ARTICLE II
OTHER COVENANTS
2.1 Stock Dividends, etc.
(a) In case of a stock dividend or distribution, or any change in shares of Company Common Stock by reason of any stock dividend or distribution, split-up, recapitalization, combination, exchange of shares or the like, for all purposes under this Agreement, the term “Covered Shares” shall be deemed to refer to and include the Covered Shares as well as all such stock dividends and distributions and any securities into which or for which any or all of the Covered Shares may be changed or exchanged or that are received in such transaction.
(b) The Supporting Stockholder shall, while this Agreement is in effect, notify the Company promptly in writing of the number of any additional shares of Company Common Stock, any additional options, warrants or rights or other awards to purchase shares of Company Common Stock or other voting capital stock of the Company and any other securities convertible into or exercisable or exchangeable for shares of Company Common Stock or other voting capital stock or securities of the Company acquired (beneficially or of record) by such Person, if any, after the date hereof.
2.2 Transfers.
(a) While this Agreement is in effect, the Supporting Stockholder shall not directly or indirectly (i) sell, transfer, pledge, encumber, assign, distribute, gift or otherwise dispose of (including by merger or otherwise by operation of law) (collectively, a “Transfer”) or (ii) enter into any voting trust, proxy, contract, option or other arrangement or understanding with respect to any Transfer (whether by actual disposition or effective economic disposition due to hedging, cash settlement or otherwise) of, any of the Covered Shares or any interest therein, unless, in each case, the transferee thereof enters into a joinder to this Agreement in the form set forth in Exhibit B.
(b) Any Transfer or attempted Transfer of any Company Common Stock in violation of Section 2.2(a) shall, to the fullest extent permitted by applicable Law, be null and void ab initio.
2.3 Adverse Actions.
(a) While this Agreement is in effect, the Supporting Stockholder shall not: (i) take, agree or commit to take any action that would reasonably be expected to make any representation and warranty of the Supporting Stockholder contained in this Agreement inaccurate in any material respect as of any time during the term of this Agreement; (ii) fail to take all reasonable action necessary to prevent any such representation or warranty from being inaccurate in any material respect at any such time; or (iii) take any action that would prevent, materially delay, or would reasonably be expected to delay in any material respect the Transactions.
(b) The Supporting Stockholder agrees not to commence, join in, facilitate, assist or encourage, and agrees to take all actions necessary to opt out of any class in any class action with respect to, any claim, derivative or otherwise, against the Company or any of its successors or directors (a) challenging the validity of, or seeking to enjoin the operation of, any provision of this Agreement or (b) alleging a breach of any fiduciary duty of any person in connection with the evaluation, negotiation or entry into the Note.
2.4 Disclosure. The Supporting Stockholder hereby consents to the publication and disclosure (and, as and to the extent otherwise required by applicable securities Laws or the Securities and Exchange Commission or any other securities authorities) by the Company of the Supporting Stockholder’s identity and beneficial ownership of the Existing Shares and the nature of the Supporting Stockholder’s commitments, arrangements and understandings under and relating to this Agreement and, if deemed appropriate by the Company, a copy of this Agreement. The Supporting Stockholder will promptly provide any information reasonably requested by the Company for any regulatory application or filing made or approval sought in connection with the Transactions (including filings with the Securities and Exchange Commission).
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