to take such other action (including providing for elective payment of such amounts in
cash or other property by the Participant) as may be necessary in the opinion of the Company to satisfy all obligations for the payment
of such taxes; provided, however, that no Shares shall be withheld with a value exceeding the maximum statutory rates in the applicable
tax jurisdictions.
1
6. Clawback;
Forfeiture; Detrimental Conduct. The RSUs shall be subject to the clawback, forfeiture and detrimental conduct provisions set
forth in Section 7(c) of the Plan.
7. Restrictive
Covenants.
(a) Without
limiting any other non-competition, non-solicitation, non-disparagement or non-disclosure or other similar agreement to which the Participant
may be a party, the Participant shall be subject to the confidentiality and restrictive covenants set forth on Exhibit A
attached hereto, which Exhibit A is incorporated herein and forms part of this Award Agreement.
(b) In
the event that the Participant violates any of the restrictive covenants referred to in this Section 7, in addition to any other
remedy that may be available at law or in equity, the RSUs shall be automatically forfeited effective as of the date on which such violation
first occurs. The foregoing rights and remedies are in addition to any other rights and remedies that may be available to the Company
and shall not prevent (and the Participant shall not assert that they shall prevent) the Company from bringing one or more actions in
any applicable jurisdiction to recover damages as a result of the Participant’s breach of such restrictive covenants.
8. Miscellaneous.
(a) Compliance
with Legal Requirements. The granting of the RSUs, and any other obligations of the Company under this Award Agreement, shall be
subject to all applicable U.S. federal, state and local laws, rules and regulations, all applicable non-U.S. laws, rules and
regulations and to such approvals by any regulatory or governmental agency as may be required. The Participant agrees to take all steps
that the Committee or the Company determines are reasonably necessary to comply with all applicable provisions of U.S. federal and state
securities law and non-U.S. securities law in exercising the Participant’s rights under this Award Agreement.
(b) Transferability.
The RSUs shall be subject to Section 9 of the Plan.
(c) Participant’s
Service. Nothing in this Award Agreement shall confer upon the Participant any right to continue the Participant’s Service
or interfere in any way with the right of the Company or any of its Affiliates or stockholders, as the case may be, to terminate the
Participant’s Service or to increase or decrease the Participant’s compensation at any time. The grant of the RSUs is a one-time
benefit and does not create any contractual or other right to receive any other Award under the Plan in the future. The grant of the
RSUs does not form part of the Participant’s entitlement to compensation or other benefits in terms of the Participant’s
Service.
2
(d) Amendment;
Waiver. No amendment or modification of any provision of this Award Agreement shall be effective unless signed in writing by or on
behalf of the Company and the Participant, except that the Company may amend or modify this Award Agreement without the Participant’s
consent in accordance with the provisions of the Plan or as otherwise set forth in this Award Agreement. No waiver of any breach or condition
of this Award Agreement shall be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature.
Any amendment or modification of or to any provision of this Award Agreement, or any waiver of any provision of this Award Agreement,
shall be effective only in the specific instance and for the specific purpose for which made or given.
(e) Section 409A.
This Award Agreement is intended to comply with the requirements of Section 409A of the Code and the regulations thereunder, and
the provisions of this Award Agreement shall be interpreted in a manner that satisfies the requirements of Section 409A of the
Code, and this Award Agreement shall be operated accordingly. If any provision of this Award Agreement or any term or condition of the
RSUs would otherwise conflict with this intent, the provision, term or condition shall be interpreted and deemed amended so as to avoid
this conflict. Notwithstanding anything else in this Award Agreement, if the Committee considers a Participant to be a “specified
employee” under Section 409A of the Code at the time of such Participant’s “separation from service” (as
defined in Section 409A of the Code), and the amount hereunder is “deferred compensation” subject to Section 409A
of the Code any distribution that otherwise would be made to such Participant with respect to RSUs as a result of such separation from
service shall not be made until the date that is six months after such separation from service, except to the extent that earlier distribution
would not result in such Participant’s incurring interest or additional tax under Section 409A of the Code. If the Award
includes a “series of installment payments” (within the meaning of Section 1.409A-2(b)(2)(iii) of the Treasury
Regulations), the Participant’s right to the series of installment payments shall be treated as a right to a series of separate
payments and not as a right to a single payment. Notwithstanding the foregoing, the tax treatment of the benefits provided under this
Award Agreement is not warranted or guaranteed, and in no event shall the Company be liable for all or any portion of any taxes, penalties,
interest or other expenses that may be incurred by the Participant on account of non-compliance with Section 409A of the Code.
(f) General
Assets. All amounts credited in respect of the RSUs to the book-entry account under this Award Agreement shall continue for all purposes
to be part of the general assets of the Company. The Participant’s interest in such account shall make the Participant only a general,
unsecured creditor of the Company.
(g) Notices.
All notices, requests and other communications under this Award Agreement shall be in writing and shall be delivered in person (by courier
or otherwise), mailed by certified or registered mail, return receipt requested to the contact details below. The parties may use e-mail
delivery, so long as the message is clearly marked, sent to the e-mail address(es) set forth below.
if to the Company, to:
Forge Nano, Inc.
12300 Grant St. #100
Thornton, CO 80241
Attn: Paul Lichty, CEO
E-mail: [*****]
3
if to the Participant, to the address, facsimile
number or e-mail address that the Participant most recently provided to the Company, or to such other address, facsimile number or e-mail
address as such party may hereafter specify for the purpose by notice to the other parties hereto.
(h) Severability.
The invalidity or unenforceability of any provision of this Award Agreement shall not affect the validity or enforceability of any other
provision of this Award Agreement, and each other provision of this Award Agreement shall be severable and enforceable to the extent
permitted by law.
(i) Successors.
The terms of this Award Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, and of
the Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.
(j) Entire
Agreement. The Participant acknowledges receipt of a copy of the Plan and represents that the Participant is familiar with the terms
and provisions thereof (and has had an opportunity to consult counsel regarding the RSU terms), and hereby accepts the grant of RSUs
and agrees to be bound by its contractual terms as set forth herein (including Exhibit A) and in the Plan. The Participant
acknowledges and agrees that the grant of the RSUs constitutes additional consideration to the Participant for the Participant’s
continued and future compliance with any restrictive covenants in favor of the Company by which the Participant is otherwise bound. The
Participant hereby agrees to accept as binding, conclusive and final all decisions and interpretations of the Committee regarding any
questions relating to the RSUs. In the event of a conflict between the terms and provisions of the Plan and the terms and provisions
of this Award Agreement, the Plan terms and provisions shall prevail. This Award Agreement, including the Grant Notice, Exhibit A
and the Plan, constitutes the entire agreement between the Participant and the Company on the subject matter hereof and supersedes all
proposals, written or oral, and all other communications between the parties relating to such subject matter; provided that nothing herein
shall supersede, limit or otherwise affect any other non-competition, non-solicitation, non-disparagement, non-disclosure or other similar
agreement to which the Participant may be a party or any applicable service agreement, each of which shall remain in full force and effect
in accordance with its terms.
(k) Governing
Law. Except as otherwise set forth in an applicable employment agreement, this Award Agreement shall be construed and interpreted
in accordance with the laws of the State of Delaware, without regard to principles of conflicts of laws thereof, or principles of conflicts
of laws of any other jurisdiction that could cause the application of the laws of any jurisdiction other than the State of Delaware.
(l) Dispute
Resolution; Consent to Jurisdiction. Except as otherwise set forth in an applicable employment agreement, the Participant and the
Company agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection
with this Award Agreement (whether brought by any party or any of its Affiliates or against any party or any of its Affiliates) shall
be brought in the United States federal or state courts in Wilmington, Delaware, and each of the parties hereby irrevocably consents
to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably
waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such
suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in
an inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether
within or without the jurisdiction of any such court.
4
(m) Electronic
Signature and Delivery. This Award Agreement may be accepted by return signature or by electronic confirmation. By accepting this
Award Agreement, the Participant consents to the electronic delivery of prospectuses, annual reports and other information required to
be delivered by U.S. Securities and Exchange Commission rules (which consent may be revoked in writing by the Participant at any
time upon three business days’ notice to the Company, in which case subsequent prospectuses, annual reports and other information
shall be delivered in hard copy to the Participant).
(n) Electronic
Participation in Plan. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation
in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate
in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.
[Remainder of page intentionally blank]
5
Exhibit A
Restrictive
Covenants
This Exhibit A
is attached to and forms part of the Restricted Stock Unit Award Agreement between the Company and the Participant (the “Award
Agreement”).The Participant acknowledges and agrees that during the Participant’s Service with the Company, the Participant
will be providing services to the Company and that the Participant will be intimately involved in the planning for or direction of the
business of the Company, and that the Participant has or will obtain selective or specialized skills, knowledge, abilities, or customer
contacts or information by reason of working for the Company and providing services to the Company.
1. Noncompetition.
During the Participant’s Service and for a period of twelve (12) months thereafter, the Participant shall not, either directly
or indirectly, on the Participant’s behalf or on behalf of or in conjunction with any other person, company, partnership, corporation,
business, group, or other entity (each, a “Person”), engage, within the Territory (as defined below), as an officer,
director, owner, partner, member, joint venturer, employee, team member, independent contractor, agent or consultant in the same, similar
or related capacity as the Participant was providing Services to the Company, in any business engaged in the Business of the Company
(as defined below); provided, however, that the Participant shall not be prohibited from passively owning less than five percent (5%)
of the outstanding shares of any class of equity securities registered under the Securities Exchange Act of 1934, as amended (the “34
Act”).
(a) The
“Territory” shall be defined as the United States of America and any other territory where the Participant is working
at the time of termination of Service with the Company or the Company is doing business; which the Participant acknowledges and agrees
is the territory in which the Participant is providing Services to the Company.
(b) The
“Business of the Company” means (A) any business or activity engaged in by the Company and in which the Participant
was involved or obtained Confidential Information or Trade Secrets during the Participant’s Service, and (B) any other business
opportunity that is under active consideration by the Company during the Participant’s Service with the Company and in which the
Participant was involved or obtained Confidential Information or Trade Secrets during the Participant’s Service with the Company.
2. Non-solicitation.
In addition, during the Participant’s Service and for a period of twelve (12) months thereafter, the Participant shall not, either
directly or indirectly, on the Participant’s behalf or on behalf of or in conjunction with any other Person:
(a) solicit
or attempt to solicit any employee of the Company or any of its Affiliates (or any employee who was employed by the Company or any of
its Affiliates within the six (6) months prior to the Participant’s termination of Service), with whom the Participant had
business relations or material contact, to end his or her relationship with the Company or any of its Affiliates or hire or attempt to
hire any of the foregoing; or
(b) seek
to induce or otherwise cause any customer, client, supplier, vendor, licensee, licensor or any other Person with whom the Company or
any of its Affiliates has, or during the six (6) months prior to the Participant’s termination of Service had, a business
relationship, whether by contract or otherwise, and with whom the Participant had business relations or material contact or about whom
the Participant has Confidential Information (as defined below) or Trade Secrets (as defined below), to discontinue or alter such business
relationship in a manner that is adverse to the Company or any of its Affiliates.
1
3. Blue
Pencil. The restrictive covenants set forth herein are severable and separate, and the unenforceability of any specific covenant
shall not affect the provisions of any other covenant. If any provision of the restrictive covenants set forth herein relating to the
time period, scope, or geographic area of the restrictive covenants shall be declared by a court of competent jurisdiction or arbitrator
to exceed the maximum time period, scope or geographic area, as applicable, that such court or arbitrator deems reasonable and enforceable,
then the restrictive covenants set forth herein shall automatically be considered to have been amended and revised to reflect such determination.
4. Severability.
All of the covenants set forth herein shall be construed as an agreement independent of any other provisions in this Exhibit A,
and the existence of any claim or cause of action the Participant may have against the Company, whether predicated on this Exhibit A
or otherwise, shall not constitute a defense to the enforcement by the Company or any of its Affiliates of such covenants.
5. Participant
Acknowledgments.
(a) The
Participant has carefully read and considered the provisions of the restrictive covenants set forth herein and, having done so, agrees
that the restrictive covenants set forth herein impose a fair and reasonable restraint on the Participant and are reasonably required
to protect the interests of the Company and its Affiliates and their respective officers, directors, employees and equityholders.
6. Trade
Secrets and Confidential Information.
(a) “Confidential
Information” means all non-public or proprietary data or information (other than Trade Secrets) concerning the business and
operations of the Company or any of its Affiliates, including, but not limited to, any non-public information (regardless of whether
in writing or retained as personal knowledge) pertaining to research and development; product costs, designs and processes; equityholder
information; pricing, cost, or profit factors; quality programs; annual budget and long-range business plans; marketing plans and methods;
contracts and bids; business ideas; and methods, inventions, innovations, developments, graphic designs, web site designs, patterns,
specifications, procedures, databases and personnel. “Trade Secret” means trade secret as defined by applicable state
law. In the absence of such a definition, Trade Secret means information including, but not limited to, any technical or nontechnical
data, formula, pattern, compilation, program, device, method, technique, drawing, process, financial data, financial plan, product plan,
list of actual or potential customers or suppliers or other information similar to any of the foregoing, which (i) derives economic
value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons
who can derive economic value from its disclosure or use and (ii) is the subject of efforts that are reasonable under the circumstances
to maintain its secrecy.
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(b) The
Participant acknowledges that in the course of the Participant’s Service, the Participant has received or will receive and has
had or will have access to Confidential Information and Trade Secrets of the Company or any of its Affiliates, and that unauthorized
or improper use or disclosure by the Participant of such Confidential Information or Trade Secrets will cause serious and irreparable
harm to the Company or any of its Affiliates. Accordingly, the Participant is willing to enter into the covenants contained herein in
order to provide the Company and its Affiliates with what the Participant considers to be reasonable protection for its interests.
(c) The
Participant hereby agrees to (i) hold in confidence all Confidential Information of the Company or any of its Affiliates that comes
into the Participant’s knowledge during the Participant’s Service and (ii) not disclose, publish or make use of such
Confidential Information, other than in the good-faith performance of the Participant’s duties, without the prior written consent
of the Company for as long as the information remains Confidential Information.
(d) The
Participant hereby agrees to hold in confidence all Trade Secrets of the Company or any of its Affiliates that come into the Participant’s
knowledge during the Participant’s Service and not to disclose, publish, or make use of at any time after the date hereof such
Trade Secrets without the prior written consent of the Company for as long as the information remains a Trade Secret.
(e) Notwithstanding
the foregoing, the provisions of this Section 6 will not apply to (i) Confidential Information or Trade Secrets that otherwise
become generally known in the industry or to the public through no act of the Participant or any person or entity acting by or on the
Participant’s behalf or information which the Participant can demonstrate was rightfully in the Participant’s possession
prior to the commencement of the Participant’s Service or (ii) disclosures of information required by judicial or governmental
proceedings; provided that, in the event the Participant is ordered by a court or governmental authority to disclose any Confidential
Information, the Participant shall (1) promptly notify the Company of such order, (2) diligently contest such order at the
sole expense of the Company as expenses occur and (3) seek to obtain at the sole expense of the Company such confidential treatment
as may be available under applicable laws for any information disclosed under such order.
(f) Notwithstanding
anything to the contrary contained herein, none of the covenants set forth herein will prohibit the Participant from making reports of
possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated
under Section 21F of the Exchange Act or Section 806 of the Sarbanes-Oxley Act of 2002, or of any other whistleblower protection
provisions of federal law or regulation, or require modification or prior approval by the Company of any such reporting.
(g) Notwithstanding
anything to the contrary contained herein, pursuant to the Defend Trade Secrets Act of 2016, the Participant shall not be held criminally
or civilly liable under any federal or state Trade Secret law for the disclosure of a Trade Secret that: (i) is made (A) in
confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (B) solely
for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed
in a lawsuit or other proceeding, if such filing is made under seal. The Participant also understands that if the Participant files a
lawsuit for retaliation by the Company for reporting a suspected violation of law, the Participant may disclose the Trade Secret to the
Participant’s attorney and use the Trade Secret information in the court proceeding, if the Participant (i) files any document
containing the Trade Secret under seal, and (ii) does not disclose the Trade Secret, except pursuant to court order.
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7. Work
Product and Inventions.
(a) The
Participant acknowledges that the Participant’s work on and contributions to documents, programs, methodologies, protocols, and
other expressions in any tangible medium (including, without limitation, all business ideas and methods, inventions, innovations, developments,
graphic designs, web site designs, patterns, specifications, procedures or processes, market research, databases, works of authorship,
products and other works of creative authorship) which have been or will be prepared by the Participant, or to which the Participant
has contributed or will contribute, in connection with the Participant’s Services (collectively, “Works”), are
and will be within the scope of the Participant’s Service and part of the Participant’s duties and responsibilities. The
Participant’s work on and contributions to the Works will be rendered and made by the Participant for, at the instigation of, and
under the overall direction of the Company, and are and at all times shall be regarded, together with the Works, as “work made
for hire” as that term is used in the United States Copyright Laws. However, to the extent that any court or agency should conclude
that the Works (or any of them) do not constitute or qualify as a “work made for hire”, the Participant hereby assigns, grants,
and delivers exclusively and throughout the world to the Company all rights, titles and interests in and to any such Works, and all copies
and versions, including all copyrights and renewals. The Participant agrees to cooperate with the Company and to execute and deliver
to the Company and its successors and assigns, any assignments and documents the Company requests for the purpose of establishing, evidencing,
and enforcing or defending its complete, exclusive, perpetual and worldwide ownership of all rights, titles and interests of every kind
and nature, including all copyrights, in and to the Works, and the Participant constitutes and appoints the Company as the Participant’s
agent to execute and deliver any assignments or documents the Participant fails or refuses to execute and deliver, this power and agency
being coupled with an interest and being irrevocable. Without limiting the preceding provisions of this Section 7(a), the Participant
agrees that the Company may edit and otherwise modify, and use, publish and otherwise exploit, the Works in all media and in such manner
as the Company, in its sole discretion, may determine.
(b) The
Participant shall disclose promptly to the Company (which shall receive it in confidence), and only to the Company, any invention or
idea of the Participant in any way connected with the Participant’s Services or related to the Business of the Company, the research
or development of the Company or any of its Affiliates, or demonstrably anticipated research or development (developed alone or with
others), conceived or made during the Participant’s Services or within three (3) months thereafter and hereby assigns to
the Company any such invention or idea. The Participant agrees, subject to reimbursement of actual out of pocket expenses related thereto
and at the Company’s sole liability and expense, to cooperate with the Company and sign all papers reasonably deemed necessary
by the Company to enable it to obtain, maintain, protect and defend patents covering such inventions and ideas and to confirm the Company’s
exclusive ownership of all rights in such inventions, ideas and patents, and irrevocably appoints the Company as the Participant’s
agent to execute and deliver any assignments or documents the Participant fails or refuses to execute and deliver promptly, this power
and agency being coupled with an interest and being irrevocable. This constitutes the Company’s written notification that this
assignment does not apply to an invention for which no equipment, supplies, facility or Trade Secret information of the Company or any
of its Affiliates was used and which was conceived and developed entirely on the Participant’s own time, unless (i) the invention
relates (A) directly to the Business of the Company, or (B) to actual or demonstrably anticipated research or development
of the Company or any of its Affiliates, or (ii) the invention results from any work performed by the Participant for the Company
or any of its Affiliates.
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8. Nondisparagement.
During the Participant’s Service and thereafter, the Participant shall not, directly or indirectly, take any action, or encourage
others to take any action, to disparage or criticize the Company or any of its Affiliates or their respective employees, officers, directors,
managers, products, services, customers or owners. The foregoing shall not be violated by the Participant’s truthful responses
to legal process or inquiry by a governmental authority.
9. Return
of Company Property. At the request of the Company (or, without any request, upon termination of the Participant’s Service),
the Participant will immediately deliver to the Company, at the Participant’s cost and expense, (i) all Company property
that is then in the Participant’s possession, custody or control, including, without limitation, all keys, access cards, cell phones,
tablets, computer hardware including but not limited to any hard drives, external storage devices, diskettes, fobs, laptops, tablets,
computers and personal data assistants (and the contents thereof), internet connectivity devices, computer software and programs, data,
materials, papers, books, files, documents, records; (ii) any and all documents or other items containing, summarizing, or describing
any Confidential Information, including all originals and copies in whatever form; (iii) any personal device that the Participant
synced with or used to access any Company system for purpose of inspection and copying; and (iv) a list of passwords or codes needed
to operate or access any of the items referenced in this Section 9.
10. Equitable
Remedy. Because of the difficulty of measuring economic losses to the Company or any of its Affiliates as a result of a breach
of the covenants set forth herein, and because of the immediate and irreparable damage that would be caused to the Company and its Affiliates
for which monetary damages would not be a sufficient remedy, it is hereby agreed that in addition to all other remedies that may be available
to the Company or any of its Affiliates, at law or in equity, the Company shall be entitled to specific performance and any injunctive
or other equitable relief as a remedy for any breach or threatened breach by the Participant of any provision set forth herein. The Company
and each of its Affiliates may seek temporary and/or permanent injunctive relief for an alleged violation of the covenants set forth
herein without the necessity of posting a bond.
11. Restrictive
Covenant Modifications for U.S. Participants. This Section 11 includes jurisdiction-specific modifications of this Exhibit A
to the extent that the Participant’s primary location is in one of the applicable U.S. jurisdictions and requires the application
of the law of such jurisdiction. For purposes of the preceding sentence, “primary location” means (a) the state in
which the Participant both primarily resides and works, if such state requires that the individual both primarily reside and work in
such state for this Exhibit A to be governed by such state’s laws, or (b) the state in which the Participant
either primarily resides or works, if such state requires that the individual either primarily reside or work in such state for this
Exhibit A to be governed by such state’s laws. The modifications in this Section 11 should be read together
with the rest of this Exhibit A.
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CALIFORNIA
The Participant acknowledges
and agrees that entering into this Exhibit A is not a condition of the Participant’s Service with the Company, and
that the Participant is not required to enter into this Exhibit A as a condition of the Participant’s Service with
the Company or any of its Affiliates. Should California law be deemed to apply to this Exhibit A, the following shall apply:
(a) Section 1
of this Exhibit A is deleted in its entirety and replaced with the following:
“Noncompetition and Non-solicitation.
The Participant agrees that the Company’s and/or its Affiliates’ customer and potential customer list, the identity of clients
and their family members, client contact information, personal and/or financial information pertaining to the clients, referral sources,
business plans, identifying and developing trade secrets, customer and client relationships and supplier relationships (the ‘trade
secret information’) are confidential, subject to efforts by the Company to maintain their secrecy, require extensive time and
effort to identify and develop, and derive independent economic value from not being generally known to or readily ascertainable by proper
means by others who can obtain economic value from their disclosure or use, and therefore constitute the Company’s trade secret
information. Therefore, during the Participant’s Service and for a period of twelve (12) months thereafter (the ‘Restricted
Period’), the Participant shall not use the Company’s trade secret information for any purpose that is adverse to, or otherwise
falls outside of the best interests of, the Company, including, without limitation, that the Participant shall not use the trade secret
information for any of the following purposes:
(i) engaging
in any Competitive Business (as defined herein) or owning, managing, operating or controlling, joining, consulting with, or participating
in the ownership, management, operation or control of, or being employed by, or acting as a consultant or advisor to, any corporation,
partnership, person, firm, or other entity that engages in Competitive Business if such conduct (x) in any manner involves activities
similar to those performed by the Participant during the Participant’s Service or (y) could result in the Participant’s
direct or indirect, whether intentional or unintentional, use, disclosure, or reliance upon Confidential Information to which the Participant
had access by virtue of the Participant’s job duties or other responsibilities with the Company or its Affiliates or exploitation
of goodwill accessed, developed, or cultivated by the Participant in the course of the Participant’s Service, in each case, within
fifty (50) miles of any office of the Company or any of its Affiliates, including any home office; provided that the Participant may
(A) own, directly or indirectly, solely as an investment, securities of a publicly-traded entity if the Participant does not directly
or indirectly manage, operate or control such entity and does not own five percent (5%) or more of any class of securities of such entity
and (B) own passive investments in public companies or private equity vehicles, hedge fund vehicles, mutual fund vehicles and other
similar investment vehicles;
(ii) soliciting
any customers or potential customers of the Company or its Affiliates that the Participant serviced or supervised the service of on behalf
of the Company or its Affiliates during the Participant’s Service, for the purpose of terminating, diverting, or diminishing such
customers’ business, services, or relationship with or from the Company or its Affiliates, except in good faith on behalf of the
Company during the Participant’s Service; or
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(iii) in
any manner inducing, attempting to induce, or assisting others to induce any vendor, client, employee, or any other person or entity
having a business or employment relationship with the Company or any of its Affiliates to terminate such relationship, or doing anything
to interfere with the relationship of the Company or any of its Affiliates with such person or entity, except in good faith on behalf
of the Company during the Participant’s Service; provided, however, that the placement of general advertisements or making of general
solicitations shall not be a violation of this Section 1, and the Participant’s providing a reference upon request shall
not alone constitute a breach of the foregoing restrictions. For purposes of this Exhibit A, ‘Competitive Business’
shall mean any business engaged in the development, manufacture, production, sale, distribution, licensing or other disposition of products
or services which are competitive with the products or services developed or under development by, manufactured, produced, sold, licensed
or otherwise distributed or provided by the Company or any of its Affiliates.”
(b) Section 2
of this Exhibit A is deleted in its entirety and replaced with the following: “[Intentionally Omitted].”
(c) Section 3
of this Exhibit A is deleted in its entirety and replaced with the following: “In the event that any provision of
this Exhibit A shall be held to be invalid or unenforceable for any reason whatsoever, in whole or in part, it is agreed
that such invalidity or unenforceability shall not affect any other provision of this Exhibit A and the remaining covenants,
restrictions, and provisions hereof shall remain in full force and effect, and any court of competent jurisdiction may so modify the
objectionable provision so as to make it valid, reasonable, and enforceable. Furthermore, the parties specifically acknowledge that the
trade secret protection covenant, the nondisparagement covenant, the covenant not to disclose Confidential Information, and the covenant
to return Confidential Information contained in this Exhibit A are each separate and independent agreements.”
COLORADO
If at the time of termination
of the Participant’s Service (i) the Participant primarily resides and works in Colorado and (ii) C.R.S. Section 8-2-113
(the “Colorado Act”) or an equivalent law is enforceable, all references to “Delaware” in Section 8(k) of
the Award Agreement shall be replaced by “Colorado,” as applicable. The Participant agrees that before being asked to sign
the Award Agreement, the Company provided the Participant with at least fourteen (14) calendar days (or, if the Participant is a new
hire, at least one (1) calendar day prior to commencing employment) to review the Award Agreement, as reflected in the accompanying
form entitled Colorado Mandatory Notice of Non-Compete.
If the Participant is a new
hire to the Company, the Participant acknowledges that the Participant received notice of the non-competition and customer non-solicitation
covenants in this Exhibit A and their terms in a separate document before the Participant accepted the Participant’s
offer of employment. If the Participant is a current employee at the time the Participant enters into this Exhibit A, the
Participant acknowledges that the Participant received notice of the non-competition and customer non-solicitation covenants in this
Exhibit A and their terms in a separate document at least fourteen (14) days before the earlier of the effective date of
this Exhibit A or the effective date of any additional compensation or change in the terms or conditions of the Participant’s
employment that provides consideration for the customer non-solicitation covenants.
7
The Participant understands
that this Exhibit A contains non-competition and non-solicitation obligations that may restrict the Participant’s
future employment options and that following the termination of Service (i) the non-competition obligations in Section 1
of this Exhibit A do not apply to the Participant if the Participant does not earn at least the statutory minimum compensation
set by Colorado statute (e.g., between January 1, 2026 and December 31, 2026, the statutory threshold is $130,014 per year),
and (ii) the non-solicitation obligations in Section 2 of this Exhibit A do not apply to the Participant if
the Participant does not earn at least sixty percent (60%) of the statutory minimum compensation (e.g., between January 1, 2026
and December 31, 2026, sixty percent (60%) of the statutory threshold is $78,008.40 per year).
The Participant acknowledges
and understands that, to the extent that the provisions of Sections 6 or 8 of this Exhibit A could be deemed to limit the
ability of the Participant to disclose or discuss, either orally or in writing, any alleged discriminatory or unfair employment practice
(such provisions, to such extent, the “Non-Disclosure Provisions”), the Non-Disclosure Provisions apply equally to
the Participant and the Company. Nothing contained in the Non-Disclosure Provisions restrains the Participant from disclosing the underlying
facts of any alleged discriminatory or unfair employment practice (including disclosing the existence and terms of a settlement agreement):
(i) to the Participant’s immediate family members, religious advisor, medical or mental health provider, mental or behavioral
health therapeutic support group, legal counsel, financial advisor, or tax preparer; (ii) to any local, state or federal government
agency for any reason, without first notifying the Company; (iii) in response to legal process, such as a subpoena to testify at
a deposition or in a court, without first notifying the Company; and/or (iv) for all other purposes as required by law. The Participant
and the Company each acknowledge and agree that any disclosure made pursuant to the Non-Disclosure Provisions does not constitute disparagement
of the Participant or of the Company. The Participant understands that if any member of the Company disparages the Participant to a third
party, no member of the Company may seek to enforce the Non-Disclosure Provisions or Section 8 of this Exhibit A,
or seek damages against the Participant for violating such provisions, but all other remaining terms of the Award Agreement remain enforceable.
The Participant acknowledges
that during the Participant’s Service the Participant will have access to and knowledge of Confidential Information and such Confidential
Information contains trade secrets pursuant to the Colorado Act. The Participant further agrees that Sections 1 and 2 of this Exhibit A
shall be interpreted to prohibit the use or disclosure of or reliance on the Company’s trade secrets in the Participant’s
possession and/or activity that would (by its nature) involve or lead to the use or disclosure of or reliance on the Company’s
trade secrets. The Participant also understands that any customer or potential customer will be limited to those with respect to which
the Participant developed, contributed to, or was provided trade secrets in the course of employment with the Company. Accordingly, the
non-competition and customer non-solicitation covenants in Sections 1 and 2 of this Exhibit A are each reasonable and necessary
for the protection of the Company’s trade secrets. The Participant understands that nothing in the Award Agreement will require
the Participant to adjudicate outside of Colorado the enforceability of a covenant not to compete or customer non-solicitation under
this Exhibit A or require that the law of any state other than Colorado governs the enforceability of a covenant not to
compete or customer non-solicitation covenants provided for in this Exhibit A. The Award Agreement does not prohibit
disclosure of information that arises from general training, knowledge, skill, or experience, whether gained on the job or otherwise,
information that is readily ascertainable to the public, or information that the Participant would otherwise have a right to disclose
as legally protected conduct. Nothing in the Award Agreement limits or prevents the Participant from disclosing information about workplace
health and safety practices or hazards, or limits the Participant’s ability or the ability of another employee or prospective employee
to disclose or discuss, either orally or in writing, any alleged discriminatory or unfair employment practice.
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DISTRICT OF COLUMBIA
The Participant agrees that
before being asked to sign this Exhibit A, the Company provided the Participant with at least fourteen (14) calendar days
to review this Exhibit A. The District of Columbia’s Ban on Non-Compete Agreements Amendment Act of 2020, as amended
by the Non-Compete Clarification Amendment Act of 2022 (collectively, the “DC Non-Compete Act”), limits the use of
non-compete agreements. It allows employers to request non-compete agreements from “highly compensated employees” (as that
term is defined in the DC Non-Compete Act) under certain conditions. If the Participant is a “highly compensated employee,”
the following notice is being provided pursuant to the DC Non-Compete Act: The DC Non-Compete Act limits the use of non-compete agreements.
It allows employers to request non-compete agreements from highly compensated employees, as that term is defined in the DC Non-Compete
Act, under certain conditions. The Company has determined that you are a highly compensated employee. For more information about the
DC Non-Compete Act, contact the District of Columbia Department of Employment Services (DOES). If the Participant earns at least the
statutory minimum compensation set by District of Columbia statute (e.g., between January 1, 2026 and December 31, 2026,
the statutory threshold is $162,164 per year for most employees), then the Company has determined that the Participant is a “highly
compensated employee.” If the Participant does not earn the statutory minimum compensation set by District of Columbia statute,
then the non-competition obligations in Section 1 of this Exhibit A do not apply to the Participant following the
termination of Service.
FLORIDA
To the extent the Participant
resides in Florida and is reasonably expected to earn a salary greater than twice the annual mean wage of the county in Florida in which
the employer has its principal place of business, or the county in Florida in which the Participant resides if the employer’s principal
place of business is not in Florida, the following shall apply: (a) the Participant acknowledges that the Company provided the
Participant with this Exhibit A either (i) if the Participant was a prospective service provider of the Company or
its Affiliates at the time of receipt of this Exhibit A, at least seven (7) days before the Participant’s offer
to join the Company or its Affiliates expired or (ii) if the Participant was a current service provider of the Company or its Affiliates
at the time of receipt of this Exhibit A, at least seven (7) days before the date that the offer to enter into this
Exhibit A expired; (b) the Participant acknowledges that the Company hereby advises the Participant of the Participant’s
right to seek counsel before executing this Exhibit A; (c) as further described in Section 6 of this Exhibit A,
the Participant acknowledges that the Participant is expected to receive Confidential Information and/or customer relationships, in each
case, in respect of the Company and its Affiliates; and (d) all references to “Delaware” in Section 8(k) of
the Award Agreement shall be replaced by “Florida.”
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GEORGIA
The Participant acknowledges
that the Participant, in the course of the Participant’s Service with the Company or its Affiliates, (1) customarily and
regularly solicits customers or prospective customers; (2) customarily and regularly engages in making sales or obtaining orders
or contracts for products or services; (3) (a) has a primary duty of managing the enterprise in which the Participant is
employed or of a customarily recognized department or subdivision thereof, (b) customarily and regularly directs the work of two
or more other employees, and (c) has the authority to hire or fire other employees or has particular weight given to suggestions
and recommendations as to the hiring, firing, advancement, promotion, or any other change of status of other employees; and/or (4) performs
the duties of a key employee or of a professional.
IDAHO
The Participant acknowledges
and understands that following the termination of Service, the non-competition obligations in Section 1 and the non-solicitation
obligations in Section 2 of this Exhibit A only apply to the Participant if the Participant is determined to be a
“key employee” in accordance with Idaho statute § 44-2702.
ILLINOIS
The Participant agrees that
before being asked to sign this Exhibit A, the Company provided the Participant with at least fourteen (14) calendar days
to review the restrictive covenants set forth in this Exhibit A and agrees that, by executing this Exhibit A
before the expiration of the fourteen (14) day period, the Participant is waiving the Participant’s right to wait the full fourteen
(14) days. The Company also hereby advises the Participant to consult with an attorney before entering into this Exhibit A.
The Participant understands that following termination of the Participant’s Service, (i) the non-competition obligations
in Section 1 of this Exhibit A do not apply to the Participant if the Participant does not earn more than the statutory
minimum compensation set by Illinois statute, which is $75,000 per year prior to January 1, 2027 (or $80,000 per year beginning
on January 1, 2027, $85,000 per year beginning on January 1, 2032, and $90,000 per year beginning on January 1, 2037)
and (ii) the non-solicitation and non-interference obligations in Section 2 of this Exhibit A do not apply to
the Participant if the Participant does not earn more than the statutory minimum compensation set by Illinois statute, which is $45,000
per year prior to January 1, 2027 (or $47,500 per year beginning on January 1, 2027, $50,000 per year beginning on January 1,
2032, and $52,500 per year beginning on January 1, 2037).
MAINE
If the Participant is a new
hire, the Participant agrees that before being asked to sign this Exhibit A, the Company provided the Participant with at
least three (3) business days to review this Exhibit A. The Participant understands that this Exhibit A
contains non-competition and non-solicitation obligations and that the non-competition obligations in Section 1 of this Exhibit A
do not apply to the Participant following the date of termination of the Participant’s Service if the Participant does not earn
the statutory minimum compensation set by Maine statute (e.g., between January 1 and December 31 of the applicable year,
400% of the federal poverty level for an individual per year). The non-competition provisions set forth in Section 1 of this Exhibit A
will not take effect until after one (1) year of the Participant’s Service with the Company or a period of six (6) months
from the date this Exhibit A is signed, whichever is later.
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MARYLAND
The non-competition obligations
in Section 1 of this Exhibit A do not apply to the Participant following the termination of Service if the Participant
does not earn more than the statutory minimum compensation set by Maryland statute (e.g., as of January 1, 2026, the statutory
threshold is $46,800 per year or $22.50 per hour).
MASSACHUSETTS
The Participant agrees that
before being asked to sign this Exhibit A, the Company provided the Participant with at least ten (10) business days
(or, if the Participant is a new hire, prior to commencing employment or, if earlier, prior to the Company making a formal offer of employment)
to review this Exhibit A. The Company also hereby advises the Participant to consult with an attorney to review this Exhibit A
before entering into this Exhibit A. The non-competition obligations in Section 1 of this Exhibit A do
not apply to the Participant following the termination of Service if (i) the Participant does not earn the statutory minimum compensation
set by Massachusetts statute (e.g., as of January 1, 2026, the statutory threshold is $684 per week) or (ii) the Participant’s
Service is terminated without “cause” by the Company (unless, at the time of such termination, the Participant enters into
a separation agreement with the Company that includes such non-competition obligations).
MINNESOTA
The non-competition provision
in Section 1 of this Exhibit A does not apply to the Participant following the termination of Service, and the equitable
remedies set forth in Section 10 of this Exhibit A shall not apply to the rights or obligations set forth in Section 1
of this Exhibit A.
NEW HAMPSHIRE
If the Participant is a new
hire, the Participant agrees that before being asked to sign this Agreement, the Company provided the Participant with at least one (1) business
day to review the Restrictive Covenants prior to acceptance of employment.
The non-competition obligations
in Section 1 of this Exhibit B do not apply to the Participant following the termination of service if the Participant did
not earn more than the statutory minimum compensation set by New Hampshire statute.
NEVADA
The non-competition obligations
in Section 1 of this Exhibit A do not apply to the Participant following the termination of Service if the Participant
is paid solely on an hourly wage basis. If the Participant’s Service is terminated because of a reduction in force, a reorganization,
or a similar restructuring, the non-competition obligations in Section 1 of this Exhibit A will only apply to the
Participant following such termination while the Company continues paying the Participant’s salary, benefits, or equivalent compensation,
including, without limitation, severance pay.
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OKLAHOMA
The non-competition obligations
in Section 1 of this Exhibit A do not apply to the Participant following the termination of Service.
OREGON
The Participant agrees that
before being asked to sign this Exhibit A, the Company provided the Participant with at least fourteen (14) calendar days
to review this Exhibit A. The Company also hereby advises the Participant to consult with an attorney to review this Exhibit A
before entering into this Exhibit A. The non-competition obligations in Section 1 of this Exhibit A do
not apply to the Participant following the termination of Service if the Participant does not earn the statutory minimum compensation
set by Oregon statute (e.g., between January 1, 2026 and December 31, 2026, the statutory threshold is $119,541 per year),
unless the Company pays severance to the Participant upon termination in an amount equal to the greater of fifty percent (50%) of (i) the
Participant’s annual base salary and (ii) the statutory minimum compensation set by Oregon statute.
TEXAS
The Company and the Participant
each acknowledge that the covenants set forth in this Exhibit A (i) are part of the Award Agreement, the Award Agreement
being valid and enforceable; (ii) are reasonable with respect to duration, geographic area and scope of activity; and (iii) do
not impose a greater restraint than is necessary to protect the goodwill or other business interests of the Company. All references to
“Delaware” in Section 8(k) of the Award Agreement shall be replaced by “Texas.”
VIRGINIA
The Participant agrees that
before being asked to sign this Exhibit A, the Company provided the Participant with a copy of Virginia Code 40.1-28.7:8.
The Participant understands that the non-competition obligations in Section 1 of this Exhibit A do not apply to the
Participant following the termination of Service if the Participant (A) is entitled to overtime compensation under the Fair Labor
Standards Act (29 U.S.C. § 207) for any hours worked in excess of 40 hours in any one workweek, regardless of earnings, or (B) does
not earn at least the statutory minimum compensation set by Virginia statute (e.g., between January 1, 2026 and December 31,
2026, the statutory threshold is $78,364.52 per year or $1,507.01 per week). Solely in the event this Exhibit A is entered
into, amended, or renewed on or after July 1, 2026, the Participant agrees that the non-competition obligations in Section 1
of this Exhibit A shall not apply if the Participant’s Service is terminated without “cause” by the Company
(unless, at the time of such termination, the Participant enters into a separation agreement with the Company that includes such non-competition
obligations in exchange for severance benefits or other monetary payment to the Participant).
12
WASHINGTON
If the Participant’s
primary location is in the State of Washington at the time this Exhibit A is entered into, all references to “Delaware”
in Section 8(k) of the Award Agreement shall be replaced by “Washington,” as applicable. The Participant agrees
that before being asked to sign this Exhibit A, the Company provided the Participant with at least one (1) calendar
day to review this Exhibit A. The non-competition obligations in Section 1 of this Exhibit A do not apply
to the Participant following the termination of Service if the Participant does not earn more than the statutory minimum compensation
set by Washington statute (e.g., between January 1, 2026 and December 31, 2026, the statutory threshold is $126,858.83 per
year). The Participant acknowledges and understands that if the Participant’s Service is terminated by the Company as the result
of a layoff, the non-competition obligations in Section 1 of this Exhibit A shall not apply to the Participant following
such termination unless the Participant is provided with compensation equivalent to the Participant’s base salary at the time of
termination for the period of enforcement (minus compensation earned through subsequent employment during the period of enforcement).
The Participant further acknowledges and understands that, effective June 30, 2027, Sections 1 and 2 of this Exhibit A
shall be replaced with the following: “1. The Participant agrees that the Company’s and/or its Affiliates’ trade secret
information (as described in clause (a) of the California provision of Section 11 of this Exhibit A) constitutes
trade secret information of the Company and its Affiliates. Therefore, during the Participant’s Service and for a period of twelve
(12) months thereafter (the ‘Restricted Period’), the Participant shall not use the Company’s trade secret information
for any purpose that is adverse to, or otherwise falls outside of the best interests of, the Company, including, without limitation,
for the purposes of engaging in any Competitive Business (as defined in such California provision), in each case, on the terms, subject
to the conditions and exceptions, and within the geographic scope set forth in clause (i) of such California provision. 2. During
the Restricted Period, regardless of the reason for the Participant’s termination of Service, the Participant shall not, directly
or indirectly, on the Participant’s own behalf or on behalf of a third party, solicit any customers or potential customers of the
Company or its Affiliates that the Participant established or substantially developed a direct relationship with through the Participant’s
Service, for the purpose of terminating, diverting, or diminishing such customers’ business, services, or relationship with or
from the Company or its Affiliates, except in good faith on behalf of the Company during the Participant’s Service.”
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EX-10.15 — EXHIBIT 10.15
EX-10.15
Filename: tm2628316d1_ex10-15.htm · Sequence: 14
Exhibit 10.15
Forge
Nano Holdings Inc.
2026
Omnibus Incentive Compensation Plan
Notice
of PSU Grant
Participant:
[__]
#
of Shares Underlying Performance-Only PSUs (“Performance-Only PSUs”):
[__]
#
of Shares Underlying Service-Conditioned PSUs (“Service-Conditioned PSUs”):
[__]
Total # of Shares
Underlying PSUs:
[__]
Date of Grant:
[__]
Vesting
Schedule:
The PSUs
shall vest in accordance with the terms of the Award Agreement attached hereto as Annex I. Upon vesting, the PSUs shall no longer
be subject to cancellation pursuant to Section 3 of the Award Agreement (but shall remain subject to recoupment pursuant to
Section 6 of the Award Agreement).
By signing your name below, you accept the PSUs
and acknowledge and agree that the PSUs are granted under and governed by the terms and conditions of the Forge Nano Holdings Inc. 2026
Omnibus Incentive Compensation Plan, the Award Agreement set forth on Annex I, the vesting terms and conditions set forth on Exhibit A
and the restrictive covenants set forth on Exhibit B thereto, each of which are hereby made a part of this document.
[PARTICIPANT]
FORGE NANO
HOLDINGS INC.
By:
Title:
ANNEX I
FORGE NANO HOLDINGS INC.
2026
Omnibus Incentive Compensation Plan
PERFORMANCE-BASED RESTRICTED STOCK UNIT AWARD
AGREEMENT
Pursuant to the Notice of
PSU Grant (“Grant Notice”) and this Award Agreement, Forge Nano Holdings Inc. (together with its Subsidiaries, whether
existing or thereafter acquired or formed, and any and all successor entities, the “Company”) has granted the Participant
Performance-Based Restricted Stock Units (the “PSUs”) under the Forge Nano Holdings Inc. 2026 Omnibus Incentive Compensation
Plan (the “Plan”) with respect to the number of Shares indicated in the Grant Notice (the “Award”).
The PSUs consist of the number of Performance-Only PSUs and Service-Conditioned PSUs set forth on the Grant Notice. Each PSU represents
the right to receive one Share. The PSUs are granted to the Participant effective as of the Date of Grant. Capitalized terms not explicitly
defined in this Award Agreement or in the Grant Notice but defined in the Plan shall have the same definitions as in the Plan.
1. Vesting;
Settlement.
(a) Vesting.
The PSUs shall vest in accordance with the terms of this Award Agreement and as set forth in Exhibit A attached hereto.
The terms of Exhibit A are hereby made a part of this Award Agreement.
(b) Settlement.
Subject to the provisions of this Award Agreement, promptly following the applicable Vesting Event (as defined in Exhibit A)
(and no later than the thirtieth (30th) day following the applicable Vesting Event), the Participant shall receive the number
of Shares that correspond to the number of PSUs that have vested in accordance with Exhibit A, less any Shares withheld
by the Company pursuant to Section 5 below. Upon such delivery, such Shares shall be fully assignable, saleable and transferable
by the Participant, provided that any such assignment, sale, transfer or other alienation with respect to such Shares shall be in accordance
with applicable securities laws.
2. Dividend
Equivalents. The Participant will be credited with any dividend equivalents that may be paid with respect to any Shares underlying
the PSUs. However, unless otherwise provided by the Committee, the Participant will not be entitled to receive such dividend equivalents
unless and until the Participant becomes the record owner of the Shares underlying the PSUs, at which time accrued dividend equivalents
shall be paid pursuant to Section 7(b) of the Plan.
3. Termination
of Service.
(a) Generally.
In the event of the Participant’s termination of Service at any time for any reason:
(i) Service-Conditioned
PSUs. All unvested Service-Conditioned PSUs shall be canceled immediately and the Participant shall not be entitled to receive any
payments with respect thereto; and
1
(ii) Performance-Only
PSUs. Except as provided in Section 3(b) and Section 7(b), the Performance-Only PSUs shall remain outstanding and
eligible to vest in accordance with Exhibit A.
(b) Termination
for Cause. Notwithstanding anything herein to the contrary, in the event of the Participant’s termination of Service (x) by
the Company for Cause or (y) for any reason at a time when grounds for Cause exist (as determined by the Committee), (i) all
unvested PSUs (whether Performance-Only PSUs or Service-Conditioned PSUs) shall be canceled immediately and the Participant shall not
be entitled to receive any payments with respect thereto, and (ii) the Participant shall, promptly upon demand by the Company (and
in any event within thirty (30) days thereafter), return to the Company all Shares acquired pursuant to this Award Agreement to the extent
still held by or for the Participant.
4. Rights
as a Stockholder. The Participant shall have no voting rights with respect to the PSUs unless and until the Participant becomes
the record owner of the Shares underlying the PSUs.
5. Tax
Withholding. The Participant shall be solely responsible for any applicable taxes (including, without limitation, income and
excise taxes) and penalties, and any interest that accrues thereon, that the Participant incurs in connection with the receipt, vesting
or settlement of any PSU granted hereunder. Without limiting Section 1(b), the Company shall be authorized to withhold from the
Award the amount (in cash or Shares, or any combination thereof) of applicable withholding taxes due in respect of the Award, its settlement
or any payment or transfer under the Award and to take such other action (including providing for elective payment of such amounts in
cash or other property by the Participant) as may be necessary in the opinion of the Company to satisfy all obligations for the payment
of such taxes; provided, however, that no Shares shall be withheld with a value exceeding the maximum statutory rates in the applicable
tax jurisdictions.
6. Clawback;
Forfeiture; Detrimental Conduct. The PSUs shall be subject to the clawback, forfeiture and detrimental conduct provisions set
forth in Section 7(c) of the Plan.
7. Restrictive
Covenants.
(a) Without
limiting any other non-competition, non-solicitation, non-disparagement or non-disclosure or other similar agreement to which the Participant
may be a party, the Participant shall be subject to the confidentiality and restrictive covenants set forth on Exhibit B
attached hereto, which Exhibit B is incorporated herein and forms part of this Award Agreement.
(b) In
the event that the Participant violates any of the restrictive covenants referred to in this Section 7, in addition to any other
remedy that may be available at law or in equity, the PSUs (including, for the avoidance of doubt, any Performance-Only PSUs that remain
outstanding following the Participant’s termination of Service) shall be automatically forfeited effective as of the date on which
such violation first occurs. The foregoing rights and remedies are in addition to any other rights and remedies that may be available
to the Company and shall not prevent (and the Participant shall not assert that they shall prevent) the Company from bringing one or
more actions in any applicable jurisdiction to recover damages as a result of the Participant’s breach of such restrictive covenants.
2
8. Miscellaneous.
(a) Compliance
with Legal Requirements. The granting of the PSUs, and any other obligations of the Company under this Award Agreement, shall be
subject to all applicable U.S. federal, state and local laws, rules and regulations, all applicable non-U.S. laws, rules and
regulations and to such approvals by any regulatory or governmental agency as may be required. The Participant agrees to take all steps
that the Committee or the Company determines are reasonably necessary to comply with all applicable provisions of U.S. federal and state
securities law and non-U.S. securities law in exercising the Participant’s rights under this Award Agreement.
(b) Transferability.
The PSUs shall be subject to Section 9 of the Plan.
(c) Participant’s
Service. Nothing in this Award Agreement shall confer upon the Participant any right to continue the Participant’s Service
or interfere in any way with the right of the Company or any of its Affiliates or stockholders, as the case may be, to terminate the
Participant’s Service or to increase or decrease the Participant’s compensation at any time. The grant of the PSUs is a one-time
benefit and does not create any contractual or other right to receive any other Award under the Plan in the future. The grant of the
PSUs does not form part of the Participant’s entitlement to compensation or other benefits in terms of the Participant’s
Service.
(d) Amendment;
Waiver. No amendment or modification of any provision of this Award Agreement shall be effective unless signed in writing by or on
behalf of the Company and the Participant, except that the Company may amend or modify this Award Agreement without the Participant’s
consent in accordance with the provisions of the Plan or as otherwise set forth in this Award Agreement. No waiver of any breach or condition
of this Award Agreement shall be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature.
Any amendment or modification of or to any provision of this Award Agreement, or any waiver of any provision of this Award Agreement,
shall be effective only in the specific instance and for the specific purpose for which made or given.
(e) Section 409A.
This Award Agreement is intended to comply with the requirements of Section 409A of the Code and the regulations thereunder, and
the provisions of this Award Agreement shall be interpreted in a manner that satisfies the requirements of Section 409A of the
Code, and this Award Agreement shall be operated accordingly. If any provision of this Award Agreement or any term or condition of the
PSUs would otherwise conflict with this intent, the provision, term or condition shall be interpreted and deemed amended so as to avoid
this conflict. Notwithstanding anything else in this Award Agreement, if the Committee considers a Participant to be a “specified
employee” under Section 409A of the Code at the time of such Participant’s “separation from service” (as
defined in Section 409A of the Code), and the amount hereunder is “deferred compensation” subject to Section 409A
of the Code any distribution that otherwise would be made to such Participant with respect to PSUs as a result of such separation from
service shall not be made until the date that is six months after such separation from service, except to the extent that earlier distribution
would not result in such Participant’s incurring interest or additional tax under Section 409A of the Code. If the Award
includes a “series of installment payments” (within the meaning of Section 1.409A-2(b)(2)(iii) of the Treasury
Regulations), the Participant’s right to the series of installment payments shall be treated as a right to a series of separate
payments and not as a right to a single payment. Notwithstanding the foregoing, the tax treatment of the benefits provided under this
Award Agreement is not warranted or guaranteed, and in no event shall the Company be liable for all or any portion of any taxes, penalties,
interest or other expenses that may be incurred by the Participant on account of non-compliance with Section 409A of the Code.
3
(f) General
Assets. All amounts credited in respect of the PSUs to the book-entry account under this Award Agreement shall continue for all purposes
to be part of the general assets of the Company. The Participant’s interest in such account shall make the Participant only a general,
unsecured creditor of the Company.
(g) Notices.
All notices, requests and other communications under this Award Agreement shall be in writing and shall be delivered in person (by courier
or otherwise), mailed by certified or registered mail, return receipt requested to the contact details below. The parties may use e-mail
delivery, so long as the message is clearly marked, sent to the e-mail address(es) set forth below.
if to the Company, to:
Forge Nano, Inc.
12300 Grant St. #100
Thornton, CO 80241
Attn: Paul Lichty, CEO
E-mail: [*****]
if to the Participant, to the address, facsimile
number or e-mail address that the Participant most recently provided to the Company, or to such other address, facsimile number or e-mail
address as such party may hereafter specify for the purpose by notice to the other parties hereto.
(h) Severability.
The invalidity or unenforceability of any provision of this Award Agreement shall not affect the validity or enforceability of any other
provision of this Award Agreement, and each other provision of this Award Agreement shall be severable and enforceable to the extent
permitted by law.
(i) Successors.
The terms of this Award Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, and of
the Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.
(j) Entire
Agreement. The Participant acknowledges receipt of a copy of the Plan and represents that the Participant is familiar with the terms
and provisions thereof (and has had an opportunity to consult counsel regarding the PSU terms), and hereby accepts the grant of PSUs
and agrees to be bound by its contractual terms as set forth herein (including Exhibit B) and in the Plan. The Participant
acknowledges and agrees that the grant of the PSUs constitutes additional consideration to the Participant for the Participant’s
continued and future compliance with any restrictive covenants in favor of the Company by which the Participant is otherwise bound. The
Participant hereby agrees to accept as binding, conclusive and final all decisions and interpretations of the Committee regarding any
questions relating to the PSUs. In the event of a conflict between the terms and provisions of the Plan and the terms and provisions
of this Award Agreement, the Plan terms and provisions shall prevail. This Award Agreement, including the Grant Notice, Exhibit A
and Exhibit B and the Plan, constitutes the entire agreement between the Participant and the Company on the subject matter
hereof and supersedes all proposals, written or oral, and all other communications between the parties relating to such subject matter;
provided that nothing herein shall supersede, limit or otherwise affect any other non-competition, non-solicitation, non-disparagement,
non-disclosure or other similar agreement to which the Participant may be a party or any applicable service agreement, each of which
shall remain in full force and effect in accordance with its terms.
4
(k) Governing
Law. Except as otherwise set forth in an applicable employment agreement, this Award Agreement shall be construed and interpreted
in accordance with the laws of the State of Delaware, without regard to principles of conflicts of laws thereof, or principles of conflicts
of laws of any other jurisdiction that could cause the application of the laws of any jurisdiction other than the State of Delaware.
(l) Dispute
Resolution; Consent to Jurisdiction. Except as otherwise set forth in an applicable employment agreement, the Participant and the
Company agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection
with this Award Agreement (whether brought by any party or any of its Affiliates or against any party or any of its Affiliates) shall
be brought in the United States federal or state courts in Wilmington, Delaware, and each of the parties hereby irrevocably consents
to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably
waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such
suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in
an inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether
within or without the jurisdiction of any such court.
(m) Electronic
Signature and Delivery. This Award Agreement may be accepted by return signature or by electronic confirmation. By accepting this
Award Agreement, the Participant consents to the electronic delivery of prospectuses, annual reports and other information required to
be delivered by U.S. Securities and Exchange Commission rules (which consent may be revoked in writing by the Participant at any
time upon three business days’ notice to the Company, in which case subsequent prospectuses, annual reports and other information
shall be delivered in hard copy to the Participant).
(n) Electronic
Participation in Plan. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation
in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate
in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.
[Remainder of page intentionally blank]
5
Exhibit A
VESTING
TERMS AND CONDITIONS
Reference is made to that
certain Agreement and Plan of Merger by and among (i) Archimedes Tech SPAC Partners II Co., (ii) ATII Holdings Inc., (iii) ATII
Merger Sub Inc., (iv) ATII Merger Sub II LLC and (v) Forge Nano, Inc., dated as of April 20, 2026 (the “Merger
Agreement”). Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Merger Agreement.
(a) General.
All PSUs granted hereby shall initially be unvested. The PSUs shall vest in accordance
with the terms of this Exhibit A upon the satisfaction of the applicable performance vesting conditions set forth in paragraph
(b) below (each such vesting event, a “Vesting Event”) and, in the case of the Service-Conditioned PSUs only,
subject to the Participant’s continuous Service through each such Vesting Event.
(b) Performance
Vesting Conditions. The performance vesting conditions applicable to the PSUs are as follows:
I. One-third
(1/3) of the PSUs shall have their performance vesting condition satisfied in the event that,
between the Closing Date and the date that is sixty (60) months after the Closing Date, (A) the
VWAP of the Pubco Common Stock over any thirty (30) Trading Day period is greater than or
equal to $15.00, or (B) the revenue, determined in accordance with GAAP applied on
a consistent basis, publicly reported by Pubco in its annual or quarterly reports filed with
the SEC for the preceding twelve months equals or exceeds $400,000,000.
II. An
additional one-third (1/3) of the PSUs (i.e., two-thirds (2/3) in the aggregate) shall have
their performance vesting condition satisfied in the event that, between the Closing Date
and the date that is sixty (60) months after the Closing Date, (A) the VWAP of the
Pubco Common Stock over any thirty (30) Trading Day period is greater than or equal to $20.00,
or (B) the revenue, determined in accordance with GAAP applied on a consistent basis,
publicly reported by Pubco in its annual or quarterly reports filed with the SEC for the
preceding twelve months equals or exceeds $600,000,000.
1
III. An
additional one-third (1/3) of the PSUs (i.e., 100% of the PSUs in the aggregate) shall have
their performance vesting condition satisfied in the event that, between the Closing Date
and the date that is sixty (60) months after the Closing Date, (A) the VWAP of the
Pubco Common Stock over any thirty (30) Trading Day period is greater than or equal to $25.00,
or (B) the revenue, determined in accordance with GAAP applied on a consistent basis,
publicly reported by Pubco in its annual or quarterly reports filed with the SEC for the
preceding twelve months equals or exceeds $800,000,000.
Notwithstanding anything herein to the
contrary, any PSUs (whether Performance-Only PSUs or Service-Conditioned PSUs) that have not vested on or prior to the date that is sixty
(60) months after the Closing Date shall be automatically forfeited and canceled as of such date for no consideration, and the Participant
shall have no further rights with respect thereto.
(c) Allocation.
The PSUs that vest upon each Vesting Event shall be allocated between the Performance-Only PSUs and the Service-Conditioned PSUs pro
rata, based on the respective number of Performance-Only PSUs and Service-Conditioned PSUs set forth on the Grant Notice; provided
that any Service-Conditioned PSUs that have been canceled pursuant to Section 3 of the Award Agreement shall not vest, and provided
further that the number of PSUs vesting upon each Vesting Event shall be rounded down to the nearest whole PSU.
2
Exhibit B
Restrictive
Covenants
This Exhibit B
is attached to and forms part of the Performance-Based Restricted Stock Unit Award Agreement between the Company and the Participant
(the “Award Agreement”). The Participant acknowledges and agrees that during the Participant’s Service with
the Company, the Participant will be providing services to the Company and that the Participant will be intimately involved in the planning
for or direction of the business of the Company, and that the Participant has or will obtain selective or specialized skills, knowledge,
abilities, or customer contacts or information by reason of working for the Company and providing services to the Company.
1. Noncompetition.
During the Participant’s Service and for a period of twelve (12) months thereafter, the Participant shall not, either directly
or indirectly, on the Participant’s behalf or on behalf of or in conjunction with any other person, company, partnership, corporation,
business, group, or other entity (each, a “Person”), engage, within the Territory (as defined below), as an officer,
director, owner, partner, member, joint venturer, employee, team member, independent contractor, agent or consultant in the same, similar
or related capacity as the Participant was providing Services to the Company, in any business engaged in the Business of the Company
(as defined below); provided, however, that the Participant shall not be prohibited from passively owning less than five percent (5%)
of the outstanding shares of any class of equity securities registered under the Securities Exchange Act of 1934, as amended (the “34
Act”).
(a) The
“Territory” shall be defined as the United States of America and any other territory where the Participant is working
at the time of termination of Service with the Company or the Company is doing business; which the Participant acknowledges and agrees
is the territory in which the Participant is providing Services to the Company.
(b) The
“Business of the Company” means (A) any business or activity engaged in by the Company and in which the Participant
was involved or obtained Confidential Information or Trade Secrets during the Participant’s Service, and (B) any other business
opportunity that is under active consideration by the Company during the Participant’s Service with the Company and in which the
Participant was involved or obtained Confidential Information or Trade Secrets during the Participant’s Service with the Company.
2. Non-solicitation.
In addition, during the Participant’s Service and for a period of twelve (12) months thereafter, the Participant shall not, either
directly or indirectly, on the Participant’s behalf or on behalf of or in conjunction with any other Person:
(a) solicit
or attempt to solicit any employee of the Company or any of its Affiliates (or any employee who was employed by the Company or any of
its Affiliates within the six (6) months prior to the Participant’s termination of Service), with whom the Participant had
business relations or material contact, to end his or her relationship with the Company or any of its Affiliates or hire or attempt to
hire any of the foregoing; or
(b) seek
to induce or otherwise cause any customer, client, supplier, vendor, licensee, licensor or any other Person with whom the Company or
any of its Affiliates has, or during the six (6) months prior to the Participant’s termination of Service had, a business
relationship, whether by contract or otherwise, and with whom the Participant had business relations or material contact or about whom
the Participant has Confidential Information (as defined below) or Trade Secrets (as defined below), to discontinue or alter such business
relationship in a manner that is adverse to the Company or any of its Affiliates.
1
3. Blue
Pencil. The restrictive covenants set forth herein are severable and separate, and the unenforceability of any specific covenant
shall not affect the provisions of any other covenant. If any provision of the restrictive covenants set forth herein relating to the
time period, scope, or geographic area of the restrictive covenants shall be declared by a court of competent jurisdiction or arbitrator
to exceed the maximum time period, scope or geographic area, as applicable, that such court or arbitrator deems reasonable and enforceable,
then the restrictive covenants set forth herein shall automatically be considered to have been amended and revised to reflect such determination.
4. Severability.
All of the covenants set forth herein shall be construed as an agreement independent of any other provisions in this Exhibit B,
and the existence of any claim or cause of action the Participant may have against the Company, whether predicated on this Exhibit B
or otherwise, shall not constitute a defense to the enforcement by the Company or any of its Affiliates of such covenants.
5. Participant
Acknowledgments. The Participant has carefully read and considered the provisions of the restrictive covenants set forth herein
and, having done so, agrees that the restrictive covenants set forth herein impose a fair and reasonable restraint on the Participant
and are reasonably required to protect the interests of the Company and its Affiliates and their respective officers, directors, employees
and equityholders.
6. Trade
Secrets and Confidential Information.
(a) “Confidential
Information” means all non-public or proprietary data or information (other than Trade Secrets) concerning the business and
operations of the Company or any of its Affiliates, including, but not limited to, any non-public information (regardless of whether
in writing or retained as personal knowledge) pertaining to research and development; product costs, designs and processes; equityholder
information; pricing, cost, or profit factors; quality programs; annual budget and long-range business plans; marketing plans and methods;
contracts and bids; business ideas; and methods, inventions, innovations, developments, graphic designs, web site designs, patterns,
specifications, procedures, databases and personnel. “Trade Secret” means trade secret as defined by applicable state
law. In the absence of such a definition, Trade Secret means information including, but not limited to, any technical or nontechnical
data, formula, pattern, compilation, program, device, method, technique, drawing, process, financial data, financial plan, product plan,
list of actual or potential customers or suppliers or other information similar to any of the foregoing, which (i) derives economic
value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons
who can derive economic value from its disclosure or use and (ii) is the subject of efforts that are reasonable under the circumstances
to maintain its secrecy.
2
(b) The
Participant acknowledges that in the course of the Participant’s Service, the Participant has received or will receive and has
had or will have access to Confidential Information and Trade Secrets of the Company or any of its Affiliates, and that unauthorized
or improper use or disclosure by the Participant of such Confidential Information or Trade Secrets will cause serious and irreparable
harm to the Company or any of its Affiliates. Accordingly, the Participant is willing to enter into the covenants contained herein in
order to provide the Company and its Affiliates with what the Participant considers to be reasonable protection for its interests.
(c) The
Participant hereby agrees to (i) hold in confidence all Confidential Information of the Company or any of its Affiliates that comes
into the Participant’s knowledge during the Participant’s Service and (ii) not disclose, publish or make use of such
Confidential Information, other than in the good-faith performance of the Participant’s duties, without the prior written consent
of the Company for as long as the information remains Confidential Information.
(d) The
Participant hereby agrees to hold in confidence all Trade Secrets of the Company or any of its Affiliates that come into the Participant’s
knowledge during the Participant’s Service and not to disclose, publish, or make use of at any time after the date hereof such
Trade Secrets without the prior written consent of the Company for as long as the information remains a Trade Secret.
(e) Notwithstanding
the foregoing, the provisions of this Section 6 will not apply to (i) Confidential Information or Trade Secrets that otherwise
become generally known in the industry or to the public through no act of the Participant or any person or entity acting by or on the
Participant’s behalf or information which the Participant can demonstrate was rightfully in the Participant’s possession
prior to the commencement of the Participant’s Service or (ii) disclosures of information required by judicial or governmental
proceedings; provided that, in the event the Participant is ordered by a court or governmental authority to disclose any Confidential
Information, the Participant shall (1) promptly notify the Company of such order, (2) diligently contest such order at the
sole expense of the Company as expenses occur and (3) seek to obtain at the sole expense of the Company such confidential treatment
as may be available under applicable laws for any information disclosed under such order.
(f) Notwithstanding
anything to the contrary contained herein, none of the covenants set forth herein will prohibit the Participant from making reports of
possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated
under Section 21F of the Exchange Act or Section 806 of the Sarbanes-Oxley Act of 2002, or of any other whistleblower protection
provisions of federal law or regulation, or require modification or prior approval by the Company of any such reporting.
(g) Notwithstanding
anything to the contrary contained herein, pursuant to the Defend Trade Secrets Act of 2016, the Participant shall not be held criminally
or civilly liable under any federal or state Trade Secret law for the disclosure of a Trade Secret that: (i) is made (A) in
confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (B) solely
for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed
in a lawsuit or other proceeding, if such filing is made under seal. The Participant also understands that if the Participant files a
lawsuit for retaliation by the Company for reporting a suspected violation of law, the Participant may disclose the Trade Secret to the
Participant’s attorney and use the Trade Secret information in the court proceeding, if the Participant (i) files any document
containing the Trade Secret under seal, and (ii) does not disclose the Trade Secret, except pursuant to court order.
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7. Work
Product and Inventions.
(a) The
Participant acknowledges that the Participant’s work on and contributions to documents, programs, methodologies, protocols, and
other expressions in any tangible medium (including, without limitation, all business ideas and methods, inventions, innovations, developments,
graphic designs, web site designs, patterns, specifications, procedures or processes, market research, databases, works of authorship,
products and other works of creative authorship) which have been or will be prepared by the Participant, or to which the Participant
has contributed or will contribute, in connection with the Participant’s Services (collectively, “Works”), are
and will be within the scope of the Participant’s Service and part of the Participant’s duties and responsibilities. The
Participant’s work on and contributions to the Works will be rendered and made by the Participant for, at the instigation of, and
under the overall direction of the Company, and are and at all times shall be regarded, together with the Works, as “work made
for hire” as that term is used in the United States Copyright Laws. However, to the extent that any court or agency should conclude
that the Works (or any of them) do not constitute or qualify as a “work made for hire”, the Participant hereby assigns, grants,
and delivers exclusively and throughout the world to the Company all rights, titles and interests in and to any such Works, and all copies
and versions, including all copyrights and renewals. The Participant agrees to cooperate with the Company and to execute and deliver
to the Company and its successors and assigns, any assignments and documents the Company requests for the purpose of establishing, evidencing,
and enforcing or defending its complete, exclusive, perpetual and worldwide ownership of all rights, titles and interests of every kind
and nature, including all copyrights, in and to the Works, and the Participant constitutes and appoints the Company as the Participant’s
agent to execute and deliver any assignments or documents the Participant fails or refuses to execute and deliver, this power and agency
being coupled with an interest and being irrevocable. Without limiting the preceding provisions of this Section 7(a), the Participant
agrees that the Company may edit and otherwise modify, and use, publish and otherwise exploit, the Works in all media and in such manner
as the Company, in its sole discretion, may determine.
(b) The
Participant shall disclose promptly to the Company (which shall receive it in confidence), and only to the Company, any invention or
idea of the Participant in any way connected with the Participant’s Services or related to the Business of the Company, the research
or development of the Company or any of its Affiliates, or demonstrably anticipated research or development (developed alone or with
others), conceived or made during the Participant’s Services or within three (3) months thereafter and hereby assigns to
the Company any such invention or idea. The Participant agrees, subject to reimbursement of actual out of pocket expenses related thereto
and at the Company’s sole liability and expense, to cooperate with the Company and sign all papers reasonably deemed necessary
by the Company to enable it to obtain, maintain, protect and defend patents covering such inventions and ideas and to confirm the Company’s
exclusive ownership of all rights in such inventions, ideas and patents, and irrevocably appoints the Company as the Participant’s
agent to execute and deliver any assignments or documents the Participant fails or refuses to execute and deliver promptly, this power
and agency being coupled with an interest and being irrevocable. This constitutes the Company’s written notification that this
assignment does not apply to an invention for which no equipment, supplies, facility or Trade Secret information of the Company or any
of its Affiliates was used and which was conceived and developed entirely on the Participant’s own time, unless (i) the invention
relates (A) directly to the Business of the Company, or (B) to actual or demonstrably anticipated research or development
of the Company or any of its Affiliates, or (ii) the invention results from any work performed by the Participant for the Company
or any of its Affiliates.
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8. Nondisparagement.
During the Participant’s Service and thereafter, the Participant shall not, directly or indirectly, take any action, or encourage
others to take any action, to disparage or criticize the Company or any of its Affiliates or their respective employees, officers, directors,
managers, products, services, customers or owners. The foregoing shall not be violated by the Participant’s truthful responses
to legal process or inquiry by a governmental authority.
9. Return
of Company Property. At the request of the Company (or, without any request, upon termination of the Participant’s Service
with the Company), the Participant will immediately deliver to the Company, at the Participant’s cost and expense, (i) all
Company property that is then in the Participant’s possession, custody or control, including, without limitation, all keys, access
cards, cell phones, tablets, computer hardware including but not limited to any hard drives, external storage devices, diskettes, fobs,
laptops, tablets, computers and personal data assistants (and the contents thereof), internet connectivity devices, computer software
and programs, data, materials, papers, books, files, documents, records; (ii) any and all documents or other items containing,
summarizing, or describing any Confidential Information, including all originals and copies in whatever form; (iii) any personal
device that the Participant synced with or used to access any Company system for purpose of inspection and copying; and (iv) a
list of passwords or codes needed to operate or access any of the items referenced in this Section 9.
10. Equitable
Remedy. Because of the difficulty of measuring economic losses to the Company or any of its Affiliates as a result of a breach
of the covenants set forth herein, and because of the immediate and irreparable damage that would be caused to the Company and its Affiliates
for which monetary damages would not be a sufficient remedy, it is hereby agreed that in addition to all other remedies that may be available
to the Company or any of its Affiliates, at law or in equity, the Company shall be entitled to specific performance and any injunctive
or other equitable relief as a remedy for any breach or threatened breach by the Participant of any provision set forth herein. The Company
and each of its Affiliates may seek temporary and/or permanent injunctive relief for an alleged violation of the covenants set forth
herein without the necessity of posting a bond.
11. Restrictive
Covenant Modifications for U.S. Participants. This Section 11 includes jurisdiction-specific modifications of this Exhibit B
to the extent that the Participant’s primary location is in one of the applicable U.S. jurisdictions and requires the application
of the law of such jurisdiction. For purposes of the preceding sentence, “primary location” means (a) the state in
which the Participant both primarily resides and works, if such state requires that the individual both primarily reside and work in
such state for this Exhibit B to be governed by such state’s laws, or (b) the state in which the Participant
either primarily resides or works, if such state requires that the individual either primarily reside or work in such state for this
Exhibit B to be governed by such state’s laws. The modifications in this Section 11 should be read together
with the rest of this Exhibit B.
5
CALIFORNIA
The Participant acknowledges
and agrees that entering into this Exhibit B is not a condition of the Participant’s Service with the Company, and
that the Participant is not required to enter into this Exhibit B as a condition of the Participant’s Service with
the Company or any of its Affiliates. Should California law be deemed to apply to this Exhibit B, the following shall apply:
(a) Section 1
of this Exhibit B is deleted in its entirety and replaced with the following:
“Noncompetition and
Non-solicitation. The Participant agrees that the Company’s and/or its Affiliates’ customer and potential customer list,
the identity of clients and their family members, client contact information, personal and/or financial information pertaining to the
clients, referral sources, business plans, identifying and developing trade secrets, customer and client relationships and supplier relationships
(the ‘trade secret information’) are confidential, subject to efforts by the Company to maintain their secrecy, require extensive
time and effort to identify and develop, and derive independent economic value from not being generally known to or readily ascertainable
by proper means by others who can obtain economic value from their disclosure or use, and therefore constitute the Company’s trade
secret information. Therefore, during the Participant’s Service and for a period of twelve (12) months thereafter (the ‘Restricted
Period’), the Participant shall not use the Company’s trade secret information for any purpose that is adverse to, or otherwise
falls outside of the best interests of, the Company, including, without limitation, that the Participant shall not use the trade secret
information for any of the following purposes:
(i) engaging
in any Competitive Business (as defined herein) or owning, managing, operating or controlling, joining, consulting with, or participating
in the ownership, management, operation or control of, or being employed by, or acting as a consultant or advisor to, any corporation,
partnership, person, firm, or other entity that engages in Competitive Business if such conduct (x) in any manner involves activities
similar to those performed by the Participant during the Participant’s Service or (y) could result in the Participant’s
direct or indirect, whether intentional or unintentional, use, disclosure, or reliance upon Confidential Information to which the Participant
had access by virtue of the Participant’s job duties or other responsibilities with the Company or its Affiliates or exploitation
of goodwill accessed, developed, or cultivated by the Participant in the course of the Participant’s Service, in each case, within
fifty (50) miles of any office of the Company or any of its Affiliates, including any home office; provided that the Participant may
(A) own, directly or indirectly, solely as an investment, securities of a publicly-traded entity if the Participant does not directly
or indirectly manage, operate or control such entity and does not own five percent (5%) or more of any class of securities of such entity
and (B) own passive investments in public companies or private equity vehicles, hedge fund vehicles, mutual fund vehicles and other
similar investment vehicles;
(ii) soliciting
any customers or potential customers of the Company or its Affiliates that the Participant serviced or supervised the service of on behalf
of the Company or its Affiliates during the Participant’s Service, for the purpose of terminating, diverting, or diminishing such
customers’ business, services, or relationship with or from the Company or its Affiliates, except in good faith on behalf of the
Company during the Participant’s Service; or
6
(iii) in
any manner inducing, attempting to induce, or assisting others to induce any vendor, client, employee, or any other person or entity
having a business or employment relationship with the Company or any of its Affiliates to terminate such relationship, or doing anything
to interfere with the relationship of the Company or any of its Affiliates with such person or entity, except in good faith on behalf
of the Company during the Participant’s Service; provided, however, that the placement of general advertisements or making of general
solicitations shall not be a violation of this Section 1, and the Participant’s providing a reference upon request shall
not alone constitute a breach of the foregoing restrictions. For purposes of this Exhibit B, ‘Competitive Business’
shall mean any business engaged in the development, manufacture, production, sale, distribution, licensing or other disposition of products
or services which are competitive with the products or services developed or under development by, manufactured, produced, sold, licensed
or otherwise distributed or provided by the Company or any of its Affiliates.”
(b) Section 2
of this Exhibit B is deleted in its entirety and replaced with the following: “[Intentionally Omitted].”
(c) Section 3
of this Exhibit B is deleted in its entirety and replaced with the following: “In the event that any provision of
this Exhibit B shall be held to be invalid or unenforceable for any reason whatsoever, in whole or in part, it is agreed
that such invalidity or unenforceability shall not affect any other provision of this Exhibit B and the remaining covenants,
restrictions, and provisions hereof shall remain in full force and effect, and any court of competent jurisdiction may so modify the
objectionable provision so as to make it valid, reasonable, and enforceable. Furthermore, the parties specifically acknowledge that the
trade secret protection covenant, the nondisparagement covenant, the covenant not to disclose Confidential Information, and the covenant
to return Confidential Information contained in this Exhibit B are each separate and independent agreements.”
COLORADO
If at the time of termination
of the Participant’s Service (i) the Participant primarily resides and works in Colorado and (ii) C.R.S. Section 8-2-113
(the “Colorado Act”) or an equivalent law is enforceable, all references to “Delaware” in Section 8(k) of
the Award Agreement shall be replaced by “Colorado,” as applicable. The Participant agrees that before being asked to sign
the Award Agreement, the Company provided the Participant with at least fourteen (14) calendar days (or, if the Participant is a new
hire, at least one (1) calendar day prior to commencing employment) to review the Award Agreement, as reflected in the accompanying
form entitled Colorado Mandatory Notice of Non-Compete. If the Participant is a new hire to the Company, the Participant acknowledges
that the Participant received notice of the non-competition and customer non-solicitation covenants in this Exhibit B and
their terms in a separate document before the Participant accepted the Participant’s offer of employment. If the Participant is
a current employee at the time the Participant enters into this Exhibit B, the Participant acknowledges that the Participant
received notice of the non-competition and customer non-solicitation covenants in this Exhibit B and their terms in a separate
document at least fourteen (14) days before the earlier of the effective date of this Exhibit B or the effective date of
any additional compensation or change in the terms or conditions of the Participant’s employment that provides consideration for
the customer non-solicitation covenants.
7
The Participant understands
that this Exhibit B contains non-competition and non-solicitation obligations that may restrict the Participant’s
future employment options and that following the termination of Service (i) the non-competition obligations in Section 1
of this Exhibit B do not apply to the Participant if the Participant does not earn at least the statutory minimum compensation
set by Colorado statute (e.g., between January 1, 2026 and December 31, 2026, the statutory threshold is $130,014 per year),
and (ii) the non-solicitation obligations in Section 2 of this Exhibit B do not apply to the Participant if
the Participant does not earn at least sixty percent (60%) of the statutory minimum compensation (e.g., between January 1, 2026
and December 31, 2026, sixty percent (60%) of the statutory threshold is $78,008.40 per year).
The Participant acknowledges
and understands that, to the extent that the provisions of Sections 6 or 8 of this Exhibit B could be deemed
to limit the ability of the Participant to disclose or discuss, either orally or in writing, any alleged discriminatory or unfair employment
practice (such provisions, to such extent, the “Non-Disclosure Provisions”), the Non-Disclosure Provisions apply equally
to the Participant and the Company. Nothing contained in the Non-Disclosure Provisions restrains the Participant from disclosing the
underlying facts of any alleged discriminatory or unfair employment practice (including disclosing the existence and terms of a settlement
agreement): (i) to the Participant’s immediate family members, religious advisor, medical or mental health provider, mental
or behavioral health therapeutic support group, legal counsel, financial advisor, or tax preparer; (ii) to any local, state or
federal government agency for any reason, without first notifying the Company; (iii) in response to legal process, such as a subpoena
to testify at a deposition or in a court, without first notifying the Company; and/or (iv) for all other purposes as required by
law. The Participant and the Company each acknowledge and agree that any disclosure made pursuant to the Non-Disclosure Provisions does
not constitute disparagement of the Participant or of the Company. The Participant understands that if any member of the Company disparages
the Participant to a third party, no member of the Company may seek to enforce the Non-Disclosure Provisions or Section 8
of this Exhibit B, or seek damages against the Participant for violating such provisions, but all other remaining terms
of the Award Agreement remain enforceable.
The Participant acknowledges
that during the Participant’s Service the Participant will have access to and knowledge of Confidential Information and such Confidential
Information contains trade secrets pursuant to the Colorado Act. The Participant further agrees that Sections 1 and 2 of
this Exhibit B shall be interpreted to prohibit the use or disclosure of or reliance on the Company’s trade secrets
in the Participant’s possession and/or activity that would (by its nature) involve or lead to the use or disclosure of or reliance
on the Company’s trade secrets. The Participant also understands that any customer or potential customer will be limited to those
with respect to which the Participant developed, contributed to, or was provided trade secrets in the course of employment with the Company.
Accordingly, the non-competition and customer non-solicitation covenants in Sections 1 and 2 of this Exhibit B
are each reasonable and necessary for the protection of the Company’s trade secrets. The Participant understands that nothing in
the Award Agreement will require the Participant to adjudicate outside of Colorado the enforceability of a covenant not to compete or
customer non-solicitation under this Exhibit B or require that the law of any state other than Colorado governs the enforceability
of a covenant not to compete or customer non-solicitation covenants provided for in this Exhibit B. The Award Agreement
does not prohibit disclosure of information that arises from general training, knowledge, skill, or experience, whether gained on the
job or otherwise, information that is readily ascertainable to the public, or information that the Participant would otherwise have a
right to disclose as legally protected conduct. Nothing in the Award Agreement limits or prevents the Participant from disclosing information
about workplace health and safety practices or hazards, or limits the Participant’s ability or the ability of another employee
or prospective employee to disclose or discuss, either orally or in writing, any alleged discriminatory or unfair employment practice.
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DISTRICT OF COLUMBIA
The Participant agrees that
before being asked to sign this Exhibit B, the Company provided the Participant with at least fourteen (14) calendar days
to review this Exhibit B. The District of Columbia’s Ban on Non-Compete Agreements Amendment Act of 2020, as amended
by the Non-Compete Clarification Amendment Act of 2022 (collectively, the “DC Non-Compete Act”), limits the use of
non-compete agreements. It allows employers to request non-compete agreements from “highly compensated employees” (as that
term is defined in the DC Non-Compete Act) under certain conditions. If the Participant is a “highly compensated employee,”
the following notice is being provided pursuant to the DC Non-Compete Act: The DC Non-Compete Act limits the use of non-compete agreements.
It allows employers to request non-compete agreements from highly compensated employees, as that term is defined in the DC Non-Compete
Act, under certain conditions. The Company has determined that you are a highly compensated employee. For more information about the
DC Non-Compete Act, contact the District of Columbia Department of Employment Services (DOES). If the Participant earns at least the
statutory minimum compensation set by District of Columbia statute (e.g., between January 1, 2026 and December 31, 2026,
the statutory threshold is $162,164 per year for most employees), then the Company has determined that the Participant is a “highly
compensated employee.” If the Participant does not earn the statutory minimum compensation set by District of Columbia statute,
then the non-competition obligations in Section 1 of this Exhibit B do not apply to the Participant following the
termination of Service.
FLORIDA
To the extent the Participant
resides in Florida and is reasonably expected to earn a salary greater than twice the annual mean wage of the county in Florida in which
the employer has its principal place of business, or the county in Florida in which the Participant resides if the employer’s principal
place of business is not in Florida, the following shall apply: (a) the Participant acknowledges that the Company provided the
Participant with this Exhibit B either (i) if the Participant was a prospective service provider of the Company or
its Affiliates at the time of receipt of this Exhibit B, at least seven (7) days before the Participant’s offer
to join the Company or its Affiliates expired or (ii) if the Participant was a current service provider of the Company or its Affiliates
at the time of receipt of this Exhibit B, at least seven (7) days before the date that the offer to enter into this
Exhibit B expired; (b) the Participant acknowledges that the Company hereby advises the Participant of the Participant’s
right to seek counsel before executing this Exhibit B; (c) as further described in Section 6 of this Exhibit B,
the Participant acknowledges that the Participant is expected to receive Confidential Information and/or customer relationships, in each
case, in respect of the Company and its Affiliates; and (d) all references to “Delaware” in Section 8(k) of
the Award Agreement shall be replaced by “Florida.”
9
GEORGIA
The Participant acknowledges
that the Participant, in the course of the Participant’s Service with the Company or its Affiliates, (1) customarily and
regularly solicits customers or prospective customers; (2) customarily and regularly engages in making sales or obtaining orders
or contracts for products or services; (3) (a) has a primary duty of managing the enterprise in which the Participant is
employed or of a customarily recognized department or subdivision thereof, (b) customarily and regularly directs the work of two
or more other employees, and (c) has the authority to hire or fire other employees or has particular weight given to suggestions
and recommendations as to the hiring, firing, advancement, promotion, or any other change of status of other employees; and/or (4) performs
the duties of a key employee or of a professional.
IDAHO
The Participant acknowledges
and understands that following the termination of Service, the non-competition obligations in Section 1 and the non-solicitation
obligations in Section 2 of this Exhibit B only apply to the Participant if the Participant is determined to be a
“key employee” in accordance with Idaho statute § 44-2702.
ILLINOIS
The Participant agrees that
before being asked to sign this Exhibit B, the Company provided the Participant with at least fourteen (14) calendar days
to review the restrictive covenants set forth in this Exhibit B and agrees that, by executing this Exhibit B
before the expiration of the fourteen (14) day period, the Participant is waiving the Participant’s right to wait the full fourteen
(14) days. The Company also hereby advises the Participant to consult with an attorney before entering into this Exhibit B.
The Participant understands that following termination of the Participant’s Service, (i) the non-competition obligations
in Section 1 of this Exhibit B do not apply to the Participant if the Participant does not earn more than the statutory
minimum compensation set by Illinois statute, which is $75,000 per year prior to January 1, 2027 (or $80,000 per year beginning
on January 1, 2027, $85,000 per year beginning on January 1, 2032, and $90,000 per year beginning on January 1, 2037)
and (ii) the non-solicitation and non-interference obligations in Section 2 of this Exhibit B do not apply to
the Participant if the Participant does not earn more than the statutory minimum compensation set by Illinois statute, which is $45,000
per year prior to January 1, 2027 (or $47,500 per year beginning on January 1, 2027, $50,000 per year beginning on January 1,
2032, and $52,500 per year beginning on January 1, 2037).
MAINE
If the Participant is a new
hire, the Participant agrees that before being asked to sign this Exhibit B, the Company provided the Participant with at
least three (3) business days to review this Exhibit B. The Participant understands that this Exhibit B
contains non-competition and non-solicitation obligations and that the non-competition obligations in Section 1 of this Exhibit B
do not apply to the Participant following the date of termination of the Participant’s Service if the Participant does not earn
the statutory minimum compensation set by Maine statute (e.g., between January 1 and December 31 of the applicable year,
400% of the federal poverty level for an individual per year). The non-competition provisions set forth in Section 1 of this Exhibit B
will not take effect until after one (1) year of the Participant’s Service with the Company or a period of six (6) months
from the date this Exhibit B is signed, whichever is later.
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MARYLAND
The non-competition obligations
in Section 1 of this Exhibit B do not apply to the Participant following the termination of Service if the Participant
does not earn more than the statutory minimum compensation set by Maryland statute (e.g., as of January 1, 2026, the statutory
threshold is $46,800 per year or $22.50 per hour).
MASSACHUSETTS
The Participant agrees that
before being asked to sign this Exhibit B, the Company provided the Participant with at least ten (10) business days
(or, if the Participant is a new hire, prior to commencing employment or, if earlier, prior to the Company making a formal offer of employment)
to review this Exhibit B. The Company also hereby advises the Participant to consult with an attorney to review this Exhibit B
before entering into this Exhibit B. The non-competition obligations in Section 1 of this Exhibit B do
not apply to the Participant following the termination of Service if (i) the Participant does not earn the statutory minimum compensation
set by Massachusetts statute (e.g., as of January 1, 2026, the statutory threshold is $684 per week) or (ii) the Participant’s
Service is terminated without “cause” by the Company (unless, at the time of such termination, the Participant enters into
a separation agreement with the Company that includes such non-competition obligations).
MINNESOTA
The non-competition provision
in Section 1 of this Exhibit B does not apply to the Participant following the termination of Service, and the equitable
remedies set forth in Section 10 of this Exhibit B shall not apply to the rights or obligations set forth in Section 1
of this Exhibit B.
NEW HAMPSHIRE
If the Participant is a new
hire, the Participant agrees that before being asked to sign this Agreement, the Company provided the Participant with at least one (1) business
day to review the Restrictive Covenants prior to acceptance of employment.
The non-competition obligations
in Section 1 of this Exhibit B do not apply to the Participant following the termination of service if the Participant
did not earn more than the statutory minimum compensation set by New Hampshire statute.
NEVADA
The non-competition obligations
in Section 1 of this Exhibit B do not apply to the Participant following the termination of Service if the Participant
is paid solely on an hourly wage basis. If the Participant’s Service is terminated because of a reduction in force, a reorganization,
or a similar restructuring, the non-competition obligations in Section 1 of this Exhibit B will only apply to the
Participant following such termination while the Company continues paying the Participant’s salary, benefits, or equivalent compensation,
including, without limitation, severance pay.
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OKLAHOMA
The non-competition obligations
in Section 1 of this Exhibit B do not apply to the Participant following the termination of Service.
OREGON
The Participant agrees that
before being asked to sign this Exhibit B, the Company provided the Participant with at least fourteen (14) calendar days
to review this Exhibit B. The Company also hereby advises the Participant to consult with an attorney to review this Exhibit B
before entering into this Exhibit B. The non-competition obligations in Section 1 of this Exhibit B do
not apply to the Participant following the termination of Service if the Participant does not earn the statutory minimum compensation
set by Oregon statute (e.g., between January 1, 2026 and December 31, 2026, the statutory threshold is $119,541 per year),
unless the Company pays severance to the Participant upon termination in an amount equal to the greater of fifty percent (50%) of (i) the
Participant’s annual base salary and (ii) the statutory minimum compensation set by Oregon statute.
TEXAS
The Company and the Participant
each acknowledge that the covenants set forth in this Exhibit B (i) are part of the Award Agreement, the Award Agreement
being valid and enforceable; (ii) are reasonable with respect to duration, geographic area and scope of activity; and (iii) do
not impose a greater restraint than is necessary to protect the goodwill or other business interests of the Company. All references to
“Delaware” in Section 8(k) of the Award Agreement shall be replaced by “Texas.”
VIRGINIA
The Participant agrees that
before being asked to sign this Exhibit B, the Company provided the Participant with a copy of Virginia Code 40.1-28.7:8.
The Participant understands that the non-competition obligations in Section 1 of this Exhibit B do not apply to the
Participant following the termination of Service if the Participant (A) is entitled to overtime compensation under the Fair Labor
Standards Act (29 U.S.C. § 207) for any hours worked in excess of 40 hours in any one workweek, regardless of earnings, or (B) does
not earn at least the statutory minimum compensation set by Virginia statute (e.g., between January 1, 2026 and December 31,
2026, the statutory threshold is $78,364.52 per year or $1,507.01 per week). Solely in the event this Exhibit B is entered
into, amended, or renewed on or after July 1, 2026, the Participant agrees that the non-competition obligations in Section 1
of this Exhibit B shall not apply if the Participant’s Service is terminated without “cause” by the Company
(unless, at the time of such termination, the Participant enters into a separation agreement with the Company that includes such non-competition
obligations in exchange for severance benefits or other monetary payment to the Participant).
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WASHINGTON
If the Participant’s
primary location is in the State of Washington at the time this Exhibit B is entered into, all references to “Delaware”
in Section 8(k) of the Award Agreement shall be replaced by “Washington,” as applicable. The Participant
agrees that before being asked to sign this Exhibit B, the Company provided the Participant with at least one (1) calendar
day to review this Exhibit B. The non-competition obligations in Section 1 of this Exhibit B do not apply
to the Participant following the termination of Service if the Participant does not earn more than the statutory minimum compensation
set by Washington statute (e.g., between January 1, 2026 and December 31, 2026, the statutory threshold is $126,858.83 per
year). The Participant acknowledges and understands that if the Participant’s Service is terminated by the Company as the result
of a layoff, the non-competition obligations in Section 1 of this Exhibit B shall not apply to the Participant following
such termination unless the Participant is provided with compensation equivalent to the Participant’s base salary at the time of
termination for the period of enforcement (minus compensation earned through subsequent employment during the period of enforcement).
The Participant further acknowledges and understands that, effective June 30, 2027, Sections 1 and 2 of this Exhibit B
shall be replaced with the following: “1. The Participant agrees that the Company’s and/or its Affiliates’ trade secret
information (as described in clause (a) of the California provision of Section 11 of this Exhibit B) constitutes
trade secret information of the Company and its Affiliates. Therefore, during the Participant’s Service and for a period of twelve
(12) months thereafter (the ‘Restricted Period’), the Participant shall not use the Company’s trade secret information
for any purpose that is adverse to, or otherwise falls outside of the best interests of, the Company, including, without limitation,
for the purposes of engaging in any Competitive Business (as defined in such California provision), in each case, on the terms, subject
to the conditions and exceptions, and within the geographic scope set forth in clause (i) of such California provision. 2. During
the Restricted Period, regardless of the reason for the Participant’s termination of Service, the Participant shall not, directly
or indirectly, on the Participant’s own behalf or on behalf of a third party, solicit any customers or potential customers of the
Company or its Affiliates that the Participant established or substantially developed a direct relationship with through the Participant’s
Service, for the purpose of terminating, diverting, or diminishing such customers’ business, services, or relationship with or
from the Company or its Affiliates, except in good faith on behalf of the Company during the Participant’s Service.”
13
EX-10.16 — EXHIBIT 10.16
EX-10.16
Filename: tm2628316d1_ex10-16.htm · Sequence: 15
Exhibit 10.16
Execution Version
EARNOUT ESCROW AGREEMENT
THIS EARNOUT ESCROW AGREEMENT
(this “Agreement”) is made and entered into as of October 21, 2026, by and between Forge Nano Holdings, Inc.,
a Delaware corporation (“Pubco”), and Odyssey Transfer and Trust Company, a Minnesota corporation (the “Escrow
Agent”).
WHEREAS, pursuant to Section 1.18
of the Merger Agreement, dated as of April 20, 2026 (as it may be amended from time to time, the “Merger Agreement”),
by and among Pubco, Archimedes Tech SPAC Partners II Co., a Cayman Islands exempted company, ATII Merger Sub Inc., a Delaware corporation,
ATII Merger Sub II, LLC, a Delaware limited liability company, and Forge Nano, Inc., a Delaware corporation, the Earn-Out Shares
(as defined below) shall (i) be issued to the Persons who received Closing Payment Shares and the holders of Pubco Convertible Securities
issued in exchange for Company Convertible Securities, if any (collectively, the “Company Earn-Out Holders”), at the
Closing pursuant to the Merger Agreement, (ii) be placed in escrow pursuant to this Agreement, and (iii) not be released from
escrow until they are earned as a result of the occurrence of the applicable earnout milestone as specifically set forth in Exhibit C
of this Agreement and Section 1.18 of the Merger Agreement; and
WHEREAS, Pubco wishes to engage
the Escrow Agent as escrow agent to establish the account (the “Escrow Account”) into which the Earn-Out Shares will
be deposited, and the Escrow Agent wishes to act as escrow agent and establish the Escrow Account, all on the terms and subject to the
conditions set forth in this Agreement.
NOW THEREFORE, in consideration
of the foregoing and of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
1. Appointment
(a) The
parties hereby appoint the Escrow Agent as escrow agent for the purposes set forth herein, and the Escrow Agent hereby accepts such appointment
under the terms and conditions set forth herein.
(b) Capitalized
terms used and not defined in this Agreement shall have the meanings given to them in the Merger Agreement. The Escrow Agent shall act
only in accordance with the terms and conditions contained in this Agreement and shall have no duties or obligations with respect to the
Merger Agreement.
2. Earn-Out
Shares
(a) Pubco
shall deposit with the Escrow Agent 90,000,000 shares of common stock, par value $0.0001 per share, of Pubco (the “Earn-Out Shares”)
on the date hereof. The Escrow Agent shall hold the Earn-Out Shares as book-entry positions registered in the name of “Odyssey Transfer
and Trust Company as Escrow Agent for Forge Nano Holdings, Inc.” and such positions shall be held for the benefit of the Company
Earn-Out Holders set forth on Exhibit B attached to this Agreement.
(b) Any
cash dividends or other distributions paid with respect to the Earn-Out Shares during the Term (as defined below) shall be paid by Pubco
to the Escrow Agent and held in the Escrow Account, and shall be released to the applicable Company Earn-Out Holder concurrently with,
and in proportion to, the release of the Earn-Out Shares in relation to which such dividends or distributions were paid (or, if such Earn-Out
Shares are forfeited pursuant to Section 4(b), delivered to Pubco).
(c) In
the event of any stock split, reverse stock split, stock dividend, recapitalization, reorganization, merger, consolidation, combination,
exchange of shares, liquidation, spin-off or other similar change in capitalization or event, or any distribution to holders of the common
stock of Pubco, other than a regular cash dividend, the shares and per share amounts in this Agreement shall be appropriately adjusted
on a pro rata basis and consistent with the terms of this Agreement.
(d) The
interests of the Company Earn-Out Holders in the Earn-Out Shares (and any cash dividends or other distributions in respect thereof) shall
not be assignable or transferrable while such Earn-Out Shares are held in the Escrow Account.
(e) While
the Earn-Out Shares are held in the Escrow Account, the Company Earn-Out Holders shall have no voting rights with respect to the Earn-Out
Shares held for their benefit hereunder. The Earn-Out Shares shall constitute shares issued and outstanding and, subject to Sections
2(e) through 2(h) and to the extent permitted by Section 160(c) of the General Corporation Law of the State
of Delaware (the “DGCL”) and any other applicable law, shall be entitled to vote, and to be counted as present for
purposes of establishing a quorum, on all matters on which Pubco Common Stock is generally entitled to vote.
(f) Subject
to Section 2(e), the Escrow Agent, as holder of record of the Earn-Out Shares, hereby irrevocably constitutes and appoints
each of the Chief Executive Officer, Chief Legal Counsel and Secretary of Pubco, and any other designee of the Board of Directors of Pubco,
each acting individually, with full power of substitution and resubstitution, as its true and lawful proxy and attorney-in-fact to (i) attend
any annual or special meeting of the stockholders of Pubco called for any purpose (and any adjournment or postponement thereof) and cause
the Earn-Out Shares to be counted as present for purposes of establishing a quorum and (ii) vote at any such meeting, in each case
with respect to all Earn-Out Shares held in the Escrow Account as of the applicable record date (including any such Earn-Out Shares released
from the Escrow Account after such record date), in the manner specified in Section 2(g).
(g) The
proxy holders shall vote (or cause to be voted) all Earn-Out Shares subject to the proxy granted in Section 2(f) for,
against or abstaining with respect to each matter (and, in the case of the election of directors, with respect to each nominee) in the
same proportion as the votes cast (and abstentions made) with respect to such matter by the holders of all outstanding shares of Pubco
Common Stock entitled to vote thereon, other than the Earn-Out Shares.
(h) The
purpose of Sections 2(e) through 2(h) is to ensure that the Earn-Out Shares are represented at meetings of Pubco’s
stockholders for purposes of establishing a quorum and are voted in a manner that neither dilutes nor magnifies the votes cast by Pubco’s
other stockholders, including the Company Earn-Out Holders. The proxy and power of attorney granted in Section 2(f) (i) is
given to secure the performance of this Agreement and Section 1.18 of the Merger Agreement, including the forfeiture and cancellation
of unearned Earn-Out Shares pursuant to Section 4(b), (ii) is coupled with an interest sufficient in law to support an
irrevocable proxy under Section 212(e) of the DGCL, (iii) shall be irrevocable during the Term and (iv) notwithstanding
Section 212(b) of the DGCL, shall remain in effect for the duration of the Term. Such proxy shall terminate automatically with
respect to any Earn-Out Share upon its release from the Escrow Account pursuant to Section 4, subject to the last clause of
Section 2(f). The Escrow Agent hereby revokes all prior proxies and powers of attorney with respect to the Earn-Out Shares.
The Escrow Agent shall not grant any other proxy or power of attorney, enter into any voting agreement or arrangement, or vote with respect
to the Earn-Out Shares, other than as provided in Sections 2(e) through 2(h). The Escrow Agent shall execute and deliver
such further proxies and instruments as Pubco may reasonably request to give effect to Sections 2(e) through 2(h).
(i) The
Escrow Agent shall have no duty to monitor, supervise or inquire into, and no liability for, the exercise or non-exercise of the proxy
granted in Section 2(f) or any vote cast or uncast, quorum determination made or other action taken or omitted by the
proxy holders with respect to the Earn-Out Shares. The Escrow Agent shall have no duty to attend, or to receive notice of, any meeting
of Pubco’s stockholders; to receive, review or forward any proxy statement, ballot or other solicitation material; or to determine,
calculate or verify the votes cast by holders of Pubco Common Stock or the proportion in which the Earn-Out Shares are to be voted pursuant
to Section 2(g), and may conclusively rely on, and shall be fully protected in relying on, any determination made or instruction
given by the proxy holders in respect thereof.
3. Term
and Termination. The Escrow Agent shall hold the Earn-Out Shares from the date hereof until 11:59 p.m. Eastern Time on the
fifth-year anniversary of the Closing Date (such period, the “Term”), unless earlier released pursuant to Section 4.
This Agreement shall terminate with respect to each Earn-Out Share held in the Escrow Account upon the release of such Earn-Out Share
pursuant to Section 4(a) or Section 4(b), as applicable, and shall terminate in its entirety once all Earn-Out
Shares are released; provided that the rights of the Escrow Agent and the obligations of Pubco under Section 7 and Section 8
shall survive the termination hereof.
4. Disposition.
(a) Promptly,
and in any event within two (2) Business Days, following the occurrence of the applicable earnout milestone set forth in Exhibit C
(or the exercise, conversion or settlement of any Pubco Convertible Security after such milestone has occurred), Pubco shall send written
instructions to the Escrow Agent substantially in the form attached hereto as Exhibit D (the “Delivery Instructions”),
directing the Escrow Agent to deliver the number of Earn-Out Shares (and any and all dividends or other property with respect to such
Earn-Out Shares) required to be released to the applicable Company Earn-Out Holders, such that the Earn-Out Shares are disbursed within
five (5) Business Days after the satisfaction of the applicable milestone in accordance with Section 1.18(c) of the Merger
Agreement. The Delivery Instructions shall be signed by an authorized signatory of Pubco set forth on Schedule 1 (an “Authorized
Signatory”).
(b) If
any Company Earn-Out Holder’s Earn-Out Shares remain in the Escrow Account at 11:59 p.m. Eastern Time on the fifth-year anniversary
of the Closing Date, Pubco shall send written instructions to the Escrow Agent substantially in the form attached hereto as Exhibit E
(the “Termination Instructions” and together with the Delivery Instructions, “Instructions”), directing
the Escrow Agent to deliver any unearned Earn-Out Shares (and any and all dividends or other property with respect to such Earn-Out Shares)
to Pubco to be forfeited and cancelled; provided, that any Earn-Out Shares in respect of a milestone achieved on or prior to such
time shall not constitute unearned Earn-Out Shares and shall continue to be held and released in accordance with Section 4(a). The
Termination Instructions shall be signed by an Authorized Signatory of Pubco set forth on Schedule 1.
(c) The
Escrow Agent shall administer the Earn-Out Shares in accordance with Instructions provided to the Escrow Agent by Pubco and executed as
set forth in this Section 4. The Escrow Agent shall make distributions of the Earn-Out Shares only in accordance with the
Instructions or a final, non-appealable order of a court of competent jurisdiction (a “Judicial Order”), accompanied
by a written certification from the party delivering such Judicial Order attesting to its finality, upon which the Escrow Agent shall
be entitled to conclusively rely. The Escrow Agent shall not release the Earn-Out Shares unless pursuant to Instructions or a Judicial
Order.
5. Escrow
Agent.
(a) The
Escrow Agent shall have only those duties as are specifically and expressly provided herein, which shall be deemed purely ministerial
in nature, and no other duties shall be implied. The Escrow Agent shall neither be responsible for, nor chargeable with, knowledge of,
nor have any requirements to comply with, the terms and conditions of any other agreement, instrument or document between Pubco, on the
one hand, and the Company Earn-Out Holders, on the other hand, or any other person or entity, in connection herewith, if any, including
without limitation the Merger Agreement, nor shall the Escrow Agent be required to determine if any person or entity has complied with
any such agreements, nor shall any additional obligation of the Escrow Agent be inferred from the terms of such agreements, even though
reference thereto may be made in this Agreement.
(b) In
the event of any conflict between the terms and provisions of this Agreement, those of the Merger Agreement, any schedule or exhibit attached
to this Agreement, or any other agreement between Pubco, on the one hand, and any Company Earn-Out Holder, on the other hand, or any other
person or entity, the terms and conditions of this Agreement shall control.
(c) The
Escrow Agent may rely upon and shall not be liable for acting or refraining from acting upon any written notice, document, instruction
or request furnished to it hereunder and believed by it to be genuine and to have been signed or presented by the Authorized Signatories
set forth in Schedule 1 without inquiry and without requiring substantiating evidence of any kind. The Escrow Agent shall not be
liable to any Company Earn-Out Holder or other person for refraining from acting upon any instruction setting forth, claiming, containing,
objecting to, or related to the transfer or distribution of the Earn-Out Shares, or any portion thereof, unless such instruction shall
have been delivered to the Escrow Agent in accordance with Section 10 and the Escrow Agent has been able to satisfy any applicable
security procedures as may be required hereunder and as set forth in Section 11. The Escrow Agent shall be under no duty to
inquire into or investigate the validity, accuracy or content of any such document, notice, instruction or request.
(d) The
Escrow Agent shall not be liable for any action taken, suffered or omitted to be taken by it in good faith except to the extent that a
final adjudication of a court of competent jurisdiction determines that the Escrow Agent’s gross negligence, fraud, willful misconduct
or bad faith was the cause of any loss to Pubco or the Company Earn-Out Holders. The Escrow Agent may execute any of its powers and perform
any of its duties hereunder directly or through affiliates or agents; provided, that the Escrow Agent shall remain responsible
for any actions or inactions of such affiliates or agents to the same extent as if the Escrow Agent executed such powers or performed
such duties itself.
6. Succession.
(a) The
Escrow Agent may resign and be discharged from its duties or obligations hereunder by giving thirty (30) days’ advance notice in
writing of such resignation to Pubco specifying a date when such resignation shall take effect, provided that such resignation shall not
take effect until a successor Escrow Agent has been appointed in accordance with this Section 6. If Pubco has failed to appoint
a successor Escrow Agent prior to the expiration of thirty (30) days following receipt of the notice of resignation, the Escrow Agent
may petition any court of competent jurisdiction for the appointment of a successor Escrow Agent or for other appropriate relief, and
any such resulting appointment shall be binding upon all of the parties hereto. The Escrow Agent’s sole responsibility after such
thirty (30) day notice period expires shall be to hold the Earn-Out Shares and any cash dividends held in the Escrow Account and to deliver
the same to a designated substitute Escrow Agent, if any, or in accordance with the directions of a final order or judgement of a court
of competent jurisdiction, at which time of delivery the Escrow Agent’s obligations hereunder shall cease and terminate, subject
to the provisions of Section 7 below.
(b) Pubco
may remove the Escrow Agent, with or without cause, upon not less than thirty (30) days’ advance written notice to the Escrow Agent,
provided that such removal shall not take effect until a successor Escrow Agent has been appointed and the Earn-Out Shares and any cash
dividends held in the Escrow Account have been delivered to such successor. Any entity into which the Escrow Agent may be merged or converted
or with which it may be consolidated, or any entity to which all or substantially all the escrow business may be transferred, shall be
the Escrow Agent under this Agreement without further act.
7. Compensation
and Reimbursement. The Escrow Agent shall be entitled to compensation by Pubco for its services under this Agreement as Escrow
Agent and for reimbursement by Pubco for its reasonable out-of-pocket costs and expenses, in the amounts and payable as set forth in Exhibit A.
The Escrow Agent shall also be entitled to payments by Pubco of any amounts to which the Escrow Agent is entitled under the indemnification
provisions contained herein as set forth in Section 8. The obligations of Pubco set forth in this Section 7 shall
survive the resignation, replacement or removal of the Escrow Agent or the termination of this Agreement.
8. Indemnity.
(a) Pubco
agrees to indemnify the Escrow Agent and its officers, directors, employees, agents and shareholders (collectively referred to as the
“Indemnitees”) against, and hold them harmless of and from, any and all loss, liability, cost, damage and expense,
including without limitation, reasonable counsel fees (collectively, the “Escrow Agent Losses”), which the Indemnitees
may suffer or incur by reason of any action, claim or proceeding brought against the Indemnitees arising directly or indirectly from the
Escrow Agent’s performance of this Agreement, unless such action, claim or proceeding is the result of the gross negligence, fraud,
willful misconduct or bad faith of the Indemnitees. Notwithstanding the foregoing, the indemnification contained in this Section 8(a) shall
not apply to amounts paid by the Indemnitee in settlement of any Escrow Agent Losses if such settlement is effected without the consent
of Pubco. The Escrow Agent shall notify Pubco in writing promptly after receipt by an Indemnitee of notice of any demand or claim or the
commencement or threat of any action, suit or proceeding against the Indemnitee which the Indemnitee believes may result in Escrow Agent
Losses. No Indemnitee shall, without the prior written consent of Pubco, consent to the entry of any judgment or enter into any settlement
that is not both fully resolved or settled (i) in all respects by the payment of money damages alone and no other form of relief,
provided that the amount of such money damages has been consented to by Pubco in writing and (ii) with an unconditional release by
the claimant or plaintiff of Pubco, the Company Earn-Out Holders and each of their affiliates from all liability in respect to such claim
or litigation.
(b) This
Section 8 shall survive termination of this Agreement or the resignation, replacement or removal of the Escrow Agent for any reason.
9. Patriot
Act Disclosure. Section 326 of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism Act of 2001 (“USA PATRIOT Act”) requires the Escrow Agent to implement reasonable procedures
to verify the identity of any person that opens a new account with it. Accordingly, the parties each acknowledge that Section 326
of the USA PATRIOT Act and the Escrow Agent’s identity verification procedures require the Escrow Agent to obtain information which
may be used to confirm Pubco’s and the Company Earn-Out Holders’ identity including without limitation name, address and organizational
documents (“identifying information”). Pubco agrees to provide the Escrow Agent with and consent to the Escrow Agent
obtaining from third parties any such identifying information required as a condition of opening accounts with or using any service provided
by the Escrow Agent.
10. Notices.
All communications hereunder shall be in writing and, except for Instructions or other communications setting forth, claiming, containing,
objecting to, or in any way related to the full or partial transfer or distribution of the Earn-Out Shares and any cash dividends held
in the Escrow Account, including but not limited to transfer instructions, all of which shall be specifically governed by Section 11
below, all notices and communications hereunder shall be deemed to have been duly given and made if in writing and if (i) served
by personal delivery upon the party for whom it is intended, (ii) delivered by registered or certified mail, return receipt requested,
or by Federal Express or similar overnight courier, or (iii) sent by e-mail to the party at the address set forth below, or such
other address as may be designated in writing hereafter, in the same manner, by such party:
If to the Escrow Agent:
Odyssey Transfer and Trust Company
860 Blue Gentian Rd., Suite 320
Eagan, MN 55121
Attention: 1-888-290-1175
Email: clientsus@odysseytrust.com
If to Pubco:
Forge Nano Holdings, Inc.
12300 Grant St. #100
Thornton, CO 80241
Attention: Paul Lichty, CEO
Email: plichty@forgenano.com
with a copy to (which shall not constitute
notice):
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, New York 10019-6064
Attn: Benjamin M. Goodchild
E-mail: bgoodchild@paulweiss.com
Notwithstanding the above, in the case of communications
delivered to the Escrow Agent, such communications shall be deemed to have been given on the date received by an officer of the Escrow
Agent or any employee of the Escrow Agent who reports directly to any such officer at the above-referenced office. In the event that the
Escrow Agent, in its sole discretion, shall determine that an emergency exists, the Escrow Agent may use such other means of communication
as the Escrow Agent deems appropriate. For purposes of this Agreement, “Business Day” shall mean any day other than
a Saturday, Sunday or any other day on which the Escrow Agent located at the notice address set forth above is authorized or required
by law or executive order to remain closed.
11. Security
Procedures.
(a) Notwithstanding
anything to the contrary as set forth in Section 10, any instructions setting forth, claiming, containing, objecting to, or
in any way related to the transfer or distribution of the Earn-Out Shares or any cash dividends held in the Escrow Account, including
but not limited to any transfer instructions that may otherwise be set forth in Instructions permitted pursuant to Section 4
of this Agreement, may be given to the Escrow Agent only by e-mail and no instruction for or related to the transfer or distribution of
the Earn-Out Shares and any cash dividends held in the Escrow Account, or any portion thereof, shall be deemed delivered and effective
unless the Escrow Agent actually shall have received such instruction by e-mail at the e-mail address provided to Pubco by the Escrow
Agent in accordance with Section 10 and as further evidenced by a confirmed transmittal to that e-mail address.
(b) In
the event Instructions are so received by the Escrow Agent by e-mail, the Escrow Agent is authorized to seek confirmation of such Instructions
by telephone call-back to the person or persons designated on Schedule 1 hereto, and the Escrow Agent may rely upon the confirmation
of anyone purporting to be the person or persons so designated. The persons and telephone numbers for call-backs may be changed only in
writing actually received and acknowledged by the Escrow Agent. If the Escrow Agent is unable to contact any of the Authorized Signatories
identified in Schedule 1, the Escrow Agent is hereby authorized both to receive the Instructions from and seek confirmation of
such Instructions by the Chief Executive Officer, Chief Legal Counsel, Chief Financial Officer, President or Executive Vice President
of Pubco (collectively, the “Senior Officers”) as the Escrow Agent may select. Such Senior Officer shall deliver to
the Escrow Agent a fully executed incumbency certificate, and the Escrow Agent may rely upon the confirmation of anyone purporting to
be any such Senior Officer.
(c) Pubco
acknowledges that, upon receipt of a Delivery Instruction, the Escrow Agent is authorized to deliver the Earn-Out Shares and any cash
dividends held in the Escrow Account to be released to a Company Earn-Out Holder to the custodian account of the recipient designated
by such Company Earn-Out Holder in writing.
12. Compliance
with Court Orders. In the event that any escrow property shall be attached, garnished or levied upon by any court order, or the
delivery thereof shall be stayed or enjoined by an order of a court, or any order, judgement or decree shall be made or entered by any
court order affecting the property deposited under this Agreement, the Escrow Agent is hereby expressly authorized, in its sole discretion,
to obey and comply with all writs, orders or decrees so entered or whether with or without jurisdiction, and in the event that the Escrow
Agent reasonably obeys or complies with any such writ, order or decree it shall not be liable to any of the parties hereto or to any
other person, entity, firm or corporation, by reason of such compliance notwithstanding such writ, order or decree be subsequently reversed,
modified, annulled, set aside or vacated.
13. Taxes.
The parties hereto agree to comply with information reporting and withholding requirements with respect to taxes under applicable law,
and Pubco and each Company Earn-Out Holder, as applicable, will provide, or cause the applicable payee to provide, to the Escrow Agent
appropriate Internal Revenue Service Forms W-9 or W-8. In the event Pubco, a Company Earn-Out Holder, or other payee, as applicable,
does not provide duly completed Internal Revenue Service Forms W-9 or W-8, as appropriate, or any successor forms thereto, the Escrow
Agent shall withhold any taxes required to be withheld by applicable law with respect to the applicable payee and shall remit such withheld
amounts to the appropriate taxing authorities. Consistent with Section 1.18(g) of the Merger Agreement, any payments made
pursuant to Section 2 shall be treated by the parties as an adjustment to the purchase price pursuant to the “plan
of reorganization” without recognition of gain or loss for all tax purposes, and shall be reported consistently by the parties
on all Tax Returns, except as otherwise required by applicable Law.
14. Miscellaneous.
(a) This
Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. All signatures of the parties to this Agreement may be transmitted by e-mail, and such e-mail will, for all
purposes, be deemed to be the original signature of such party whose signature it reproduces and will be binding upon such party.
(b) If
any provision of this Agreement or the application thereof to any person or circumstance shall be determined to be invalid or unenforceable,
the remaining provisions of this Agreement or the application of such provision to persons or circumstances other than those to which
it is held invalid or unenforceable shall not be affected thereby and shall be valid and enforceable to the fullest extent permitted by
law.
(c) Except
as expressly provided in Section 6 above, nothing in this Agreement, whether express or implied, shall be construed to give
to any person or entity other than the Escrow Agent, Pubco and the Company Earn-Out Holders any legal or equitable right, remedy, interest
or claim under or in respect of this Agreement or the Earn-Out Shares and any cash dividends held in the Escrow Account escrowed hereunder.
(d) The
provisions of this Agreement may be waived, altered, amended or supplemented, in whole or in part, by a writing signed by the Escrow Agent
and Pubco. The Company Earn-Out Holders are express third-party beneficiaries of this Agreement and shall be entitled to enforce its terms.
(e) Neither
this Agreement nor any right or interest hereunder may be assigned in whole or in part by the Escrow Agent or Pubco except as provided
in Section 6, without the prior consent of the Escrow Agent and Pubco.
(f) This
Agreement shall be governed by and construed under the laws of the State of New York, without regard to the conflicts of laws principles
thereof. Each of Pubco and the Escrow Agent irrevocably waives any objection on the grounds of venue, forum non conveniens or any similar
grounds and irrevocably consents to service of process by mail or in any other manner permitted by applicable law and consents to the
jurisdiction of any court of the State of New York or United States federal court, in each case, sitting in New York County, New York.
To the extent that in any jurisdiction any party may now or hereafter be entitled to claim for itself or its assets, immunity from suit,
execution attachment (before or after judgement), or other legal process, such party shall not claim, and it hereby irrevocably waives,
such immunity. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION BASED UPON, ARISING OUT OF OR
RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
[Remainder of This Page Intentionally Left
Blank]
IN WITNESS WHEREOF, the parties
hereto have executed this Agreement as of the date set forth above.
PUBCO:
FORGE NANO HOLDINGS, INC.
By:
/s/ Long Long
Name: Long Long
Title: Chief Executive Officer
[Signature Page to Earnout Escrow Agreement]
ESCROW AGENT:
ODYSSEY TRANSFER AND TRUST COMPANY
By:
/s/ Robert J. Winterle
Name: Robert J. Winterle
Title: Senior Director/AVP
[Signature Page to Earnout Escrow Agreement]
Schedule 1
Telephone Number(s) and authorized signature(s) for
Person(s) Designated to give Instructions
Exhibit A
Escrow Agent Fees and Charges
[See attached.]
Exhibit B
Company Earn-Out Holders
Exhibit C
Earnout Milestones
Capitalized terms used but not otherwise defined
in this Exhibit C or in the Earnout Escrow Agreement shall have the meanings ascribed to them in the Merger Agreement.
(a) The
Company Earn-Out Shares shall be allocated among and transferred to the Persons who received Closing Payment Shares and the holders of
Pubco Convertible Securities issued in exchange for Company Convertible Securities, if any, pursuant to the Merger Agreement, pro rata
based on the number of shares of Company Common Stock held by such Persons (determined on an as-converted basis) as of the First Effective
Time; provided, that any Company Earn-Out Shares attributable to such holders of Pubco Convertible Securities shall be released
only upon the exercise, conversion or settlement thereof in accordance with their terms.
(b) Following
the First Effective Time, the Persons who received Closing Payment Shares and each holder of a Pubco Convertible Security issued in exchange
for Company Convertible Securities, if any, pursuant to the Merger Agreement, shall be entitled to receive from the Escrow Account, and
the Escrow Agent shall disburse therefrom, a proportional amount of Company Earn-Out Shares as follows:
(i) an
aggregate of 30,000,000 shares of Pubco Common Stock in the event that, between the Closing Date and the date that is sixty (60) months
after the Closing Date, (A) the VWAP of the Pubco Common Stock over any thirty (30) Trading Day period is greater than or equal to
$15.00, or (B) the revenue, determined in accordance with GAAP applied on a consistent basis, publicly reported by Pubco in its annual
or quarterly reports filed with the SEC for the preceding twelve months equals or exceeds $400,000,000;
(ii) an
aggregate of 30,000,000 shares of Pubco Common Stock in the event that, between the Closing Date and the date that is sixty (60) months
after the Closing Date, (A) the VWAP of the Pubco Common Stock over any thirty (30) Trading Day period is greater than or equal to
$20.00, or (B) the revenue, determined in accordance with GAAP applied on a consistent basis, publicly reported by Pubco in its annual
or quarterly reports filed with the SEC for the preceding twelve months equals or exceeds $600,000,000; and
(iii) an
aggregate of 30,000,000 shares of Pubco Common Stock in the event that, between the Closing Date and the date that is sixty (60) months
after the Closing Date, (A) the VWAP of the Pubco Common Stock over any thirty (30) Trading Day period is greater than or equal to
$25.00, or (B) the revenue, determined in accordance with GAAP applied on a consistent basis, publicly reported by Pubco in its annual
or quarterly reports filed with the SEC for the preceding twelve months equals or exceeds $800,000,000.
(c) The
Company Earn-Out Shares shall be disbursed from the Escrow Account within five (5) Business Days after the satisfaction of the requirements
as set forth in paragraph (b) above. The achievement thresholds set forth in paragraph (b) are intended to be cumulative.
(d) No
certificates or scrip or shares representing fractional shares of Pubco Common Stock shall be issued in respect of Company Earn-Out Shares
to any Persons who received Closing Payment Shares and such fractional share interests will not entitle the owner thereof to vote or to
have any rights of a stockholder of Pubco or a holder of shares of Pubco Common Stock. In lieu of any fractional share of Pubco Common
Stock to which any Persons would otherwise be entitled in respect of the Company Earn-Out Shares (after aggregating all fractional shares
of Pubco Common Stock that otherwise would be received by such Person), the Escrow Agent shall round up or down to the nearest whole share
of Pubco Common Stock, as applicable, with a fraction of 0.5 rounded up. No cash settlements shall be made with respect to fractional
shares eliminated by rounding.
(e) Notwithstanding
anything to the contrary in the Merger Agreement, in the event that, between the Closing Date and the date that is sixty (60) months after
the Closing Date, Pubco consummates a merger, consolidation, business combination, tender offer, reorganization, recapitalization, or
other transaction or series of related transactions pursuant to which the holders of Pubco Common Stock have the right to receive cash
or securities (collectively, the “Transaction Consideration”) in exchange for their shares, and the Transaction Consideration
Value of such Transaction Consideration per share of Pubco Common Stock (the “Per Share Transaction Value”) equals
or exceeds the applicable thresholds set forth in subclauses (b)(i)(A), (b)(ii)(A) and (b)(iii)(A) above, then immediately prior
to the consummation of such transaction, the Persons who received Closing Payment Shares and each holder of a Pubco Convertible Security
issued in exchange for Company Convertible Securities, if any, pursuant to the Merger Agreement, shall be entitled to receive from the
Escrow Account, and the Escrow Agent shall disburse therefrom, the lesser of (i) the number of Company Earn-Out Shares that would
have been released under paragraph (b) above if the Per Share Transaction Value had been the VWAP of the Pubco Common Stock over
any thirty (30) Trading Day period and (ii) the remaining Company Earn-Out Shares that have not yet been released as of such date.
For the avoidance of doubt, if the Per Share Transaction Value is less than each of the applicable thresholds set forth in subclauses
(b)(i)(A), (b)(ii)(A) and (b)(iii)(A) above, no Company Earn-Out Shares shall be released.
Exhibit D
Delivery Instructions
[DATE]
Odyssey Transfer and Trust Company
860 Blue Gentian Rd., Suite 320
Eagan, MN 55121
Attn:
Re: Escrow Account
Reference is made to that
certain Earnout Escrow Agreement (the “Escrow Agreement”), dated as of October 21, 2026, by and between Forge
Nano Holdings, Inc., a Delaware corporation (“Pubco”), and Odyssey Transfer and Trust Company, a Minnesota corporation
(“Escrow Agent”). Capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in
the Escrow Agreement.
This written instruction is
being delivered to the Escrow Agent in accordance with, and pursuant to, the Escrow Agreement. Pubco hereby instructs and directs the
Escrow Agent, pursuant to Section 4(a) of the Escrow Agreement, to release from the Escrow Account no later than three (3) Business
Days after receipt of this written instruction, to the applicable Company Earn-Out Holders, an aggregate of [__] Earn-Out Shares being
held in escrow for the benefit of the Company Earn-Out Holders, together with any and all dividends or other property with respect to
such Earn-Out Shares pursuant to the Escrow Agreement, and deliver such Earn-Out Shares and dividends or other property to the applicable
Company Earn-Out Holders.
In connection with the foregoing
release of Earn-Out Shares, the Escrow Agent is hereby authorized and directed to remove any restrictive legend referencing the Escrow
Agreement from such securities.
[Signature pages follow]
PUBCO:
FORGE NANO HOLDINGS, INC.
By:
Name:
Title:
Exhibit E
Termination Instructions
[DATE]
Odyssey Transfer and Trust Company
860 Blue Gentian Rd., Suite 320
Eagan, MN 55121
Attn:
Re: Escrow Account
Reference is made to that
certain Earnout Escrow Agreement (the “Escrow Agreement”), dated as of October 21, 2026, by and between Forge
Nano Holdings, Inc., a Delaware corporation (“Pubco”), and Odyssey Transfer and Trust Company, a Minnesota corporation
(“Escrow Agent”). Capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in
the Escrow Agreement.
This written instruction is
being delivered to the Escrow Agent in accordance with, and pursuant to, the Escrow Agreement. Pursuant to Section 4(b) of the
Escrow Agreement, Pubco hereby advises the Escrow Agent that the Term has ended. Pubco hereby instructs and directs the Escrow Agent,
pursuant to Section 4(b) of the Escrow Agreement, to release from the Escrow Account, no later than three (3) Business
Days after receipt of this written instruction, [__] Earn-Out Shares being held in escrow for the benefit of the Company Earn-Out Holders,
which represents all Earn-Out Shares remaining in escrow for the benefit of the Company Earn-Out Holders as of the date hereof, together
with any and all dividends or other property with respect to such Earn-Out Shares pursuant to the Escrow Agreement, and deliver such Earn-Out
Shares and dividends or other property to Pubco for cancellation.
[Signature page follows]
PUBCO:
FORGE NANO HOLDINGS, INC.
By:
Name:
Title:
EX-14.1 — EXHIBIT 14.1
EX-14.1
Filename: tm2628316d1_ex14-1.htm · Sequence: 16
Exhibit 14.1
FORGE NANO HOLDINGS, INC.
CODE OF CONDUCT AND ETHICS
I.
Introduction
Forge Nano Holdings, Inc. (together with its subsidiaries, the “Company”)
requires the highest standards of professional and ethical conduct from its employees, officers and directors. Our reputation for honesty
and integrity is key to the success of our business. The Company intends that its business practices will comply with the laws of all
of the jurisdictions in which it operates and that honesty, integrity and accountability will always characterize the Company’s
business activity. No employee, officer or director may achieve results through violations of laws or regulations or unscrupulous dealings.
This Code of Conduct and Ethics (the “Code”) reflects the
Company’s commitment to this culture of honesty, integrity and accountability and outlines the basic principles and policies with
which all employees, officers and directors are expected to comply. Therefore, we expect you to read this Code thoroughly and carefully.
In addition to following this Code in all aspects of your business
activities, you are expected to seek guidance in any situation where there is a question regarding compliance issues, whether with the
letter or the spirit of the Company’s policies and applicable laws. Cooperation with this Code is essential to the continued success
of the Company’s business and the cultivation and maintenance of its reputation as a good corporate citizen. Misconduct is never
justified, even where sanctioned or ordered by an officer or other individual in a position of higher management. No individual, regardless
of stature or position, can authorize actions that are illegal, or that jeopardize or violate Company standards.
We note that this Code sets forth general principles of conduct and
ethics and is intended to work in conjunction with the specific policies and procedures that are covered in the Company’s compliance
manual or in separate specific policy statements, such as the Securities Trading Policy and the Related Party Transactions Policy, and
you should refer to those policies and procedures for more detail in the specified context.
Nothing in this Code prohibits you from reporting possible violations
of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities
and Exchange Commission (the “SEC”), Congress, and any agency Inspector General, or making other disclosures that are protected
under the whistleblower provisions of federal law or regulation. You do not need the prior authorization of the Chief Legal Counsel to
make any such reports or disclosures and you are not required to notify the Company that you have made such reports or disclosures.
Page 1 of 11
II.
Conflicts of Interest
A conflict of interest occurs when your private interest interferes,
appears to interfere or is inconsistent in any way with the interests of the Company.1 For example, conflicts of interest
may arise if:
· You cause the Company to engage in business transactions with a company that you, your friends or your relatives control without having
obtained the appropriate prior approvals required. (See also under “Related Party Transactions” below).
· You are in a position to (i) compete with, rather than help, the Company or (ii) make a business decision not on the basis of the
Company’s interest but rather for your own personal advantage.
· You take actions, or have personal or family interests, that may make it difficult to perform your work (or discharge your duties
and obligations) effectively.
· You, or any of your family members or affiliates, receive improper personal benefits other than gratuities and payments received or
provided in compliance with the guidelines set forth in “Gifts and Entertainment” below and the Company’s employee handbook
including the “Conflicts of Interest and Business Ethics” policy, as a result of your position in the Company.
A conflict of interest may not be immediately recognizable, so potential
conflicts must be reported immediately to the Chief Legal Counsel. Further, if you become aware of a conflict or potential conflict involving
another employee or officer, you should bring it to the attention of the Chief Legal Counsel, or, if the matter involves a director, the
Chief Executive Officer or any other member of senior management, or the Chief Legal Counsel or any member of the Chief Legal Counsel's
staff, you should bring it to the attention of the Chair of the Audit Committee, in each case at the principal executive offices of the
Company or through the Ethics Line. If the concern requires confidentiality, including keeping particular individuals anonymous, then
this confidentiality will be protected, except to the extent necessary to conduct an effective investigation or as required by under applicable
law, regulation or legal proceedings.
III.
Related Party Transactions
The Company has adopted a policy that requires the review and approval
of any transaction, arrangement or relationship where the Company was, is or will be a participant and the amount involved exceeds $120,000,
and in which any “Related Party” (generally defined as any director (or director nominee) or executive officer of the Company,
beneficial owner of more than 5% of the Company stock, any immediate family member of the foregoing and any entity in which any of the
foregoing persons is employed or is a partner or principal or in which that person has a 10% or greater beneficial ownership interest)
had, has or will have a direct or indirect interest. Before entering any such transaction, arrangement or relationship, the Chief Legal
Counsel must be notified of the facts and circumstances of the proposed transaction, arrangement or relationship. If the Chief Legal Counsel
determines that a transaction, arrangement or relationship is indeed a related party transaction, then such transaction will be sent to
the Audit Committee (or the Chair of such committee) for their review and approval. Only those transactions that are in, or are not inconsistent
with, the best interests of the Company shall be approved. For more detail, please see the Company’s Related Party Transactions
Policy.
1
References in this Code to the Company mean the Company or any of its subsidiaries.
Page 2 of 11
IV.
Corporate Opportunities
When carrying out your duties or responsibilities, you owe a duty to
the Company to advance its legitimate interests. Employees, directors and officers are prohibited from (i) taking for themselves opportunities
that arise through the use of corporate property, information or position, (ii) using corporate property, information or position for
personal gain and (iii) competing with the Company.
V.
Public Reporting
Full, fair, accurate and timely disclosure must be made in the reports
and other documents that the Company files with, or submits to, the SEC and in its other public communications. Such disclosure is critical
to ensure that the Company maintains its good reputation, complies with its obligations under the securities laws and meets the expectations
of its shareholders.
Persons responsible for the preparation of such documents and reports
and other public communications must exercise the highest standard of care in accordance with the following guidelines:
· all accounting records, and the reports produced from such records, must comply with all applicable laws;
· all accounting records must fairly and accurately reflect the transactions or occurrences to which they relate;
· all accounting records must fairly and accurately reflect in reasonable detail the Company’s assets, liabilities, revenues and
expenses;
· accounting records must not contain any false or intentionally misleading entries;
· no transactions should be intentionally misclassified as to accounts, departments or accounting periods;
· all transactions must be supported by accurate documentation in reasonable detail and recorded in the proper account and in the proper
accounting period;
· no information should be concealed from the internal auditors or the independent auditors; and
· compliance with the Company’s internal control over financial reporting and disclosure controls and procedures is required.
Page 3 of 11
VI.
Confidentiality
Employees, officers and directors must maintain and protect the confidentiality
of information entrusted to them by the Company, or that otherwise comes into their possession, during the course of their employment
or while carrying out their duties and responsibilities, except when disclosure is authorized by the Company or legally mandated.
The obligation to preserve confidential information continues even
after employees, officers and directors leave the Company.
Confidential information encompasses all non-public information (including,
for example, “inside information”2 or information that suppliers and customers have entrusted to the Company)
that may be of use to competitors, or may otherwise be harmful to the Company or its key stakeholders, if disclosed. Financial information
is of special sensitivity and should under all circumstances be considered confidential, except where its disclosure is approved by the
Company or when the information has been publicly disseminated.
VII.
Protection and Proper Use of Company Assets
All employees, officers and directors should promote and ensure the
efficient and responsible use of the Company’s assets and resources. Theft, carelessness and waste have a direct impact on the Company’s
profitability. Any suspected incidents of fraud or theft should be immediately reported for investigation.
Company assets, such as proprietary information, funds, materials,
supplies, products, equipment, software, facilities and other assets owned or leased by the Company or that are otherwise in the Company’s
possession, may only be used for legitimate business purposes and must never be used for illegal purposes.
Proprietary information includes any information that is not generally
known to the public or would be valued by, or helpful to, our competitors. Examples of proprietary information are intellectual property,
business and marketing plans and employee information. The obligation to use proprietary information only for legitimate business purposes
continues even after individuals leave the Company.
2
“Inside information” may include material, non-public information that has not been publicly disclosed and has the potential
to affect the price of a security.
Page 4 of 11
VIII.
Insider Trading
Insider trading is unethical and illegal. Employees, officers and directors
must not trade in securities of a company while in possession of material non-public information regarding that company. It is also illegal
to “tip” or pass on inside information to any other person who might make an investment decision based on that information
or pass the information to third parties. The Company has a Securities Trading Policy, which sets forth obligations in respect of trading
in the Company’s securities.
IX.
Predictive Markets
You may not participate in third-party platforms, “prediction
markets,” or similar platforms to bet, wager or establish positions in event contracts or similar instruments when such activity
is based on, or involves the use of, confidential information about the Company or any other company (including customers, suppliers,
vendors or business partners) obtained through your position at the Company. For the avoidance of doubt, confidential information includes,
but is not limited to, material non-public information.
This prohibition applies whether or not the activity technically constitutes
securities trading under Federal securities laws.
X. Fair
Dealing
Each employee, officer and director, in carrying out his or her duties
and responsibilities, should endeavor to deal fairly with each other and the Company’s customers, suppliers and competitors. No
employee, officer or director should take unfair advantage of anyone through illegal conduct, manipulation, concealment, abuse of privileged
information, misrepresentation of material facts or any other unfair-dealing practice.
XI. Compliance
with Laws, Rules and Regulations
Compliance with both the letter and spirit of all laws, rules and regulations
applicable to the Company, including any securities exchange or other organization or body that regulates the Company, is critical to
our reputation and continued success. All employees, officers and directors must respect and obey the laws of the cities, states and countries
in which the Company operates and avoid even the appearance of impropriety. Employees, officers or directors who fail to comply with this
Code and applicable laws will be subject to disciplinary measures, up to and including discharge from the Company.
XII.
Compliance with Antitrust Laws.
The Company believes in fair and open competition and adheres strictly
to applicable antitrust laws. It should be noted however that the following section is not an exhaustive summary of relevant antitrust
laws. Additional antitrust considerations not covered in this section include participation in trade associations, monopolization, price
discrimination and other practices that affect competition.
Page 5 of 11
As a general proposition, any contact with a competitor may be problematic
under antitrust laws. Accordingly, all employees, officers and directors should avoid any such contact relating to the business of the
Company or the competitor without first obtaining the approval of the Chief Legal Counsel. Any additional concerns relating to the aforementioned
areas of potential antitrust breach should also be directed to the Chief Legal Counsel.
The Company notes below some general rules concerning contact with
competitors:
· Agreements among competitors, whether written or oral, that relate to prices are illegal per se. In other words, such agreements,
by themselves, constitute violations of the antitrust laws. There are no circumstances under which agreements among competitors relating
to prices may be found legal. Price fixing is a criminal offense, and may subject the Company to substantial fines and penalties and
the offending employee to imprisonment and fines.
· Antitrust laws may be violated even in the absence of a formal agreement relating to prices. Under certain circumstances, an agreement
to fix prices may be inferred from conduct, such as the exchange of price information, and from communications among competitors even
without an express understanding. Although exchanges of price information are permitted in certain circumstances, employees of the Company
should not participate in such exchanges without first obtaining the approval of the Chief Legal Counsel.
· It is a per se violation of antitrust laws for competitors to agree, expressly or by implication, to divide markets by territory
or customers.
· It is a per se violation of the antitrust laws for competitors to agree not to do business with a particular customer or supplier.
As with agreements to fix prices, the antitrust laws can be violated even in the absence of an express understanding.
· Any communication between competitors concerning problems with any customer or supplier may violate antitrust laws and should be avoided.
XIII.
Compliance with Environmental Laws
The Company is sensitive to the environmental, health and safety consequences
of its operations. Accordingly, the Company strictly complies with all applicable Federal and State environmental laws and regulations,
including, among others, the Clean Air Act, the Federal Water Pollution Control Act, the Resource Conservation and Recovery Act and the
Occupational Safety and Health Act, and considers sustainability in its planning decisions. If any individual has any doubt as to the
applicability or meaning of a particular environmental, health or safety regulation, he or she should discuss the matter with the Chief
Legal Counsel.
Page 6 of 11
XIV.
Discrimination and Harassment
The Company values a diverse working environment and is committed to
providing equal opportunity in all aspects of our business. Abusive, harassing or offensive conduct is unacceptable, whether verbal, physical
or visual. Examples include derogatory comments based on racial or ethnic characteristics and unwelcome sexual advances. The Company encourages
the reporting of harassment when it occurs.
XV. Safety
and Health
The Company is committed to keeping its workplaces free from hazards.
You should report any accidents, injuries or unsafe equipment, practices or conditions immediately to a supervisor or other designated
person. Threats or acts of violence or physical intimidation are prohibited.
You must not engage in the use of any substance that could prevent
you from discharging your work duties and responsibilities safely and effectively.
XVI.
Company Records and Document Retention
Records created, received or used during the conduct of Company business,
including all communications sent or received using the Company’s email system, are at all times the property of the Company wherever
those records may be located. At any time, the Company and, in certain circumstances, third parties (including government officials),
may review, without prior notice to personnel, any and all firm records, including records marked “Personal” or “Private.”
Any records that you create and store are subject to this Code and
may be demanded by third parties during the course of litigation or a government investigation or, in the case of records sent outside
the Company, subject to the records retention policies of the recipients.
You should, therefore, avoid discriminatory remarks, harassment and
threats of violence or similar inappropriate or unlawful conduct. This applies to communications of all kinds, including e-mail, instant
messaging, voice mail messages, text messages, video recordings and informal notes or interoffice memos. Records should be retained and
destroyed in accordance with the Company’s records retention policy.
XVII. Use
of Electronic Media
The Company has developed a policy to ensure that you understand the
rules governing your use of the Company’s computer network, and options for e-mail and voicemail or other messaging services, Internet
access or other use of electronic media. All Company equipment, including desks, computers and computer systems, computer software, electronic
storage devices, cellphones or other mobile devices, e-mail, voicemail and other physical items are for business use only. The Company
at all times retains the right to access and search all such electronic media or other items contained in or used in conjunction with
the Company’s computer, e-mail, voicemail and Internet access systems and equipment with no prior notice.
Page 7 of 11
Like the Company’s computer network, e-mail and voicemail services,
access to Internet services such as web-browsing or newsgroups is provided to employees by the Company only for business use. Any personal
use must be infrequent and must not involve any prohibited activity, interfere with the productivity of the employee or his or her co-workers,
consume system resources or storage capacity on an ongoing basis or involve large file transfers or otherwise deplete system resources
available for business purposes.
Your messages and computer information are considered Company property
and consequently, employees should not have an expectation of privacy in the context of computer and voice mail use. Unless prohibited
by law, the Company reserves the right to access and disclose this information as necessary for business purposes. Use good judgment,
and do not access, send messages or store any information that you would not want to be seen or heard by other individuals.
The Company also recognizes that many employees are choosing to express
themselves by using Internet technologies, such as blogs, wikis, file-sharing, user generated audio and video, virtual worlds, and social
networking sites, such as Facebook, LinkedIn and Twitter. Whether you choose to participate in such social networking outside of work
on your own time is your own decision. Employees are reminded that they must comply with the Company’s “Use of Social Media
Policy,” as outlined in the employee handbook, and to conduct themselves in a manner that protects the Company’s business
interests, confidential and material non-public information, reputation, and workplace relationships.
XVIII. Business Gifts and Entertainment
Business gifts and entertainment are often customary courtesies designed
to build goodwill among business partners and clients. However, issues may arise when such courtesies compromise, or appear to compromise,
the recipient’s ability to make objective and fair business decisions. In addition, issues can arise when the intended recipient
is a government official. Offering or receiving any gift, gratuity or entertainment that might be perceived to unfairly influence a business
relationship should be avoided. These guidelines apply at all times, do not change during traditional gift-giving seasons and apply equally
to employees, officers or directors offering gifts and entertainment to the Company’s business associates.
The value of gifts should be nominal, both with respect to frequency
and monetary amount. Frequent gifting to a recipient may be perceived as an attempt to create an obligation to the giver, and is therefore
inappropriate. Likewise, business entertainment should be moderately scaled and intended only to facilitate legitimate business goals.
For example, should tickets to a sporting or cultural event be offered, the offeror must attend the event as well. The following questions
may provide guidance in the instance of doubt:
· Is the action legal?
Page 8 of 11
· Does the action raise doubts or concerns?
· Should another individual be consulted?
· Is the action clearly business-related?
· Is the action or gift moderate, reasonable, and in good taste?
· Would public disclosure of the action or gift embarrass or harm the Company?
· Is there an expectation of reciprocation or favors?
Strict rules apply when the Company does business with governmental
agencies and officials, whether in the United States or in other countries, as discussed in more detail below. Because of the sensitive
nature of these relationships, you must seek approval from a supervisor and/or the Chief Legal Counsel before offering or making any gifts
or hospitality to governmental officials or employees.
XIX.
Political Activities and Contributions
The Company respects the right of each of its employees to participate
in the political process and to engage in political activities of his or her choosing; however, while involved in their personal and civic
affairs employees must make clear at all times that their views and actions are their own, and not those of the Company. Employees may
not use the Company’s resources to support their choice of political parties, causes or candidates.
The Company may occasionally express its views on local and national
issues that affect its operations. In such cases, Company funds and resources may be used, but only when permitted by law and by Company
guidelines. The Company may also make limited contributions to political parties or candidates in jurisdictions where it is legal and
customary to do so. The Company may pay related administrative and solicitation costs for political action committees formed in accordance
with applicable laws and regulations. Any use of Company resources for the Company’s political activities, including contributions
or donations, requires advance approval by the Company’s Chief Legal Counsel.
XX. Bribery
and Corruption
Employees, officers and directors must comply with all laws prohibiting
bribery, corruption and kickbacks, including laws prohibiting improper payments to domestic and foreign officials such as the U.S. Foreign
Corrupt Practices Act (the “FCPA”). While this section focuses primarily on foreign officials, this Policy equally prohibits
bribery of domestic officials and commercial or private sector parties.
Page 9 of 11
The FCPA prohibits an offer, payment, promise of payment or authorization
of the payment of any money or thing of value to a foreign official, foreign political party, official of a foreign political party or
candidate for political office to induce or influence any act or decision of such person or party or to secure any improper advantage.
The FCPA prohibits such conduct whether done directly or indirectly through an agent or other intermediary.
Although U.S. law does allow certain payments to foreign officials
intended solely to expedite non-discretionary routine government action, sometimes called “grease” or “facilitating”
payments, this exception is a narrow one and such payments are often illegal under other laws. Accordingly, the Company’s policy
is to avoid such payments. Therefore, no payment may be made to a foreign official even for non-discretionary action without first consulting
with and obtaining written authorization from the Chief Legal Counsel. If a facilitating payment is authorized, such payment must be accurately
and fairly recorded in the Company’s books, records and accounts.
The FCPA further requires compliance by the Company with record keeping
and internal controls requirements. The Company must maintain financial records which, in reasonable detail, accurately and fairly reflect
transactions and disposition of corporate assets. In particular, all bank accounts that receive or disburse funds on behalf of the Company
shall be properly authorized and any such transactions recorded on the official books and records of the Company. In addition, the Company
must maintain a system of internal controls sufficient to provide reasonable assurances that the Company’s assets are used only
in accordance with directives and authorizations by the Board of Directors and senior management, and that checks and balances are employed
so as to prevent the by-passing or overriding of these controls.
Violation of the FCPA is an offense, subjecting the Company to substantial
fines and penalties and any officer, director, employee or stockholder acting on behalf of the Company to imprisonment and fines. The
FCPA prohibits the Company from paying, directly or indirectly, a fine imposed upon an individual pursuant to the FCPA. Violation of this
policy may result in disciplinary actions up to and including discharge from the Company.
XXI.
Compliance with and Amendments of This Code
Failure to comply with this Code or applicable laws, rules or regulations
may result in disciplinary measures, including discharge from your position with the Company. Violations of this Code may also constitute
violations of law and may result in civil or criminal penalties for such person, such person’s supervisors and/or the Company. The
Board of Directors will determine, or designate appropriate persons to determine, appropriate actions to be taken in the event of a violation
of this Code in relation to Executives and Directors. In determining what action is appropriate in a particular case, the Board of Directors
or its designee will consider the nature and severity of the violation, whether the violation was a single occurrence or repeated occurrences,
whether the violation was intentional or inadvertent, whether the individual in question had been advised prior to the violation as to
the proper course of action and whether or not the individual in question had committed other violations in the past. The Chief Legal
Counsel will determine appropriate actions to be taken in the event of a violation of this code in relation to all other employees.
Page 10 of 11
This Code cannot, and is not intended to, address all of the ethical
complexities that may arise during the course of employment or association with the Company. There will be occasions where circumstances
not covered by policy or procedure arise, and where a judgment must be made as to the appropriate course of action. In such circumstances,
the Company encourages common sense decision-making, and consultation with a manager, member of human resources, or the Chief Legal Counsel
for guidance pursuant to the methods discussed below in “Compliance and Contact Details”.
Any material amendment of this Code will be made only by the Board
of Directors and will be promptly disclosed as required by law or stock exchange regulation.
XXII. Compliance
and Contact Details
1. Confidential
Advice and Ethics Line
If you think that an actual or possible violation has occurred, it
is important to report your concerns immediately. If you do not feel comfortable discussing the matter with your supervisor, manager
or human resources, please call the Company’s toll free Ethics Line: + 1 (833) 274-6327 or access the Hotline at: https://www.app.faceup.com/en-us/c/forgenano/page.
The Ethics Line provides information, guidance and suggestions regarding
the topics addressed in this Code. Alternatively, you may also contact the Chief Legal Counsel Curtis Zimmermann at czimmermann@forgenano.com,
provided, that concerns involving the Chief Legal Counsel or any member of the Chief Legal Counsel's staff, any director,
or senior management should instead be directed to the Chair of the Audit Committee or the Ethics Line, as described in Section XXII.2
below.
The Company strives to ensure that all questions or concerns are handled
fairly, discreetly and thoroughly. You may choose to remain anonymous, where permitted by law.3
2. Employee
Reporting and Ethics Line
The Company proactively promotes ethical behavior and encourages employees,
officers and directors promptly to report evidence of illegal or unethical behavior, or violations of this Code to the Chief Legal Counsel
or through the Ethics Line. Reports involving any director, the Chief Executive Officer or any other member of senior management, or the
Chief Legal Counsel or any member of the Chief Legal Counsel's staff, should be made directly to the Chair of the Audit Committee or through
the Ethics Line. You may choose to remain anonymous in reporting any possible violation of this Code, where permitted by law.
Once a report is made and received, the Company will investigate promptly
and all employees, officers and directors are expected to cooperate candidly with relevant investigatory procedures. Appropriate remedial
action may be taken, based on the outcome of such investigation.
The Company has a no-tolerance policy for retaliation against persons
who raise good faith compliance, ethics or related issues. However, it is unacceptable to file a report knowing it to be false.
3. Waiver
Any waiver of this Code for any executive officer or director will
be made only by the Board of Directors and will be promptly disclosed as required by law or stock exchange regulation. Any waiver of this
Code for any other employee will be made by the Chief Legal Counsel.
3
Anonymous reporting is prohibited by law in Bulgaria, Latvia and Malta.
Page 11 of 11
EX-21.1 — EXHIBIT 21.1
EX-21.1
Filename: tm2628316d1_ex21-1.htm · Sequence: 17
Exhibit 21.1
List of Subsidiaries of Forge Nano Holdings,
Inc.
Name of Subsidiary
Jurisdiction of Incorporation or Organization
Forge Battery, Inc.
Delaware
Forge Nano, LLC
Delaware
EX-99.1 — EXHIBIT 99.1
EX-99.1
Filename: tm2628316d1_ex99-1.htm · Sequence: 18
Exhibit 99.1
UNAUDITED
PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
Defined terms included below shall have the same
meaning as terms defined and included in the definitive proxy statement/prospectus of Forge Nano Holdings, Inc. (formerly ATII Holdings, Inc.),
dated September 22, 2026, filed with the U.S. Securities and Exchange Commission (the “SEC”) on September 24, 2026,
which forms a part of the registration statement on Form S-4 (File No. 333-295563) under the Securities Act of 1933, as amended,
initially filed with the SEC on May 5, 2026 and declared effective by the SEC on September 22, 2026.
Introduction
The following unaudited pro forma condensed combined
financial information presents the combination of financial information of ATII and Forge Nano, adjusted to give effect to the Business
Combination and related transactions. The following unaudited pro forma condensed combined financial information has been prepared in
accordance with Article 11 of Regulation S-X as amended by the final rule, Release No. 33-10786 “Amendments to Financial
Disclosures about Acquired and Disposed Businesses” to depict the accounting for the transaction (“Transaction Accounting
Adjustments”) and present the reasonably estimable synergies and other transaction effects that have occurred or are reasonably
expected to occur (“Management’s Adjustments”). ATII has elected not to present Management’s Adjustments and will
only be presenting Transaction Accounting Adjustments in the unaudited pro forma condensed combined financial information.
The following unaudited pro forma condensed combined
balance sheet as of June 30, 2026, assumes that the Business Combination occurred on June 30, 2026. The unaudited pro forma
condensed combined statements of operations for the six months ended June 30, 2026 and for the year ended December 31, 2025,
assume that the Business Combination occurred on January 1, 2025, the beginning of the earliest periods presented.
The unaudited pro forma condensed combined financial
statements have been presented for illustrative purposes only and do not necessarily reflect what Pubco’s financial condition or
results of operations would have been had the Business Combination occurred on the dates indicated. Further, the pro forma condensed combined
financial information also may not be useful in predicting the future financial condition and results of operations of Pubco. The actual
financial position and results of operations of Pubco may differ significantly from the pro forma amounts reflected herein due to a variety
of factors.
The historical financial information of ATII was
derived from the unaudited consolidated financial statements of ATII as of and for the six months ended June 30, 2026 and the audited
consolidated financial statements of ATII for the year ended December 31, 2025, which are included in the Proxy Statement/Prospectus
and incorporated herein by reference. The historical financial information of Forge Nano was derived from the unaudited consolidated financial
statements of Forge Nano as of and for the six months ended June 30, 2026, and the audited consolidated financial statements of Forge
Nano for the year ended December 31, 2025, which are included in the Proxy Statement/Prospectus and incorporated herein by reference.
This information should be read together with ATII’s and Forge Nano’s audited and unaudited financial statements, and related
notes, the sections titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations of ATII”
and “Management’s Discussion and Analysis of Financial Condition and Results of Operations of Forge Nano” and other
financial information included in the Proxy Statement/Prospectus and incorporated herein by reference.
Description of the Business Combination
On April 20, 2026, ATII, Pubco, Merger Sub
I, Merger Sub II and Forge Nano entered into the Merger Agreement. On October 21, 2026, the Business Combination was closed.
Pursuant to the Merger Agreement, ATII re-domiciled
and became a Delaware corporation by merging with Pubco, following which the separate corporate existence of ATII ceased and Pubco continues
as the surviving corporation.
Immediately prior to the Domestication Merger
Effective Time, each then issued and outstanding ATII Unit separated and converted automatically into one ATII Ordinary Share and one-half
of one ATII Warrant, and all ATII Units ceased to be outstanding and ceased to exist. At the Domestication Merger Effective Time, each
then issued and outstanding ATII Ordinary Share (which, for the avoidance of doubt, included ATII Ordinary Shares held as a result of
the separation of the ATII Units) was cancelled in exchange for the right to receive one share of Pubco Common Stock and each ATII Warrant
that was outstanding and unexercised converted automatically into one Pubco SPAC Warrant pursuant to the terms of the Warrant Agreement.
Pursuant to the Merger Agreement, Merger Sub I
merged with and into Forge Nano, with Forge Nano surviving as the Initial Surviving Corporation and as a result of which the holders of
the issued and outstanding capital stock of Forge Nano received shares of Pubco Common Stock in exchange for the issued and outstanding
capital stock of Forge Nano. As a result of the First Company Merger, Forge Nano became a wholly-owned subsidiary of Pubco.
At the First Effective Time: (i) each share
of each class of Forge Nano Preferred Stock that was issued and outstanding immediately prior to the First Effective Time was converted
into shares of Forge Nano Common Stock pursuant to Forge Nano’s organizational documents as in effect immediately prior to the First
Effective Time; (ii) each share of Forge Nano Common Stock that was issued and outstanding immediately prior to the First Effective
Time (including shares of Forge Nano Common Stock issued upon conversion of the shares of Forge Nano Preferred Stock, but not including
treasury shares which were canceled immediately prior to the First Effective Time) was cancelled and automatically converted into the
right to receive, without interest, the Applicable Per Share Merger Consideration; (iii) each Forge Nano Warrant that was issued
and outstanding and unexpired immediately prior to the First Effective Time was assumed by Pubco and became a corresponding Pubco Forge
Nano Warrant, subject to the same terms and conditions (including vesting and exercisability) as were applicable to the corresponding
Forge Nano Warrant immediately prior to the First Effective Time; and (iv) each Forge Nano Ascent Option that was issued and outstanding
and unexpired immediately prior to the First Effective Time was cancelled and converted into one Pubco Ascent Warrant pursuant to the
Pubco Ascent Warrant Agreement, substantially in the form attached to the Merger Agreement.
At the First Effective Time, each Forge Nano Option
that was issued and outstanding and unexpired immediately prior to the First Effective Time was converted into one Pubco Option on substantially
the same terms and conditions, including with respect to vesting and termination-related provisions (as applicable, except that such Pubco
Options related to the number of whole shares of Pubco Common Stock (rounded down to the nearest whole share) equal to the product (rounded
down to the nearest whole number) of (a) the number of shares of Forge Nano Common Stock subject to such Forge Nano Option immediately
prior to the First Effective Time and (b) the quotient of (1) the Applicable Per Share Merger Consideration divided by (ii) the
Equity Award Conversion Amount (as defined in the Merger Agreement), with an exercise price per Pubco Option (rounded up to the nearest
whole cent) equal to the quotient obtained by dividing (x) the exercise price per Forge Nano Option by (ii) the Equity Award
Conversion Amount).
Earn-Out
Pursuant to the terms of the Merger Agreement, and subject to the terms
and conditions set forth therein, the Forge Nano Stockholders who received Closing Payment Shares and the holders of Pubco Convertible
Securities issued in exchange for Forge Nano Convertible Securities are entitled to receive a proportional amount of up to an aggregate
of 90,000,000 Earn-Out Shares, issuable upon achievement of certain milestones during the Earn-Out Period. The Earn-Out Shares were issued
to the Escrow Agent and will be disbursed therefrom upon achievement of the applicable milestones as follows:
· 30,000,000 Earn-Out Shares if, within the Earn-Out Period, (1) the VWAP
(as defined in the Merger Agreement) of Pubco Common Stock equals or exceeds $15.00 per share over any 30 trading day period or (2) the
revenue, determined in accordance with GAAP applied on a consistent basis, publicly reported by Pubco in its annual or quarterly reports
filed with the SEC for the preceding twelve months equals or exceeds $400,000,000;
· 30,000,000 Earn-Out Shares if, within the Earn-Out Period, (1) the VWAP
of Pubco Common Stock equals or exceeds $20.00 per share over any 30 trading day period or (2) the revenue, determined in accordance
with GAAP applied on a consistent basis, publicly reported by Pubco in its annual or quarterly reports filed with the SEC for the preceding
twelve months equals or exceeds $600,000,000; and
· 30,000,000 Earn-Out Shares if, within the Earn-Out Period, (1) the VWAP
of Pubco Common Stock equals or exceeds $25.00 per share over any 30 trading day period or (2) the revenue, determined in accordance
with GAAP applied on a consistent basis, publicly reported by Pubco in its annual or quarterly reports filed with the SEC for the preceding
twelve months equals or exceeds $800,000,000.
The milestones applicable to the Earn-Out Shares operate on a cumulative
basis, such that if a higher milestone is achieved, the lower milestones are deemed achieved as well and the Earn-Out Shares attributable
to such achieved milestone and each lower milestone will be disbursed. The Earn-Out Shares attributable to holders of Pubco Convertible
Securities issued in exchange for Forge Nano Convertible Securities pursuant to the Merger Agreement will only be disbursed by the Escrow
Agent if an applicable milestone is achieved upon the exercise, conversion or settlement of any Pubco Convertible Securities in accordance
with their terms.
Second Company Merger
Pursuant to the Merger Agreement, and subject to the terms and conditions
set forth therein, immediately following the First Effective Time, the Initial Surviving Corporation merged with and into Merger Sub II,
with Merger Sub II surviving as the Surviving Company and Pubco acquiring one membership interest in the Surviving Company and such membership
interest constitutes the only outstanding equity of the Surviving Company.
PIPE Financing
Concurrently with the execution of the Merger
Agreement, ATII, Pubco and Forge Nano entered into the PIPE Subscription Agreement with the Initial PIPE Investor, pursuant to which,
subject to the terms and conditions thereof, Pubco sold 2,968,825 shares of Pubco Common Stock, PIPE Pre-funded Warrants to purchase an
aggregate of 7,031,175 shares of Pubco Common Stock, and PIPE Warrants to purchase an aggregate of 15,000,000 shares of Pubco Common Stock
to the Initial PIPE Investor for an aggregate commitment of $100,000,000.
In addition, concurrently with the execution of
the Merger Agreement, ATII and Forge Nano entered into the Purchaser Support Agreement with the Sponsor. Pursuant to the Purchaser Support
Agreement, the Sponsor transferred an aggregate of 3,300,000 Founder Shares held by them to the PIPE Investors at the Closing in connection
with the PIPE Financing and Additional PIPE Financing for no additional cash consideration.
Additionally, subsequent to the execution of the
Merger Agreement, ATII, Pubco and Forge Nano entered into the Additional Subscription Agreements with the Additional PIPE Investors, pursuant
to which and subject to the terms and conditions thereof, Pubco sold an aggregate of 2,300,000 shares of Pubco Common Stock to the Additional
PIPE Investors at a subscription price of $10.00 per share, for an aggregate commitment of $23,000,000.
Ownership of Pubco Following the Business Combination
The following table sets out share ownership of
Pubco immediately following the Business Combination, excluding the dilutive effect of Pubco SPAC Warrants, Pubco Forge Nano Warrants,
Pubco Ascent Warrants, Pubco Options, PIPE Warrants, Reset PIPE Warrants, Additional PIPE Warrants and Earn-Out Shares:
Shares
%
ATII Public Shareholders
780,932
0.6 %
Initial Shareholders(1)
3,290,000
2.6 %
Forge Nano Stockholders(2)
116,015,828
90.2 %
PIPE Investors(3)
8,568,825
6.6 %
Total
128,655,585
100.0 %
(1) Consists of (i) the 2,450,000 shares of Pubco Common Stock
issued to the Sponsor and the Initial Shareholders in exchange for 2,450,000 Founder Shares (3,300,000 shares of Pubco Common Stock issued
in exchange for 3,300,000 Founder Shares were transferred by the Sponsor to the PIPE Investors upon the Closing pursuant to the Purchaser
Support Agreement), (ii) the 530,000 ATII Private Shares held by the Sponsor and (iii) the 310,000 ATII Private Shares held
by BTIG.
(2) Consists of the 116,015,828 shares of Pubco Common Stock issuable
in respect of 4,071,346 shares of Forge Nano Common Stock (including shares of Forge Nano Common Stock issued upon conversion of Forge
Nano Preferred Stock immediately prior to the First Effective Time) based on the Exchange Ratio of approximately 28.4957.
(3) Consists of (i) the 2,968,825 PIPE Subscribed Shares acquired
by the Initial PIPE Investor pursuant to the PIPE Subscription Agreement, (ii) the 3,300,000 Founder Shares transferred by the Sponsor
to the PIPE Investors in connection with the PIPE Financing for no additional cash consideration pursuant to the Purchaser Support Agreement,
and (iii) the 2,300,000 Additional PIPE Subscribed Shares acquired by the Additional PIPE Investors pursuant to the Additional PIPE
Subscription Agreements at a subscription price of $10.00 per share.
Accounting Treatment
The Business Combination was accounted for as
a reverse recapitalization in accordance with GAAP. Under this method of accounting, although ATII acquired all of the outstanding equity
interests of Forge Nano in the Business Combination, ATII was treated as the “acquired” company and Forge Nano was treated
as the accounting acquirer for financial statement reporting purposes. Accordingly, the Business Combination was treated as the equivalent
of Forge Nano issuing stock for the net assets of ATII, accompanied by a recapitalization. The net assets of ATII were stated at historical
cost, with no goodwill or other intangible assets recorded. Operations prior to the Business Combination were those of Forge Nano.
Forge Nano was determined to be the accounting
acquirer based on evaluation of the following facts and circumstances:
· Forge Nano Stockholders have the greatest voting
interest in Pubco;
· Forge Nano Stockholders have the ability to control
decisions regarding election and removal of directors and officers of Pubco;
· Forge Nano comprises the ongoing operations of
Pubco; and
· Forge Nano’s existing senior management
is the senior management of Pubco.
The following unaudited pro forma condensed combined
balance sheet as of June 30, 2026, and the unaudited pro forma condensed combined statements of operations for the six months ended
June 30, 2026 and for the year ended December 31, 2025, are based on the unaudited and audited historical financial statements
of ATII and Forge Nano. The unaudited pro forma adjustments are based on information currently available, and assumptions and estimates
underlying the unaudited pro forma adjustments are described in the accompanying notes. Actual results may differ materially from the
assumptions used to present the accompanying unaudited pro forma condensed combined financial information and include immaterial rounding
differences.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE
SHEET
JUNE 30, 2026(1)
(in thousands, except share and per share data)
(1)
Forge Nano
(Historical)
(2)
ATII
(Historical)
Transaction
Accounting
Adjustments
Pro Forma
Combined
Assets
Current assets
Cash and cash equivalents
$ 28,591
$ 415
$ 100,000
(A)
$ 140,717
23,000
(B)
8,379
(E)
(5,228 )
(F)
(14,440 )
(G)
Restricted cash and cash equivalents
1,026
—
—
1,026
Accounts receivable - net of allowance for credit losses of $33
1,622
—
—
1,622
Contract assets - unbilled accounts receivable
6,822
—
—
6,822
Inventory
4,515
—
—
4,515
Prepaid expenses and other current assets
3,007
101
1,441
(G)
4,549
Total Current Assets
45,583
516
113,152
159,251
Cash held in Trust Account
—
244,162
(238,404 )
(C)
—
2,621
(D)
(8,379 )
(E)
Property and equipment - net
23,962
—
—
23,962
Goodwill
3,124
—
—
3,124
Intangible asset - net
1,487
—
—
1,487
Restricted cash and cash equivalents
56
—
—
56
Right-of-use operating lease assets
65,270
—
—
65,270
Deposits
2,993
—
—
2,993
Total Assets
$ 142,475
$ 244,678
$ (131,010 )
$ 256,143
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable
$ 3,638
$ —
$ —
$ 3,638
Current portion of operating lease liabilities
1,151
—
—
1,151
Contract liabilities - deferred revenue
3,526
—
—
3,526
Provision for loss on contract
752
—
—
752
Accrued and other current liabilities
5,835
576
21
(G)
6,432
Current portion of debt – net of discount
10,488
—
—
10,488
PIPE subscription derivative liability
—
137,942
(137,942 )
(A)
—
Total Current Liabilities
25,390
138,518
(137,921 )
25,987
Deferred underwriting fee payable
—
8,050
(8,050 )
(F)
—
Operating lease liabilities
64,864
—
—
64,864
Due to Sundew Technologies, LLC
2,809
—
—
2,809
Warrant liabilities
14,965
—
128,209
(A)
143,174
Earn-+out Shares liability
—
—
704,453
(L)
704,453
Total Liabilities
108,028
146,568
686,691
941,287
Forge Nano Preferred stock - $0.0001 par value; 4,663,753 shares authorized and 2,190,939 shares issued and outstanding
—
—
—
(H)
—
Additional paid-in capital
185,265
—
(185,265 )
(H)
—
ATII ordinary shares subject to possible redemption, 23,000,000 shares at redemption value of $10.62 per share
—
244,162
2,621
(D)
—
(238,404 )
(C)
(8,379 )
(J)
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE
SHEET
JUNE 30, 2026 — (Continued) (1)
(in thousands, except share and per share data)
(1)
Forge Nano
(Historical)
(2)
ATII
(Historical)
Transaction
Accounting
Adjustments
Pro Forma
Combined
Stockholders’ Deficit
ATII preference shares, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding
—
—
—
—
ATII ordinary shares, $0.0001 par value; 400,000,000 shares authorized; 6,590,000 shares issued and outstanding
—
1
—
(J)
—
(1 )
(K)
Forge Nano common stock - $0.0001 par value; 4,850,000 shares authorized and 1,636,918 shares issued and outstanding
—
—
—
(H)
—
Pubco Common Stock
—
—
—
(A)
13
—
(B)
12
(H)
1
(K)
Additional paid-in capital
10,820
—
109,733
(A)
—
23,000
(B)
2,822
(F)
(11,506 )
(G)
185,253
(H)
(147,567 )
(I)
8,379
(J)
(704,453 )
(L)
523,519
(M)
Accumulated deficit
(161,638 )
(146,053 )
(1,514 )
(G)
(685,157 )
147,567
(I)
(523,519 )
(M)
Total Stockholders’ Deficit
(150,818 )
(146,052 )
(388,274 )
(685,144 )
Total Liabilities and Stockholders’ Deficit
$ 142,475
$ 244,678
$ (131,010 )
$ 256,143
(1) Pubco was incorporated for the sole purpose of effectuating
the Business Combination. It does not meet the definition of a business. It has no activities other than transaction costs which are
included in the transaction accounting adjustments.
Adjustments to Unaudited Pro Forma Condensed
Combined Balance Sheet
(1) Derived from the unaudited consolidated balance sheet of Forge
Nano as of June 30, 2026.
(2) Derived from the unaudited balance sheet of ATII as of June 30,
2026.
(A) Reflects the receipt of $100.0 million proceeds from the PIPE
Financing. Pursuant to the PIPE Subscription Agreements, Pubco sold 2,968,825 shares of Pubco Common Stock, PIPE Pre-funded Warrants
to purchase an aggregate of 7,031,175 shares of Pubco Common Stock, and PIPE Warrants to purchase an aggregate of 15,000,000 shares of
Pubco Common Stock to the Initial PIPE Investor for an aggregate price of $100,000,000. If, on the 24-month anniversary of the Closing
Date, the Initial PIPE Investor certifies in writing that the Initial PIPE Investor beneficially owns 5,000,000 shares of Pubco Common
Stock, Pubco will issue to the Initial PIPE Investor the Additional PIPE Warrants entitling the Initial PIPE Investor to purchase 5,000,000
shares of Pubco Common Stock. In the event that on the 21st Trading Day following the six-month anniversary of the Closing, the VWAP
of the Common Stock is less than the Exercise Price then in effect, the Initial PIPE Investor shall receive up to 10,000,000 Reset Warrants.
The PIPE Pre-funded Warrants, PIPE Warrants, Additional PIPE Warrants and Reset Warrants are precluded from equity classification under
ASC 815-40, and management determined it to be classified as a liability, initially measured at fair value and subsequently remeasured
through earnings until settlement. The fair value of the warrants is estimated to be $128.2 million.
The warrants were valued using a Monte
Carlo simulation. Below are the significant assumptions used in the simulation:
Equity volatility:
44.0 %
Risk-free rate:
4.15 %
Term:
5.0
Stock price:
$ 10.00
Changes in those assumptions could result in different fair
value measurement and therefore could have affected the amounts presented in the pro forma financial information. Because the warrants
are accounted for as a liability and remeasured at fair value at each reporting date, changes in assumptions used in the valuation model
may result in significant non-cash gains or losses in future periods, which could materially affect the future combined results of operations.
(B) Reflects the receipt of $23.0 million proceeds from the PIPE
Financing. Pursuant to the PIPE Subscription Agreements, Pubco issued and sold an aggregate of 2,300,000 shares of Pubco Common Stock
to the PIPE Investors.
(C) Reflects the redemption of 22,219,068 ATII Public Shares for
aggregate redemption payments of $238.4 million at a redemption price of approximately $10.73 per share.
(D) Reflects the interest income earned on the cash held in Trust
Account subsequent to June 30, 2026.
(E) Reflects the transfer of cash held in the Trust Account to cash.
(F) Reflects the settlement of the deferred underwriting fee payable
by cash upon the Closing of the Business Combination.
(G) Represents transaction costs incurred by ATII and Forge Nano
of approximately $4.7 million and $11.8 million, respectively. These costs are accounted for as a reduction in the combined cash account
with a corresponding reduction in additional paid-in capital or accumulated deficit consistent with the treatment described in SEC Staff
Accounting Bulletin Topic 5.A. These transaction costs will not recur in Pubco’s income beyond 12 months after the transaction.
For the ATII transaction
costs, $0.5 million have been accrued and $0.9 million have been paid as of the pro forma balance sheet date. The amount of $1.8 million
related to placement fee is reflected as an adjustment to additional paid-in capital. The remaining amount of $1.5 million is reflected
as an adjustment to accumulated losses. The ATII estimated transaction costs exclude the deferred underwriting fee included in (F) above.
For the Forge
Nano transaction costs, $0.6 million have been paid and recorded as deferred issuance costs as of the pro forma balance sheet date. $2.0
million related to the D&O insurance is reflected as an adjustment to prepaid expenses. The amount of $9.8 million is included as
an adjustment to additional paid-in capital.
(H) Represents the issuance of 116,015,828 shares of Pubco Common
Stock to the existing stockholders of Forge Nano.
(I) Reflects the elimination of ATII’s historical accumulated
deficit after recording the transaction costs as described in (G) above.
(J) Reflects the reclassification of 780,932 ordinary shares subject
to possible redemption to permanent equity.
(K) Represents the conversion of 7,370,932 ATII Ordinary Shares,
par value of $0.0001 per share, into the same number of shares of Pubco Common Stock, par value of $0.0001 per share.
(L) Represents the recognition of the Earn-Out Shares liability
upon the Closing. The Earn-Out Shares are precluded from equity classification under ASC 815-40, and management determined it to be classified
as a liability, initially measured at fair value and subsequently remeasured through earnings until settlement. The fair value of the
Earn-Out Shares is estimated to be $704.5 million.
The Earn-Out Shares
were valued using a Monte Carlo simulation. Below are the significant assumptions used in the simulation:
Equity volatility:
44.0 %
Risk-free rate:
4.15 %
Term:
5.0
Stock price:
$ 10.00
Changes in those assumptions
could result in different fair value measurement and therefore could have affected the amounts presented in the pro forma financial information.
Because the Earn-Out Shares are accounted for as a liability and remeasured at fair value at each reporting date, changes in assumptions
used in the valuation model may result in significant non-cash gains or losses in future periods, which could materially affect the future
combined results of operations.
(M) Represents the reclassification among equity to avoid negative
additional paid-in capital.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT
OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2026(1)
(in thousands, except share and per share data)
(1)
Forge Nano
(Historical)
(2)
ATII
(Historical)
Transaction
Accounting
Adjustments
Pro Forma
Combined
Net Sales
Tool manufacturing and related services
$ 3,136
$ —
$ —
$ 3,136
Coating services
614
—
—
614
Battery manufacturing
351
—
—
351
Total Net Sales
4,101
—
—
4,101
Cost of Sales
Tool manufacturing and related services
4,394
—
—
4,394
Coating services
2,666
—
—
2,666
Battery manufacturing
139
—
—
139
Total Cost of Sales
7,199
—
—
7,199
Gross loss
(3,098 )
—
—
(3,098 )
Operating Expenses
General and administrative expenses
20,676
1,426
(60 )
(BB)
22,042
Total operating expenses
20,676
1,426
(60 )
22,042
Operating Loss
(23,774 )
(1,426 )
60
(25,140 )
Other income (expense)
Interest earned on cash in bank account
—
19
—
19
Interest earned on cash held in Trust Account
—
4,301
(4,301 )
(AA)
—
PIPE subscription expense
—
(100,000 )
100,000
(CC)
—
Change in fair value of PIPE subscription derivative liability
—
(37,942 )
37,942
(CC)
—
Interest income
220
—
—
220
Grant income
1,819
—
—
1,819
Other income
70
—
—
70
Interest expense, change in fair value, and amortization of debt discount
(10,866 )
—
—
(10,866 )
Other expense
(19 )
—
—
(19 )
Total other income, net
(8,776 )
(133,622 )
133,641
8,757
Net (loss) income
$ (32,550 )
$ (135,048 )
$ (133,701 )
$ (33,897 )
Net Loss Per Share, Basic and Diluted
$ (19.42 )
Basic and diluted net loss per share, redeemable ordinary shares
$ (4.56 )
Basic net loss per share, non-redeemable ordinary shares
$ (4.56 )
Diluted net loss per share, non-redeemable ordinary shares
$ (4.56 )
Weighted average number of shares outstanding, basic and diluted
128,655,585
Net loss per share, basic and diluted
$ (0.26 )
(1) Pubco was incorporated for the sole purpose of effectuating
the Business Combination. It does not meet the definition of a business. It has no activities other than transaction costs which are
included in the transaction accounting adjustments.
Adjustments to Unaudited Pro Forma Condensed
Combined Statements of Operations
(1) Derived from the unaudited consolidated statement of operations
of Forge Nano for the six months ended June 30, 2026.
(2) Derived from the unaudited statement of operations of ATII for
the six months ended June 30, 2026.
(AA) Represents an adjustment to eliminate interest earned on cash
held in the Trust Account after giving effect to the Business Combination as if it had occurred on January 1, 2025.
(BB) Represents an adjustment to eliminate administrative service
fees that will cease at the Business Combination.
(CC) Represents the elimination of PIPE subscription expense and
change in fair value of PIPE subscription derivative liability after giving effect to the Business Combination as if it had occurred
on January 1, 2025.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT
OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2025(1)
(in thousands, except share and per share data)
(1)
Forge Nano
(Historical)
(2)
ATII
(Historical)
Transaction
Accounting
Adjustments
Pro Forma
Combined
Net Sales
Tool manufacturing and related services
$ 4,625
$ —
$ —
$ 4,625
Coating services
1,429
—
—
1,429
Battery manufacturing
1,334
—
—
1,334
Total Net Sales
7,388
—
—
7,388
Cost of Sales
Tool manufacturing and related services
6,239
—
—
6,239
Coating services
3,921
—
—
3,921
Battery manufacturing
1,085
—
—
1,085
Total Cost of Sales
11,245
—
—
11,245
Gross loss
(3,857 )
—
—
(3,857 )
Operating Expenses
General and administrative expenses
40,788
786
1,514
(CC)
42,981
(107 )
(BB)
Total operating expenses
40,788
786
1,407
42,981
Operating Loss
(44,645 )
(786 )
(1,407 )
(46,838 )
Other income (expense)
Interest earned on cash in bank account
—
62
—
62
Interest earned on cash held in Trust Account
—
8,711
(8,711 )
(AA)
—
Interest income
637
—
—
637
Grant income
7,062
—
—
7,062
Other income
865
—
—
865
Interest expense, change in fair value, and amortization of debt discount
(6,515 )
—
—
(6,515 )
Other expense
(578 )
—
—
(578 )
Total other income, net
1,471
8,773
(8,711 )
1,533
Net (loss) income
$ (43,174 )
$ 7,987
$ (10,118 )
$ (45,305 )
Net Loss Per Share, Basic and Diluted
$ (27.94 )
Basic and diluted net income per share, redeemable ordinary shares
$ 0.30
Basic net income per share, non-redeemable ordinary shares
$ 0.30
Diluted net income per share, non-redeemable ordinary shares
$ 0.30
Weighted average number of shares outstanding, basic and diluted
128,655,585
Net loss per share, basic and diluted
$ (0.35 )
(1) Pubco was incorporated for the sole purpose of effectuating
the Business Combination. It does not meet the definition of a business. It has no activities other than transaction costs which are
included in the transaction accounting adjustments.
Adjustments to Unaudited Pro Forma Condensed
Combined Statements of Operations
(1) Derived from the audited consolidated statement of operations
of Forge Nano for the year ended December 31, 2025.
(2) Derived from the audited statement of operations of ATII for
the year ended December 31, 2025.
(AA) Represents an adjustment to eliminate interest earned on cash
held in the Trust Account after giving effect to the Business Combination as if it had occurred on January 1, 2025.
(BB) Represents an adjustment to eliminate administrative service
fees that will cease at the Business Combination.
(CC) Represents the effect of the pro forma balance sheet adjustment
presented in (G) above in the aggregate amount of $1.5 million for the direct, incremental costs of the Business Combination incurred
by ATII. As these costs are directly related to the Business Combination, they are not expected to recur in the income of Pubco beyond
12 months after the Business Combination.
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED
FINANCIAL INFORMATION
Basis of Presentation
The Business Combination was accounted for as
a reverse recapitalization in accordance with GAAP as Forge Nano was determined to be the accounting acquirer, primarily due to the fact
that Forge Nano Stockholders continue to control Pubco following the consummation of the Business Combination. Under this method of accounting,
although ATII acquired all of the outstanding equity interests of Forge Nano in the Business Combination, ATII was treated as the “acquired”
company for financial reporting purposes. Accordingly, the Business Combination was treated as the equivalent of Forge Nano issuing stock
for the net assets of ATII, accompanied by a recapitalization. The net assets of ATII were stated at historical cost, with no goodwill
or other intangible assets recorded. Operations prior to the Business Combination were those of Forge Nano.
The unaudited pro forma condensed combined balance
sheet as of June 30, 2026, assumes that the Business Combination and related transactions occurred on June 30, 2026. The unaudited
pro forma condensed combined statements of operations for the six months ended June 30, 2026 and for the year ended December 31,
2025, present pro forma effect to the Business Combination as if it had been completed on January 1, 2025, the beginning of the earliest
periods presented.
The unaudited pro forma condensed combined balance
sheet as of June 30, 2026, has been prepared using, and should be read in conjunction with, the following:
· ATII’s unaudited balance sheet as of June 30, 2026
and the related notes for the six months ended June 30, 2026, included in the Proxy Statement/Prospectus and incorporated herein
by reference; and
· Forge Nano’s unaudited consolidated balance sheet as of
June 30, 2026 and the related notes for the six months ended June 30, 2026, included in the Proxy Statement/Prospectus and
incorporated herein by reference.
The unaudited pro forma condensed combined statement
of operations for the six months ended June 30, 2026, has been prepared using, and should be read in conjunction with the following:
· ATII’s unaudited statement of operations for the six months
ended June 30, 2026 and the related notes, included in the Proxy Statement/Prospectus and incorporated herein by reference; and
· Forge Nano’s unaudited consolidated statement of operations
for the six months ended June 30, 2026, and the related notes, included in the Proxy Statement/Prospectus and incorporated herein
by reference.
The unaudited pro forma condensed combined statement
of operations for the year ended December 31, 2025, has been prepared using, and should be read in conjunction with, the following:
· ATII’s audited statement of operations for the year ended
December 31, 2025, and the related notes, included in the Proxy Statement/Prospectus and incorporated herein by reference; and
· Forge Nano’s audited consolidated statement of operations
for the year ended December 31, 2025, and the related notes, included in the Proxy Statement/Prospectus and incorporated herein
by reference.
As the unaudited pro forma condensed combined
financial information has been prepared based on these preliminary estimates, the final amounts recorded may differ materially from the
information presented.
The unaudited pro forma condensed combined financial
information does not give effect to any anticipated synergies, operating efficiencies, tax savings or cost savings that may be associated
with the Business Combination.
The pro forma adjustments reflecting the consummation
of the Business Combination are based on certain currently available information and certain assumptions and methodologies that ATII believes
are reasonable under the circumstances. The unaudited condensed pro forma adjustments, which are described in the accompanying notes,
may be revised as additional information becomes available and is evaluated. Therefore, it is likely that the actual adjustments will
differ from the pro forma adjustments, and it is possible the difference may be material. ATII believes that its assumptions and methodologies
provide a reasonable basis for presenting all of the significant effects of the Business Combination based on information available to
management at this time and that the pro forma adjustments give appropriate effect to those assumptions and are properly applied in the
unaudited pro forma condensed combined financial information.
The unaudited pro forma condensed combined financial
information is not necessarily indicative of what the actual results of operations and financial position of Pubco would have been had
the Business Combination taken place on the dates indicated, nor are they indicative of the future consolidated results of operations
or financial position of Pubco. They should be read in conjunction with the historical financial statements and notes thereto of ATII
and Forge Nano.
Accounting Policies
Upon consummation of the Business Combination,
management of Pubco performed a comprehensive review of the two entities’ accounting policies. As a result of the review, management
of Pubco did not identify any differences that would have a material impact on the unaudited pro forma condensed combined financial information.
As a result, the unaudited pro forma condensed combined financial information does not assume any differences in accounting policies.
Adjustments to Unaudited Pro Forma Condensed
Combined Financial Information
The unaudited pro forma condensed combined financial
information has been prepared to illustrate the effect of the Business Combination and has been prepared for informational purposes only.
The unaudited pro forma condensed combined financial
information has been prepared in accordance with Article 11 of Regulation S-X as amended by the final rule, Release No. 33-10786
“Amendments to Financial Disclosures about Acquired and Disposed Businesses” to depict the Transaction Accounting Adjustments
and present the Management’s Adjustments. ATII has elected not to present Management’s Adjustments and is only presenting
Transaction Accounting Adjustments in the unaudited pro forma condensed combined financial information. The historical financial statements
have been adjusted in the unaudited pro forma condensed combined financial information to include all necessary Transaction Accounting
Adjustments pursuant to Article 11 of Regulation S-X, including those that are not expected to have a continuing impact.
The unaudited and audited historical financial
statements have been adjusted in the unaudited pro forma condensed combined financial information to give pro forma effect to Transaction
Accounting Adjustments that reflect the accounting for the transaction under GAAP. Forge Nano and ATII have not had any historical relationship
prior to the Business Combination. Accordingly, no pro forma adjustments were required to eliminate activities between the companies.
The pro forma combined statements of operations
do not reflect a provision for income taxes or any amounts that would have resulted had Pubco filed consolidated income tax returns during
the periods presented. The pro forma condensed combined balance sheet does not reflect the deferred taxes of Pubco as a result of the
Business Combination. Since it is likely that Pubco will record a valuation allowance against the total U.S. and state deferred tax assets
given the net operating losses as the recoverability of the tax assets is uncertain, the tax provision is zero.
The pro forma basic and diluted earnings per share
amounts presented in the unaudited pro forma condensed combined statements of operations are based upon the number of shares of Pubco
Common Stock outstanding, assuming the Business Combination occurred on January 1, 2025.
(in thousands, except share and per share data)
As of June 30,
2026
Net loss
$ (33,897 )
Stockholders’ deficit
(685,144 )
Weighted average shares outstanding of common stock(1)
128,655,585
Net loss per common share, basic and diluted
$ (0.26 )
Book deficit per share
$ (5.33 )
(1) For the purposes of calculating diluted earnings per share,
all (i) the 11,500,000 shares of Pubco Common Stock underlying the Pubco SPAC Warrants that were originally issued as ATII Public
Warrants as part of the ATII Public Units in the IPO, (ii) the 420,000 shares of Pubco Common Stock underlying the Pubco SPAC Warrants
that were originally issued as ATII Private Warrants as part of the ATII Private Units issued in a private placement that closed simultaneously
with the closing of the IPO, (iii) the 7,031,175 shares of Pubco Common Stock underlying the PIPE Pre-funded Warrants, (iv) the
15,000,000 shares of Pubco Common Stock underlying the PIPE Warrants, (v) the 10,000,000 shares of Pubco Common Stock underlying
the Reset PIPE Warrants, (vi) the 5,000,000 shares of Pubco Common Stock underlying the Additional PIPE Warrants, (vii) the
421,792 shares of Pubco Common Stock underlying the Pubco Forge Nano Warrants, (viii) the 3,562,305 shares of Pubco Common Stock underlying
the Pubco Ascent Warrants, (ix) the 11,959,924 shares of Pubco Common Stock underlying the Pubco Options, (x) the 8,744,864
shares of Pubco Common Stock underlying the Employee Earnout PSUs, or (xi) the 90,000,000 Earn-Out Shares, should have been assumed
to have been exercised or issued. However, since this results in anti-dilution, the effect of such exercise or issuance was not included
in calculation of diluted earnings per share.
EX-99.2 — EXHIBIT 99.2
EX-99.2
Filename: tm2628316d1_ex99-2.htm · Sequence: 19
Exhibit 99.2
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL
INFORMATION
(ACQUISITION OF HzO)
Defined terms included below shall have the same
meaning as terms defined and included in the definitive proxy statement/prospectus of Forge Nano Holdings, Inc. (formerly ATII Holdings, Inc.),
dated September 22, 2026, filed with the U.S. Securities and Exchange Commission (the “SEC”) on September 24, 2026,
which forms a part of the registration statement on Form S-4 (File No. 333-295563) under the Securities Act of 1933, as amended,
initially filed with the SEC on May 5, 2026 and declared effective by the SEC on September 22, 2026.
The following unaudited pro forma condensed combined
financial information (acquisition of HzO) presents the consolidated balance sheet and statements of operations of the previously presented
pro forma combined company, after giving effect to the acquisition of HzO pursuant to the term sheet dated February 24, 2026, between
Forge Nano, Inc. and HzO, Inc. The unaudited pro forma condensed combined financial information (acquisition of HzO) is derived
from and should be read in conjunction with:
· the unaudited pro forma condensed combined financial
statements as of and for the six months ended June 30, 2026, included in the Proxy Statement/Prospectus and incorporated herein by
reference;
· the unaudited pro forma condensed combined financial
statements for the year ended December 31, 2025, included in the Proxy Statement/Prospectus and incorporated herein by reference;
· HzO’s unaudited consolidated financial
statements as of and for the six months ended June 30, 2026, included in the Proxy Statement/Prospectus and incorporated herein by
reference; and
· HzO’s audited consolidated financial statements
for the year ended December 31, 2025, included in the Proxy Statement/Prospectus and incorporated herein by reference.
The accompanying unaudited pro forma condensed
combined financial information (acquisition of HzO) has been prepared in accordance with Article 11 of Regulation S-X and reflects
the impact of the probable acquisition of HzO on the previously presented pro forma combined financial information.
The unaudited pro forma condensed combined balance
sheet (acquisition of HzO) and the unaudited pro forma condensed combined statements of operations (acquisition of HzO), referred to collectively
as the unaudited pro forma condensed combined financial information (acquisition of HzO), were prepared using the acquisition method of
accounting for the acquisition of HzO. Under this method of accounting, which is in accordance with Accounting Standards Codification
805 — Business Combinations (“ASC 805”) under generally accepted accounting principles in the United States
(“U.S. GAAP”), Forge Nano is the accounting acquirer of HzO and the purchase price for HzO is allocated to the underlying
assets acquired and liabilities assumed based on their respective fair values, with any excess purchase price allocated to goodwill.
The unaudited pro forma condensed combined balance
sheet (acquisition of HzO) reflects the estimated effects of the acquisition of HzO as if it had been completed on June 30, 2026,
and the unaudited pro forma condensed combined statements of operations (acquisition of HzO) reflect the estimated effects of the acquisition
of HzO as if it had been completed on January 1, 2025.
The unaudited pro forma condensed combined financial
information (acquisition of HzO) has been presented for informational purposes only and is not necessarily indicative of what the combined
financial position or results of operations would have been had the acquisition of HzO been completed as of the date indicated. In addition,
the unaudited pro forma condensed combined financial information (acquisition of HzO) does not purport to project the future financial
position or operating results of the combined company.
The unaudited pro forma condensed combined financial
information (acquisition of HzO) contains adjustments that are preliminary and may be revised. There can be no assurance that such revisions
will not result in material changes to the information presented in the unaudited condensed combined pro forma financial information (acquisition
of HzO). The assumptions underlying the pro forma adjustments are described in greater detail in the accompanying notes to the unaudited
pro forma condensed combined financial information (acquisition of HzO).
Additional information about the basis of presentation
of this information is provided in “Note 2. Basis of Presentation” hereto.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE
SHEET
ACQUISITION OF HzO
JUNE 30, 2026
(in thousands, except share and per share data)
Existing
Pro Forma
Combined
HzO
(Historical)
Transaction
Accounting
Adjustments
Updated
Pro Forma
Combined
Assets
Current assets
Cash and cash equivalents
$ 140,717
$ 2,436
$ —
$ 143,153
Restricted cash and cash equivalents
1,026
—
—
1,026
Accounts receivable - net of allowance for credit losses
1,622
1,405
—
3,027
Contract assets - unbilled accounts receivable
6,822
—
—
6,822
Inventory
4,515
924
—
5,439
Prepaid expenses and other current assets
4,549
568
—
5,117
Total Current Assets
159,251
5,333
164,584
Property and equipment - net
23,962
2,749
5,267
(B)
31,978
Goodwill
3,124
8,079
11,372
(B)
22,575
Intangible asset - net
1,487
970
26,230
(B)
28,687
Restricted cash and cash equivalents
56
—
—
56
Right-of-use operating lease assets
65,270
2,335
—
67,605
Non-marketable equity securities
—
15,000
(15,000 )
(A)
—
Other assets
—
424
—
424
Deposits
2,993
—
—
2,993
Total Assets
$ 256,143
$ 34,890
$ 27,869
$ 318,902
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable
$ 3,638
$ 1,035
$ 200
(C)
$ 4,873
Current portion of operating lease liabilities
1,151
990
—
2,141
Contract liabilities - deferred revenue
3,526
398
—
3,924
Provision for loss on contract
752
—
—
752
Accrued and other current liabilities
6,432
1,527
—
7,959
Current portion of debt – net of discount
10,488
—
—
10,488
Unfavorable leasehold interest
—
—
74
(B)
74
Current portion of notes payable
—
23
23
Embedded derivative liability
—
50,881
(50,881 )
(A)
—
Convertible promissory notes, net of discount
—
15,255
(15,255 )
(A)
—
Warrant liability
—
2,067
(2,067 )
(A)
—
Total Current Liabilities
25,987
72,176
(67,929 )
30,234
Operating lease liabilities
64,864
1,555
—
66,419
Due to Sundew Technologies, LLC
2,809
—
—
2,809
Warrant liabilities
143,174
—
—
143,174
Other liabilities
—
141
—
141
Long-term notes payable, net of current portion
—
2,016
(2,000 )
(B)
16
Earn-out Shares liability
704,453
—
—
704,453
Total Liabilities
941,287
75,888
(69,929 )
947,246
Stockholders’ Deficit
Pubco Common Stock
13
—
1
(B)
14
Convertible preferred stock, $0.001 par value, 49,086,791,753 shares authorized; 28,014,564,020 shares issued and outstanding
—
28,015
(28,015 )
(B)
—
Common stock, $0.001 par value, 33,588,600,000 shares authorized; 44,824,953 shares issued and outstanding
—
45
(45 )
(B)
—
Additional paid-in capital
—
291,374
83,203
(A)
56,999
(317,578 )
(B)
Accumulated deficit
(685,157 )
(361,111 )
361,111
(B)
(685,357 )
200
(C)
Other comprehensive income
—
679
(679 )
(B)
—
Total Stockholders’ Deficit
(655,144 )
(40,998 )
97,798
(628,344 )
Total Liabilities and Stockholders’ Deficit
$ 256,143
34,890
27,869
318,902
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT
OF OPERATIONS
ACQUISITION OF HzO
FOR THE SIX MONTHS ENDED JUNE 30, 2026
(in thousands, except share and per share data)
Existing
Pro Forma
Combined
HzO
(Historical)
Transaction
Accounting
Adjustments
Updated
Pro Forma
Combined
Net Sales
Tool manufacturing and related services
$ 3,136
$ —
$ —
$ 3,136
Coating services
614
—
—
614
Battery manufacturing
351
—
—
351
Revenue - HzO
—
3,400
—
3,400
Total Net Sales
4,101
3,400
—
7,501
Cost of Sales
Tool manufacturing and related services
4,394
—
—
4,394
Coating services
2,666
—
—
2,666
Battery manufacturing
139
—
—
139
Cost of revenue - HzO
—
3,436
—
3,436
Total Cost of Sales
7,199
3,436
—
10,635
Gross loss
(3,098 )
(36 )
—
(3,134 )
Operating Expenses
General and administrative expenses
22,042
4,286
508
(AA)
28,656
1,820
(BB)
Sales and marketing
—
699
—
699
Research and development
—
408
—
408
Total operating expenses
22,042
5,393
2,328
29,763
Operating Loss
(25,140 )
(5,429 )
(2,328 )
(32,897 )
Other income (expense)
Interest earned on cash in bank account
19
—
—
19
Interest income
220
—
—
220
Grant income
1,819
—
—
1,819
Other income (expense)
70
(257 )
—
(187 )
Interest expense, change in fair value, and amortization of debt discount
(10,866 )
(4,753 )
—
(15,619 )
Foreign currency gain
—
754
—
754
Embedded derivative loss
—
(43,425 )
43,425
(EE)
—
Other expense
(19 )
—
—
(19 )
Total other expense, net
(8,757 )
(47,681 )
43,425
(13,013 )
Loss before provision for income taxes
(33,897 )
(53,110 )
41,097
(45,910 )
Provision for income taxes
—
70
(70 )
(CC)
—
Net loss
$ (33,897 )
$ (53,180 )
$ 41,167
$ (45,910 )
Weighted average number of shares outstanding, basic and diluted issued and outstanding
134,155,585
Net loss per share, basic and diluted
(0.34 )
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT
OF OPERATIONS
ACQUISITION OF HzO
FOR THE YEAR ENDED DECEMBER 31, 2025
(in thousands, except share and per share data)
Existing
Pro Forma
Combined
HzO
(Historical)
Transaction
Accounting
Adjustments
Updated
Pro Forma
Combined
Net Sales
Tool manufacturing and related services
$ 4,625
$ —
$ —
$ 4,625
Coating services
1,429
—
—
1,429
Battery manufacturing
1,334
—
—
1,334
Revenue - HzO
—
4,842
—
4,842
Total Net Sales
7,388
4,842
—
12,230
Cost of Sales
Tool manufacturing and related services
6,239
—
—
6,239
Coating services
3,921
—
—
3,921
Battery manufacturing
1,085
—
—
1,085
Cost of revenue - HzO
—
6,379
—
6,379
Total Cost of Sales
11,245
6,379
—
17,624
Gross loss
(3,857 )
(1,537 )
—
(5,394 )
Operating Expenses
General and administrative expenses
42,981
8,706
532
(AA)
56,060
3,641
(BB)
200
(DD)
Sales and marketing
—
2,023
—
2,023
Research and development
—
1,007
—
1,007
Total operating expenses
42,981
11,736
4,373
59,090
Operating Loss
(46,838 )
(13,273 )
(4,373 )
(64,484 )
Other income (expense)
Interest earned on cash in bank account
62
—
—
62
Interest income
637
—
—
637
Grant income
7,062
—
—
7,062
Other income (expense)
865
(3,502 )
—
(2,637 )
Interest expense, change in fair value, and amortization of debt discount
(6,515 )
(438 )
—
(6,953 )
Foreign currency gain
—
1,344
—
1,344
Other expense
(578 )
—
—
(578 )
Total other income (expense), net
1,533
(2,596 )
—
(1,063 )
Loss before provision for income taxes
(45,305 )
(15,869 )
(4,373 )
(65,547 )
Provision for income taxes
—
(240 )
240
(CC)
—
Net loss
$ (46,305 )
$ (15,629 )
$ (4,613 )
$ (65,547 )
Weighted average number of shares outstanding, basic and diluted issued and outstanding
134,155,585
Net loss per share, basic and diluted
(0.49 )
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED
FINANCIAL INFORMATION
(ACQUISTION OF HzO)
Note 1. Description of the Transaction
HzO, Inc. is a provider of parylene-based thin-film coating solutions
that protect electronic components from moisture, corrosion and other environmental damage, with operations in the United States, Mexico
and Asia. Forge Nano and HzO have entered into a term sheet pursuant to which Forge Nano would acquire 100% of the fully diluted equity
of HzO for total consideration of $55 million, payable in equity and subject to customary adjustments, and the parties are negotiating
a definitive merger agreement. The acquisition is expected to close following the closing of the Business Combination. HzO’s coating
capabilities are complementary to Forge Nano’s ALD platform and are expected to expand the combined company’s environmental
barrier protection offerings. The above proformas and below discussion are being disclosed because the consummation of the proposed transaction
has been deemed to be probable and it exceeds the income significant tests as defined in Rule 1-02(w) of Regulation S-X.
Note 2. Basis of Presentation
The accompanying unaudited pro forma condensed
combined financial information (acquisition of HzO) and related notes were prepared pursuant to Article 11 of SEC Regulation S-X.
The unaudited pro forma condensed combined statements
of operations (acquisition of HzO) for the six months ended June 30, 2026, and for the year ended December 31, 2025, combine
the unaudited pro forma condensed combined statements of operations and HzO’s historical unaudited and audited consolidated statements
of operations, giving effect to the acquisition of HzO as if it had been completed on January 1, 2025. The accompanying unaudited
pro forma condensed combined balance sheet (acquisition of HzO) as of June 30, 2026, combines the unaudited pro forma condensed combined
balance sheet and HzO’s historical unaudited consolidated balance sheet, giving effect to the acquisition of HzO as if it had been
completed on June 30, 2026.
Both the unaudited pro forma condensed combined
financial information and HzO’s financial statements were prepared in accordance with U.S. GAAP and presented in U.S. dollars.
The pro forma adjustments presented in this unaudited
pro forma condensed combined financial information (acquisition of HzO) represent management’s preliminary estimates based on information
available as of the date of the Proxy Statement/Prospectus and such estimates are subject to revision as further information is obtained.
Accordingly, the pro forma adjustments for the acquisition of HzO are preliminary and subject to further adjustment as additional information
becomes available and the various analyses and other valuations are performed. Any adjustments may have a significant effect on the unaudited
pro forma condensed combined financial information (acquisition of HzO) presented herein and such adjustments may be significant.
The assumptions underlying the pro forma adjustments
are described in the accompanying notes to this unaudited pro forma condensed combined financial information (acquisition of HzO).
The unaudited pro forma condensed combined financial
information (acquisition of HzO) may not be indicative of future performance and does not necessarily reflect what the financial position
and results of operations would have been had this transaction occurred at the beginning of the periods presented.
Further, the unaudited pro forma condensed combined
financial information (acquisition of HzO) does not purport to project the future operating results or financial position following the
completion of the acquisition of HzO. Additionally, the unaudited pro forma condensed combined financial information (acquisition of HzO)
does not reflect any revenue enhancements, anticipated synergies, operating efficiencies, or cost savings that may be achieved related
to the acquisition of HzO, nor does it reflect any costs or expenditures that may be required to achieve any possible synergies.
Forge Nano will finalize the accounting for the
acquisition of HzO as soon as practicable within the measurement period, but in no event later than one year from the closing date, in
accordance with ASC 805.
Forge Nano performed a preliminary review of HzO’s
accounting policies to determine whether any adjustments were necessary to ensure comparability in the unaudited pro forma condensed combined
financial information (acquisition of HzO). Currently, Forge Nano is not aware of any material differences between the accounting policies
of the Forge Nano and HzO that would continue to exist subsequent to the application of acquisition accounting.
Note 3. Estimated Purchase Price Consideration and Preliminary
Allocation
Purchase Price Consideration
The estimated preliminary purchase price consideration
transferred or estimated to be transferred for the acquisition of HzO is approximately $57.0 million. The following table summarizes the
components of the preliminary purchase price consideration reflected in the unaudited pro forma condensed combined financial information
(acquisition of HzO):
(in thousands)
Purchase Price Consideration
Base purchase price
$ 55,000
Plus: closing cash
2,436
Less: closing debt
-436
Less: deemed loan payoff amount
-2,000
Plus: preexisting relationship related to Forge Nano debt
2,000
Total
57,000
Preliminary Allocation of Purchase Price Consideration to Assets
Acquired and Liabilities Assumed
The fair values of the assets and liabilities
in the unaudited pro forma condensed combined financial information (acquisition of HzO) are based upon a preliminary assessment of fair
value and may change when the final valuation of assets acquired, and liabilities assumed has been prepared, as well as working capital
settlements are made. Valuation assessments of specifically identifiable tangible and intangible assets, including the determination of
their economic useful lives, have been performed based on currently available information and assumptions as of the closing date; however,
these assessments remain preliminary and subject to change during the measurement period.
Forge Nano expects to finalize the purchase price
allocation as soon as practicable, but no later than one year from the closing date. As such, the purchase price allocation may change.
There can be no assurance that such revisions will not result in material changes.
The preliminary allocation of the purchase price
consideration is as follows:
(in thousands)
Cash and cash equivalents
$ 2,436
Accounts receivable - net of allowance for credit losses
1,405
Inventory
924
Prepaid expenses and other current assets
568
Total current assets
5,333
Property and equipment
8,016
Intangible asset
27,200
Right-of-use operating lease assets
2,335
Other assets
424
Total assets acquired
$ 43,308
Accounts payable
$ 1,035
Current portion of operating lease liabilities
990
Accrued and other current liabilities
1,527
Deferred revenue
398
Current portion of notes payable
23
Unfavorable leasehold interest
74
Total current liabilities
4,047
Operating lease liabilities
1,555
Long-term notes payable, net of current portion
16
Other liabilities
141
Total liabilities assumed
$ 5,759
Net identifiable assets acquired
$ 37,349
Goodwill
19,451
Total consideration to be transferred
$ 57,000
Note 4. Adjustments to Unaudited Pro Forma
Condensed Combined Balance Sheet (Acquisition of HzO) as of June 30, 2026
The following describes the adjustments to the
unaudited pro forma condensed combined balance sheet (acquisition of HzO) as of June 30, 2026:
A. Non-marketable equity security represents shares
of Forge Nano which will be converted into shares of Pubco Common Stock at the closing of the Business Combination. These shares will
be received into treasury and are expected to be cancelled upon the consummation of the HzO acquisition. The convertible notes, along
with their associated warrants, will be converted prior to the closing of the transaction and exchanged for Pubco Common Stock. Accordingly,
these assets and liabilities were excluded from the preliminary analysis.
B. Represents the preliminary purchase price allocation.
C. Represents the accrual for estimated additional
non-recurring transaction related costs of $0.2 million, primarily consisting of professional fees, not reflected in the historical financial
information and estimated to be incurred subsequent to June 30, 2026.
Note 5. Adjustments to Unaudited Pro Forma
Condensed Combined Income Statements (Acquisition of HzO)
The following describes the adjustments to the
unaudited pro forma condensed combined statements of operations (acquisition of HzO) for the six months ended June 30, 2026, and
for the year ended December 31, 2025:
AA. Represents a net increase in depreciation
expense on a straight-line basis based on the preliminary step-up in fair value of the property and equipment and the respective assigned
estimated useful lives.
BB. Represents the pro forma adjustment to record
amortization expense based on the preliminary fair value of identified intangible assets.
CC. Reflects an adjustment to eliminate historical
income tax expense related to HzO.
DD. Represents the accrual for estimated additional
non-recurring transaction related costs of $0.2 million, primarily consisting of professional fees, not reflected in the historical financial
information and estimated to be incurred subsequent to June 30, 2026.
EE. Reflects an adjustment to eliminate historical
embedded derivative loss related to HzO.
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