Form of Indenture relating to the New Securities



 Exhibit 4.3 
 HEADWATERS INCORPORATED, 
 AND 
 WELLS FARGO BANK, 
 NATIONAL ASSOCIATION 
 as Trustee 
  

 INDENTURE 
 Dated as of March
[    ], 2007 
  

 2 7/8% Convertible Senior Subordinated Notes due 2016 







 TABLE OF CONTENTS 
  


					
	 	  	 	 	Page
	 ARTICLE 1
	 	
		
	 DEFINITIONS
	 	
			
	 Section 1.01.
	  	 Definitions.
	 	1
		
	 ARTICLE 2
	 	
		
	 ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES
	 	
			
	 Section 2.01.
	  	 Designation Amount and Issue of Notes.
	 	11
	 Section 2.02.
	  	 Form of Notes.
	 	11
	 Section 2.03.
	  	 Date and Denomination of Notes; Payments of Interest.
	 	12
	 Section 2.04.
	  	 Execution of Notes.
	 	13
	 Section 2.05.
	  	 Exchange and Registration of Transfer of Notes; Restrictions on Transfer.
	 	14
	 Section 2.06.
	  	 Mutilated, Destroyed, Lost or Stolen Notes.
	 	17
	 Section 2.07.
	  	 Temporary Notes.
	 	18
	 Section 2.08.
	  	 Cancellation of Notes.
	 	18
	 Section 2.09.
	  	 CUSIP Numbers.
	 	19
		
	 ARTICLE 3
	 	
		
	 REDEMPTION AND REPURCHASE OF NOTES
	 	
			
	 Section 3.01.
	  	 Redemption of Notes.
	 	19
	 Section 3.02.
	  	 Notice of Redemption; Selection of Notes.
	 	21
	 Section 3.03.
	  	 Payment of Notes Called for Redemption by the Company.
	 	22
	 Section 3.04.
	  	 Conversion Arrangement on Call for Redemption.
	 	23
	 Section 3.05.
	  	 Repurchase at Option of Holders upon a Fundamental Change.
	 	24
	 Section 3.06.
	  	 Repurchase of Notes by the Company at Option of the Holder.
	 	27
	 Section 3.07.
	  	 Company Repurchase Notice.
	 	28
	 Section 3.08.
	  	 Effect of Repurchase Notice.
	 	29
	 Section 3.09.
	  	 Deposit of Repurchase Price.
	 	30
	 Section 3.10.
	  	 Notes Repurchased in Part.
	 	30
	 Section 3.11.
	  	 Repayment to the Company.
	 	30
		
	 ARTICLE 4
	 	
		
	 CONTINGENT INTEREST
	 	
			
	 Section 4.01.
	  	 Contingent Interest.
	 	30
	 Section 4.02.
	  	 Payment of Contingent Interest.
	 	31
	 Section 4.03.
	  	Contingent Interest Notification.	 	31

  

 i 









					
		
	 ARTICLE 5
	 	
		
	 PARTICULAR COVENANTS OF THE COMPANY
	 	
			
	 Section 5.01.
	  	 Payment of Principal and Interest.
	 	31
	 Section 5.02.
	  	 Maintenance of Office or Agency.
	 	31
	 Section 5.03.
	  	 Appointments to Fill Vacancies in Trustee’s Office.
	 	32
	 Section 5.04.
	  	 Provisions as to Paying Agent.
	 	32
	 Section 5.05.
	  	 Existence.
	 	33
	 Section 5.06.
	  	 Maintenance of Properties.
	 	33
	 Section 5.07.
	  	 Payment of Taxes and Other Claims.
	 	33
	 Section 5.08.
	  	 Stay, Extension and Usury Laws.
	 	34
	 Section 5.09.
	  	 Compliance Certificate.
	 	34
	 Section 5.10.
	  	 Limitation on Senior Subordinated Indebtedness.
	 	34
	 Section 5.11.
	  	 Contingent Debt Tax Treatment.
	 	34
	 Section 5.12.
	  	 Calculation of Original Issue Discount.
	 	35
		
	 ARTICLE 6
	 	
		
	 NOTEHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
	 	
			
	 Section 6.01.
	  	 Noteholders’ Lists.
	 	35
	 Section 6.02.
	  	 Preservation and Disclosure of Lists.
	 	35
	 Section 6.03.
	  	 Reports by Trustee.
	 	36
	 Section 6.04.
	  	 Reports by Company.
	 	36
		
	 ARTICLE 7
	 	
		
	 REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT
	 	
			
	 Section 7.01.
	  	 Events of Default.
	 	36
	 Section 7.02.
	  	 Payments of Notes on Default; Suit Therefor.
	 	38
	 Section 7.03.
	  	 Application of Monies Collected by Trustee.
	 	39
	 Section 7.04.
	  	 Proceedings by Noteholder.
	 	40
	 Section 7.05.
	  	 Proceedings by Trustee.
	 	41
	 Section 7.06.
	  	 Remedies Cumulative and Continuing.
	 	41
	 Section 7.07.
	  	 Direction of Proceedings and Waiver of Defaults by Majority of Noteholders.
	 	41
	 Section 7.08.
	  	 Notice of Default.
	 	42
	 Section 7.09.
	  	 Undertaking to Pay Costs.
	 	42
		
	 ARTICLE 8
	 	
		
	 THE TRUSTEE
	 	
			
	 Section 8.01.
	  	 Duties and Responsibilities of Trustee.
	 	43
	 Section 8.02.
	  	 Reliance on Documents, Opinions, Etc.
	 	44

  

 ii 









					
	 Section 8.03.
	  	No Responsibility for Recitals, Etc.	 	46
	 Section 8.04.
	  	 Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes.
	 	46
	 Section 8.05.
	  	 Monies to Be Held in Trust.
	 	46
	 Section 8.06.
	  	 Compensation and Expenses of Trustee.
	 	46
	 Section 8.07.
	  	 Officer’s Certificate as Evidence.
	 	47
	 Section 8.08.
	  	 Conflicting Interests of Trustee.
	 	47
	 Section 8.09.
	  	 Eligibility of Trustee.
	 	47
	 Section 8.10.
	  	 Resignation or Removal of Trustee.
	 	47
	 Section 8.11.
	  	 Acceptance by Successor Trustee.
	 	48
	 Section 8.12.
	  	 Succession by Merger.
	 	49
	 Section 8.13.
	  	 Preferential Collection of Claims.
	 	49
	 Section 8.14.
	  	 Trustee’s Application for Instructions from the Company.
	 	50
		
	 ARTICLE 9
	 	
		
	 THE NOTEHOLDERS
	 	
			
	 Section 9.01.
	  	 Action by Noteholders.
	 	50
	 Section 9.02.
	  	 Proof of Execution by Noteholders.
	 	50
	 Section 9.03.
	  	 Who Are Deemed Absolute Owners.
	 	50
	 Section 9.04.
	  	 Company-owned Notes Disregarded.
	 	51
	 Section 9.05.
	  	 Revocation of Consents; Future Holders Bound.
	 	51
		
	 ARTICLE 10
	 	
		
	 MEETINGS OF NOTEHOLDERS
	 	
			
	 Section 10.01.
	  	 Purpose of Meetings.
	 	51
	 Section 10.02.
	  	 Call of Meetings by Trustee.
	 	52
	 Section 10.03.
	  	 Call of Meetings by Company or Noteholders.
	 	52
	 Section 10.04.
	  	 Qualifications for Voting.
	 	52
	 Section 10.05.
	  	 Regulations.
	 	53
	 Section 10.06.
	  	 Voting.
	 	53
	 Section 10.07.
	  	 No Delay of Rights by Meeting.
	 	54
		
	 ARTICLE 11
	 	
		
	 SUPPLEMENTAL INDENTURES
	 	
			
	 Section 11.01.
	  	 Supplemental Indentures Without Consent of Noteholders.
	 	54
	 Section 11.02.
	  	 Supplemental Indenture with Consent of Noteholders.
	 	55
	 Section 11.03.
	  	 Effect of Supplemental Indenture.
	 	56
	 Section 11.04.
	  	 Notation on Notes.
	 	56
	 Section 11.05.
	  	 Evidence of Compliance of Supplemental Indenture to Be Furnished to Trustee.
	 	57

  

 iii 









					
		
	 ARTICLE 12
	 	
		
	 CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE
	 	
			
	 Section 12.01.
	  	 Company May Consolidate on Certain Terms.
	 	57
	 Section 12.02.
	  	 Successor to Be Substituted.
	 	57
	 Section 12.03.
	  	 Opinion of Counsel to Be Given to Trustee.
	 	58
		
	 ARTICLE 13
	 	
		
	 SATISFACTION AND DISCHARGE OF INDENTURE
	 	
			
	 Section 13.01.
	  	 Discharge of Indenture.
	 	58
	 Section 13.02.
	  	 Deposited Monies to Be Held in Trust by Trustee.
	 	59
	 Section 13.03.
	  	 Paying Agent to Repay Monies Held.
	 	59
	 Section 13.04.
	  	 Return of Unclaimed Monies.
	 	59
	 Section 13.05.
	  	 Reinstatement.
	 	59
		
	 ARTICLE 14
	 	
		
	 IMMUNITY OF INCORPORATORS, SHAREHOLDERS, OFFICERS AND DIRECTORS
	 	
			
	 Section 14.01.
	  	 Indenture and Notes Solely Corporate Obligations.
	 	59
		
	 ARTICLE 15
	 	
		
	 CONVERSION OF NOTES
	 	
			
	 Section 15.01.
	  	 Right to Convert.
	 	60
	 Section 15.02.
	  	 Conversion Procedures.
	 	63
	 Section 15.03.
	  	 Payment Upon Conversion
	 	65
	 Section 15.04.
	  	 Cash Payments in Lieu of Fractional Shares.
	 	66
	 Section 15.05.
	  	 Conversion Rate.
	 	66
	 Section 15.06.
	  	 Adjustment of Conversion Rate.
	 	66
	 Section 15.07.
	  	 Adjustments Upon Certain Fundamental Changes.
	 	74
	 Section 15.08.
	  	 Effect of Reclassification, Consolidation, Merger or Sale.
	 	76
	 Section 15.09.
	  	 Taxes on Shares Issued.
	 	77
	 Section 15.10.
	  	 Reservation of Shares; Shares to Be Fully Paid; Compliance with Governmental Requirements; Listing of Common Stock.
	 	77
	 Section 15.11.
	  	 Responsibility of Trustee.
	 	78
	 Section 15.12.
	  	 Notice to Holders Prior to Certain Actions.
	 	78
	 Section 15.13.
	  	 Shareholder Rights Plans.
	 	79
		
	 ARTICLE 16
	 	
		
	 SUBORDINATION
	 	
			
	 Section 16.01.
	  	 Agreement to Subordinate.
	 	79

  

 iv 









					
	 Section 16.02.
	  	 Liquidation, Dissolution, Bankruptcy.
	 	80
	 Section 16.03.
	  	 Default on Senior Indebtedness.
	 	80
	 Section 16.04.
	  	 Acceleration of Payment of Notes.
	 	81
	 Section 16.05.
	  	 When Distribution Must Be Paid Over.
	 	81
	 Section 16.06.
	  	 Subrogation.
	 	81
	 Section 16.07.
	  	 Relative Rights.
	 	81
	 Section 16.08.
	  	 Subordination May Not Be Impaired by Company.
	 	82
	 Section 16.09.
	  	 Rights of Trustee and Paying Agent.
	 	82
	 Section 16.10.
	  	 Distribution or Notice to Representative.
	 	82
	 Section 16.11.
	  	 Article 16 Not to Prevent Events of Default or Limit Right to Accelerate.
	 	82
	 Section 16.12.
	  	 Trust Monies Not Subordinated.
	 	82
	 Section 16.13.
	  	 Trustee Entitled to Rely.
	 	82
	 Section 16.14.
	  	 Trustee to Effectuate Subordination.
	 	83
	 Section 16.15.
	  	 Trustee Not Fiduciary for Holders of Senior Indebtedness.
	 	83
	 Section 16.16.
	  	 Reliance by Noteholders of Senior Indebtedness on Subordination Provisions.
	 	83
		
	 ARTICLE 17
	 	
		
	 MISCELLANEOUS PROVISIONS
	 	
			
	 Section 17.01.
	  	 Provisions Binding on Company’s Successors.
	 	83
	 Section 17.02.
	  	 Official Acts by Successor Corporation.
	 	84
	 Section 17.03.
	  	 Addresses for Notices, Etc.
	 	84
	 Section 17.04.
	  	 Governing Law.
	 	84
	 Section 17.05.
	  	 Evidence of Compliance with Conditions Precedent; Certificates to Trustee.
	 	84
	 Section 17.06.
	  	 Legal Holidays.
	 	85
	 Section 17.07.
	  	 Company Responsible for Making Calculations.
	 	85
	 Section 17.08.
	  	 Trust Indenture Act.
	 	85
	 Section 17.09.
	  	 No Security Interest Created.
	 	85
	 Section 17.10.
	  	 Benefits of Indenture.
	 	86
	 Section 17.11.
	  	 Table of Contents, Headings, Etc.
	 	86
	 Section 17.12.
	  	 Authenticating Agent.
	 	86
	 Section 17.13.
	  	 Execution in Counterparts
	 	87
	 Section 17.14
	  	 . Severability
	 	87
		
	 Exhibit A -FORM OF NOTE
	 	

  

 v 








 INDENTURE 
 INDENTURE dated as of March [    ], 2007, between HEADWATERS INCORPORATED, a Delaware corporation (hereinafter called the “Company”), having its principal office at 10653 South
Riverfront Parkway, Suite 300, South Jordan, UT 84095, and Wells Fargo Bank, National Association, a national banking association, as trustee hereunder (hereinafter called the “Trustee”). 
 WITNESSETH: 
 WHEREAS, for its lawful
corporate purposes, the Company has duly authorized the issue of its 2-7/8% Convertible Senior Subordinated Notes due 2016 (hereinafter called the “Notes”), in an aggregate principal amount not to exceed $172,500,000 and, to provide the
terms and conditions upon which the Notes are to be authenticated, issued and delivered, the Company has duly authorized the execution and delivery of this Indenture; and 
 WHEREAS, the Notes, the certificate of authentication to be borne by the Notes, a form of assignment, a form of Fundamental Change Repurchase Notice, a form of Repurchase Notice and a form of Conversion Notice to be
borne by the Notes are to be substantially in the forms hereinafter provided for; and 
 WHEREAS, all acts and things necessary to make the
Notes, when executed by the Company and authenticated and delivered by the Trustee or a duly authorized authenticating agent, as in this Indenture provided, the valid, binding and legal obligations of the Company, and to constitute this Indenture a
valid agreement according to its terms, have been done and performed, and the execution of this Indenture and the issue hereunder of the Notes have in all respects been duly authorized, 
 NOW, THEREFORE, THIS INDENTURE WITNESSETH: 
 That in order to declare the terms and conditions upon which the Notes are, and are to be, authenticated, issued and delivered, and in consideration of the premises and of the purchase and acceptance of the Notes by the holders thereof, the
Company covenants and agrees with the Trustee for the equal and proportionate benefit of the respective holders from time to time of the Notes (except as otherwise provided below), as follows: 
 ARTICLE 1 
 DEFINITIONS 
 Section 1.01. Definitions. The terms defined in this Section 1.01 (except as herein otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture and of any
indenture supplemental hereto shall have the respective meanings specified in this Section 1.01. All other terms used in this Indenture that are defined in the Trust Indenture Act or which are by reference therein defined in the Securities Act
(except as herein otherwise expressly provided or unless the context otherwise requires) shall have the meanings assigned to such terms in the Trust Indenture Act and in the Securities Act as in force at the date of the execution of this Indenture.
The words “herein,” “hereof,” “hereunder” and words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision. The terms defined in this Article include the
plural as well as the singular. 







 “2.50% Convertible Notes” means any of the Company’s 2.50% Convertible Senior Subordinated
Notes dues 2014. 
 “Additional Shares” has the meaning specified in Section 15.07(a). 
 “Adjustment Event” has the meaning specified in Section 15.06(k). 
 “Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For the purposes of this definition, “control,” when used with respect to any specified Person means the power to direct or cause the direction of the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
 “Agent Members” has the meaning specified in Section 2.05(b). 
 “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the relief of debtors. 
 “Board of Directors” means the Board of Directors of the Company or a committee of such Board duly authorized to act for it hereunder.

 “Business Day” means any day except a Saturday, Sunday or legal holiday on which banking institutions in The City of New York
are authorized or obligated by law, regulation or executive order to close. 
 “Calendar Quarter” means, with respect to the
Company, the first, second, third and fourth quarter of any fiscal year ending on March 31, June 30, September 30 and December 31, respectively. 
 “Cash Percentage” shall have the meaning specified in Section 15.02. 
 “Cash Percentage
Notice” shall have the meaning specified in Section 15.02. 
 “Closing Sale Price” of the shares of Common Stock on any
date means the closing sale price per share (or, if no closing sale price is reported, the average of the closing bid and ask prices or, if more than one in either case, the average of the average closing bid and the average closing ask prices) on
such date as reported in composite transactions for the principal United States securities exchange on which shares of Common Stock are traded or, if the shares of Common Stock are not listed on a United States national or regional securities
exchange, as reported by the National Quotation Bureau Incorporated. In the absence of such quotations, the Company shall be entitled to determine the Closing Sale Price on the basis it considers appropriate. The Closing Sale Price shall be
determined without reference to extended or after-hours trading. 
  

 2 








 “Commission” means the Securities and Exchange Commission, as from time to time constituted,
created under the Exchange Act, or, if at any time after the execution of this Indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time.

 “Common Stock” means any stock of any class of the Company which has no preference in respect of dividends or of amounts payable
in the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company and which is not subject to redemption by the Company. Subject to the provisions of Section 15.08, however, shares issuable on conversion of
Notes shall include only shares of the class designated as common stock of the Company at the date of this Indenture (namely, the Common Stock, par value $0.01) or shares of any class or classes resulting from any reclassification or
reclassifications thereof and which have no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company and which are not subject to redemption by the
Company; provided that, if at any time there shall be more than one such resulting class, the shares of each such class then so issuable on conversion shall be substantially in the proportion which the total number of shares of such class
resulting from all such reclassifications bears to the total number of shares of all such classes resulting from all such reclassifications. 
 “Company” means the corporation named as the “Company” in the first paragraph of this Indenture, and, subject to the provisions of Article 12 and Section 15.08, shall include its successors and assigns. 

“Company Repurchase Notice” has the meaning specified in Section 3.07(b). 
 “Company Repurchase Notice Date” has the meaning specified in Section 3.07(b). 
 “Contingent Interest” has the meaning specified in Section 4.01. 
 “Conversion Date” has the meaning specified in Section 15.02. 
 “Conversion Notice” has the meaning specified in Section 15.02. 
 “Conversion Price” as of any day will equal $1,000 divided by the Conversion Rate as of such date. 
 “Conversion Rate” has the meaning specified in Section 15.05. 
 “Corporate Trust Office” or other similar term means the designated office of the Trustee at which at any particular time its corporate trust
business as it relates to this Indenture shall be administered, which office is, at the date as of which this Indenture is dated, located at Sixth & Marquette; N9303-120 Minneapolis, MN 55479, Attention: Corporate Trust Services.

 “Credit Agreement” means that certain Credit Agreement dated as of September 8, 2004 (as amended and modified pursuant to
consents dated November 6, 2004 and December 16, 2004, Amendment No. 2 to the Credit Agreement dated March 14, 2005, Amendment No. 3 to the Credit Agreement dated May 19, 2005, Amendment No. 4 to the Credit
Agreement dated 

  

 3 








 
October 26, 2005, Amendment No. 5 to the Credit Agreement dated June 27, 2006, Amendment No. 6 to the Credit Agreement dated
August 30, 2006 and Amendment No. 7 to the Credit Agreement dated January 12, 2007) among Headwaters Incorporated, the lender parties thereto, Morgan Stanley & Co. Incorporated, as collateral agent, and Morgan Stanley Senior
Funding, Inc., as administrative agent, and as further amended, modified, supplemented, restated, refinanced or replaced from time to time, and the Loan Documents (as defined therein), as amended, modified, supplemented, restated, refinanced or
replaced from time to time. 
 “Current Market Price” has the meaning specified in Section 15.06(g). 
 “Custodian” means Wells Fargo Bank, National Association, as custodian with respect to the Notes in global form, or any successor entity
thereto. 
 “Daily Conversion Value” means, for each of the 20 consecutive Trading Days during the Observation Period,
one-twentieth of the product of (i) the applicable Conversion Rate and (ii) the Daily VWAP of Common Stock (or the consideration into which our Common Stock has been exchanged in connection with certain corporate transactions) for such
Trading Day. 
 “Daily Settlement Amount,” for each of the 20 Trading Days during the Observation Period, shall consist of:

 (i) cash in an amount equal to the lesser of $50 and the Daily Conversion Value for such Trading Day; and 
 (ii) to the extent the Daily Conversion Value exceeds $50, a number of shares of Common Stock equal to (x) the difference between the
Daily Conversion Value and $50, divided by (y) the Daily VWAP for such day, subject to the Company’s right to deliver cash in lieu of all or a portion of such Common Stock in accordance with Section 15.04. 
 “Daily Share Amount” shall mean, with respect to each Trading Day in the Observation Period, an amount equal to the following: (i) if the
Daily Conversion Value for such Trading Day is equal to or less than $50, then the Daily Share Amount with respect to such Trading Day shall mean an amount equal to zero; and (ii) if the Daily Conversion Value for such Trading Day exceeds $50,
then the Daily Share Amount with respect to such Trading Day shall mean a fraction (a) whose numerator is the excess of such Daily Conversion Value over $50 and (b) whose denominator is the Daily VWAP per share of Common Stock (or
Reference Property, if applicable) on such Trading Day. 
 “Daily VWAP” means, for each of the 20 consecutive Trading Days during
the Observation Period, the per share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page “HW.N <equity> AQR” (or its equivalent successor if such page is not available) in
respect of the period from the scheduled open of trading until the scheduled close of trading of the primary trading session on such Trading Day (or if such volume-weighted average price is unavailable, the market value of one share of Common Stock
on such Trading Day determined, using a volume-weighted average method, by a nationally recognized independent investment banking firm retained for such purpose by the Company). 
  

 4 








 “Default” means any event that is, or after notice or passage of time, or both, would be, an
Event of Default. 
 “Defaulted Interest” has the meaning specified in Section 2.03. 
 “Depositary” means the clearing agency registered under the Exchange Act that is designated to act as the Depositary for the Global Notes. The
Depository Trust Company shall be the initial Depositary, until a successor shall have been appointed and become such pursuant to the applicable provisions of this Indenture, and thereafter, “Depositary” shall mean or include such
successor. 
 “Designated Senior Indebtedness” of the Company means (a) the Credit Agreement and (b) any other Senior
Indebtedness of the Company that, at the date of determination, has an aggregate principal amount outstanding of, or under which, at the date of determination, the holders thereof are committed to lend up to, at least $25,000,000 and is specifically
designated by the Company in the instrument evidencing or governing such Senior Indebtedness as “Designated Senior Indebtedness” for purposes of this Indenture. 
 “Determination Date” has the meaning specified in Section 15.06(k). 
 “Effective
Date” has the meaning specified in Section 15.07(b) 
 “Event of Default” means any event specified in Section 7.01
as an Event of Default. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder, as in effect from time to time. 
 “Ex-Dividend Time” has the meaning specified in Section 15.01(b).

 “Expiration Time” has the meaning specified in Section 15.06(f). 
 “Fair Market Value” has the meaning specified in Section 15.06(g)(ii). 
 “Fundamental Change” means the occurrence of any of the following events at any time after the Notes are originally issued: 
 (1) a “person” or “group” within the meaning of Section 13(d) of the Exchange Act other than the Company, its Subsidiaries or its
or their employee benefit plans, files a Schedule TO or any schedule, form or report under the Exchange Act disclosing that such person or group has become the direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the
Exchange Act, of the Company’s common equity representing more than 50% of the voting power of the Company’s common equity; 
 (2)
consummation of any share exchange, consolidation or merger of the Company (excluding a merger solely for the purpose of changing the Company’s jurisdiction of incorporation) pursuant to which the Common Stock will be converted into cash,
securities or other property or any sale, lease or other transfer in one transaction or a series of transactions of all or substantially all of the consolidated assets of the Company and its Subsidiaries, taken as a 

  

 5 








 
whole, to any Person other than one of the Company’s Subsidiaries; provided, however, that a transaction where the holders of more than
50% of all classes of the Company’s common equity immediately prior to such transaction own, directly or indirectly, more than 50% of all classes of common equity of the continuing or surviving corporation or transferee or the parent thereof
immediately after such event shall not be a Fundamental Change; 
 (3) the Company’s stockholders approve any plan or proposal for the
liquidation or dissolution of the Company; or 
 (4) the Common Stock, or other common stock into which the Notes are then convertible,
ceases to be listed on a national securities exchange. 
 “Fundamental Change Expiration Time” has the meaning specified in
Section 3.05(b). 
 “Fundamental Change Notice” has the meaning specified in Section 3.05(b). 
 “Fundamental Change Repurchase Date” has the meaning specified in Section 3.05(a). 
 “Fundamental Change Repurchase Notice” has the meaning specified in Section 3.05(a). 
 “Global Note” has the meaning specified in Section 2.02. 
 “Indebtedness” means, with respect to any Person on any date of determination, without duplication, the principal or face amount of (i) all obligations for borrowed money, (ii) all obligations
evidenced by notes, bonds or other similar instruments, (iii) all obligations in respect of letters of credit or bankers’ acceptances or similar instruments (or reimbursement obligations with respect thereto), (iv) all obligations to
pay the deferred purchase price of property or services, except any such balance that constitutes an accrued expense or trade payable, (v) all obligations as lessee which are capitalized in accordance with generally accepted accounting
principles, (vi) representing any amounts owing in respect to foreign exchange and interest rate, commodity or other hedging agreements, and (vii) all Indebtedness of others guaranteed by such Person or any of its Subsidiaries or for which
such Person or any of its Subsidiaries is legally responsible or liable (whether by agreement to purchase indebtedness of, or to supply funds or to invest in, others). 
 “Indenture” means this instrument as originally executed or, if amended or supplemented as herein provided, as so amended or supplemented. 
 “Interest” means, when used with reference to the Notes, any interest payable under the terms of the Notes, including Contingent Interest, if
any. 
 “Make Whole Payment” means, with respect to each $1,000 principal amount of Notes, a payment in cash, Common Stock or a
combination thereof equal to the present value of all remaining scheduled payments of Interest on the Notes to be redeemed through June 1, 2011. Present value will be computed using a discount rate equal to the Treasury Yield. 
 “Market Disruption Event” means (i) a failure by the primary United States national securities exchange or market on which the Common
Stock is listed or admitted to trading to 

  

 6 








 
open for trading during its regular trading session or (ii) the occurrence or existence prior to 1:00 p.m. on any Scheduled Trading Day for the Common
Stock for an aggregate one half hour period of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the stock exchange or otherwise) in the Common Stock or in any options, contracts or future
contracts relating to the Common Stock. 
 “Measurement Period” has the meaning specified in Section 15.01(a). 
 “Note” or “Notes” means any Note or Notes, as the case may be, authenticated and delivered under this Indenture, including any Global
Note. 
 “Noteholder” or “holder” as applied to any Note, or other similar terms (but excluding the term “Beneficial
Holder”), means any Person in whose name at the time a particular Note is registered on the Note Registrar’s books. 
 “Note
Register” has the meaning specified in Section 2.05. 
 “Note Registrar” has the meaning specified in Section 2.05.

 “Notice Date” means the date of mailing of the notice of redemption pursuant to Section 3.02. 
 “Observation Period” with respect to any Note tendered for conversion means the 20 consecutive Trading Days beginning on, and including, the
second Scheduled Trading Day following the related Conversion Date. 
 “Officer” means, with respect to the Company, its Chairman
of the Board, the Chief Executive Officer, the President or any Vice President (whether or not designated by a number or numbers or word or words added before or after the title “Vice President”) and the Treasurer or any Assistant
Treasurer, or the Secretary or Assistant Secretary of the Company. 
 “Officer’s Certificate,” when used with respect to the
Company, means a certificate signed by an Officer thereof. 
 “Old Notes”
means any of the Company’s 2 7/8% Convertible Senior Subordinated Notes dues 2016, authenticated and
delivered under the Indenture dated as of June 1, 2004, between the Company and the Trustee, including any global note thereof. 
 “Opinion of Counsel” means a written opinion of counsel who may be external or in-house counsel for the Company, reasonably acceptable to the Trustee. 
 “Outstanding,” when used with reference to Notes and subject to the provisions of Section 9.04, means, as of any particular time, all Notes authenticated and delivered by the Trustee under this
Indenture, except: 
 (a) Notes theretofore canceled by the Trustee or delivered to the Trustee for cancellation; 

 

 7 








 (b) Notes, or portions thereof, (i) for the redemption of which monies in the
necessary amount shall have been deposited in trust with the Trustee or with any paying agent (other than the Company) or (ii) which shall have been otherwise discharged in accordance with Article 13; 
 (c) Notes in lieu of which, or in substitution for which, other Notes shall have been authenticated and delivered pursuant to the terms of
Section 2.06; and 
 (d) Notes converted pursuant to Article 15 and Notes deemed not outstanding pursuant to Article 3.

 “Payment Blockage Notice” has the meaning specified in Section 16.03(a). 
 “Permitted Junior Securities” means (i) equity interests in the Company or (ii) debt securities that are subordinated to all Senior
Indebtedness and any debt securities issued in exchange for Senior Indebtedness to the same extent as, or to a greater extent than, the Notes are subordinated to Senior Indebtedness under this Indenture. 
 “Person” means a corporation, an association, a partnership, a limited liability company, an individual, a joint venture, a joint stock
company, a trust, an unincorporated organization or a government or an agency or a political subdivision thereof. 
 “Predecessor
Note” of any particular Note means every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note, and, for the purposes of this definition, any Note authenticated and delivered under
Section 2.06 in exchange for a mutilated Note or in lieu of a lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated lost, destroyed or stolen Note that it replaces. 
 “Publicly Traded Securities” means, in respect of a transaction set forth in the definition of Fundamental Change, shares of common stock that
are traded on a U.S. national securities exchange or which will be so traded or quoted when issued or exchanged in connection with such Fundamental Change. 
 “Purchased Shares” has the meaning specified in Section 15.06(f)(i). 
 “Record
Date” has the meaning specified in Section 15.06(g)(iii). 
 “Reference Property” has the meaning specified in
Section 15.08. 
 “Repurchase Date” has the meaning specified in Section 3.06. 
 “Repurchase Notice” has the meaning specified in Section 3.06. 
 “Responsible Officer” shall mean, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee with
direct responsibility for the administration of this Indenture, and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of such person’s knowledge or any familiarity with
the particular subject. 
  

 8 








 “Scheduled Trading Day” means a day that is scheduled to be a Trading Day. 
 “Securities” has the meaning specified in Section 15.06(d). 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in effect from time to time. 
 “Senior Indebtedness” means (i) all Indebtedness of the Company outstanding under the Credit Agreement and all Hedging Obligations with
respect to secured obligations thereunder, including interest, fees, expenses, amounts payable under reimbursement obligations in connection with letters of credit and interest accruing after, or which would accrue but for the filing of a petition
initiating any proceeding pursuant to Bankruptcy Law at the rate specified in the Credit Agreement, whether or not a claim for such interest would be allowed), (ii) any other Indebtedness of the Company, whether outstanding on the date of the
Indenture or thereafter created, incurred, assumed, guaranteed or in effect guaranteed by the Company (including all deferrals, renewals, extensions or refundings of, or amendments, modifications or supplements to the foregoing) and (iii) all
Obligations with respect to the items listed in the preceding clauses (i) and (ii); provided, however, that Senior Indebtedness does not include: (a) Indebtedness evidenced by the Notes; (b) Indebtedness evidenced by the
Old Notes; (c) Indebtedness evidenced by the 2.50% Convertible Notes; (d) Indebtedness of the Company to any Subsidiary of the Company, except to the extent such Indebtedness is pledged by such Subsidiary as security for any Senior
Indebtedness of such Subsidiary; (e) any liability for federal, state, foreign, local or other taxes owed or owing by the Company; (f) accounts payable or other liabilities of the Company to trade creditors arising in the ordinary course
of business, and (g) any Indebtedness in which the instrument creating or evidencing the same or the assumption or guarantee thereof expressly provides that such Indebtedness is pari passu with, or is subordinated to, the Notes.

 “Senior Subordinated Indebtedness” of the Company means the Notes and any other Indebtedness of the Company that specifically
provides that such Indebtedness is to rank pari passu with the Notes in right of payment and is not subordinated by its terms in right of payment to any Indebtedness or other obligation of the Company which is not Senior Indebtedness.

 “Significant Subsidiary” means, as of any date of determination, a Subsidiary of the Company that would constitute a
“significant subsidiary” as such term is defined under Rule 1-02(w) of Regulation S-X of the Commission as in effect on the date of this Indenture. 
 “Stock Price” has the meaning specified in Section 15.07(b). 
 “Subordinated
Indebtedness” means any Indebtedness of the Company (whether outstanding on the date of this Indenture or thereafter Incurred) that is subordinate or junior in right of payment to the Notes pursuant to a written agreement. 
 “Subsidiary” means, with respect to any Person, (i) any corporation, association or other business entity of which more than 50% of the
total voting power of shares of capital stock or other equity interest entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or
indirectly, by such Person or one or more of the other subsidiaries of that Person (or a combination thereof) and (ii) any partnership (a) the sole general partner or managing general partner of which is such Person or a subsidiary of such
Person or (b) the only general partners of which are such Person or of one or more subsidiaries of such Person (or any combination thereof). 
  

 9 








 “Tax Original Issue Discount” means the amount of ordinary interest income on a Note that must
be accrued as original issue discount for United States federal income tax purposes pursuant to United States Treasury Regulation section 1.1275-4 or any successor provision. 
 “Trading Day” means a day on which (i) there is no Market Disruption Event and (ii) trading in securities generally occurs on the New
York Stock Exchange or, if the Common Stock is not then listed on the New York Stock Exchange, on the principal other United States national or regional securities exchange on which the Common Stock is then listed or, if the Common Stock is not then
listed on a United States national or regional securities exchange, on the principal other market on which the Common Stock is then traded. If the Common Stock (or other security for which a Daily VWAP must be determined) is not so listed or quoted,
“Trading Day” means a Business Day. 
 “Trading Price” means, on any date, the average of the secondary market bid
quotations per $1,000 principal amount of Notes obtained by the Trustee for $10,000,000 principal amount of Notes at approximately 3:30 p.m., New York City time, on such date from three independent nationally recognized securities dealers selected
by the Company; provided that if at least three such bids cannot reasonably be obtained by the Trustee, but two bids are obtained, then the average of the two such bids shall be used, and if only one such bid can reasonably be obtained by the
Trustee, that one bid shall be used ; provided further that if the Trustee cannot reasonably obtain at least one bid for $10,000,000 principal amount of Notes from a nationally recognized securities dealer, then the Trading Price per $1,000
principal amount of Notes on such date shall be deemed to be less than 98% of the product of (a) the number of shares of Common Stock issuable upon conversion of $1,000 principal amount of Notes and (b) the Closing Sale Price on such date.

 “Treasury Yield” means the yield to maturity at the time of computation of United States Treasury securities with a constant
maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least two business days prior to the redemption date (or, if such Statistical Release is no longer
published, any publicly available source for similar market data)) most nearly equal to the then remaining term to June 1, 2011; provided, however, that if the then remaining term to June 1, 2011 is not equal to the constant maturity of a
United States Treasury security for which a weekly average yield is given, the Treasury Yield shall be obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of United States Treasury
securities for which such yields are given, except that if the then remaining term to June 1, 2011 is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year
shall be used. 
 “Trigger Event” has the meaning specified in Section 15.06(d). 
 “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, as it was in force at the date of this Indenture, except as provided
in Sections 11.03 and 15.08; provided that if the Trust Indenture Act of 1939 is amended after the date hereof, the term “Trust Indenture Act” shall mean, to the extent required by such amendment, the Trust Indenture Act of 1939 as
so amended. 
  

 10 








 “Trustee” means Well Fargo Bank, National Association, and its successors and any corporation
resulting from or surviving any consolidation or merger to which it or its successors may be a party and any successor trustee at the time serving as successor trustee hereunder. 
 ARTICLE 2 
 ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES

 Section 2.01. Designation Amount and Issue of Notes. The Notes shall be designated as “2-7/8% Convertible Senior Subordinated Notes due
2016.” Notes not to exceed the aggregate principal amount of $172,500,000 (except pursuant to Sections 2.05, 2.06, 3.03, 3.05, 3.06, 3.10 and 16.02 hereof) upon the execution of this Indenture, or from time to time thereafter, may be executed
by the Company and delivered to the Trustee for authentication, and the Trustee shall thereupon authenticate and deliver said Notes to or upon the written order of the Company, signed by its Chairman of the Board, Chief Executive Officer, President
or any Vice President (whether or not designated by a number or numbers or word or words added before or after the title “Vice President”), the Treasurer or any Assistant Treasurer or the Secretary or Assistant Secretary, without any
further action by the Company hereunder. 
 Section 2.02. Form of Notes. The Notes and the Trustee’s certificate of authentication to be
borne by such Notes shall be substantially in the form set forth in Exhibit A. The terms and provisions contained in the form of Note attached as Exhibit A hereto shall constitute, and are hereby expressly made, a part of this
Indenture and, to the extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby. 
 Any of the Notes may have such letters, numbers or other marks of identification and such notations, legends, endorsements or changes as the officers
executing the same may approve (execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions of this Indenture, or as may be required by the Custodian, the Depositary or by the National Association of
Securities Dealers, Inc. or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange or automated quotation system on which the Notes may be
listed, or to conform to usage, or to indicate any special limitations or restrictions to which any particular Notes are subject. 
 So long
as the Notes are eligible for book-entry settlement with the Depositary, or unless otherwise required by law, or otherwise contemplated by Section 2.05(a), all of the Notes will be represented by one or more Notes in global form registered in
the name of the Depositary or the nominee of the Depositary (a “Global Note”). The transfer and exchange of beneficial interests in any such Global Note shall be effected through the Depositary in accordance with this Indenture and the
applicable procedures of the Depositary. Except as provided in Section 2.05(a), beneficial owners of a Global Note shall not be entitled to have certificates registered in their names, will not receive or be entitled to receive physical
delivery of certificates in definitive form and will not be considered holders of such Global Note. 
  

 11 








 Any Global Note shall represent such of the outstanding Notes as shall be specified therein and shall
provide that it shall represent the aggregate amount of outstanding Notes from time to time endorsed thereon and that the aggregate amount of outstanding Notes represented thereby may from time to time be increased or reduced to reflect redemptions,
repurchases, conversions, transfers or exchanges permitted hereby. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the amount of outstanding Notes represented thereby shall be made by the Trustee or the
Custodian, at the direction of the Trustee, in such manner and upon instructions given by the holder of such Notes in accordance with this Indenture. Payment of principal of and Interest on any Global Note shall be made to the holder of such Note.

 Section 2.03. Date and Denomination of Notes; Payments of Interest. The Notes shall be issuable in registered form without coupons in
denominations of $1,000 principal amount and integral multiples thereof. Each Note shall be dated the date of its authentication and shall bear Interest from the date specified on the face of the form of Note attached as Exhibit A hereto.
Interest on the Notes shall be computed on the basis of a 360-day year comprised of twelve 30-day months. 
 The Person in whose name any
Note (or its Predecessor Note) is registered on the Note Register at the close of business on any record date with respect to any interest payment date shall be entitled to receive the Interest payable on such interest payment date, except that the
Interest payable upon redemption or repurchase will be payable to the Person to whom principal is payable pursuant to such redemption or repurchase (unless the redemption date or the repurchase date, as the case may be, falls after a record date and
on or prior to the corresponding interest payment date, in which case accrued and unpaid Interest to, but excluding, such redemption date or repurchase date shall be payable on such interest payment date to the holders of such Notes registered as
such on the applicable record date). 
 Notwithstanding the foregoing, if any Note (or portion thereof) is converted during the period after
a record date for the payment of Interest to, but excluding, the next succeeding interest payment date and such Note (or portion thereof) has been called or tendered for redemption on a redemption date which occurs during such period, the Company
shall not be required to pay interest on such interest payment date in respect of any such Note (or portion thereof). Interest shall be payable at the office of the Company maintained by the Company for such purposes in the Borough of Manhattan,
City of New York, which shall initially be an office or agency of the Trustee. The Company shall pay Interest (i) on any Notes in certificated form by (x) check mailed to the address of the Person entitled thereto as it appears in the Note
Register (or upon written notice, by wire transfer in immediately available funds, if such Person is entitled to Interest on aggregate principal in excess of $2 million) or (y) by transfer to an account maintained by such person in the United
States or (ii) on any Global Note by wire transfer of immediately available funds to the account of the Depositary or its nominee. The term “record date” with respect to any interest payment date shall mean the May 15 or
November 15 preceding the applicable June 1 or December 1 interest payment date, respectively. 
  

 12 








 Any Interest on any Note which is payable, but is not punctually paid or duly provided for, on any
June 1 or December 1 (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Noteholder on the relevant record date by virtue of his having been such Noteholder, and such Defaulted Interest shall be paid
by the Company, at its election in each case, as provided in clause 1 or 2 below: 
 1) The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Notes (or their respective Predecessor Notes) are registered at the close of business on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The
Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Note and the date of the proposed payment (which shall be not less than twenty-five (25) days after the receipt by the Trustee of such
notice, unless the Trustee shall consent to an earlier date), and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit on or prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided.
Thereupon the Trustee shall fix a special record date for the payment of such Defaulted Interest which shall be not more than fifteen (15) days and not less than ten (10) days prior to the date of the proposed payment, and not less than
ten (10) days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such special record date and, in the name and at the expense of the Company, shall cause notice of the
proposed payment of such Defaulted Interest and the special record date therefor to be mailed, first-class postage prepaid, to each holder at such holder’s address as it appears in the Note Register, not less than ten (10) days prior to
such special record date. Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Notes (or their respective
Predecessor Notes) are registered at the close of business on such special record date and shall no longer be payable pursuant to the following clause (2) of this Section 2.03. 
 2) The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange or
automated quotation system on which the Notes may be listed or designated for issuance, and upon such notice as may be required by such exchange or automated quotation system, if, after notice given by the Company to the Trustee of the proposed
payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee. 
 Section 2.04. Execution of Notes. The
Notes shall be signed in the name and on behalf of the Company by the manual or facsimile signature of its Chairman of the Board, Chief Executive Officer, President or any Vice President (whether or not designated by a number or numbers or

  

 13 








 
word or words added before or after the title “Vice President”) and attested by the manual or facsimile signature of its Secretary or any of its
Assistant Secretaries or its Treasurer or any of its Assistant Treasurers (which may be printed, engraved or otherwise reproduced thereon, by facsimile or otherwise). Only such Notes as shall bear thereon a certificate of authentication
substantially in the form set forth on the form of Note attached as Exhibit A hereto, manually executed by the Trustee (or an authenticating agent appointed by the Trustee as provided by Section 17.12), shall be entitled to the benefits
of this Indenture or be valid or obligatory for any purpose. Such certificate by the Trustee (or such an authenticating agent) upon any Note executed by the Company shall be conclusive evidence that the Note so authenticated has been duly
authenticated and delivered hereunder and that the holder is entitled to the benefits of this Indenture. 
 In case any officer of the
Company who shall have signed any of the Notes shall cease to be such officer before the Notes so signed shall have been authenticated and delivered by the Trustee, or disposed of by the Company, such Notes nevertheless may be authenticated and
delivered or disposed of as though the person who signed such Notes had not ceased to be such officer of the Company, and any Note may be signed on behalf of the Company by such persons as, at the actual date of the execution of such Note, shall be
the proper officers of the Company, although at the date of the execution of this Indenture any such person was not such an officer. 
 Section 2.05.
Exchange and Registration of Transfer of Notes; Restrictions on Transfer. (a) The Company shall cause to be kept at the Corporate Trust Office a register (the register maintained in such office and in any other office or agency of the Company
designated pursuant to Section 5.02 being herein sometimes collectively referred to as the “Note Register”) in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of Notes
and of transfers of Notes. The Note Register shall be in written form or in any form capable of being converted into written form within a reasonably prompt period of time. The Trustee is hereby appointed “Note Registrar” for the purpose
of registering Notes and transfers of Notes as herein provided. The Company may appoint one or more co-registrars in accordance with Section 5.02. 
 Upon surrender for registration of transfer of any Note to the Note Registrar or any co-registrar, and satisfaction of the requirements for such transfer set forth in this Section 2.05, the Company shall execute,
and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Notes of any authorized denominations and of a like aggregate principal amount and bearing such restrictive legends as may be
required by this Indenture. 
 Notes may be exchanged for other Notes of any authorized denominations and of a like aggregate principal
amount, upon surrender of the Notes to be exchanged at any such office or agency maintained by the Company pursuant to Section 5.02. Whenever any Notes are so surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Notes which the Noteholder making the exchange is entitled to receive bearing registration numbers not contemporaneously outstanding. 
  

 14 








 All Notes issued upon any registration of transfer or exchange of Notes shall be the valid obligations of
the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Notes surrendered upon such registration of transfer or exchange. 
 All Notes presented or surrendered for registration of transfer or for exchange, redemption, repurchase or conversion shall (if so required by the Company or the Note Registrar) be duly endorsed, or be accompanied by
a written instrument or instruments of transfer in form satisfactory to the Company, and the Notes shall be duly executed by the Noteholder thereof or his attorney duly authorized in writing. 
 No service charge shall be made to any holder for any registration of, transfer or exchange of Notes, but the Company may require payment by the holder
of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes. 
 Neither the Company nor the Trustee nor any Note Registrar shall be required to exchange or register a transfer of (a) any Notes for a period of fifteen (15) days next preceding any selection of Notes to be
redeemed, (b) any Notes or portions thereof called for redemption pursuant to Section 3.02, (c) any Notes or portions thereof surrendered for conversion pursuant to Article 15, (d) any Notes or portions thereof tendered for
repurchase (and not withdrawn) pursuant to Section 3.05 or (e) any Notes or portions thereof tendered for repurchase (and not withdrawn) pursuant to Section 3.06. 
 (b) The following provisions shall apply only to Global Notes: 
 (i) Each Global Note authenticated under this Indenture shall be registered in the name of the Depositary or a nominee thereof and
delivered to such Depositary or a nominee thereof or Custodian therefor, and each such Global Note shall constitute a single Note for all purposes of this Indenture. 
 (ii) Notwithstanding any other provision in this Indenture, no Global Note may be exchanged in whole or in part for Notes registered, and
no transfer of a Global Note in whole or in part may be registered, in the name of any Person other than the Depositary or a nominee thereof, unless (A) the Depositary (i) has notified the Company that it is unwilling or unable to continue
as Depositary for such Global Note and a successor depositary has not been appointed by the Company within ninety days or (ii) has ceased to be a clearing agency registered under the Exchange Act and a successor depositary has not been
appointed by the Company within ninety days, (B) an Event of Default has occurred and the maturity of the Notes shall have been accelerated in accordance with Section 7.01 and any Noteholder shall have given written notice to the Company
requesting the issuance of definitive Notes or (C) the Company, in its sole discretion, notifies the Trustee in writing that it no longer wishes to have all the Notes represented by Global Notes. Any Global Note exchanged pursuant to clause
(A) or (B) above shall be so exchanged in whole and not in part and any Global Note exchanged pursuant to clause (C) above may be exchanged in whole or from time to time in part as directed by the Company. Any Note issued in exchange
for a Global Note or any portion thereof shall be a Global Note; provided that any such Note so issued that is registered in the name of a Person other than the Depositary or a nominee thereof shall not be a Global Note. 
  

 15 








 (iii) Securities issued in exchange for a Global Note or any portion thereof pursuant to
clause (ii) above shall be issued in definitive, fully registered form, without interest coupons, shall have an aggregate principal amount equal to that of such Global Note or portion thereof to be so exchanged, shall be registered in such
names and be in such authorized denominations as the Depositary shall designate and shall bear any legends required hereunder. Any Global Note to be exchanged in whole shall be surrendered by the Depositary to the Trustee, as Note Registrar. With
regard to any Global Note to be exchanged in part, either such Global Note shall be so surrendered for exchange or, if the Trustee is acting as Custodian for the Depositary or its nominee with respect to such Global Note, the principal amount
thereof shall be reduced, by an amount equal to the portion thereof to be so exchanged, by means of an appropriate adjustment made on the records of the Trustee. Upon any such surrender or adjustment, the Trustee shall authenticate and make
available for delivery the Note issuable on such exchange to or upon the written order of the Depositary or an authorized representative thereof. 
 (iv) In the event of the occurrence of any of the events specified in clause (ii) above, the Company will promptly make available to the Trustee a reasonable supply of certificated Notes in definitive, fully
registered form, without interest coupons. 
 (v) Neither any members of, or participants in, the Depositary (“Agent
Members”) nor any other Persons on whose behalf Agent Members may act shall have any rights under this Indenture with respect to any Global Note registered in the name of the Depositary or any nominee thereof, and the Depositary or such
nominee, as the case may be, may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner and holder of such Global Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depositary or such nominee, as the case may be, or impair, as among the
Depositary, its Agent Members and any other Person on whose behalf an Agent Member may act, the operation of customary practices of such Persons governing the exercise of the rights of a holder of any Note. 
 (vi) At such time as all interests in a Global Note have been redeemed, repurchased, converted, canceled or exchanged for Notes in
certificated form, such Global Note shall, upon receipt thereof, be canceled by the Trustee in accordance with standing procedures and instructions existing between the Depositary and the Custodian. At any time prior to such cancellation, if any
interest in a Global Note is redeemed, repurchased, converted, canceled or exchanged for Notes in certificated form, the principal amount of such Global Note shall, in accordance with the standing procedures and instructions existing between the
Depositary and the Custodian, be appropriately reduced, and an endorsement shall be made on such Global Note, by the Trustee or the Custodian, at the direction of the Trustee, to reflect such reduction. 
  

 16 








 (c) The Company and the Trustee shall have no responsibility or obligation to any Agent Members or any
other Person with respect to the accuracy of the books or records, or the acts or omissions, of the Depositary or its nominee or of any participant or member thereof, with respect to any ownership interest in the Notes or with respect to the
delivery to any Agent Member or other Person (other than the Depositary) of any notice (including any notice of redemption) or the payment of any amount, under or with respect to such Notes. All notices and communications to be given to the
Noteholder and all payments to be made to Noteholders under the Notes shall be given or made only to or upon the order of the registered Noteholders (which shall be the Depositary or its nominee in the case of a Global Note). The rights of
beneficial owners in any Global Note shall be exercised only through the Depositary subject to the customary procedures of the Depositary. The Trustee may rely and shall be fully protected in relying upon information furnished by the Depositary with
respect to its Agent Members. 
 The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any
restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Note (including any transfers between or among Agent Members in any Global Note) other than to require delivery of such
certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by, the terms of this Indenture, and to examine the same to determine substantial compliance as to form with the express
requirements hereof. 
 Section 2.06. Mutilated, Destroyed, Lost or Stolen Notes. In case any Note shall become mutilated or be destroyed, lost or
stolen, the Company in its discretion may execute, and upon its written request the Trustee or an authenticating agent appointed by the Trustee shall authenticate and make available for delivery, a new Note, bearing a number not contemporaneously
outstanding, in exchange and substitution for the mutilated Note, or in lieu of and in substitution for the Note so destroyed, lost or stolen. In every case, the applicant for a substituted Note shall furnish to the Company, to the Trustee and, if
applicable, to such authenticating agent such security or indemnity as may be required by them to save each of them harmless for any loss, liability, cost or expense caused by or connected with such substitution, and, in every case of destruction,
loss or theft, the applicant shall also furnish to the Company, to the Trustee and, if applicable, to such authenticating agent evidence to their satisfaction of the destruction, loss or theft of such Note and of the ownership thereof. 

Following receipt by the Trustee or such authenticating agent, as the case may be, of satisfactory security or indemnity and evidence, as described in
the preceding paragraph, the Trustee or such authenticating agent may authenticate any such substituted Note and make available for delivery such Note. Upon the issuance of any substituted Note, the Company may require the payment by the holder of a
sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in relation thereto and any other expenses connected therewith. In case any Note which has matured or is about to mature or has been called for redemption
or has been tendered for repurchase upon a Fundamental Change (and not withdrawn) or has been surrendered for repurchase on a Repurchase Date (and not withdrawn) or is to be converted into cash and, if applicable, Common Stock shall become mutilated
or be destroyed, lost or stolen, the Company may, instead of issuing a substitute Note, pay or authorize the payment of or convert or authorize the conversion of the same (without surrender thereof except in the case of a mutilated Note), as the
case may be, if the applicant for such payment or 

  

 17 








 
conversion shall furnish to the Company, to the Trustee and, if applicable, to such authenticating agent such security or indemnity as may be required by
them to save each of them harmless for any loss, liability, cost or expense caused by or in connection with such substitution, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company, the Trustee and, if
applicable, any paying agent or conversion agent evidence to their satisfaction of the destruction, loss or theft of such Note and of the ownership thereof. 
 Every substitute Note issued pursuant to the provisions of this Section 2.06 by virtue of the fact that any Note is destroyed, lost or stolen shall constitute an additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Note shall be found at any time, and shall be entitled to all the benefits of (but shall be subject to all the limitations set forth in) this Indenture equally and proportionately with any and all other
Notes duly issued hereunder. To the extent permitted by law, all Notes shall be held and owned upon the express condition that the foregoing provisions are exclusive with respect to the replacement or payment or conversion or redemption or
repurchase of mutilated, destroyed, lost or stolen Notes and shall preclude any and all other rights or remedies notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment or
conversion or redemption or repurchase of negotiable instruments or other securities without their surrender. 
 Section 2.07. Temporary
Notes. Pending the preparation of Notes in certificated form, the Company may execute and the Trustee or an authenticating agent appointed by the Trustee shall, upon the written request of the Company, authenticate and deliver temporary Notes
(printed or lithographed). Temporary Notes shall be issuable in any authorized denomination, and substantially in the form of the Notes in certificated form, but with such omissions, insertions and variations as may be appropriate for temporary
Notes, all as may be determined by the Company. Every such temporary Note shall be executed by the Company and authenticated by the Trustee or such authenticating agent upon the same conditions and in substantially the same manner, and with the same
effect, as the Notes in certificated form. Without unreasonable delay, the Company will execute and deliver to the Trustee or such authenticating agent Notes in certificated form and thereupon any or all temporary Notes may be surrendered in
exchange therefor, at each office or agency maintained by the Company pursuant to Section 5.02 and the Trustee or such authenticating agent shall authenticate and make available for delivery in exchange for such temporary Notes an equal
aggregate principal amount of Notes in certificated form. Such exchange shall be made by the Company at its own expense and without any charge therefor. Until so exchanged, the temporary Notes shall in all respects be entitled to the same benefits
and subject to the same limitations under this Indenture as Notes in certificated form authenticated and delivered hereunder. 
 Section
2.08. Cancellation of Notes. All Notes surrendered for the purpose of payment, redemption, repurchase, conversion, exchange or registration of transfer shall, if surrendered to the Company or any paying agent or any Note Registrar or any
conversion agent, be surrendered to the Trustee and promptly canceled by it, or, if surrendered to the Trustee, shall be promptly canceled by it, and no Notes shall be issued in lieu thereof except as expressly permitted by any of the provisions of
this Indenture. The Trustee shall dispose of such canceled Notes in accordance with its customary procedures. If the Company shall acquire any of the Notes, such acquisition shall not operate as a redemption, repurchase or satisfaction of the
indebtedness represented by such Notes unless and until the same are delivered to the Trustee for cancellation. 
  

 18 








 Section 2.09. CUSIP Numbers. The Company in issuing the Notes may use CUSIP numbers (if then generally in
use), and, if so, the Trustee shall use CUSIP numbers in notices of redemption or repurchases as a convenience to Noteholders; provided that any such notice may state that no representation is made as to the correctness of such numbers either
as printed on the Notes or as contained in any notice of a redemption or a repurchase and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption or repurchase shall not be affected by any
defect in or omission of such numbers. The Company will promptly notify the Trustee of any change in the CUSIP numbers. 
 ARTICLE 3 

 REDEMPTION AND REPURCHASE OF NOTES 
 Section 3.01. Redemption of Notes. (a) The Company may not redeem any Notes prior to June 1, 2007. On or after June 1, 2007 and prior to June 4, 2011 the Notes may be redeemed at the option of the Company, in
whole or in part at any time and from time to time, subject to the conditions specified in paragraphs 7 and 8 of the Notes and upon notice as set forth in Section 3.02, at a cash redemption price equal to 100% of the principal amount of
the Notes being redeemed, together with accrued and unpaid Interest, to, but excluding, the date fixed for redemption plus the Make Whole Payment; provided that if the redemption date falls after a record date and on or prior to the
corresponding interest payment date, then accrued and unpaid Interest, if any, to, but excluding, the date fixed for redemption shall be paid on such interest payment date to the holders of record of such Notes on the applicable record date instead
of the holders surrendering such Notes for redemption on such date. 
 (b) The Make Whole Payment, if any, shall be paid on all Notes being
redeemed by the Company on a Redemption Date on or after June 1, 2007 and prior to June 4, 2011, including any Notes that may have been converted after the date of the notice of redemption and prior to such Redemption Date. 
 (c) The Company may elect to pay the Make Whole Payment or any portion thereof (A) in cash or, (B) subject to the fulfillment by the Company of
the conditions set forth in Section 3.01 (g), by delivering the number of shares of Common Stock equal to (i) the Make Whole Payment (or any portion thereof that the Company elects to pay in shares of Common Stock) divided by
(ii) 97.5% of the average of the Trading Price per share of Common Stock for the five consecutive Trading Days immediately preceding and including the third Trading Day prior to the Redemption Date. 
 (d) Any issuance of shares of Common Stock in respect of the Make Whole Payment shall be deemed to have been effected immediately prior to the close of
business on the Redemption Date and the Person or Persons in whose name or names any stock certificate or stock certificates representing shares of Common Stock shall be issuable upon such redemption shall be deemed to have become on the Redemption
Date the holder or holders of record of the shares represented thereby; provided, however, that any surrender for redemption on a date when the stock transfer books of the Company shall be closed shall constitute the Person or Persons
in whose name or names the stock certificate or stock certificates representing such shares are to be issued as the holder or holders of record of the shares represented thereby for all purposes at the 
  

 19 








 opening of business on the next succeeding day on which such stock transfer books are open. No payment or adjustment
shall be made for dividends or distributions on any Common Stock declared prior to the Redemption Date. 
 (e) No fractions of shares of
Common Stock shall be issued upon payment of the Make Whole Payment. Instead of any fractional share of Common Stock that would otherwise be issued, the Company shall pay a cash adjustment in respect of such fraction (calculated to the nearest
one-100th of a share) in an amount equal to the same fraction of the Trading Price of the Common Stock as of the Trading Day preceding the Redemption Date. 
 (f) Any issuance and delivery of stock certificates representing shares of Common Stock on payment of the Make Whole Payment shall be made without charge to the Holder of Notes being redeemed or for any tax or duty in
respect of the issuance or delivery of such stock certificates or the Notes represented thereby; provided, however, that the Company shall not be required to pay any tax or duty which may be payable in respect of (i) income of the
Holder or (ii) any transfer involved in the issuance or delivery of stock certificates representing shares of Common Stock in a name other than that of the Holder of the Notes being redeemed, and no such issuance or delivery shall be made
unless the Persons requesting such issuance or delivery has paid to the Company the amount of any such tax or duty or has established, to the satisfaction of the Company, that such tax or duty has been paid. 
 (g) Conditions to the Company’s Election to Pay the Make Whole Payment in Common Stock. 
 The Company may, at its option, pay the Make Whole Payment payable to Holders pursuant to Section 3.01(b) upon redemption of the Notes, in shares of
Common Stock, if the following conditions are satisfied: 
 (A) The shares of Common Stock to be so issued: 
 (1) shall not require registration under any federal securities law before such shares may be freely transferable without being subject to any transfer
restrictions under the Securities Act upon redemption or if such registration is required, such registration shall be completed and shall become effective prior to the Redemption Date; and 
 (2) shall not require registration with, or approval of, any governmental authority under any state law or any other federal law before shares may be
validly issued or delivered upon redemption or if such registration is required or such approval must be obtained, such registration shall be completed or such approval shall be obtained prior to the Redemption Date. 
 (B) The shares of Common Stock to be listed upon redemption of Notes hereunder are, or shall have been, approved for listing on the Nasdaq National
Market or the New York Stock Exchange or listed on another national securities exchange, in any case, prior to the Redemption Date. 
 (C)
All shares of Common Stock which may be issued upon redemption of Notes will be issued out of the Company’s authorized but unissued Common Stock and will, upon issue, be duly and validly issued and fully paid and nonassessable and free of any
preemptive or similar rights. 
  

 20 








 (D) If any of the conditions set forth in clauses (a) through (c) of this Section 3.01(g)
are not satisfied in accordance with the terms thereof, the Make Whole Payment shall be paid by the Company only in cash. 
 (h) At any time
on or after June 4, 2011 and prior to maturity, the Notes may be redeemed at the option of the Company, in whole or in part at any time and from time to time, upon notice as set forth in Section 3.02, at a cash redemption price equal to
100% of the principal amount of the Notes being redeemed, together with accrued and unpaid Interest, if any, to, but excluding, the date fixed for redemption; provided that if the redemption date falls after a record date and on or prior to
the corresponding interest payment date, then accrued and unpaid Interest, if any, to, but excluding, the date fixed for redemption shall be paid on such interest payment date to the holders of record of such Notes on the applicable record date
instead of the holders surrendering such Notes for redemption on such date. 
 Section 3.02. Notice of Redemption; Selection of Notes. In case
the Company shall desire to exercise the right to redeem all or, as the case may be, any part of the Notes pursuant to Section 3.01, it shall fix a date for redemption and it or, at its written request received by the Trustee not fewer than
forty-five (45) days prior (or such shorter period of time as may be acceptable to the Trustee) to the date fixed for redemption, the Trustee in the name of and at the expense of the Company, shall mail or cause to be mailed a notice of such
redemption not fewer than twenty (20) nor more than sixty (60) days prior to the redemption date to each holder of Notes so to be redeemed as a whole or in part at its last address as the same appears on the Note Register; provided
that if the Company shall give such notice, it shall also give written notice of the redemption date to the Trustee. Such mailing shall be by first class mail. The notice, if mailed in the manner herein provided, shall be conclusively presumed to
have been duly given, whether or not the holder receives such notice. In any case, failure to give such notice by mail or any defect in the notice to the holder of any Note designated for redemption as a whole or in part shall not affect the
validity of the proceedings for the redemption of any other Note. Concurrently with the mailing of any such notice of redemption, the Company shall issue a press release announcing such redemption, the form and content of which press release shall
be determined by the Company in its sole discretion. The failure to issue any such press release or any defect therein shall not affect the validity of the redemption notice or any of the proceedings for the redemption of any Note called for
redemption. 
 Each such notice of redemption shall specify the aggregate principal amount of Notes to be redeemed, the CUSIP number or
numbers of the Notes being redeemed, the date fixed for redemption (which shall be a Business Day), the redemption price at which Notes are to be redeemed, the place or places of payment, that payment will be made upon presentation and surrender of
such Notes, that Interest accrued to the date fixed for redemption will be paid as specified in said notice, and that on and after said date Interest thereon or on the portion thereof to be redeemed will cease to accrue. Such notice shall also state
the current Conversion Rate and the date on which the right to convert such Notes or portions thereof will expire. If fewer than all the Notes are to be redeemed, the notice of redemption shall identify the Notes to be redeemed (including CUSIP
numbers, if any). In case any Note is to be redeemed in part only, 
  

 21 








 the notice of redemption shall state the portion of the principal amount thereof to be redeemed and shall state that, on
and after the redemption date, upon surrender of such Note, a new Note or Notes in principal amount equal to the unredeemed portion thereof will be issued. 
 On or prior to the redemption date specified in the notice of redemption given as provided in this Section 3.02, the Company will deposit with the Trustee or with one or more paying agents (or, if the Company is
acting as its own paying agent, set aside, segregate and hold in trust as provided in Section 5.04) an amount of money in immediately available funds sufficient to redeem on the redemption date all the Notes (or portions thereof) so called for
redemption (other than those theretofore surrendered for conversion) at the appropriate redemption price, together with accrued Interest to, but excluding, the redemption date; provided that if such payment is made on the redemption date it
must be received by the Trustee or paying agent, as the case may be, by 10:00 a.m. New York City time on such date. The Company shall be entitled to retain any interest, yield or gain on amounts deposited with the Trustee or any paying agent
pursuant to this Section 3.02 in excess of amounts required hereunder to pay the redemption price and accrued Interest to, but excluding, the redemption date. If any Note called for redemption is converted pursuant hereto prior to such
redemption date, any money deposited with the Trustee or any paying agent or so segregated and held in trust for the redemption of such Note shall be paid to the Company upon its written request, or, if then held by the Company, shall be discharged
from such trust. Whenever any Notes are to be redeemed, the Company will give the Trustee written notice in the form of an Officer’s Certificate not fewer than forty-five (45) days (or such shorter period of time as may be acceptable to
the Trustee) prior to the redemption date as to the aggregate principal amount of Notes to be redeemed. 
 If less than all of the
outstanding Notes are to be redeemed, the Trustee shall select the Notes or portions thereof of the Global Note or the Notes in certificated form to be redeemed (in principal amounts of $1,000 or multiples thereof) by lot, on a pro rata basis or by
another method the Trustee deems fair and appropriate. If any Note selected for partial redemption is submitted for conversion in part after such selection, the portion of such Note submitted for conversion shall be deemed (so far as may be
possible) to be the portion to be selected for redemption. The Notes (or portions thereof) so selected shall be deemed duly selected for redemption for all purposes hereof, notwithstanding that any such Note is submitted for conversion in part
before the mailing of the notice of redemption. 
 Upon any redemption of less than all of the outstanding Notes, the Company and the Trustee
may (but need not), solely for purposes of determining the pro rata allocation among such Notes as are unconverted and outstanding at the time of redemption, treat as outstanding any Notes surrendered for conversion during the period of fifteen
(15) days next preceding the mailing of a notice of redemption and may (but need not) treat as outstanding any Note authenticated and delivered during such period in exchange for the unconverted portion of any Note converted in part during such
period. 
 Section 3.03. Payment of Notes Called for Redemption by the Company. If notice of redemption has been given as provided in
Section 3.02, the Notes or portion of Notes with respect to which such notice has been given shall, unless converted pursuant to the terms hereof, become due and payable on the date fixed for redemption and at the place or places stated in such
notice at the applicable redemption price, together with Interest accrued to (but excluding) 
  

 22 








 
the redemption date, and on and after said date (unless the Company shall default in the payment of such Notes at the redemption price, together with
Interest accrued to said date) Interest on the Notes or portion of Notes so called for redemption shall cease to accrue and, after the close of business on the Business Day immediately preceding the redemption date (unless the Company shall default
in the payment of such Notes at the redemption price, together with Interest accrued to said date) such Notes shall cease to be convertible and, except as provided in Section 8.05 and Section 13.04, to be entitled to any benefit or
security under this Indenture, and the holders thereof shall have no right in respect of such Notes except the right to receive the redemption price thereof and unpaid Interest to (but excluding) the redemption date. On presentation and surrender of
such Notes at a place of payment in said notice specified, the said Notes or the specified portions thereof shall be paid and redeemed by the Company at the applicable redemption price, together with Interest accrued thereon to, but excluding, the
redemption date; provided that if the redemption date falls after a record date and on or prior the corresponding interest payment date, then accrued and unpaid Interest, if any, to, but excluding, the date fixed for redemption shall be paid
on such interest payment date to the holders of record of such Notes on the applicable record date instead of the holders surrendering such Notes for redemption on such date. 
 Upon presentation of any Note redeemed in part only, the Company shall execute and the Trustee shall authenticate and make available for delivery to the
holder thereof, at the expense of the Company, a new Note or Notes, of authorized denominations, in principal amount equal to the unredeemed portion of the Notes so presented. 
 Notwithstanding the foregoing, the Trustee shall not redeem any Notes or mail any notice of redemption during the continuance of a default in payment of
Interest on the Notes. If any Note called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid or duly provided for, bear interest from the redemption date at a rate equal to 1% per annum
plus the rate borne by the Note and such Note shall remain convertible until the principal and Interest shall have been paid or duly provided for. 
 Section 3.04. Conversion Arrangement on Call for Redemption. In connection with any redemption of Notes, the Company may arrange for the purchase and conversion of any Notes by an agreement with one or more investment banks or
other purchasers to purchase such Notes by paying to the Trustee in trust for the Noteholders, on or before the date fixed for redemption, an amount not less than the applicable redemption price, together with Interest accrued to, but excluding, the
date fixed for redemption, of such Notes. Notwithstanding anything to the contrary contained in this Article 3, the obligation of the Company to pay the redemption price of such Notes, together with Interest accrued to, but excluding, the date fixed
for redemption, shall be deemed to be satisfied and discharged to the extent such amount is so paid by such purchasers. If such an agreement is entered into, a copy of which will be filed with the Trustee prior to the date fixed for redemption, any
Notes not duly surrendered for conversion by the holders thereof may, at the option of the Company, be deemed, to the fullest extent permitted by law, acquired by such purchasers from such holders and (notwithstanding anything to the contrary
contained in Article 15) surrendered by such purchasers for conversion, all as of immediately prior to the close of business on the date fixed for redemption (and the right to convert any such Notes shall be extended through such time), subject to
payment of the above amount as aforesaid. At the direction of the Company, the Trustee shall hold and dispose of any 
  

 23 








 
such amount paid to it in the same manner as it would monies deposited with it by the Company for the redemption of Notes. Without the Trustee’s prior
written consent, no arrangement between the Company and such purchasers for the purchase and conversion of any Notes shall increase or otherwise affect any of the powers, duties, responsibilities or obligations of the Trustee as set forth in this
Indenture. 
 Section 3.05. Repurchase at Option of Holders upon a Fundamental Change. (a) If there shall occur a Fundamental Change at any time
prior to maturity of the Notes, then each Noteholder shall have the right, at such holder’s option, to require the Company to repurchase all of such holder’s Notes, or any portion thereof that is an integral multiple of $1,000 principal
amount, on the date (the “Fundamental Change Repurchase Date”) specified by the Company that is thirty (30) calendar days after the date of the Fundamental Change Notice (as defined in Section 3.05(b)) of such Fundamental Change
at a cash repurchase price equal to 100% of the principal amount thereof, together with accrued Interest, if any, to, but excluding, the Fundamental Change Repurchase Date; provided that if such Fundamental Change Repurchase Date falls after
a record date and on or prior to the corresponding interest payment date, then accrued and unpaid Interest, if any, to, but excluding the Fundamental Change Repurchase Date shall be paid on such interest payment date to the holders of record of the
Notes on the applicable record date instead of the holders surrendering the Notes for repurchase on such date. Repurchases of Notes under this Section 3.05 shall be made, at the option of the holder thereof, upon: 
 (i) delivery to the Trustee (or other paying agent appointed by the Company) by a holder of a duly completed notice (the “Fundamental
Change Repurchase Notice”) in the form set forth on the reverse of the Note prior to the close of business on the Fundamental Change Expiration Time; and 
 (ii) delivery or book-entry transfer of the Notes to the Trustee (or other paying agent appointed by the Company) at any time after
delivery of the Fundamental Change Repurchase Notice (together with all necessary endorsements) at the Corporate Trust Office of the Trustee (or other paying agent appointed by the Company) in the Borough of Manhattan as provided in
Section 5.02, such delivery being a condition to receipt by the holder of the repurchase price therefor; provided that such repurchase price shall be so paid pursuant to this Section 3.05 only if the Note so delivered to the Trustee
(or other paying agent appointed by the Company) shall conform in all respects to the description thereof in the related Fundamental Change Repurchase Notice. 
 The Company shall purchase from the holder thereof, pursuant to this Section 3.05, a portion of a Note, only if the principal amount of such portion is $1,000 or a whole multiple of $1,000. Provisions of this
Indenture that apply to the purchase of all of a Note also apply to the purchase of such portion of such Note. 
 Any purchase by the Company
contemplated pursuant to the provisions of this Section 3.05 shall be consummated by the delivery of the consideration to be received by the holder promptly following the later of the Fundamental Change Repurchase Date and the time of the
book-entry transfer or delivery of the Note. 
  

 24 








 Notwithstanding anything herein to the contrary, any holder delivering to the Trustee (or other paying
agent appointed by the Company) the Fundamental Change Repurchase Notice contemplated by this Section 3.05 shall have the right to withdraw such Fundamental Change Repurchase Notice at any time prior to the close of business on the Fundamental
Change Expiration Time by delivery of a written notice of withdrawal to the Trustee (or other paying agent appointed by the Company) in accordance with Section 3.05(c) below. 
 The Trustee (or other paying agent appointed by the Company) shall promptly notify the Company of the receipt by it of any Fundamental Change Repurchase
Notice or written notice of withdrawal thereof. 
 (b) On or before the fifteenth day after the occurrence of a Fundamental Change, the
Company or at its written request (which must be received by the Trustee at least five (5) Business Days prior to the date the Trustee is requested to give notice as described below, unless the Trustee shall agree in writing to a shorter
period), the Trustee, in the name of and at the expense of the Company, shall mail or cause to be mailed to all holders of record on the date of the Fundamental Change a notice (the “Fundamental Change Notice”) of the occurrence of such
Fundamental Change and of the repurchase right at the option of the holders arising as a result thereof. Such notice shall be mailed in the manner and with the effect set forth in the first paragraph of Section 3.02 (without regard for the time
limits set forth therein). If the Company shall give such notice, the Company shall also deliver a copy of the Fundamental Change Notice to the Trustee at such time as it is mailed to Noteholders. Concurrently with the mailing of any Fundamental
Change Notice, the Company shall issue a press release announcing such Fundamental Change referred to in the Fundamental Change Notice, the form and content of which press release shall be determined by the Company in its sole discretion. The
failure to issue any such press release or any defect therein shall not affect the validity of the Fundamental Change Notice or any proceedings for the repurchase of any Note which any Noteholder may elect to have the Company repurchase as provided
in this Section 3.05. 
 Each Fundamental Change Notice shall specify the circumstances constituting the Fundamental Change, the
Fundamental Change Repurchase Date, the price at which the Company shall be obligated to repurchase Notes, that the holder must exercise the repurchase right on or prior to the close of business on the Business Day immediately preceding the
Fundamental Change Repurchase Date (the “Fundamental Change Expiration Time”), that the holder shall have the right to withdraw any Notes surrendered prior to the Fundamental Change Expiration Time, a description of the procedure which a
Noteholder must follow to exercise such repurchase right and to withdraw any surrendered Notes, the place or places where the holder is to surrender such holder’s Notes, the amount of Interest accrued on each Note to the Fundamental Change
Repurchase Date and the CUSIP number or numbers of the Notes (if then generally in use) and include a form of Fundamental Change Repurchase Notice. 
 No failure of the Company to give the foregoing notices and no defect therein shall limit the Noteholders’ repurchase rights or affect the validity of the proceedings for the repurchase of the Notes pursuant to this Section 3.05.

 (c) A Fundamental Change Repurchase Notice may be withdrawn by means of a written notice of withdrawal delivered to the office of the
Trustee (or other paying agent appointed by the Company) in accordance with the Fundamental Change Repurchase Notice at any time prior to the Fundamental Change Expiration Time, specifying: 
 (i) the certificate number, if any, of the Note in respect of which such notice of withdrawal is being submitted, or the appropriate
Depositary information if the Note in respect of which such notice of withdrawal is being submitted is represented by a Global Note, 
  

 25 








 (ii) the principal amount of the Note with respect to which such notice of withdrawal is
being submitted, and 
 (iii) the principal amount, if any, of such Note which remains subject to the original Fundamental
Change Repurchase Notice and which has been or will be delivered for purchase by the Company. 
 (d) On or prior to the Fundamental Change
Repurchase Date, the Company will deposit with the Trustee (or other paying agent appointed by the Company or if the Company is acting as its own paying agent, set aside, segregate and hold in trust as provided in Section 5.04) an amount of
money sufficient to repurchase on the Fundamental Change Repurchase Date all the Notes to be repurchased on such date at the appropriate repurchase price, together with accrued Interest to, but excluding, the Fundamental Change Repurchase Date;
provided that if such payment is made on the Fundamental Change Repurchase Date, it must be received by the Trustee or paying agent, as the case may be, by 10:00 a.m. New York City time, on such date. Subject to receipt of funds and/or Notes
by the Trustee (or other paying agent appointed by the Company), payment for Notes surrendered for repurchase (and not withdrawn) prior to the Fundamental Change Expiration Time will be made promptly (but in no event more than five (5) Business
Days) following the later of (x) the Fundamental Change Repurchase Date with respect to such Note (provided the holder has satisfied the conditions in Section 3.05) and (y) the time of delivery of such Note to the Trustee (or
other paying agent appointed by the Company) by the holder thereof in the manner required by Section 3.05) by mailing checks for the amount payable to the holders of such Notes entitled thereto as they shall appear in the Note Register.

 If the Trustee (or other paying agent appointed by the Company) holds money sufficient to repurchase on the Fundamental Change Repurchase
Date all the Notes or portions thereof that are to be purchased as of the Fundamental Change Repurchase Date, then on or after the Fundamental Change Repurchase Date (i) the Notes will cease to be outstanding, (ii) Interest on the Notes
will cease to accrue, and (iii) all other rights of the holders of such Notes will terminate, whether or not book-entry transfer of the Notes has been made or the Notes have been delivered to the Trustee or paying agent, other than the right to
receive the repurchase price upon delivery of the Notes. 
 (e) In the case of a reclassification, change, consolidation, merger,
combination, sale or conveyance to which Section 15.08 applies, in which the Common Stock of the Company is changed or exchanged as a result into the right to receive stock, securities or other property or assets (including cash), which
includes shares of Common Stock of the Company or shares of common stock of another Person that are, or upon issuance will be, traded on a United States national securities exchange or approved for trading on an established automated 

  

 26 








 
over-the-counter trading market in the United States and such shares constitute at the time such change or exchange becomes effective in excess of 50% of the
aggregate Fair Market Value of such stock, securities or other property or assets (including cash) (as determined by the Company, which determination shall be conclusive and binding), then the Person formed by such consolidation or resulting from
such merger or which acquires such assets, as the case may be, shall execute and deliver to the Trustee a supplemental indenture (accompanied by an Opinion of Counsel that such supplemental indenture complies with the Trust Indenture Act as in force
at the date of execution of such supplemental indenture) modifying the provisions of this Indenture relating to the right of holders of the Notes to cause the Company to repurchase the Notes following a Fundamental Change, including without
limitation the applicable provisions of this Section 3.05 and the definitions of Common Stock and Fundamental Change, as appropriate, as determined in good faith by the Company (which determination shall be conclusive and binding), to make such
provisions apply to such other Person if different from the Company and the common stock issued by such Person (in lieu of the Company and the Common Stock of the Company). 
 (f) The Company will comply with the provisions of Rule 13e-4 and any other tender offer rules under the Exchange Act (including, without limitation,
filing a Schedule TO or other schedule) to the extent then applicable in connection with the repurchase rights of the holders of Notes in the event of a Fundamental Change. 
 Section 3.06. Repurchase of Notes by the Company at Option of the Holder. Unless the Company has elected to redeem all of the Notes in accordance with Section 3.01, Notes shall be purchased by the Company
pursuant to the terms of the Notes at the option of the holder thereof on June 1, 2011 (the “Repurchase Date”), for cash, at a repurchase price of 100% of the principal amount, plus any accrued and unpaid Interest to, but excluding,
the Repurchase Date, subject to the provisions of Section 3.07(a); provided that no Notes may be repurchased by the Company pursuant to this Section 3.06 if the principal amount of the Notes has been accelerated and such
acceleration has not been rescinded on or prior to the Repurchase Date. Repurchases of Notes under this Section 3.06 shall be made, at the option of the holder thereof, upon: 
 (a) delivery to the Trustee (or other paying agent appointed by the Company) by a holder of a duly completed notice (the “Repurchase
Notice”) in the form set forth on the reverse of the Note during the period beginning at any time from the opening of business on the date that is 20 Business Days prior to the Repurchase Date until the close of business on the date that is two
Business Days prior to the Repurchase Date; and 
 (b) delivery or book-entry transfer of the Notes to the Trustee (or other
paying agent appointed by the Company) at any time after delivery of the Repurchase Notice (together with all necessary endorsements) at the Corporate Trust Office or any other office of the Trustee (or other paying agent appointed by the Company)
as provided in Section 5.02, such delivery being a condition to receipt by the holder of the repurchase price therefor; provided that such repurchase price shall be so paid pursuant to this Section 3.06 only if the Note so delivered
to the Trustee (or other paying agent appointed by the Company) shall conform in all respects to the description thereof in the related Repurchase Notice. 
  

 27 








 The Company shall purchase from the holder thereof, pursuant to this Section 3.06, a portion of a
Note, only if the principal amount of such portion is $1,000 or a whole multiple of $1,000. Provisions of this Indenture that apply to the purchase of all of a Note also apply to the purchase of such portion of such Note. 
 Any purchase by the Company contemplated pursuant to the provisions of this Section 3.06 shall be consummated by the delivery of the consideration
to be received by the holder promptly following the later of the Repurchase Date and the time of the book-entry transfer or delivery of the Note. 
 Notwithstanding anything herein to the contrary, any holder delivering to the Trustee (or other paying agent appointed by the Company) a Repurchase Notice contemplated by this Section 3.06 shall have the right to withdraw such
Repurchase Notice at any time prior to the close of business on the Business Day immediately preceding the Repurchase Date by delivery of a written notice of withdrawal to the Trustee (or other paying agent appointed by the Company) in accordance
with Section 3.08. The Company is not obligated under this Section 3.06 to repurchase notes listed in such written notice of withdrawal. 
 The Trustee (or other paying agent appointed by the Company) shall promptly notify the Company of the receipt by it of any Repurchase Notice or written notice of withdrawal thereof. 
 Section 3.07. Company Repurchase Notice. (a) The Notes to be repurchased on any Repurchase Date pursuant to Section 3.06 will be paid for in cash.

 Unless the Company has elected to redeem all of the Notes in accordance with Section 3.01, at least three Business Days before the
Company Repurchase Notice Date, the Company shall deliver an Officer’s Certificate to the Trustee specifying: 
 (i) the
information required by Section 3.07(b) in the Company Repurchase Notice, and 
 (ii) whether the Company desires the
Trustee to give the Company Repurchase Notice required by Section 3.07(b). 
 (b) Unless the Company has elected to redeem all of the
Notes in accordance with Section 3.01, in connection with any repurchase of Notes, the Company shall, no less than 20 Business Days prior to the Repurchase Date (the “Company Repurchase Notice Date”), give notice to holders at their
addresses shown in the Note Register setting forth information specified in this Section 3.07(b) (the “Company Repurchase Notice”). The Company will also give notice to beneficial owners as required by applicable law. 
 The Company Repurchase Notice shall: 
 (a) state the repurchase price and the Repurchase Date to which the Company Repurchase Notice relates; 
 (b) include
a form of Repurchase Notice; 
  

 28 








 (c) state the name and address of the Trustee (or other paying agent appointed by the
Company); 
 (d) state that Notes must be surrendered to the Trustee (or other paying agent appointed by the Company) to
collect the repurchase price; 
 (e) if the Notes are then convertible, state that Notes as to which a Repurchase Notice has
been given may be converted only if the Repurchase Notice is withdrawn in accordance with the terms of this Indenture; and 
 (f) state the CUSIP number of the Notes. 
 The Company Repurchase Notice may be given by the Company or, at the Company’s
request, the Trustee shall give such Company Repurchase Notice in the Company’s name and at the Company’s expense. 
 (c) The
Company will comply with the provisions of Rule 13e-4 and any other tender offer rules under the Exchange Act (including, without limitation, filing a Schedule TO or other schedule) to the extent then applicable in connection with the repurchase
rights of the holders of Notes. 
 Section 3.08. Effect of Repurchase Notice. Upon receipt by the Trustee (or other paying agent appointed by the
Company) of the Repurchase Notice specified in Section 3.06, the holder of the Note in respect of which such Repurchase Notice was given shall (unless such Repurchase Notice is validly withdrawn) thereafter be entitled to receive solely the
repurchase price with respect to such Note. Such repurchase price shall be paid to such holder, subject to receipt of funds and/or Notes by the Trustee (or other paying agent appointed by the Company), promptly following the later of (x) the
Repurchase Date with respect to such Note (provided the holder has satisfied the conditions in Section 3.06) and (y) the time of delivery of such Note to the Trustee (or other paying agent appointed by the Company) by the holder
thereof in the manner required by Section 3.06. Notes in respect of which a Repurchase Notice has been given by the holder thereof may not be converted pursuant to Article 15 hereof on or after the date of the delivery of such Repurchase Notice
unless such Repurchase Notice has first been validly withdrawn. 
 A Repurchase Notice may be withdrawn by means of a written notice of
withdrawal delivered to the office of the Trustee (or other paying agent appointed by the Company) in accordance with the Repurchase Notice at any time prior to the close of business on the Business Day immediately preceding the Repurchase Date,
specifying: 
 (a) the certificate number, if any, of the Note in respect of which such notice of withdrawal is being
submitted, or the appropriate Depositary information if the Note in respect of which such notice of withdrawal is being submitted is represented by a Global Note, 
 (b) the principal amount of the Note with respect to which such notice of withdrawal is being submitted, and 
  

 29 








 (c) the principal amount, if any, of such Note which remains subject to the original
Repurchase Notice and which has been or will be delivered for repurchase by the Company. 
 Section 3.09. Deposit of Repurchase Price. Prior to 10:00
a.m. (New York City Time) on the Repurchase Date, the Company shall deposit with the Trustee (or other paying agent appointed by the Company; or, if the Company or a Subsidiary or an Affiliate of either of them is acting as the paying agent, shall
segregate and hold in trust as provided in Section 5.04) an amount of cash (in immediately available funds if deposited on such Business Day), sufficient to pay the aggregate repurchase price of all the Notes or portions thereof that are to be
purchased as of the Repurchase Date. 
 (b) If the Trustee or other paying agent appointed by the Company, or the Company or a Subsidiary or
Affiliate of either of them, if such entity is acting as the paying agent, holds cash sufficient to pay the aggregate repurchase price of all the Notes, or portions thereof that are to be repurchased as of the Repurchase Date, on or after the
Repurchase Date (i) the Notes will cease to be outstanding, (ii) Interest on the Notes will cease to accrue, and (iii) all other rights of the holders of such Notes will terminate, whether or not book-entry transfer of the Notes has
been made or the Notes have been delivered to the Trustee or paying agent, other than the right to receive the repurchase price upon delivery of the Notes. 
 Section 3.10. Notes Repurchased in Part. Upon presentation of any Note repurchased pursuant to Section 3.05 or 3.06, as the case may be, only in part, the Company shall execute and the Trustee shall authenticate and make
available for delivery to the holder thereof, at the expense of the Company, a new Note or Notes, of any authorized denomination, in aggregate principal amount equal to the unrepurchased portion of the Notes presented. 
 Section 3.11. Repayment to the Company. The Trustee (or other paying agent appointed by the Company) shall return to the Company any cash or money that remains
unclaimed as provided in Section 13.04, together with interest, if any, thereon, held by them for the payment of the repurchase price pursuant to Section 3.05 or 3.06, as the case may be; provided that to the extent that the
aggregate amount of cash or money deposited by the Company pursuant to Section 3.05(d) or Section 3.09, as the case may be, exceeds the aggregate repurchase price of the Notes or portions thereof which the Company is obligated to purchase
as of the Fundamental Change Repurchase Date or the Repurchase Date, as the case may be, then, unless otherwise agreed in writing with the Company, promptly after the Business Day following the Fundamental Change Repurchase Date or the Repurchase
Date, as the case may be, the Trustee shall return any such excess to the Company together with interest, if any, thereon. 
 ARTICLE 4

 CONTINGENT INTEREST 
 Section 4.01.
Contingent Interest. Beginning with the six-month interest period commencing June 1, 2011, the Company will pay contingent interest (“Contingent Interest”) to the Noteholders for any six-month interest period if the Trading
Price for each of the five Trading Days immediately preceding the first day of the applicable six-month interest period equals or 
  

 30 








 
exceeds 120% of the principal amount of the Notes. For any six-month interest period when Contingent Interest is payable, the Contingent Interest payable on
each $1,000 principal amount of Note shall equal 0.40% of the average Trading Price for $1,000 principal amount of Notes during the five Trading Day measuring period immediately preceding the first day of applicable six-month interest period used to
determine whether Contingent Interest must be paid. 
 The Trustee’s sole responsibility pursuant to this Section 4.01 hereof shall
be to use its best efforts to obtain the Trading Price of the Notes for each of the five Trading Days immediately preceding the first day of the applicable six-month interest period and to provide such information to the Company. The Company shall
cooperate with the Trustee in obtaining such Trading Prices and shall determine whether holders are entitled to receive Contingent Interest, and if so, provide notice pursuant to Section 4.03. Notwithstanding any term contained in this
Indenture or any other document to the contrary, the Trustee shall have no responsibilities, duties or obligations for or with respect to (i) determining whether the Company must pay Contingent Interest or (ii) determining the amount of
Contingent Interest, if any, payable by the Company. 
 Section 4.02. Payment of Contingent Interest. Contingent Interest for any six-month
interest period shall be paid on the applicable interest payment date to the Person in whose name any Note (or its Predecessor Note) is registered on the Note Register at the corresponding record date. Contingent Interest due under this Article 4
shall be treated for all purposes of this Indenture like any other interest accruing on the Notes. 
 Section 4.03. Contingent Interest
Notification. By the first Business Day of a six-month interest period for which Contingent Interest will be paid, the Company will disseminate a press release through Business Wire stating that Contingent Interest will be paid on the Notes and
identifying such six-month interest period as the six-month interest period for which such Contingent Interest will be paid. 
 ARTICLE 5

 PARTICULAR COVENANTS OF THE COMPANY 
 Section
5.01. Payment of Principal and Interest. The Company covenants and agrees that it will duly and punctually pay or cause to be paid the principal of (including the redemption price upon redemption or the repurchase price upon repurchase, in
each case pursuant to Article 3) and Interest, on each of the Notes at the places, at the respective times and in the manner provided herein and in the Notes. 
 Section 5.02. Maintenance of Office or Agency. The Company will maintain an office or agency where the Notes may be surrendered for registration of transfer or exchange or for presentation for payment or for conversion, redemption or
repurchase and where notices and demands to or upon the Company in respect of the Notes and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or
agency not designated or appointed by the Trustee. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office. 
  

 31 








 The Company may also from time to time designate co-registrars and one or more offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations. The Company will give prompt written notice of any such designation or rescission and of any change in the location of any
such other office or agency. 
 The Company hereby initially designates the Trustee as paying agent, Note Registrar, Custodian and conversion
agent, and the Corporate Trust Office shall be considered as one such office or agency of the Company for each of the aforesaid purposes. 
 So long as the Trustee is the Note Registrar, the Trustee agrees to mail, or cause to be mailed, the notices set forth in Section 8.10(a) and the third paragraph of Section 8.11. If co-registrars have been appointed in accordance
with this Section, the Trustee shall mail such notices only to the Company and the holders of Notes it can identify from its records. 
 Section 5.03.
Appointments to Fill Vacancies in Trustee’s Office. The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 8.10, a Trustee, so that there shall at all
times be a Trustee hereunder. 
 Section 5.04. Provisions as to Paying Agent. (a) If the Company shall appoint a paying agent other than the Trustee,
or if the Trustee shall appoint such a paying agent, the Company will cause such paying agent to execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section 5.04:

  

	 	(a)	that it will hold all sums held by it as such agent for the payment of the principal of or Interest on the Notes (whether such sums have been paid to it by the Company or by any
other obligor on the Notes) in trust for the benefit of the holders of the Notes; 

  

	 	(b)	that it will give the Trustee notice of any failure by the Company (or by any other obligor on the Notes) to make any payment of the principal of or Interest on the Notes when the
same shall be due and payable; and 

  

	 	(c)	that at any time during the continuance of an Event of Default, upon request of the Trustee, it will forthwith pay to the Trustee all sums so held in trust.


 The Company shall, on or before each due date of the principal or Interest on the Notes, deposit with the paying agent a sum
(in funds which are immediately available on the due date for such payment) sufficient to pay such principal or Interest, and (unless such paying agent is the Trustee) the Company will promptly notify the Trustee of any failure to take such action;
provided that if such deposit is made on the due date, such deposit shall be received by the paying agent by 10:00 a.m. New York City time, on such date. 
 (b) If the Company shall act as its own paying agent, it will, on or before each due date of the principal of or Interest on the Notes, set aside, segregate and hold in trust for the benefit of 

  

 32 








 
the holders of the Notes a sum sufficient to pay such principal or Interest so becoming due and will promptly notify the Trustee of any failure to take such
action and of any failure by the Company (or any other obligor under the Notes) to make any payment of the principal of or Interest on the Notes when the same shall become due and payable. 
 (c) Anything in this Section 5.04 to the contrary notwithstanding, the Company may, at any time, for the purpose of obtaining a satisfaction and
discharge of this Indenture, or for any other reason, pay or cause to be paid to the Trustee all sums held in trust by the Company or any paying agent hereunder as required by this Section 5.04, such sums to be held by the Trustee upon the
trusts herein contained and upon such payment by the Company or any paying agent to the Trustee, the Company or such paying agent shall be released from all further liability with respect to such sums. 
 (d) Anything in this Section 5.04 to the contrary notwithstanding, the agreement to hold sums in trust as provided in this Section 5.04 is
subject to Sections 13.03 and 13.04. 
 The Trustee shall not be responsible for the actions of any other paying agents (including the
Company if acting as its own paying agent) and shall have no control of any funds held by such other paying agents. 
 Section 5.05. Existence.
Subject to Article 12, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its existence and rights (charter and statutory); provided that the Company shall not be required to preserve
any such right if the Company shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and that the loss thereof is not disadvantageous in any material respect to the Noteholders. 

Section 5.06. Maintenance of Properties. The Company will cause all properties used or useful in the conduct of its business or the business of any
Significant Subsidiary to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all
as in the judgment of the Company may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided that nothing in this Section shall prevent the Company from
discontinuing the operation or maintenance of any of such properties if such discontinuance is, in the judgment of the Company, desirable in the conduct of its business or the business of any subsidiary and not disadvantageous in any material
respect to the Noteholders. 
 Section 5.07. Payment of Taxes and Other Claims. The Company will pay or discharge, or cause to be paid or
discharged, before the same may become delinquent, (i) all taxes, assessments and governmental charges levied or imposed upon the Company or any Significant Subsidiary or upon the income, profits or property of the Company or any Significant
Subsidiary, (ii) all claims for labor, materials and supplies which, if unpaid, might by law become a lien or charge upon the property of the Company or any Significant Subsidiary and (iii) all stamp taxes and other duties, if any, which
may be imposed by the United States or any political subdivision thereof or therein in connection with the issuance, transfer, exchange, conversion, redemption or repurchase of any Notes or with respect to this Indenture; provided that, in
the case of clauses (i)
  

 33 








 
and (ii), the Company shall not be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or claim (A) if the
failure to do so will not, in the aggregate, have a material adverse impact on the Company, or (B) if the amount, applicability or validity is being contested in good faith by appropriate proceedings. 
 Section 5.08. Stay, Extension and Usury Laws. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon,
plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of the principal of or Interest on the Notes as
contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Indenture and the Company (to the extent it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such
law had been enacted. 
 Section 5.09. Compliance Certificate. The Company shall deliver to the Trustee, within one hundred twenty
(120) days after the end of each fiscal year of the Company, a certificate signed by either the principal executive officer, principal financial officer or principal accounting officer of the Company, stating whether or not to the best
knowledge of the signer thereof the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Indenture (without regard to any period of grace or requirement of notice provided hereunder) and, if
the Company shall be in default, specifying all such defaults and the nature and the status thereof of which the signer may have knowledge. 
 The Company will deliver to the Trustee, forthwith upon becoming aware of (i) any default in the performance or observance of any covenant, agreement or condition contained in this Indenture, or (ii) any Event of Default, an
Officer’s Certificate specifying with particularity such Default or Event of Default and further stating what action the Company has taken, is taking or proposes to take with respect thereto. 
 Any notice required to be given under this Section 5.09 shall be delivered to a Responsible Officer of the Trustee at its Corporate Trust Office.

 Section 5.10. Limitation on Senior Subordinated Indebtedness. 
 The Company will not incur any Indebtedness that is subordinate in right of payment to any Senior Indebtedness of the Company unless such Indebtedness is pari passu with, or subordinated in right of payment to,
the Notes. 
 Section 5.11. Contingent Debt Tax Treatment. The Company agrees, and by acceptance of a beneficial interest in a Note each holder
and any beneficial owner of a Note shall be deemed to have agreed to treat the Note as indebtedness of the Company for United States federal income tax purposes that is subject to Treasury Regulation Section 1.1275-4 or any successor provision
(the “contingent payment regulations”) and to be bound (in the absence of an administrative determination or judicial ruling to the contrary) by the Company’s determination of the comparable yield and the projected payment schedule
within the meaning of the contingent 
  

 34 








 
payment regulations. A holder of Notes may obtain the issue price, amount of Tax Original Issue Discount, issue date, yield to maturity, comparable yield and
projected payment schedule for the Notes, determined by the Company pursuant to the contingent payment regulations, by submitting a written request for it to the Company at the following address: Headwaters Incorporated, 10653 South Riverfront
Parkway, Suite 300, South Jordan, UT 84095, Attention: Harlan M. Hatfield, General Counsel. 
 Section 5.12. Calculation of Original Issue
Discount. 
 The Company shall file with the Trustee promptly at the end of each calendar year (i) a written notice specifying the
amount of Tax Original Issue Discount (including daily rates and accrual periods) accrued on outstanding Notes as of the end of such year and (ii) such other specific information relating to such Tax Original Issue Discount as may then be
required under the Internal Revenue Code of 1986, as amended from time to time, or the Treasury regulations promulgated thereunder. 
 ARTICLE
6 
 NOTEHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE 
 Section 6.01. Noteholders’ Lists. The Company covenants and agrees that it will furnish or cause to be furnished to the Trustee, semiannually, not more than fifteen (15) days after each
January 1 and July 1 in each year beginning with July 1, 2004, and at such other times as the Trustee may request in writing, within thirty (30) days after receipt by the Company of any such request (or such lesser time as the
Trustee may reasonably request in order to enable it to timely provide any notice to be provided by it hereunder), a list in such form as the Trustee may reasonably require of the names and addresses of the holders of Notes as of a date not more
than fifteen (15) days (or such other date as the Trustee may reasonably request in order to so provide any such notices) prior to the time such information is furnished, except that no such list need be furnished by the Company to the Trustee
so long as the Trustee is acting as the sole Note Registrar. 
 Section 6.02. Preservation and Disclosure of Lists. (a) The Trustee shall
preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the holders of Notes contained in the most recent list furnished to it as provided in Section 6.01 or maintained by the Trustee in its
capacity as Note Registrar or co-registrar in respect of the Notes, if so acting. The Trustee may destroy any list furnished to it as provided in Section 6.01 upon receipt of a new list so furnished. 
 (b) The rights of Noteholders to communicate with other holders of Notes with respect to their rights under this Indenture or under the Notes, and the
corresponding rights and duties of the Trustee, shall be as provided by the Trust Indenture Act. 
 (c) Every Noteholder, by receiving and
holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held accountable by reason of any disclosure of information as to names and addresses of holders of Notes
made pursuant to the Trust Indenture Act. 
  

 35 








 Section 6.03. Reports by Trustee. (a) Within sixty (60) days after January 1 of each year commencing
with the year 2008, the Trustee shall transmit to holders of Notes such reports dated as of January 1 of the year in which such reports are made concerning the Trustee and its actions under this Indenture as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant thereto. In the event that no events have occurred under the applicable sections of the Trust Indenture Act the Trustee shall be under no duty or obligation to provide such
reports. 
 (b) A copy of such report shall, at the time of such transmission to holders of Notes, be filed by the Trustee with each stock
exchange and automated quotation system upon which the Notes are listed (if applicable) and with the Company. The Company will promptly notify the Trustee in writing when the Notes are listed on any stock exchange or automated quotation system or
delisted therefrom. 
 Section 6.04. Reports by Company. The Company shall file with the Trustee (and the Commission if at any time after the
Indenture becomes qualified under the Trust Indenture Act), and transmit to holders of Notes, such information, documents and other reports and such summaries thereof, as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant to such Act, whether or not the Notes are governed by such Act; provided that any such information, documents or reports required to be filed with the Commission pursuant to Section 13 or 15(d) of the Exchange
Act shall be filed with the Trustee within fifteen (15) days after the same is so required to be filed with the Commission. Delivery of such reports, information and documents to the Trustee is for informational purposes only and the
Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which
the Trustee is entitled to rely exclusively on an Officer’s Certificates). 
 ARTICLE 7 
 REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT 
 Section 7.01. Events of Default. In case one or more of the following Events of Default (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body) shall have occurred and be continuing: 
 (a) default in the payment of any installment of Interest upon any of the Notes as and when the same shall become due and payable, whether
or not such payment shall be prohibited by Article 16, and continuance of such default for a period of thirty (30) days; or 
 (b) default in the payment of the principal of any of the Notes as and when the same shall become due and payable either at maturity or in connection with any redemption, repurchase or otherwise, in each case pursuant
to Article 3, by acceleration or otherwise, whether or not such payment shall be prohibited by Article 16; or 
  

 36 








 (c) default in the Company’s obligation to provide a Fundamental Change Notice upon
a Fundamental Change as provided in Section 3.05; or 
 (d) failure on the part of the Company duly to observe or perform
any other of the covenants or agreements on the part of the Company in the Notes or in this Indenture (other than a covenant or agreement a default in whose performance or whose breach is elsewhere in this Section 7.01 specifically dealt with)
continued for a period of sixty (60) days after the date on which written notice of such failure, requiring the Company to remedy the same, shall have been given to the Company by the Trustee, or the Company and a Responsible Officer of the
Trustee by the holders of at least twenty-five percent (25%) in aggregate principal amount of the Notes at the time outstanding determined in accordance with Section 9.04; or 
 (e) the Company shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to
the Company or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company or any substantial part of
the property of the Company, or shall consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against the Company, or shall make a general assignment for the
benefit of creditors, or shall fail generally to pay its debts as they become due; or 
 (f) an involuntary case or other
proceeding shall be commenced against the Company seeking liquidation, reorganization or other relief with respect to the Company or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the
appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company or any substantial part of the property of the Company, and such involuntary case or other proceeding shall remain undismissed and unstayed for a
period of sixty (60) consecutive days; 
 then, and in each and every such case (other than an Event of Default specified in Section 7.01(e) or
7.01(f)), unless the principal of all of the Notes shall have already become due and payable, either the Trustee or the holders of not less than twenty-five percent (25%) in aggregate principal amount of the Notes then outstanding hereunder
determined in accordance with Section 9.04, by notice in writing to the Company (and to the Trustee if given by Noteholders), may declare the principal of all the Notes, the Interest accrued thereon to be due and payable immediately, and upon
any such declaration the same shall become and shall be immediately due and payable, anything in this Indenture or in the Notes contained to the contrary notwithstanding. If an Event of Default specified in Section 7.01(e) or 7.01(f) occurs,
the principal of all the Notes and the Interest accrued thereon shall be immediately and automatically due and payable without necessity of further action. This provision, however, is subject to the conditions that if, at any time after the
principal of the Notes shall have been so declared due and payable, and before any judgment or decree for the payment of the monies due shall have been obtained or entered as hereinafter provided, the Company shall pay or shall deposit with the
Trustee a sum sufficient to pay all matured installments of Interest upon all Notes and the principal of any and all Notes which shall have become due otherwise than by acceleration (with interest on overdue 
  

 37 








 
installments of Interest (to the extent that payment of such interest is enforceable under applicable law) and on such principal at the rate borne by the
Notes, to the date of such payment or deposit) and amounts due to the Trustee pursuant to Section 8.06, and if any and all defaults under this Indenture, other than the nonpayment of principal of and accrued Interest on Notes which shall have
become due by acceleration, shall have been cured or waived pursuant to Section 7.07, then and in every such case the holders of a majority in aggregate principal amount of the Notes then outstanding, by written notice to the Company and to the
Trustee, may waive all Defaults or Events of Default and rescind and annul such declaration and its consequences; but no such waiver or rescission and annulment shall extend to or shall affect any subsequent Default or Event of Default, or shall
impair any right consequent thereon. The Company shall notify in writing a Responsible Officer of the Trustee, promptly upon becoming aware thereof, of any Event of Default. 
 In case the Trustee shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned because
of such waiver or rescission and annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case the Company, the holders of Notes, and the Trustee shall be restored respectively to their several
positions and rights hereunder, and all rights, remedies and powers of the Company, the holders of Notes, and the Trustee shall continue as though no such proceeding had been taken. 
 Section 7.02. Payments of Notes on Default; Suit Therefor. The Company covenants that (a) in case default shall be made in the payment of any installment of Interest upon any of the Notes as and when
the same shall become due and payable, and such default shall have continued for a period of thirty (30) days, or (b) in case default shall be made in the payment of the principal of any of the Notes as and when the same shall have become
due and payable, whether at maturity of the Notes or in connection with any redemption, by or under this Indenture declaration or otherwise, then, upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the holders of the
Notes, the whole amount that then shall have become due and payable on all such Notes for principal or Interest, as the case may be, with interest upon the overdue principal and (to the extent that payment of such interest is enforceable under
applicable law) upon the overdue installments of Interest at the rate borne by the Notes, plus 1% and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including reasonable compensation
to the Trustee, its agents, attorneys and counsel, and all other amounts due the Trustee under Section 8.06. Until such demand by the Trustee, the Company may pay the principal of and Interest on the Notes to the registered holders, whether or
not the Notes are overdue. 
 In case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and
as trustee of an express trust, shall be entitled and empowered to institute any actions or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final
decree, and may enforce any such judgment or final decree against the Company or any other obligor on the Notes and collect in the manner provided by law out of the property of the Company or any other obligor on the Notes wherever situated the
monies adjudged or decreed to be payable. 
  

 38 








 In case there shall be pending proceedings for the bankruptcy or for the reorganization of the Company or
any other obligor on the Notes under Title 11 of the United States Code, or any other applicable law, or in case a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed
for or taken possession of the Company or such other obligor, the property of the Company or such other obligor, or in the case of any other judicial proceedings relative to the Company or such other obligor upon the Notes, or to the creditors or
property of the Company or such other obligor, the Trustee, irrespective of whether the principal of the Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made
any demand pursuant to the provisions of this Section 7.02, shall be entitled and empowered, by intervention in such proceedings or otherwise, to file and prove a claim or claims for the whole amount of principal and Interest owing and unpaid
in respect of the Notes, and, in case of any judicial proceedings, to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and of the Noteholders allowed in such judicial
proceedings relative to the Company or any other obligor on the Notes, its or their creditors, or its or their property, and to collect and receive any monies or other property payable or deliverable on any such claims, and to distribute the same
after the deduction of any amounts due the Trustee under Section 8.06, and to take any other action with respect to such claims, including participating as a member of any official committee of creditors, as it reasonably deems necessary or
advisable, and, unless prohibited by law or applicable regulations, and any receiver, assignee or trustee in bankruptcy or reorganization, liquidator, custodian or similar official is hereby authorized by each of the Noteholders to make such
payments to the Trustee, and, in the event that the Trustee shall consent to the making of such payments directly to the Noteholders, to pay to the Trustee any amount due it for reasonable compensation, expenses, advances and disbursements,
including counsel fees and expenses incurred by it up to the date of such distribution. To the extent that such payment of reasonable compensation, expenses, advances and disbursements out of the estate in any such proceedings shall be denied for
any reason, payment of the same shall be secured by a lien on, and shall be paid out of, any and all distributions, dividends, monies, securities and other property which the holders of the Notes may be entitled to receive in such proceedings,
whether in liquidation or under any plan of reorganization or arrangement or otherwise. 
 All rights of action and of asserting claims under
this Indenture, or under any of the Notes, may be enforced by the Trustee without the possession of any of the Notes, or the production thereof at any trial or other proceeding relative thereto, and any such suit or proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel,
be for the ratable benefit of the holders of the Notes. 
 In any proceedings brought by the Trustee (and in any proceedings involving the
interpretation of any provision of this Indenture to which the Trustee shall be a party) the Trustee shall be held to represent all the holders of the Notes, and it shall not be necessary to make any holders of the Notes parties to any such
proceedings. 
 Section 7.03. Application of Monies Collected by Trustee. Any monies or property collected by the Trustee pursuant to this
Article 7 shall be applied in the order following, at the date or dates 

  

 39 








 
fixed by the Trustee for the distribution of such monies or property, upon presentation of the several Notes and either (i) stamping thereon the
payment, if only partially paid, or (ii) upon surrender thereof, if fully paid. 
 FIRST: To the payment of all amounts
due the Trustee under Section 8.06; 
 SECOND: To holders of Senior Indebtedness of the Company to the extent required by
Article 16; 
 THIRD: In case the principal of the outstanding Notes shall not have become due and be unpaid, to the payment
of Interest on the Notes in default in the order of the maturity of the installments of such Interest, with interest (to the extent that such interest has been collected by the Trustee) upon the overdue installments of Interest at the rate borne by
the Notes, such payments to be made ratably to the Persons entitled thereto; 
 FOURTH: In case the principal of the
outstanding Notes shall have become due, by declaration or otherwise, and be unpaid to the payment of the whole amount then owing and unpaid upon the Notes for principal and Interest, with Interest on the overdue principal and (to the extent that
such Interest has been collected by the Trustee) upon overdue installments of Interest at the rate borne by the Notes, and in case such monies shall be insufficient to pay in full the whole amounts so due and unpaid upon the Notes, then to the
payment of such principal and Interest without preference or priority of principal over Interest, or of Interest over principal, or of any installment of Interest over any other installment of Interest, or of any Note over any other Note, ratably to
the aggregate of such principal and accrued and unpaid Interest; and 
 FIFTH: To the payment of the remainder, if any, to the
Company. 
 Section 7.04. Proceedings by Noteholder. No holder of any Note shall have any right by virtue of or by reference to any provision of
this Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture, or for the appointment of a receiver, trustee, liquidator, custodian or other similar official, or for any other remedy
hereunder, unless such holder previously shall have given to the Trustee written notice of an Event of Default and of the continuance thereof, as hereinbefore provided, and unless also the holders of not less than twenty-five percent (25%) in
aggregate principal amount of the Notes then outstanding shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder and shall have offered to the Trustee such reasonable
security or indemnity as it may require against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee for sixty (60) days after its receipt of such notice, request and offer of indemnity shall have neglected or
refused to institute any such action, suit or proceeding and no direction inconsistent with such written request shall have been given to the Trustee pursuant to Section 7.07; it being understood and intended, and being expressly covenanted by
the taker and holder of every Note with every other taker and holder and the Trustee, that no one or more holders of Notes shall have any right in any manner whatever by virtue of or by reference to any provision of this Indenture to affect, disturb
or prejudice the rights of any other holder of Notes, or to obtain or seek to obtain priority over or preference to any other such holder, or to enforce any right under this Indenture, except in the manner herein 

  

 40 








 
provided and for the equal, ratable and common benefit of all holders of Notes (except as otherwise provided herein). For the protection and enforcement of
this Section 7.04 each and every Noteholder and the Trustee shall be entitled to such relief as can be given either at law or in equity. 
 Notwithstanding any other provision of this Indenture and any provision of any Note, the right of any holder of any Note to receive payment of the principal of (including the redemption price upon redemption pursuant to Article 7) and
accrued Interest on such Note, on or after the respective due dates expressed in such Note or in the event of redemption, or to institute suit for the enforcement of any such payment on or after such respective dates against the Company shall not be
impaired or affected without the consent of such holder. 
 Anything in this Indenture or the Notes to the contrary notwithstanding, the
holder of any Note, without the consent of either the Trustee or the holder of any other Note, in its own behalf and for its own benefit, may enforce, and may institute and maintain any proceeding suitable to enforce, its rights of conversion as
provided herein. 
 Section 7.05. Proceedings by Trustee. In case of an Event of Default, the Trustee may, in its discretion, proceed to protect
and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as are necessary to protect and enforce any of such rights, either by suit in equity or by action at law or by proceeding in bankruptcy or otherwise,
whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture
or by law. 
 Section 7.06. Remedies Cumulative and Continuing. Except as provided in Section 2.06, all powers and remedies given by this
Article 7 to the Trustee or to the Noteholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any thereof or of any other powers and remedies available to the Trustee or the holders of the Notes, by judicial
proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture, and no delay or omission of the Trustee or of any holder of any of the Notes to exercise any right or power accruing upon
any Default or Event of Default occurring and continuing as aforesaid shall impair any such right or power, or shall be construed to be a waiver of any such default or any acquiescence therein, and, subject to the provisions of Section 7.04,
every power and remedy given by this Article 7 or by law to the Trustee or to the Noteholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Noteholders. 
 Section 7.07. Direction of Proceedings and Waiver of Defaults by Majority of Noteholders. The holders of a majority in aggregate principal amount of the
Notes at the time outstanding determined in accordance with Section 9.04 shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred
on the Trustee; provided that (a) such direction shall not be in conflict with any rule of law or with this Indenture, (b) the Trustee may take any other action which is not inconsistent with such direction, (c) the Trustee may
decline to take any action that would benefit some Noteholder to the detriment of other Noteholders and (d) the Trustee may decline to take any action that would involve the Trustee in personal liability. The holders of a majority in 

  

 41 








 
aggregate principal amount of the Notes at the time outstanding determined in accordance with Section 9.04 may, on behalf of the holders of all of the
Notes, waive any past Default or Event of Default hereunder and its consequences except (i) a default in the payment of Interest on, or the principal of, the Notes, (ii) a failure by the Company to convert any Notes into cash and, if
applicable, Common Stock, (iii) a default in the payment of the redemption price pursuant to Article 3, (iv) a default in the payment of the repurchase price pursuant to Article 3 or (v) a default in respect of a covenant or
provisions hereof which under Article 11 cannot be modified or amended without the consent of the holders of each or all of the Notes then outstanding or affected thereby. Upon any such waiver, the Company, the Trustee and the holders of the Notes
shall be restored to their former positions and rights hereunder; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon. Whenever any Default or Event of Default hereunder shall
have been waived as permitted by this Section 7.07, said Default or Event of Default shall for all purposes of the Notes and this Indenture be deemed to have been cured and to be not continuing; but no such waiver shall extend to any subsequent
or other Default or Event of Default or impair any right consequent thereon. 
 Section 7.08. Notice of Default. The Trustee shall, within ninety
(90) days after a Responsible Officer of the Trustee has actual knowledge of the occurrence of a default, mail to all Noteholders, as the names and addresses of such holders appear upon the Note Register, notice of all defaults known to a
Responsible Officer, unless such defaults shall have been cured or waived before the giving of such notice; provided that except in the case of default in the payment of the principal of or Interest on any of the Notes, the Trustee shall be
protected in withholding such notice if and so long as a trust committee of directors and/or Responsible Officers of the Trustee in good faith determines that the withholding of such notice is in the interests of the Noteholders. 
 Section 7.09. Undertaking to Pay Costs. All parties to this Indenture agree, and each holder of any Note by his acceptance thereof shall be deemed to have
agreed, that any court may, in its discretion, require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in such suit, having due
regard to the merits and good faith of the claims or defenses made by such party litigant; provided that the provisions of this Section 7.09 (to the extent permitted by law) shall not apply to any suit instituted by the Trustee, to any
suit instituted by any Noteholder, or group of Noteholders, holding in the aggregate more than ten percent in principal amount of the Notes at the time outstanding determined in accordance with Section 9.04, or to any suit instituted by any
Noteholder for the enforcement of the payment of the principal of or Interest on any Note on or after the due date expressed in such Note or to any suit for the enforcement of the right to convert any Note in accordance with the provisions of
Article 15. 
  

 42 








 ARTICLE 8 
 THE TRUSTEE 
 Section 8.01. Duties and Responsibilities of Trustee. The Trustee, prior to the occurrence of an
Event of Default and after the curing of all Events of Default which may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture. In case an Event of Default has occurred (which has not
been cured or waived), the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the
conduct of such person’s own affairs. 
 No provision of this Indenture shall be construed to relieve the Trustee from liability for its
own negligent action, its own negligent failure to act or its own willful misconduct, except that: 
 (a) prior to the
occurrence of an Event of Default and after the curing or waiving of all Events of Default which may have occurred: 
 (i) the
duties and obligations of the Trustee shall be determined solely by the express provisions of this Indenture and the Trust Indenture Act, and the Trustee shall not be liable except for the performance of such duties and obligations as are
specifically set forth in this Indenture and no implied covenants, duties or obligations shall be read into this Indenture and the Trust Indenture Act against the Trustee; and 
 (ii) in the absence of bad faith and willful misconduct on the part of the Trustee, the Trustee may conclusively rely as to the truth of
the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but, in the case of any such certificates or opinions which by any
provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture but need not confirm or investigate the
accuracy of mathematical calculations or other facts stated therein; 
 (b) the Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer or Officers of the Trustee, unless the Trustee was negligent in ascertaining the pertinent facts; 
 (c) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the written direction of the holders of not less than a majority in principal amount
of the Notes at the time outstanding determined as provided in Section 9.04 relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the
Trustee, under this Indenture; 
  

 43 








 (d) whether or not therein provided, every provision of this Indenture relating to the
conduct or affecting the liability of, or affording protection to, the Trustee shall be subject to the provisions of this Section; 
 (e) the Trustee shall not be liable in respect of any payment (as to the correctness of amount, entitlement to receive or any other matters relating to payment) or notice effected by the Company or any paying agent or any records maintained
by any co-registrar with respect to the Notes; 
 (f) if any party fails to deliver a notice relating to an event the fact of
which, pursuant to this Indenture, requires notice to be sent to the Trustee, the Trustee may conclusively rely on its failure to receive such notice as reason to act as if no such event occurred; and 
 (g) the Trustee shall not be deemed to have knowledge of any Event of Default hereunder unless it shall have been notified in writing of
such Event of Default by the Company or the holders of at least 10% in aggregate principal amount of the Notes. 
 None of the provisions
contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if there is reasonable
ground for believing that the repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. 
 Section 8.02. Reliance on Documents, Opinions, Etc. Except as otherwise provided in Section 8.01: 
 (a) the Trustee may conclusively rely and shall be protected in acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, note, coupon or other paper or document
(whether in its original or facsimile form) believed by it in good faith to be genuine and to have been signed or presented by the proper party or parties; 
 (b) any request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by an Officer’s Certificate (unless other evidence in respect thereof be herein specifically
prescribed); and any resolution of the Board of Directors may be evidenced to the Trustee by a copy thereof certified by the Secretary or an Assistant Secretary of the Company; 
 (c) the Trustee may consult with counsel of its own selection and any advice or Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel; 
 (d) the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order
or direction of any of the Noteholders pursuant to the provisions of this Indenture, unless such Noteholders shall have offered to the Trustee reasonable security or indemnity satisfactory to it against the costs, expenses and liabilities which may
be incurred therein or thereby; 
  

 44 








 (e) the Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or document, but the Trustee may make such further inquiry or investigation into such facts or
matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney at the expense of the
Company, and shall incur no liability of any kind by reason of such inquiry or investigation; 
 (f) the Trustee may execute
any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed by it
with due care hereunder; 
 (g) the Trustee shall not be liable for any action taken, suffered or omitted to be taken by it in
good faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture; 
 (h) the rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of
its capacities hereunder, and each agent, custodian and other Person employed to act hereunder; 
 (i) the Trustee may request
that the Company deliver an Officer’s Certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture, which Officer’s Certificate may be signed by
any person authorized to sign an Officer’s Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded; and 
 (j) any permissive right or authority granted to the Trustee shall not be construed as a mandatory duty. 
  

 45 








 Section 8.03. No Responsibility for Recitals, Etc. The recitals contained herein and in the Notes (except in
the Trustee’s certificate of authentication) shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no representations as to the validity or sufficiency of
this Indenture or of the Notes. The Trustee shall not be accountable for the use or application by the Company of any Notes or the proceeds of any Notes authenticated and delivered by the Trustee in conformity with the provisions of this Indenture.

 Section 8.04. Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes. The Trustee, any paying agent, any conversion agent or
Note Registrar, in its individual or any other capacity, may become the owner or pledgee of Notes with the same rights it would have if it were not Trustee, paying agent, conversion agent or Note Registrar. 
 Section 8.05. Monies to Be Held in Trust. Subject to the provisions of Section 13.04, all monies received by the Trustee shall, until used or applied as
herein provided, be held in trust for the purposes for which they were received. Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for
interest on any money received by it hereunder except as may be agreed in writing from time to time by the Company and the Trustee. 
 Section 8.06.
Compensation and Expenses of Trustee. The Company covenants and agrees to pay to the Trustee from time to time, and the Trustee shall be entitled to, such compensation for all services rendered by it hereunder in any capacity (which shall not
be limited by any provision of law in regard to the compensation of a trustee of an express trust) as mutually agreed to from time to time in writing between the Company and the Trustee, and the Company will pay or reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances reasonably incurred or made by the Trustee in accordance with any of the provisions of this Indenture (including the reasonable compensation and the expenses and disbursements of its
counsel and of all Persons not regularly in its employ), except any such expense, disbursement or advance as shall be determined to have been caused by its own negligence or willful misconduct. The Company also covenants to indemnify the Trustee and
any predecessor Trustee (or any officer, director or employee of the Trustee) in any capacity under this Indenture and its agents and any authenticating agent for, and to hold them harmless against, any and all loss, liability, damage, claim or
expense, including taxes (other than taxes based on the income of the Trustee) incurred without negligence, bad faith or willful misconduct on the part of the Trustee or such officers, directors, employees and agent or authenticating agent, as the
case may be, and arising out of or in connection with the acceptance or administration of this trust or in any other capacity hereunder, including the costs and expenses of defending themselves against any claim (whether asserted by the Company, any
holder or any other Person) of liability in the premises. The obligations of the Company under this Section 8.06 to compensate or indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances shall be
secured by a lien prior to that of the Notes upon all property and funds held or collected by the Trustee as such, except funds held in trust for the benefit of the holders of particular Notes. The obligation of the Company under this Section shall
survive the satisfaction and discharge of this Indenture. 
 When the Trustee and its agents and any authenticating agent incur expenses or
render services after an Event of Default specified in Section 7.01(e) or (f) with respect to the Company occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any
bankruptcy, insolvency or similar laws. 
  

 46 








 Section 8.07. Officer’s Certificate as Evidence. Except as otherwise provided in Section 8.01,
whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or omitting any action hereunder, such matter (unless other evidence in
respect thereof be herein specifically prescribed) may, in the absence of bad faith or willful misconduct on the part of the Trustee, be deemed to be conclusively proved and established by an Officer’s Certificate delivered to the Trustee.

 Section 8.08. Conflicting Interests of Trustee. If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall (i) eliminate such interest within 90 days, (ii) apply to the Commission for permission to continue as trustee or (iii) resign, in each case to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture. 
 Section 8.09. Eligibility of Trustee. There shall at all times be a Trustee
hereunder which shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at least $50,000,000 (or, if such Person is a member of a bank holding company system, its bank holding
company shall have a combined capital and surplus of at least $50,000,000). If such Person publishes reports of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority, then for the purposes of
this Section the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section 8.09, it shall resign immediately in the manner and with the effect hereinafter specified in this Article. 
 Section 8.10. Resignation or Removal of Trustee. (a) The Trustee may at any time resign by giving written notice of such resignation to the Company and to the holders of Notes. Upon receiving such notice of resignation, the
Company shall promptly appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor trustee. If
no successor trustee shall have been so appointed and have accepted appointment sixty (60) days after the mailing of such notice of resignation to the Noteholders, the resigning Trustee may, upon ten (10) Business Days’ notice to the
Company and the Noteholders, petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor trustee, or, any Noteholder who has been a bona fide holder of a Note or Notes for at least six
(6) months may, subject to the provisions of Section 7.09, on behalf of himself and all others similarly situated, petition any such court for the appointment of a successor trustee. Such court may thereupon, after such notice, if any, as
it may deem proper and prescribe, appoint a successor trustee. 
 (b) In case at any time any of the following shall occur: 
 (i) the Trustee shall fail to comply with Section 8.08 after written request therefor by the Company or by any Noteholder who has
been a bona fide holder of a Note or Notes for at least six (6) months; or 
  

 47 








 (ii) the Trustee shall cease to be eligible in accordance with the provisions of
Section 8.09 and shall fail to resign after written request therefor by the Company or by any such Noteholder; or 
 (iii) the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of
its property or affairs for the purpose of rehabilitation, conservation or liquidation; 
 then, in any such case, the Company may remove the Trustee and
appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or, subject to the
provisions of Section 7.09, any Noteholder who has been a bona fide holder of a Note or Notes for at least six (6) months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor trustee; provided that if no successor Trustee shall have been appointed and have accepted appointment sixty (60) days after either the Company or such Noteholder has removed the
Trustee, or the Trustee resigns, the Trustee so removed may petition, at the expense of the Company, any court of competent jurisdiction for an appointment of a successor trustee. Such court may thereupon, after such notice, if any, as it may deem
proper and prescribe, remove the Trustee and appoint a successor trustee. 
 (c) The holders of a majority in aggregate principal amount of
the Notes at the time outstanding may at any time remove the Trustee and nominate a successor trustee which shall be deemed appointed as successor trustee unless, within ten (10) days after notice to the Company of such nomination, the Company
objects thereto, in which case the Trustee so removed or any Noteholder, or, if such Trustee so removed or any Noteholder fails to act, the Company, upon the terms and conditions and otherwise as in Section 8.10(a) provided, may petition any
court of competent jurisdiction for an appointment of a successor trustee. 
 (d) Any resignation or removal of the Trustee and appointment
of a successor trustee pursuant to any of the provisions of this Section 8.10 shall become effective upon acceptance of appointment by the successor trustee as provided in Section 8.11. 
 (e) Notwithstanding the replacement of the Trustee pursuant to this Section, the Company’s obligations under Section 8.06 shall continue for
the benefit of the retiring Trustee. 
 Section 8.11. Acceptance by Successor Trustee. Any successor trustee appointed as provided in
Section 8.10 shall execute, acknowledge and deliver to the Company and to its predecessor trustee an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the predecessor trustee shall become effective and
such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, duties and obligations of its predecessor hereunder, with like effect as if originally named as trustee herein; 

  

 48 








 
but, nevertheless, on the written request of the Company or of the successor trustee, the trustee ceasing to act shall, upon payment of any amount then due
it pursuant to the provisions of Section 8.06, execute and deliver an instrument transferring to such successor trustee all the rights and powers of the trustee so ceasing to act. Upon request of any such successor trustee, the Company shall
execute any and all instruments in writing for more fully and certainly vesting in and confirming to such successor trustee all such rights and powers. Any trustee ceasing to act shall, nevertheless, retain a lien upon all property and funds held or
collected by such trustee as such, except for funds held in trust for the benefit of holders of particular Notes, to secure any amounts then due it pursuant to the provisions of Section 8.06. 
 No successor trustee shall accept appointment as provided in this Section 8.11 unless, at the time of such acceptance, such successor trustee shall
be qualified under the provisions of Section 8.08 and be eligible under the provisions of Section 8.09. 
 Upon acceptance of
appointment by a successor trustee as provided in this Section 8.11, the Company (or the former trustee, at the written direction of the Company) shall mail or cause to be mailed notice of the succession of such trustee hereunder to the holders
of Notes at their addresses as they shall appear on the Note Register. If the Company fails to mail such notice within ten (10) days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be
mailed at the expense of the Company. 
 Section 8.12. Succession by Merger. Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the
Trustee (including any trust created by this Indenture), shall be the successor to the Trustee hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that in the case of
any corporation succeeding to all or substantially all of the corporate trust business of the Trustee, such corporation shall be qualified under the provisions of Section 8.08 and eligible under the provisions of Section 8.09. 

In any case where at the time such successor to the Trustee shall succeed to the trusts created by this Indenture, any of the Notes shall have been
authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor trustee or authenticating agent appointed by such predecessor trustee, and deliver such Notes so authenticated; and in
case at that time any of the Notes shall not have been authenticated, any successor to the Trustee or any authenticating agent appointed by such successor trustee may authenticate such Notes in the name of the successor trustee; and in all such
cases such certificates shall have the full force that is provided in the Notes or in this Indenture; provided that the right to adopt the certificate of authentication of any predecessor Trustee or to authenticate Notes in the name of any
predecessor Trustee shall apply only to its successor or successors by merger, conversion or consolidation. 
 Section 8.13. Preferential Collection
of Claims. If and when the Trustee shall be or become a creditor of the Company (or any other obligor upon the Notes), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of the claims against the
Company (or any such other obligor). 
  

 49 








 Section 8.14. Trustee’s Application for Instructions from the Company. Any application by the Trustee
for written instructions from the Company (other than with regard to any action proposed to be taken or omitted to be taken by the Trustee that affects the rights of the holders of the Notes under this Indenture) may, at the option of the Trustee,
set forth in writing any action proposed to be taken or omitted by the Trustee under this Indenture and the date on and/or after which such action shall be taken or such omission shall be effective. The Trustee shall not be liable for any action
taken by, or omission of, the Trustee in accordance with a proposal included in such application on or after the date specified in such application (which date shall not be less than three (3) Business Days after the date any officer of the
Company actually receives such application, unless any such officer shall have consented in writing to any earlier date) unless prior to taking any such action (or the effective date in the case of an omission), the Trustee shall have received
written instructions in response to such application specifying the action to be taken or omitted. 
 ARTICLE 9 
 THE NOTEHOLDERS 
 Section 9.01. Action by
Noteholders. Whenever in this Indenture it is provided that the holders of a specified percentage in aggregate principal amount of the Notes may take any action (including the making of any demand or request, the giving of any notice, consent or
waiver or the taking of any other action), the fact that, at the time of taking any such action, the holders of such specified percentage have joined therein may be evidenced (a) by any instrument or any number of instruments of similar tenor
executed by Noteholders in person or by agent or proxy appointed in writing, or (b) by the record of the holders of Notes voting in favor thereof at any meeting of Noteholders duly called and held in accordance with the provisions of Article
10, or (c) by a combination of such instrument or instruments and any such record of such a meeting of Noteholders. Whenever the Company or the Trustee solicits the taking of any action by the Noteholders, the Company or the Trustee may fix in
advance of such solicitation a date as the record date for determining holders entitled to take such action. The record date shall be not more than fifteen (15) days prior to the date of commencement of solicitation of such action. 

Section 9.02. Proof of Execution by Noteholders. Subject to the provisions of Sections 8.01, 8.02 and 10.05, proof of the execution of any instrument by a
Noteholder or its agent or proxy shall be sufficient if made in accordance with such reasonable rules and regulations as may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee. The holding of Notes shall be proved
by the registry of such Notes or by a certificate of the Note Registrar. 
 The record of any Noteholders’ meeting shall be proved in
the manner provided in Section 10.06. 
 Section 9.03. Who Are Deemed Absolute Owners. The Company, the Trustee, any paying agent, any
conversion agent and any Note Registrar may deem the Person in whose name such Note shall be registered upon the Note Register to be, and may treat it as, the absolute owner of such Note (whether or not such Note shall be overdue and notwithstanding
any notation of 

  

 50 








 
ownership or other writing thereon made by any Person other than the Company or any Note Registrar) for the purpose of receiving payment of or on account of
the principal of and Interest on such Note, for conversion of such Note and for all other purposes; and neither the Company nor the Trustee nor any paying agent nor any conversion agent nor any Note Registrar shall be affected by any notice to the
contrary. All such payments so made to any holder for the time being, or upon such holder’s order, shall be valid and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for monies payable upon any such
Note. 
 Section 9.04. Company-owned Notes Disregarded. In determining whether the holders of the requisite aggregate principal amount of Notes
have concurred in any direction, consent, waiver or other action under this Indenture, Notes which are owned by the Company or any other obligor on the Notes or any Affiliate of the Company or any other obligor on the Notes shall be disregarded and
deemed not to be outstanding for the purpose of any such determination; provided that, for the purposes of determining whether the Trustee shall be protected in relying on any such direction, consent, waiver or other action, only Notes which
a Responsible Officer knows are so owned shall be so disregarded. Notes so owned which have been pledged in good faith may be regarded as outstanding for the purposes of this Section 9.04 if the pledgee shall establish to the satisfaction of
the Trustee the pledgee’s right to vote such Notes and that the pledgee is not the Company, any other obligor on the Notes or any Affiliate of the Company or any such other obligor. In the case of a dispute as to such right, any decision by the
Trustee taken upon the advice of counsel shall be full protection to the Trustee. Upon request of the Trustee, the Company shall furnish to the Trustee promptly an Officer’s Certificate listing and identifying all Notes, if any, known by the
Company to be owned or held by or for the account of any of the above described Persons, and, subject to Section 8.01, the Trustee shall be entitled to accept such Officer’s Certificate as conclusive evidence of the facts therein set forth
and of the fact that all Notes not listed therein are outstanding for the purpose of any such determination. 
 Section 9.05. Revocation of Consents;
Future Holders Bound. At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 9.01, of the taking of any action by the holders of the percentage in aggregate principal amount of the Notes specified in this
Indenture in connection with such action, any holder of a Note which is shown by the evidence to be included in the Notes the holders of which have consented to such action may, by filing written notice with the Trustee at its Corporate Trust Office
and upon proof of holding as provided in Section 9.02, revoke such action so far as concerns such Note. Except as aforesaid, any such action taken by the holder of any Note shall be conclusive and binding upon such holder and upon all future
holders and owners of such Note and of any Notes issued in exchange or substitution therefor, irrespective of whether any notation in regard thereto is made upon such Note or any Note issued in exchange or substitution therefor. 
 ARTICLE 10 
 MEETINGS OF NOTEHOLDERS

 Section 10.01. Purpose of Meetings. A meeting of Noteholders may be called at any time and from time to time pursuant to the
provisions of this Article 10 for any of the following purposes: 
 (a) to give any notice to the Company or to the Trustee or
to give any directions to the Trustee permitted under this Indenture, or to consent to the waiving of any Default or Event of Default hereunder and its consequences, or to take any other action authorized to be taken by Noteholders pursuant to any
of the provisions of Article 7; 
  

 51 








 (b) to remove the Trustee and nominate a successor trustee pursuant to the provisions of
Article 8; 
 (c) to consent to the execution of an indenture or indentures supplemental hereto pursuant to the provisions of
Section 11.02; or 
 (d) to take any other action authorized to be taken by or on behalf of the holders of any specified
aggregate principal amount of the Notes under any other provision of this Indenture or under applicable law. 
 Section 10.02. Call of Meetings by
Trustee. The Trustee may at any time call a meeting of Noteholders to take any action specified in Section 10.01, to be held at such time and at such place as the Trustee shall determine. Notice of every meeting of the Noteholders, setting
forth the time and place of such meeting and in general terms the action proposed to be taken at such meeting and the establishment of any record date pursuant to Section 9.01, shall be mailed to holders of Notes at their addresses as they
shall appear on the Note Register. Such notice shall also be mailed to the Company. Such notices shall be mailed not less than twenty (20) nor more than ninety (90) days prior to the date fixed for the meeting. 
 Any meeting of Noteholders shall be valid without notice if the holders of all Notes then outstanding are present in person or by proxy or if notice is
waived before or after the meeting by the holders of all Notes outstanding, and if the Company and the Trustee are either present by duly authorized representatives or have, before or after the meeting, waived notice. 
 Section 10.03. Call of Meetings by Company or Noteholders. In case at any time the Company, pursuant to a resolution of its Board of Directors, or the
holders of at least ten percent (10%) in aggregate principal amount of the Notes then outstanding, shall have requested the Trustee to call a meeting of Noteholders, by written request setting forth in reasonable detail the action proposed to
be taken at the meeting, and the Trustee shall not have mailed the notice of such meeting within twenty (20) days after receipt of such request, then the Company or such Noteholders may determine the time and the place for such meeting and may
call such meeting to take any action authorized in Section 10.01 by mailing notice thereof as provided in Section 10.02. 
 Section 10.04.
Qualifications for Voting. To be entitled to vote at any meeting of Noteholders, a person shall (a) be a holder of one or more Notes on the record date pertaining to such meeting or (b) be a person appointed by an instrument in
writing as proxy by a holder of one or more Notes on the record date pertaining to such meeting. The only persons who shall be entitled to be present or to speak at any meeting of Noteholders shall be the persons entitled to vote at such meeting and
their counsel and any representatives of the Trustee and its counsel and any representatives of the Company and its counsel. 
  

 52 








 Section 10.05. Regulations. Notwithstanding any other provisions of this Indenture, the Trustee may make such
reasonable regulations as it may deem advisable for any meeting of Noteholders, in regard to proof of the holding of Notes and of the appointment of proxies, and in regard to the appointment and duties of inspectors of votes, the submission and
examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall think fit. 
 The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or by Noteholders as provided in Section 10.03, in which case
the Company or the Noteholders calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of the meeting shall be elected by vote of the holders of a majority in
principal amount of the Notes represented at the meeting and entitled to vote at the meeting. 
 Subject to the provisions of
Section 9.04, at any meeting each Noteholder or proxyholder shall be entitled to one vote for each $1,000 principal amount of Notes held or represented by him; provided that no vote shall be cast or counted at any meeting in respect of
any Note challenged as not outstanding and ruled by the chairman of the meeting to be not outstanding. The chairman of the meeting shall have no right to vote other than by virtue of Notes held by him or instruments in writing as aforesaid duly
designating him as the proxy to vote on behalf of other Noteholders. Any meeting of Noteholders duly called pursuant to the provisions of Section 10.02 or 10.03 may be adjourned from time to time by the holders of a majority of the aggregate
principal amount of Notes represented at the meeting, whether or not constituting a majority of the aggregate principal amount of Notes outstanding, the latter of which shall constitute a quorum, and the meeting may be held as so adjourned without
further notice. 
 Section 10.06. Voting. The vote upon any resolution submitted to any meeting of Noteholders shall be by written ballot on
which shall be subscribed the signatures of the holders of Notes or of their representatives by proxy and the outstanding principal amount of the Notes held or represented by them. The permanent chairman of the meeting shall appoint two inspectors
of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in duplicate of all votes cast at the meeting. A record in duplicate of
the proceedings of each meeting of Noteholders shall be prepared by the secretary of the meeting, and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or
more persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was mailed as provided in Section 10.02. The record shall show the principal amount of the Notes voting in favor of or
against any resolution. The record shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one of the duplicates shall be delivered to the Company and the other to the Trustee to be preserved by the
Trustee, the latter to have attached thereto the ballots voted at the meeting. 
 Any record so signed and verified shall be conclusive
evidence of the matters therein stated. 
  

 53 








 Section 10.07. No Delay of Rights by Meeting. Nothing contained in this Article 10 shall be deemed or
construed to authorize or permit, by reason of any call of a meeting of Noteholders or any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in the exercise of any right or rights conferred upon or reserved
to the Trustee or to the Noteholders under any of the provisions of this Indenture or of the Notes. 
 ARTICLE 11 
 SUPPLEMENTAL INDENTURES 
 Section 11.01. Supplemental
Indentures Without Consent of Noteholders. The Company, when authorized by the resolutions of the Board of Directors, and the Trustee may, from time to time, and at any time enter into an indenture or indentures supplemental hereto for one or
more of the following purposes: 
 (a) make provision with respect to the conversion rights of the holders of Notes pursuant
to the requirements of Section 15.08 and the repurchase obligations of the Company pursuant to the requirements of Section 3.05(e); 
 (b) to convey, transfer, assign, mortgage or pledge to the Trustee as security for the Notes, any property or assets; 
 (c) to evidence the succession of another Person to the Company, or successive successions, and the assumption by the successor Person of the covenants, agreements and obligations of the Company pursuant to Article
12; 
 (d) to add to the covenants of the Company such further covenants, restrictions or conditions as the Board of Directors
and the Trustee shall consider to be for the benefit of the holders of Notes, and to make the occurrence, or the occurrence and continuance, of a default in any such additional covenants, restrictions or conditions a default or an Event of Default
permitting the enforcement of all or any of the several remedies provided in this Indenture as herein set forth; provided that, in respect of any such additional covenant, restriction or condition, such supplemental indenture may provide for
a particular period of grace after default (which period may be shorter or longer than that allowed in the case of other defaults) or may provide for an immediate enforcement upon such default or may limit the remedies available to the Trustee upon
such default; 
 (e) to provide for the issuance under this Indenture of Notes in coupon form (including Notes registrable as
to principal only) and to provide for exchangeability of such Notes with the Notes issued hereunder in fully registered form and to make all appropriate changes for such purpose; 
 (f) to cure any ambiguity or to correct or supplement any provision contained herein or in any supplemental indenture that may be
defective or inconsistent with any other provision contained herein or in any supplemental indenture, or to make such other provisions in regard to matters or questions arising under this Indenture that shall not materially adversely affect the
interests of the holders of the Notes; 
  

 54 








 (g) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Notes; 
 (h) to modify, eliminate or add to the provisions of this Indenture to such extent as
shall be necessary to effect the qualifications of this Indenture under the Trust Indenture Act, or under any similar federal statute hereafter enacted; 
 (i) to increase, from time to time, the per annum interest rate on the Notes for any period; or 
 (j) to make any changes to Article 16 that would limit or terminate the benefits available to any holder of Senior Indebtedness of the Company. 
 Upon the written request of the Company, accompanied by a copy of the resolutions of the Board of Directors certified by its Secretary or Assistant Secretary authorizing the execution of any supplemental indenture,
the Trustee is hereby authorized to join with the Company in the execution of any such supplemental indenture, to make any further appropriate agreements and stipulations that may be therein contained and to accept the conveyance, transfer and
assignment of any property thereunder; provided that the Trustee shall not be obligated to, but may in its discretion, enter into any supplemental indenture that affects the Trustee’s own rights, duties or immunities under this Indenture
or otherwise. 
 Any supplemental indenture authorized by the provisions of this Section 11.01 may be executed by the Company and the
Trustee without the consent of the holders of any of the Notes at the time outstanding, notwithstanding any of the provisions of Section 11.02. 
 Section 11.02. Supplemental Indenture with Consent of Noteholders. With the consent (evidenced as provided in Article 9) of the holders of at least a majority in aggregate principal amount of the Notes at the time outstanding,
the Company, when authorized by the resolutions of the Board of Directors, and the Trustee may, from time to time and at any time, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or any supplemental indenture or of modifying in any manner the rights of the holders of the Notes; provided that no such supplemental indenture shall (i) extend the fixed
maturity of any Note, (ii) reduce the rate or extend the time of payment of Interest thereon, (iii) reduce the principal amount thereof or reduce any amount payable on redemption or repurchase thereof, (iv) change the obligation of
the Company to repurchase any Note at the option of a Noteholder on a Repurchase Date in a manner adverse to the holders of Notes, (v) change the obligation of the Company to repurchase any Note upon the happening of a Fundamental Change in a
manner adverse to the holders of Notes, (vi) impair the right of any Noteholder to institute suit for the payment thereof, (vii) make the principal thereof or Interest thereon payable in any coin or currency other than that provided in the
Notes, (viii) impair the right to convert the Notes or reduce the amount of cash, the number of shares of Common Stock or any other property receivable by a Noteholder upon conversion subject to the terms set forth herein, including
Section 15.08, in each case, without the consent of the holder of each Note so affected, (ix) modify any of the provisions of this Section 11.02 or Section 7.07, except to increase any such percentage or to provide that certain
other provisions of this Indenture cannot be modified or 

  

 55 








 
waived without the consent of the holder of each Note so affected, (x) change any obligation of the Company to maintain an office or agency in the
places and for the purposes set forth in Section 5.02, (xi) reduce the quorum or voting requirements set forth in Article 10, (xii) make any change in Article 16 that adversely affects the rights of any Noteholder under
Article 16 or (xiii) reduce the aforesaid percentage of Notes, the holders of which are required to consent to any such supplemental indenture, without the consent of the holders of all Notes then outstanding. 
 Upon the written request of the Company, accompanied by a copy of the resolutions of the Board of Directors certified by its Secretary or Assistant
Secretary authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of Noteholders as aforesaid, the Trustee shall join with the Company in the execution of such supplemental
indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such supplemental
indenture. 
 It shall not be necessary for the consent of the Noteholders under this Section 11.02 to approve the particular form of
any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof. 
 Section 11.03. Effect of
Supplemental Indenture. Any supplemental indenture executed pursuant to the provisions of this Article 11 shall comply with the Trust Indenture Act, as then in effect, provided that this Section 11.03 shall not require such supplemental
indenture or the Trustee to be qualified under the Trust Indenture Act prior to the time such qualification is in fact required under the terms of the Trust Indenture Act or the Indenture has been qualified under the Trust Indenture Act, nor shall
it constitute any admission or acknowledgment by any party to such supplemental indenture that any such qualification is required prior to the time such qualification is in fact required under the terms of the Trust Indenture Act or the Indenture
has been qualified under the Trust Indenture Act. Upon the execution of any supplemental indenture pursuant to the provisions of this Article 11, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the
respective rights, limitation of rights, obligations, duties and immunities under this Indenture of the Trustee, the Company and the holders of Notes shall thereafter be determined, exercised and enforced hereunder, subject in all respects to such
modifications and amendments and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes. 
 Section 11.04. Notation on Notes. Notes authenticated and delivered after the execution of any supplemental indenture pursuant to the provisions of this
Article 11 may bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company or the Trustee shall so determine, new Notes so modified as to conform, in the opinion of the Trustee and the
Board of Directors, to any modification of this Indenture contained in any such supplemental indenture may, at the Company’s expense, be prepared and executed by the Company, authenticated by the Trustee (or an authenticating agent duly
appointed by the Trustee pursuant to Section 17.11) and delivered in exchange for the Notes then outstanding, upon surrender of such Notes then outstanding. 
  

 56 








 Section 11.05. Evidence of Compliance of Supplemental Indenture to Be Furnished to Trustee. Prior to entering
into any supplemental indenture, the Trustee shall be provided with an Officer’s Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant hereto complies with the requirements of this
Article 11 and is otherwise authorized or permitted by this Indenture. 
 ARTICLE 12 
 CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE 
 Section 12.01. Company May Consolidate on
Certain Terms. Subject to the provisions of Section 12.02, the Company shall not consolidate or merge with or into any other Person or Persons (whether or not affiliated with the Company), nor shall the Company or its successor or
successors be a party or parties to successive consolidations or mergers, nor shall the Company sell, convey, transfer or lease the property and assets of the Company substantially as an entirety to any other Person (whether or not affiliated with
the Company), unless: (i) the Company is the surviving Person, or the resulting, surviving or transferee Person is a corporation organized and existing under the laws of the United States of America, any state thereof or the District of
Columbia; (ii) upon any such consolidation, merger, sale, conveyance, transfer or lease, the due and punctual payment of the principal of and Interest on all of the Notes according to their tenor, and the due and punctual performance and
observance of all of the covenants and conditions of this Indenture to be performed by the Company, shall be expressly assumed, by supplemental indenture satisfactory in form and substance to the Trustee, executed and delivered to the Trustee by the
Person (if other than the Company and other than a Person who is a successor to the Company’s obligations hereunder and under the Note by operation of law) formed by such consolidation, or into which the Company shall have been merged, or by
the Person that shall have acquired or leased such property, and such supplemental indenture shall provide for the applicable conversion rights set forth in Section 15.08; and (iii) immediately after giving effect to the transaction
described above, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have happened and be continuing. 
 Section 12.02. Successor to Be Substituted. In case of any such consolidation, merger, sale, conveyance, transfer or lease and upon the assumption by the successor Person, by supplemental indenture,
executed and delivered to the Trustee and satisfactory in form to the Trustee, of the due and punctual payment of the principal of and Interest on all of the Notes and the due and punctual performance of all of the covenants and conditions of this
Indenture to be performed by the Company, such successor Person shall succeed to and be substituted for the Company, with the same effect as if it had been named herein as the party of this first part. Such successor Person thereupon may cause to be
signed, and may issue either in its own name or in the name of Headwaters Incorporated any or all of the Notes, issuable hereunder that theretofore shall not have been signed by the Company and delivered to the Trustee, and, upon the order of such
successor Person instead of the Company and subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee shall authenticate and shall deliver, or cause to be authenticated and delivered, any Notes that previously
shall have been signed and delivered by the officers of the Company to the Trustee for authentication and any Notes that such successor Person thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the Notes so issued
shall in all respects have the same legal rank and benefit under this Indenture as 

  

 57 








 
the Notes theretofore or thereafter issued in accordance with the terms of this Indenture as though all of such Notes had been issued at the date of the
execution hereof. In the event of any such consolidation, merger, sale, conveyance, transfer or lease, the Person named as the “Company” in the first paragraph of this Indenture or any successor that shall thereafter have become such in
the manner prescribed in this Article 12 may be dissolved, wound up and liquidated at any time thereafter and such Person shall be released from its liabilities as obligor and maker of the Notes and from its obligations under this Indenture.

 In case of any such consolidation, merger, sale, conveyance, transfer or lease, such changes in phraseology and form (but not in
substance) may be made in the Notes thereafter to be issued as may be appropriate. 
 Section 12.03. Opinion of Counsel to Be Given to Trustee.
The Trustee shall receive an Officer’s Certificate and an Opinion of Counsel as conclusive evidence that any such consolidation, merger, sale, conveyance, transfer or lease and any such assumption complies with the provisions of this Article
12. 
 ARTICLE 13 
 SATISFACTION
AND DISCHARGE OF INDENTURE 
 Section 13.01. Discharge of Indenture. When (a) the Company shall deliver to the Trustee for cancellation all
Notes theretofore authenticated (other than any Notes that have been destroyed, lost or stolen and in lieu of or in substitution for which other Notes shall have been authenticated and delivered) and not theretofore canceled, or (b) all the
Notes not theretofore canceled or delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption, and the Company shall deposit with the Trustee, in trust, funds sufficient to pay at maturity or upon redemption of all of the Notes (other than any Notes that shall have been
mutilated, destroyed, lost or stolen and in lieu of or in substitution for which other Notes shall have been authenticated and delivered) not theretofore canceled or delivered to the Trustee for cancellation, including principal and Interest due or
to become due to such date of maturity or redemption date, as the case may be, accompanied by a verification report, as to the sufficiency of the deposited amount, from an independent certified accountant or other financial professional satisfactory
to the Trustee, and if the Company shall also pay or cause to be paid all other sums payable hereunder by the Company, then this Indenture shall cease to be of further effect (except as to (i) remaining rights of registration of transfer,
substitution and exchange and conversion of Notes, (ii) rights hereunder of Noteholders to receive payments of principal of and Interest on the Notes and the other rights, duties and obligations of Noteholders, as beneficiaries hereof with
respect to the amounts, if any, so deposited with the Trustee and (iii) the rights, obligations and immunities of the Trustee hereunder), and the Trustee, on written demand of the Company accompanied by an Officer’s Certificate and an
Opinion of Counsel as required by Section 17.05 and at the cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of and discharging this Indenture; the Company, however, hereby agrees to reimburse the
Trustee for 

  

 58 








 
any costs or expenses thereafter reasonably and properly incurred by the Trustee and to compensate the Trustee for any services thereafter reasonably and
properly rendered by the Trustee in connection with this Indenture or the Notes. The Trustee shall hold in trust money or Common Stock deposited with it pursuant to this Article 13. It shall apply the deposited money and Common Stock through the
Paying Agent and in accordance with this Indenture to the payment of principal of and Interest on the Notes. Money and Common Stock so held in trust are not subject to Article 16. 
 Section 13.02. Deposited Monies to Be Held in Trust by Trustee. Subject to Section 13.04, all monies deposited with the Trustee pursuant to Section 13.01 shall be held in trust for the sole
benefit of the Noteholders, and such monies shall be applied by the Trustee to the payment, either directly or through any paying agent (including the Company if acting as its own paying agent), to the holders of the particular Notes for the payment
or redemption of which such monies have been deposited with the Trustee of all sums due and to become due thereon for principal and Interest. 
 Section 13.03. Paying Agent to Repay Monies Held. Upon the satisfaction and discharge of this Indenture, all monies then held by any paying agent of the Notes (other than the Trustee) shall, upon written request of the Company,
be repaid to it or paid to the Trustee, and thereupon such paying agent shall be released from all further liability with respect to such monies. 
 Section 13.04. Return of Unclaimed Monies. Subject to the requirements of applicable law, any monies deposited with or paid to the Trustee for payment of the principal or Interest on Notes and not applied but remaining unclaimed
by the holders of Notes for two years (or such shorter period of time under applicable escheat law) after the date upon which the principal of or Interest on such Notes, as the case may be, shall have become due and payable, shall be repaid to the
Company by the Trustee on demand and all liability of the Trustee shall thereupon cease with respect to such monies; and the holder of any of the Notes shall thereafter look only to the Company for any payment that such holder may be entitled to
collect unless an applicable abandoned property law designates another Person. 
 Section 13.05. Reinstatement. If the Trustee or the paying
agent is unable to apply any money in accordance with Section 13.02 by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under
this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 13.01 until such time as the Trustee or the paying agent is permitted to apply all such money in accordance with
Section 13.02; provided that, if the Company makes any payment of Interest on or principal of any Note following the reinstatement of its obligations, the Company shall be subrogated to the rights of the holders of such Notes to receive
such payment from the money held by the Trustee or paying agent. 
 ARTICLE 14 
 IMMUNITY OF INCORPORATORS, SHAREHOLDERS, OFFICERS AND DIRECTORS 
 Section 14.01. Indenture and
Notes Solely Corporate Obligations. No recourse for the payment of the principal of or Interest on any Note, or for any claim based thereon or otherwise in respect 

  

 59 








 
thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in this Indenture or in any supplemental indenture or in any
Note, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, shareholder, employee, agent, officer, director or subsidiary, as such, past, present or future, of the Company or of any successor
corporation, either directly or through the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that all
such liability is hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issue of the Notes. 
 ARTICLE 15 
 CONVERSION OF NOTES 
 Section 15.01. Right to Convert. Subject to and upon compliance with the provisions of this Indenture, prior to the close of business on June 1, 2016, the holder of any Note shall have the right, at
such holder’s option, to convert the principal amount of the Note, or any portion of such principal amount which is a multiple of $1,000, into cash and, if applicable, Common Stock at the Conversion Rate in effect at such time, by surrender of
the Note so to be converted in whole or in part, together with any required funds, under the circumstances described in this Section 15.01 and in the manner provided in Section 15.02. The Notes shall be convertible only upon the occurrence
of one of the following events: 
 (i) prior to June 1, 2011, during any Calendar Quarter if the Closing Sale Price of
the Common Stock exceeds 130% of the then-effective Conversion Price for at least 20 Trading Days in the 30 consecutive Trading Day period ending on the last Trading Day of the immediately preceding Calendar Quarter (it being understood for purposes
of this Section 15.01(a)(i) that the Conversion Price in effect at the close of business on each of the 30 consecutive Trading Days should be used); 
 (ii) at any time on or after June 1, 2011, if the Closing Sale Price of the Common Stock exceeds 130% of the then-effective Conversion Price on any Trading Day; 
 (iii) during any period in which (1) the credit rating assigned to the Notes by either Standard & Poor’s Rating
Services (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”), if either S&P or Moody’s assigns a credit rating to the Notes, is three or more rating subcategories below the initial credit
rating assigned by S&P or Moody’s, as the case may be, or (2) if the Notes are previously assigned a credit rating by either S&P or Moody’s, the Notes are no longer rated by at least one of, or ratings thereof are suspended by
both, S&P and Moody’s. 
 (iv) during the five Business Day period immediately following any five consecutive Trading
Day period (the “Measurement Period”) in which the Trading Price per $1,000 principal amount of the Notes for each day of such Measurement Period was less than 98% of the product of the Closing Sale Price and the number of shares of Common
Stock issuable upon conversion of $1,000 principal amount of the Notes; 
  

 60 








 (v) if such Note has been called for redemption, at any time on or after the date the
notice of redemption has been given until the close of business on the Business Day immediately preceding the redemption date; or 
 (vi) as provided in Section (b) of this Section 15.01. 
 The Trustee (or other conversion agent appointed by the Company)
shall, on behalf of the Company, determine on a daily basis during the time period specified in Sections 15.01(a)(i) and (ii) whether the Notes shall be convertible as a result of the occurrence of an event specified in clause (i) or
(ii) above and, if the Notes shall be so convertible, the Trustee (or other conversion agent appointed by the Company) shall promptly deliver to the Company and the Trustee (if the Trustee is not the conversion agent) written notice thereof.
Whenever the Notes shall become convertible pursuant to this Section 15.01, the Company or, at the Company’s request, the Trustee in the name and at the expense of the Company, shall notify the holders of the event triggering such
convertibility in the manner provided in Section 17.03, and the Company shall also publicly announce such information and publish it on the Company’s web site. Any notice so given shall be conclusively presumed to have been duly given,
whether or not the holder receives such notice. 
 The Trustee (or other conversion agent appointed by the Company) shall have no obligation
to determine the Trading Price under this Section 15.01 unless the Company has requested such a determination; and the Company shall have no obligation to make such request unless a holder provides it with reasonable evidence that the Trading
Price per $1,000 principal amount of Notes would be less than 98% of the product of the Closing Sale Price and the number of shares of Common Stock issuable upon conversion of $1,000 principal amount of Notes. If such evidence is provided, the
Company shall instruct the Trustee (or other conversion agent) to determine the Trading Price of the Notes beginning on the next Trading Day and on each successive Trading Day until the Trading Price per $1,000 principal amount of Notes is greater
than or equal to 98% of the product of the Closing Sale Price and the number of shares issuable upon conversion of $1,000 principal amount of the Notes; provided that the Trustee shall be under no duty or obligation to make the calculations
described in Section 15.01(a)(iv) hereof or to determine whether the Notes are convertible pursuant to such section. For the avoidance of doubt, the Company shall make the calculations described in Section 15.01(a)(iv) using the Trading
Price provided by the Trustee. 
 The Trustee shall be entitled at its sole discretion to consult with the Company and to request the
assistance of the Company in connection with the Trustee’s duties and obligations pursuant to Section 15.01(a)(i), (ii) and (iv) hereof (including without limitation the calculation or determination of the Conversion Price, the
Closing Sale Price and the Trading Price), and the Company agrees, if requested by the Trustee, to cooperate with, and provide assistance to, the Trustee in carrying out its duties under this Section 15.01; provided that nothing herein
shall be construed to relieve the Trustee of its duties pursuant to Sections 15.01(a)(i), (ii) and Section 15.01(a)(iv) hereof. 
 (b) In addition, if: 
 (i)(A) the Company distributes to all holders of its Common Stock rights or warrants
entitling them (for a period expiring within 45 days of the record date for the determination of the shareholders entitled to receive such distribution) to subscribe for or purchase shares of Common Stock, at a price per share less than the average
of the Closing Sale Price for the ten Trading Days immediately preceding, but not including, the date such distribution is first publicly announced by the Company, or (B) the Company distributes to all holders of its Common Stock cash or other
assets, debt securities or rights to purchase its securities, where the Fair Market Value of such distribution per share of Common Stock exceeds 5% of the Closing Sale Price on the Trading Day immediately preceding the date such distribution is
first publicly announced by the Company, then, in either case, the Notes may be surrendered for conversion at any time on and after the date that the Company gives notice to the holders of such distribution, which shall be not less than 25 Trading
Days prior to the Ex-Dividend Time for such distribution, until the earlier of the close of business on the Business Day immediately preceding, but not including, the Ex-Dividend Time or the date the Company publicly announces that such distribution
will not take place; provided that neither any adjustment to the Conversion Price will be made if the holder will otherwise participate in such distribution without conversion nor will a holder of a Note have the ability to convert pursuant
to this Section 15.01(b); 
  

 61 








 (ii) the Company is party to a transaction described in clause (2) of the definition
of Fundamental Change, the Company shall notify Noteholders at such holder’s address appearing on the Note Register provided for in Section 2.05 of this Indenture at least 30 Scheduled Trading Days prior to the anticipated effective date
for such transaction. Upon the delivery of such notice, Noteholders may surrender Notes for conversion at any time until 15 calendar days after the actual effective date of such transaction (or, if such transaction also constitutes a Fundamental
Change, the related Fundamental Change Repurchase Date); or 
 (iii) a Fundamental Change of the type described in clauses
(1) and (4) of the definition thereof occurs, Noteholders may surrender Notes for conversion at any time beginning on the actual effective date of such Fundamental Change until and including the date that is 30 calendar days after the
actual effective date of such transaction or, if later, until the related Fundamental Change Repurchase Date. 
 “Ex-Dividend Time”
means, with respect to any distribution on shares of Common Stock, the first date on which the shares of Common Stock trade regular way on the principal securities market on which the shares of Common Stock are then traded without the right to
receive such distribution. 
 (c) A Note in respect of which a holder is electing to exercise its option to require the Company to repurchase
such holder’s Notes upon a Fundamental Change pursuant to Section 3.05, or at the option of the holder pursuant to Section 3.06, may be converted only if such holder withdraws its election in accordance with Section 3.05(c) or
Section 3.08, respectively. A holder of Notes is not entitled to any rights of a holder of Common Stock until such holder has received shares of Common Stock in connection with a conversion of his Notes, and only to the extent such Notes are
deemed to have been converted under this Article 15. 
  

 62 








 Section 15.02. Conversion Procedures. In order to exercise the conversion privilege with respect to any Note
in certificated form, the Company must receive at the office or agency of the Company maintained for that purpose or, at the option of such holder, the Corporate Trust Office, such Note with the original or facsimile of the form entitled
“Conversion Notice” on the reverse thereof, duly completed and manually signed, together with such Notes duly endorsed for transfer, accompanied by the funds, if any, required by the penultimate paragraph of this Section 15.02. If
applicable, such notice shall also state the name or names (with address or addresses) in which the certificate or certificates for shares of Common Stock which shall be issuable on such conversion shall be issued, and shall be accompanied by
transfer or similar taxes, if required pursuant to Section 15.09. 
 In order to exercise the conversion privilege with respect to any
interest in a Global Note, the beneficial holder must complete, or cause to be completed, the appropriate instruction form for conversion pursuant to the Depositary’s book-entry conversion program, deliver, or cause to be delivered, by
book-entry delivery an interest in such Global Note, furnish appropriate endorsements and transfer documents if required by the Company or the Trustee or conversion agent, and pay the funds, if any, required by this Section 15.02 and any
transfer taxes if required pursuant to Section 15.09. 
 If the Company is required to deliver shares of Common Stock (upon settlement
in accordance with Sections 15.03 and 15.07, if applicable, on the third Business Day immediately following the last day of the applicable Observation Period), after satisfaction of the requirements for conversion set forth above, subject to
compliance with any restrictions on transfer if shares issuable on conversion are to be issued in a name other than that of the Noteholder (as if such transfer were a transfer of the Note or Notes (or portion thereof) so converted), the Company
shall issue and shall deliver to such Noteholder at the office or agency maintained by the Company for such purpose pursuant to Section 5.02 a certificate or certificates for the number of full shares of Common Stock, if any, issuable upon the
conversion of such Note or portion thereof as determined by the Company in accordance with the provisions of this Article 15 and a check or cash in respect of any fractional interest in respect of a share of Common Stock arising upon such
conversion, calculated by the Company as provided in Section 15.04. In case any Note of a denomination greater than $1,000 shall be surrendered for partial conversion, and subject to Section 2.03, the Company shall execute and the Trustee
shall authenticate and deliver to the holder of the Note so surrendered, without charge to such holder, a new Note or Notes in authorized denominations in an aggregate principal amount equal to the unconverted portion of the surrendered Note.

 The cash and, if applicable, a certificate or certificates for the number of full shares of Common Stock into which the Notes are
converted (and cash in lieu of fractional shares) will be delivered to a converting Noteholder after satisfaction of the requirements for conversion set forth above, in accordance with this Section 15.02 and Sections 15.03 and, if applicable,
15.07. 
 Each conversion shall be deemed to have been effected as to any such Note (or portion thereof) on the date (the “Conversion
Date”) on which the requirements set forth above in this Section 15.02 have been satisfied as to such Note (or portion thereof), and, if applicable, the Person in whose name any certificate or certificates for shares of Common Stock shall
be issuable upon such conversion shall be deemed to have become on said date the holder of record 

  

 63 








 
of the shares represented thereby; provided that any such surrender on any date when the stock transfer books of the Company shall be closed shall
constitute the Person in whose name the certificates are to be issued as the record holder thereof for all purposes on the next succeeding day on which such stock transfer books are open, but such conversion shall be at the Conversion Rate in effect
on the date upon which such Note shall be surrendered. 
 Any Note or portion thereof surrendered for conversion during the period from the
close of business on the record date for any interest payment date to the close of business on the Business Day preceding such interest payment date shall be accompanied by payment, in immediately available funds or other funds acceptable to the
Company, of an amount equal to the Interest otherwise payable on such interest payment date on the principal amount being converted; provided that no such payment need be made (1) if the Company has specified a redemption date that is
after a record date and on or prior to the next interest payment date, (2) if the Company has specified a Fundamental Change Repurchase Date that is after a record date and on or prior to the next interest payment date or (3) to the extent
of any overdue Interest, if any overdue Interest exists at the time of conversion with respect to such Note. Except as provided above in this Section 15.02, no payment or other adjustment shall be made for Interest accrued on any Note converted
or for dividends on any shares issued upon the conversion of such Note as provided in this Article 15. Notwithstanding the foregoing, in the case of Notes submitted for conversion in connection with certain Fundamental Changes, such Notes shall
continue to represent the right to receive the Additional Shares, if any, payable pursuant to Section 15.07, until such Additional Shares are so paid. 
 Upon the conversion of an interest in a Global Note, the Trustee (or other conversion agent appointed by the Company), or the Custodian at the direction of the Trustee (or other conversion agent appointed by the
Company), shall make a notation on such Global Note as to the reduction in the principal amount represented thereby. The Company shall notify the Trustee in writing of any conversions of Notes effected through any conversion agent other than the
Trustee. 
 Upon the conversion of a Note, that portion of the accrued but unpaid Interest, including accrued Contingent Interest, if any, to
the Conversion Date, with respect to the converted Note shall not be canceled, extinguished or forfeited, but rather shall be deemed to be paid in full to the holder thereof through delivery of cash and, if applicable, Common Stock (together with
the cash payment, if any in lieu of fractional shares) in exchange for the Note being converted pursuant to the provisions hereof, and the Fair Market Value of such shares of Common Stock, if any, (together with any such cash payment in lieu of
fractional shares) shall be treated as issued, to the extent thereof, first in exchange for and in satisfaction of the Company’s obligation to pay the principal amount of the converted Note, the accrued but unpaid Interest, including Contingent
Interest, if any, through the Conversion Date and the balance, if any, of such Fair Market Value of such Common Stock, if any, (and any such cash payment) shall be treated as issued in exchange for and in satisfaction of the right to convert the
Note being converted pursuant to the provisions hereof. 
 The Company agrees, and by acceptance of a beneficial interest in a Note each
holder and any beneficial owner of a Note shall be deemed to have agreed, to treat, for United States federal income tax purposes, the Fair Market Value of any Common Stock received upon a conversion of the Note (together with any cash payment in
lieu of fractional shares) as a contingent payment on the Note for purposes of Treasury Regulation Section 1.1275-4 or any successor provision. 
  

 64 








 The Company may elect to pay cash to a Noteholder upon conversion of Notes in lieu of all or a portion of
the Daily Share Amount otherwise issuable to such Holder pursuant to Section 15.03. In such event, by the close of business on the Business Day prior to the first Scheduled Trading Day of the applicable Observation Period for such Notes, the
Company shall specify a percentage of the Daily Share Amount that shall be settled in cash (the “Cash Percentage”) and will notify holders of such Cash Percentage through written notice to the Trustee (the “Cash Percentage
Notice”). If the Company elects to specify a Cash Percentage, the amount of cash that the Company shall deliver in respect of each Trading Day in the applicable Observation Period in lieu of such portion of the Daily Share Amount (and, for the
avoidance of doubt, in addition to the cash amount referred to in clause (i) of the definition of Daily Settlement Amount) will equal the product of: (1) the Cash Percentage, (2) the Daily Share Amount for such Trading Day (assuming
no such election of a Cash Percentage) and (3) the Daily VWAP for such Trading Day (provided that after the consummation of a Fundamental Change in which the consideration is comprised entirely of cash, the amount used in this clause
(3) shall be the cash price per share received by holders of Common Stock in such Fundamental Change). The number of shares of Common Stock that the Company shall deliver in respect of each Trading Day in the applicable Observation Period will
be a percentage of the Daily Share Amount equal to 100% minus the Cash Percentage. If the Company does not specify a Cash Percentage by the close of business on the Business Day prior to the first Scheduled Trading Day of the applicable Observation
Period, the Company shall settle 100% of the Daily Share Amount for each Trading Day in the applicable Observation Period with Common Stock; provided, however, that the Company shall pay cash in lieu of fractional shares otherwise issuable upon
conversion of Notes. The Company, at its option, may revoke any Cash Percentage Notice by notifying the Trustee; provided, that the Company shall revoke such notice by the close of business on the Trading Day prior to the first Scheduled Trading Day
of the applicable Observation Period. 
 Section 15.03. Payment Upon Conversion 
 (a) Upon conversion of any Note, the Company shall deliver to converting Holders, with respect to each $1,000 principal amount of Notes
validly tendered for conversion, cash, fully paid shares of Common Stock or a combination thereof, as applicable, equal to the sum of the Daily Settlement Amounts for each of the 20 Trading Days during the applicable Observation Period; provided
that (i) the Company will deliver cash in lieu of fractional shares of Common Stock as set forth pursuant to Section 15.04; and (ii) if the Company elects to settle all or a portion of the Daily Share Amount in cash as set forth in
the last paragraph of Section 15.02, the Company shall inform converting Noteholders by notice to the Trustee no later than the close of business on the Business Day immediately preceding the first Scheduled Trading Day of the applicable
Observation Period for such election to pay cash upon conversion of the Notes and will specify in such notice the Cash Percentage as required in the last paragraph of Section 15.02. The Daily Settlement Amounts for each of the 20 Trading Days
during the applicable Observation Period and any cash to be delivered in lieu of any fractional shares of Common Stock shall be determined by the Company promptly following the last day of the applicable Observation Period. 
  

 65 








 (b) Payment of the cash and, if applicable, shares of Common Stock pursuant to this
Section 15.03 shall be made by the Company on the third Business Day immediately following the last Trading Day of the applicable Observation Period to the holder of a Note surrendered for conversion, or such holder’s nominee or nominees,
and the Company shall deliver to the Trustee and any other conversion agent or to such holder, or such holder’s nominee or nominees, certificates or a book-entry transfer through the Depositary for the number of full shares of Common Stock, if
any, to which such holder shall be entitled as part of such conversion. 
 Section 15.04. Cash Payments in Lieu of Fractional Shares. No
fractional shares of Common Stock or scrip certificates representing fractional shares shall be issued upon conversion of Notes. If more than one Note shall be surrendered for conversion at one time by the same holder, the number of full shares that
shall be issuable upon conversion shall be computed on the basis of the aggregate principal amount of the Notes (or specified portions thereof to the extent permitted hereby) so surrendered and the aggregate sum of all Daily Settlement Amounts for
each of the 20 Trading Days during the applicable Observation Period (and not in respect of each Daily Settlement Amount nor some portion of the Daily Settlement Amounts for one or some portion of the 20 Trading Days during the applicable
Observation Period). If any fractional share of Common Stock would be issuable upon the conversion of any Note or Notes, the Company shall make an adjustment and payment therefor in cash in lieu of fractional shares of Common Stock based on the
Daily VWAP of the Common Stock on the final Trading Day of the applicable Observation Period. The Company may, at its option, issue one share of Common Stock instead of paying cash in lieu of fractional shares. 
 Section 15.05. Conversion Rate. Each $1,000 principal amount of the Notes shall be convertible into cash and, if applicable, shares of Common Stock as
specified in the form of Note (herein called the “Conversion Rate”) attached as Exhibit A hereto, subject to adjustment as provided in this Article 15. 
 Section 15.06. Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from time to time by the Company as follows: 
 (a) In case the Company shall hereafter pay a dividend or make a distribution to all holders of the outstanding Common Stock in shares of
Common Stock, the Conversion Rate shall be increased so that the same shall equal the rate determined by multiplying the Conversion Rate in effect at the opening of business on the date following the date fixed for the determination of shareholders
entitled to receive such dividend or other distribution by a fraction, 
 (i) the numerator of which shall be the sum of the
number of shares of Common Stock outstanding at the close of business on the date fixed for the determination of shareholders entitled to receive such dividend or other distribution plus the total number of shares of Common Stock constituting such
dividend or other distribution; and 
  

 66 








 (ii) the denominator of which shall be the number of shares of Common Stock outstanding
at the close of business on the date fixed for such determination, 
 such increase to become effective immediately after the opening of
business on the day following the date fixed for such determination. For the purpose of this paragraph (a), the number of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Company. The Company will
not pay any dividend or make any distribution on shares of Common Stock held in the treasury of the Company. If any dividend or distribution of the type described in this Section 15.06(a) is declared but not so paid or made, the Conversion Rate
shall again be adjusted to the Conversion Rate that would then be in effect if such dividend or distribution had not been declared. 
 (b) In case the Company shall issue rights or warrants to all holders of its outstanding shares of Common Stock entitling them (for a period expiring within forty-five (45) days after the date fixed for determination of shareholders
entitled to receive such rights or warrants) to subscribe for or purchase shares of Common Stock at a price per share less than the average of the Closing Sale Prices of the Common Stock for the 10 Trading Days immediately preceding the date such
distribution is first publicly announced by the Company, the Conversion Rate shall be increased so that the same shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior to the date fixed for determination of
shareholders entitled to receive such rights or warrants by a fraction, 
 (i) the numerator of which shall be the number of
shares of Common Stock outstanding on the date fixed for determination of shareholders entitled to receive such rights or warrants plus the total number of additional shares of Common Stock offered for subscription or purchase, and 
 (ii) the denominator of which shall be the sum of the number of shares of Common Stock outstanding at the close of business on the date
fixed for determination of shareholders entitled to receive such rights or warrants plus the number of shares that the aggregate offering price of the total number of shares so offered would purchase at a price equal to the average of the Closing
Sale Prices of the Common Stock for the 10 Trading Days immediately preceding the date such distribution is first publicly announced by the Company, 
 such adjustment shall be successively made whenever any such rights or warrants are issued, and shall become effective immediately after the opening of business on the day following the date fixed for determination of shareholders entitled
to receive such rights or warrants. To the extent that shares of Common Stock are not delivered after the expiration of such rights or warrants, the Conversion Rate shall be readjusted to the Conversion Rate that would then be in effect had the
adjustments made upon the issuance of such rights or warrants been made on the basis of delivery of only the number of shares of Common Stock actually delivered. If such rights or warrants are not so issued, the Conversion Rate shall again be
adjusted to be the Conversion Rate that would then be in effect if such date fixed for the determination of shareholders entitled to receive such 

  

 67 








 
rights or warrants had not been fixed. In determining whether any rights or warrants entitle the holders to subscribe for or purchase shares of Common Stock
at a price less than the average of the Closing Sale Prices of the Common Stock for the 10 Trading Days immediately preceding the date such distribution is first publicly announced by the Company, and in determining the aggregate offering price of
such shares of Common Stock, there shall be taken into account any consideration received by the Company for such rights or warrants and any amount payable on exercise or conversion thereof, the value of such consideration, if other than cash, to be
determined by the Board of Directors. 
 (c) In case outstanding shares of Common Stock shall be subdivided into a greater
number of shares of Common Stock, the Conversion Rate in effect at the opening of business on the day following the day upon which such subdivision becomes effective shall be proportionately increased, and, conversely, in case outstanding shares of
Common Stock shall be combined into a smaller number of shares of Common Stock, the Conversion Rate in effect at the opening of business on the day following the day upon which such combination becomes effective shall be proportionately reduced,
such increase or reduction, as the case may be, to become effective immediately after the opening of business on the day following the day upon which such subdivision or combination becomes effective. 
 (d) In case the Company shall, by dividend or otherwise, distribute to all holders of its Common Stock shares of any class of capital
stock of the Company or evidences of its indebtedness or assets (including securities, but excluding any rights or warrants referred to in Section 15.06(b), and excluding any dividend or distribution (x) paid exclusively in cash or
(y) referred to in Section 15.06(a) (any of the foregoing hereinafter in this Section 15.06(d) called the “Securities”)), then, in each such case (unless the Company elects to reserve such Securities for distribution to the
Noteholders upon the conversion of the Notes so that any such holder converting Notes will receive upon such conversion, in addition to the cash and, if applicable, shares of Common Stock to which such holder is entitled, the amount and kind of such
Securities which such holder would have received if such holder had converted its Notes immediately prior to the Record Date for such distribution of the Securities) the Conversion Rate shall be increased so that the same shall be equal to the rate
determined by multiplying the Conversion Rate in effect on the Record Date with respect to such distribution by a fraction, 
 (i) the numerator of which shall be the Current Market Price on such Record Date; and 
 (ii) the denominator of
which shall be the Current Market Price on such Record Date less the Fair Market Value (as determined by the Board of Directors, whose determination shall be conclusive, and described in a resolution of the Board of Directors) on the Record Date of
the portion of the Securities so distributed applicable to one share of Common Stock, 
 such adjustment to become effective immediately prior
to the opening of business on the day following such Record Date; provided that, if the then Fair Market Value (as so 

  

 68 








 determined) of the portion of the Securities so distributed applicable to one share of Common Stock is
equal to or greater than the Current Market Price on the Record Date, in lieu of the foregoing adjustment, adequate provision shall be made so that each Noteholder shall have the right to receive upon conversion the amount of Securities such holder
would have received had such holder converted each Note on the Record Date. If such dividend or distribution is not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such dividend
or distribution had not been declared. If the Board of Directors determines the Fair Market Value of any distribution for purposes of this Section 15.06(d) by reference to the actual or when issued trading market for any securities, it must in
doing so consider the prices in such market over the same period used in computing the Current Market Price on the applicable Record Date. Notwithstanding the foregoing, if the Securities distributed by the Company to all holders of its Common Stock
consist of capital stock of, or similar equity interests in, a Subsidiary or other business unit, the Conversion Rate shall be increased so that the same shall be equal to the rate determined by multiplying the Conversion Rate in effect on the
Record Date with respect to such distribution by a fraction, 
 (i) the numerator of which shall be the sum of (A) the
average of the Closing Sale Prices of the Common Stock for the ten (10) Trading Days commencing on and including the fifth Trading Day after the Ex-Dividend Time plus (B) the Fair Market Value of the securities distributed in respect of
each share of Common Stock for which this Section 15.06(d) applies and shall equal the number of securities distributed in respect of each share of Common Stock multiplied by the average of the closing sale prices of those securities
distributed (where such closing sale prices are available) for the ten (10) Trading Days commencing on and including the fifth Trading Day after the Ex-Dividend Time; and 
 (ii) the denominator of which shall be the average of the Closing Sale Prices of the Common Stock for the ten (10) Trading Days
commencing on and including the fifth Trading Day after the Ex-Dividend Time, 
 such adjustment to become effective immediately prior to the
opening of business on the day following such Record Date; provided that the Company may in lieu of the foregoing adjustment make adequate provision so that each Noteholder shall have the right to receive upon conversion the amount of
Securities such holder would have received had such holder converted each Note on the Record Date with respect to such distribution. 
 Rights or warrants distributed by the Company to all holders of Common Stock entitling the holders thereof to subscribe for or purchase shares of the Company’s capital stock (either initially or under certain circumstances), which
rights or warrants, until the occurrence of a specified event or events (“Trigger Event”): (i) are deemed to be transferred with such shares of Common Stock; (ii) are not exercisable; and (iii) are also issued in respect of
future issuances of Common Stock, shall be deemed not to have been distributed for purposes of this Section 15.06 (and no adjustment to the Conversion Rate under this Section 15.06 will be required) until the occurrence of the earliest
Trigger 

  

 69 








 
Event, whereupon such rights and warrants shall be deemed to have been distributed and an appropriate adjustment (if any is required) to the Conversion Rate
shall be made under this Section 15.06(d). If any such right or warrant, including any such existing rights or warrants distributed prior to the date of this Indenture, are subject to events, upon the occurrence of which such rights or warrants
become exercisable to purchase different securities, evidences of indebtedness or other assets, then the date of the occurrence of any and each such event shall be deemed to be the date of distribution and record date with respect to new rights or
warrants with such rights (and a termination or expiration of the existing rights or warrants without exercise by any of the holders thereof). In addition, in the event of any distribution (or deemed distribution) of rights or warrants, or any
Trigger Event or other event (of the type described in the preceding sentence) with respect thereto that was counted for purposes of calculating a distribution amount for which an adjustment to the Conversion Rate under this Section 15.06 was
made, (1) in the case of any such rights or warrants that shall all have been redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be readjusted upon such final redemption or repurchase to give effect to
such distribution or Trigger Event, as the case may be, as though it were a cash distribution, equal to the per share redemption or repurchase price received by a holder or holders of Common Stock with respect to such rights or warrants (assuming
such holder had retained such rights or warrants), made to all holders of Common Stock as of the date of such redemption or repurchase, and (2) in the case of such rights or warrants that shall have expired or been terminated without exercise
by any holders thereof, the Conversion Rate shall be readjusted as if such rights and warrants had not been issued. 
 No
adjustment of the Conversion Rate shall be made pursuant to this Section 15.06(d) in respect of rights or warrants distributed or deemed distributed on any Trigger Event to the extent that such rights or warrants are actually distributed, or
reserved by the Company for distribution to holders of Notes upon conversion by such holders of Notes. 
 For purposes of this
Section 15.06(d) and Sections 15.06(a) and (b), any dividend or distribution to which this Section 15.06(d) is applicable that also includes shares of Common Stock, or rights or warrants to subscribe for or purchase shares of Common Stock
(or both), shall be deemed instead to be (1) a dividend or distribution of the evidences of indebtedness, assets or shares of capital stock other than such shares of Common Stock or rights or warrants (and any Conversion Rate adjustment
required by this Section 15.06(d) with respect to such dividend or distribution shall then be made) immediately followed by (2) a dividend or distribution of such shares of Common Stock or such rights or warrants (and any further
Conversion Rate adjustment required by Sections 15.06(a) and 15.06(b) with respect to such dividend or distribution shall then be made), except (A) the Record Date of such dividend or distribution shall be substituted as “the date fixed
for the determination of shareholders entitled to receive such dividend or other distribution,” “the date fixed for the determination of shareholders entitled to receive such rights or warrants” and “the date fixed for such
determination” within the meaning of Sections 15.06(a) and 15.06(b) and (B) any shares of Common Stock included in such dividend or distribution shall not be deemed “outstanding at the close of business on the date fixed for such
determination” within the meaning of Section 15.06(a). 
  

 70 








 (e) In case the Company shall, by dividend or otherwise, distribute to all holders of its
Common Stock cash (excluding any dividend or distribution in connection with the liquidation, dissolution or winding up of the Company, whether voluntary or involuntary), then, in such case, the Conversion Rate shall be increased so that the same
shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior to the close of business on such record date by a fraction, 
 (i) the numerator of which shall be the Current Market Price on such record date; and 
 (ii)
the denominator of which shall be the Current Market Price on such record date less the amount of cash so distributed applicable to one share of Common Stock, 
 such adjustment to be effective immediately prior to the opening of business on the day following the record date; provided that if the portion of the cash so distributed applicable to one share of Common Stock
is equal to or greater than the Current Market Price on the record date, in lieu of the foregoing adjustment, adequate provision shall be made so that each Noteholder shall have the right to receive upon conversion the amount of cash such holder
would have received had such holder converted each Note on the record date. If such dividend or distribution is not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such dividend
or distribution had not been declared. 
 (f) In case a tender or exchange offer made by the Company or any Subsidiary for all
or any portion of the Common Stock shall expire and such tender or exchange offer (as amended upon the expiration thereof) shall require the payment to shareholders of consideration per share of Common Stock having a Fair Market Value (as determined
by the Board of Directors, whose determination shall be conclusive and described in a resolution of the Board of Directors) that as of the last time (the “Expiration Time”) tenders or exchanges may be made pursuant to such tender or
exchange offer (as it may be amended) exceeds the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, the Conversion Rate shall be increased so that the same shall equal the rate determined by
multiplying the Conversion Rate in effect immediately prior to the Expiration Time by a fraction, 
 (i) the numerator of
which shall be the sum of (x) the Fair Market Value (determined as aforesaid) of the aggregate consideration payable to shareholders based on the acceptance (up to any maximum specified in the terms of the tender or exchange offer) of all
shares validly tendered or exchanged and not withdrawn as of the Expiration Time (the shares deemed so accepted up to any such maximum, being referred to as the “Purchased Shares”) and (y) the product of the number of shares of Common
Stock outstanding (less any Purchased Shares) at the Expiration Time and the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, and 
  

 71 








 (ii) the denominator of which shall be the number of shares of Common Stock outstanding
(including any tendered or exchanged shares) at the Expiration Time multiplied by the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, 
 such adjustment to become effective immediately prior to the opening of business on the day following the Expiration Time. If the Company is obligated to
purchase shares pursuant to any such tender or exchange offer, but the Company is permanently prevented by applicable law from effecting any such purchases or all such purchases are rescinded, the Conversion Rate shall again be adjusted to be the
Conversion Rate that would then be in effect if such tender or exchange offer had not been made. 
 (g) For purposes of this
Section 15.06, the following terms shall have the meaning indicated: 
 (i) “Current Market Price” shall mean
the average of the daily Closing Sale Prices per share of Common Stock for the ten consecutive Trading Days ending on the earlier of such date of determination and the day before the “ex” date with respect to the issuance, distribution,
subdivision or combination requiring such computation immediately prior to the date in question. For purpose of this paragraph, the term “ex” date, (1) when used with respect to any issuance or distribution, means the first date on
which the Common Stock trades, regular way, on the relevant exchange or in the relevant market from which the Closing Sale Price was obtained without the right to receive such issuance or distribution, and (2) when used with respect to any
subdivision or combination of shares of Common Stock, means the first date on which the Common Stock trades, regular way, on such exchange or in such market after the time at which such subdivision or combination becomes effective. 
 If another issuance, distribution, subdivision or combination to which Section 15.06 applies occurs during the period applicable for
calculating “Current Market Price” pursuant to the definition in the preceding paragraph, “Current Market Price” shall be calculated for such period in a manner determined by the Board of Directors to reflect the impact of such
issuance, distribution, subdivision or combination on the Closing Sale Price of the Common Stock during such period. 
 (ii)
“Fair Market Value” shall mean the amount which a willing buyer would pay a willing seller in an arm’s-length transaction. 
 (iii) “Record Date” shall mean, with respect to any dividend, distribution or other transaction or event in which the holders of Common Stock have the right to receive any cash, securities or other property
or in which the Common Stock (or other applicable security) is exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of shareholders entitled to receive such cash, securities or other
property (whether such date is fixed by the Board of Directors or by statute, contract or otherwise). 
  

 72 








 (h) The Company may make such increases in the Conversion Rate, in addition to those
required by Section 15.06(a), (b), (c), (d), (e) or (f) as the Board of Directors considers to be advisable to avoid or diminish any income tax to holders of Common Stock or rights to purchase Common Stock resulting from any dividend
or distribution of stock (or rights to acquire stock) or from any event treated as such for income tax purposes. 
 To the
extent permitted by applicable law and Nasdaq Marketplace rules, the Company from time to time may increase the Conversion Rate by any amount for any period of time if the period is at least twenty (20) days, the increase is irrevocable during
the period and the Board of Directors shall have made a determination that such increase would be in the best interests of the Company, which determination shall be conclusive. Whenever the Conversion Rate is increased pursuant to the preceding
sentence, the Company shall mail to holders of record of the Notes a notice of the increase at least fifteen (15) days prior to the date the increased Conversion Rate takes effect, and such notice shall state the increased Conversion Rate and
the period during which it will be in effect. 
 (i) No adjustment in the Conversion Rate shall be required unless such
adjustment would require an increase or decrease of at least one percent (1%) in such rate; provided that any adjustments that by reason of this Section 15.06(i) are not required to be made shall be carried forward and taken into
account in any subsequent adjustment. All calculations under this Article 15 shall be made by the Company and shall be made to the nearest cent or to the nearest one-one thousandth (1/1,000) of a share, as the case may be. No adjustment need be
made for rights to purchase Common Stock pursuant to a Company plan for reinvestment of dividends or interest or for any issuance of Common Stock or convertible or exchangeable securities or rights to purchase Common Stock or convertible or
exchangeable securities. To the extent the Notes become convertible into cash, assets, property or securities (other than capital stock of the Company), no adjustment need be made thereafter as to the cash, assets, property or such securities.
Interest will not accrue on any cash into which the Notes are convertible. 
 (j) Whenever the Conversion Rate is adjusted as
herein provided, the Company shall promptly file with the Trustee and any conversion agent other than the Trustee an Officer’s Certificate setting forth the Conversion Rate after such adjustment and setting forth a brief statement of the facts
requiring such adjustment. Unless and until a Responsible Officer of the Trustee shall have received such Officer’s Certificate, the Trustee shall not be deemed to have knowledge of any adjustment of the Conversion Rate and may assume that the
last Conversion Rate of which it has knowledge is still in effect. Promptly after delivery of such certificate, the Company shall prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted Conversion Rate and the date on
which each adjustment becomes effective and shall mail such notice of such adjustment of the Conversion Rate to the holder of each Note at his last address appearing on the Note Register provided for in Section 2.05 of this Indenture, within
twenty (20) days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of any such adjustment. 
  

 73 








 (k) In any case in which this Section 15.06 provides that an adjustment shall become
effective immediately after (1) a record date or Record Date for an event, (2) the date fixed for the determination of shareholders entitled to receive a dividend or distribution pursuant to Section 15.06(a), (3) a date fixed for
the determination of shareholders entitled to receive rights or warrants pursuant to Section 15.06(b), or (4) the Expiration Time for any tender or exchange offer pursuant to Section 15.06(f), (each a “Determination Date”),
the Company may elect to defer until the occurrence of the applicable Adjustment Event (as hereinafter defined) (x) issuing to the holder of any Note converted after such Determination Date and before the occurrence of such Adjustment Event,
the additional cash and, if applicable, shares of Common Stock or other securities issuable upon such conversion by reason of the adjustment required by such Adjustment Event over and above the cash and, if applicable, Common Stock issuable upon
such conversion before giving effect to such adjustment and (y) paying to such holder any amount in cash in lieu of any fraction pursuant to Section 15.04. For purposes of this Section 15.06(l), the term “Adjustment Event”
shall mean: 
 (i) in any case referred to in clause (1) hereof, the occurrence of such event, 
 (ii) in any case referred to in clause (2) hereof, the date any such dividend or distribution is paid or made, 
 (iii) in any case referred to in clause (3) hereof, the date of expiration of such rights or warrants, and 
 (iv) in any case referred to in clause (4) hereof, the date a sale or exchange of Common Stock pursuant to such tender or exchange
offer is consummated and becomes irrevocable. 
 (l) For purposes of this Section 15.06, the number of shares of Common
Stock at any time outstanding shall not include shares held in the treasury of the Company but shall include shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock. The Company will not pay any
dividend or make any distribution on shares of Common Stock held in the treasury of the Company. 
 Section 15.07. Adjustments Upon Certain
Fundamental Changes. 
 (a) If a Holder elects to convert its Notes as described in Section 15.01(b) in connection with the
occurrence of a transaction described in clause (1) or (2) of the definition of Fundamental Change that occurs prior to June 4, 2011, the Company will increase the Conversion Rate for the Notes so surrendered for exchange by an
additional number of shares of Common Stock (the “Additional Shares”) as described below. No increase in the Conversion Rate in connection with such conversion shall occur, however, if at least 90% of the consideration received or
to be received by holders of Common Stock, excluding cash payments for fractional shares, in connection with the transaction or transactions constituting the 

  

 74 








 
Fundamental Change consists of Publicly Traded Securities and as a result of this transaction or transactions the Notes become convertible into such Publicly
Traded Securities, excluding cash payments for fractional shares. 
 (b) The number of Additional Shares by which the Conversion Rate will be
increased will be determined by reference to the table in paragraph (d) below and is based on the date on which the Fundamental Change becomes effective (the “Effective Date”) and the price (the “Stock Price”)
paid per share of Common Stock in the Fundamental Change. If the Fundamental Change is a transaction described in clause (2) of the definition thereof, and holders of Common Stock receive only cash in such Fundamental Change, the Stock Price
shall be the cash amount paid per share. Otherwise, the Stock Price shall be the average of the Closing Sale Prices of Common Stock over the five Trading Day period ending on the Trading Day preceding the Effective Date of the Fundamental Change.

 (c) The Stock Prices set forth in the first row of the table below shall be adjusted as of any date on which the Conversion Rate of the
Notes is adjusted. The adjusted Stock Prices shall equal the Stock Prices applicable immediately prior to such adjustment, multiplied by a fraction, the numerator of which is the Conversion Rate immediately prior to the adjustment giving rise to the
Stock Price adjustment and the denominator of which is the Conversion Rate as so adjusted. The number of Additional Shares set forth in such table will be adjusted in the same manner as the Conversion Rate as set forth in Section 15.06.

 (d) The following table sets forth the hypothetical Stock Price, the Effective Date and the number of Additional Shares to be added to the
Conversion Rate per $1,000 principal amount of Notes. 
  

																																											
	 	  	Stock Price on Effective Date of Fundamental Change	 
	 Effective date
	  	$[    ]	 	 	$[    ]	 	 	$[    ]	 	 	$[    ]	 	 	$[    ]	 	 	$[    ]	 	 	$[    ]	 	 	$[    ]	 	 	$[    ]	 	 	$[    ]	 	 	$[    ]	 	 	$[    ]	 	 	$[    ]	 	 	$[    ]	 
	 June 1, 2006
	  	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]
															
	 June 1, 2007
	  	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]
															
	 June 1, 2008
	  	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]
															
	 June 1, 2009
	  	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]
															
	 June 1, 2010
	  	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]
															
	 June 4, 2011
	  	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]	 	[    	]

 The exact Stock Prices and Effective Dates may not be set forth in the table above, in
which case: 
 (a) If the Stock Price is between two Stock Price amounts in the table or the Effective Date is between two
Effective Dates in the table, the number of Additional Shares will be determined by a straight-line interpolation between the number of Additional Shares set forth for the higher and lower Stock Price amounts and the two dates, as applicable, based
on a 365-day year. 
 (b) If the Stock Price is in excess of
$[            ] per share (subject to adjustment in the same manner as the Conversion Rate as set forth in Section 15.06), no Additional Shares will be added to the Conversion Rate.

  

 75 








 (c) If the Stock Price is less than
$[            ] per share (subject to adjustments in the same manner as the Conversion Rate as set forth in Section 15.06), no Additional Shares will be added to the Conversion Rate.

 Notwithstanding anything in this Section 15.07 to the contrary, in no event will the total number of shares of Common Stock issuable
upon conversion of the Notes exceed [            ] shares of Common Stock per $1,000 principal amount of Notes, subject to adjustment in the same manner as the Conversion Rate as set forth
in Section 15.06. 
 Section 15.08. Effect of Reclassification, Consolidation, Merger or Sale. In the case of (i) any recapitalization,
reclassification or change of the Common Stock (other than changes resulting from a subdivision or combination to which Section 15.06(c) applies); (ii) any consolidation, merger or combination to which the Company is a party other than a
merger in which the Company is the continuing corporation and which does not result in any recapitalization, reclassification of, or change (other than a change in par value, or from par value to no par value, or from no par value to par value, or
as a result of a subdivision or combination) in outstanding shares of Common Stock; (iii) any sale, lease or other transfer of all or substantially all of the consolidated properties and assets of the Company and its Subsidiaries to any other
Person or (iv) any statutory share exchange, in each case of clauses (i) – (iv) as a result of which holders of Common Stock shall be entitled to receive stock, other securities or other property or assets (including cash or any
combination of the foregoing) with respect to or in exchange for such Common Stock, then, at the effective time of such transaction, the Company or the successor or purchasing person, as the case may be, shall execute with the Trustee a supplemental
indenture (which shall comply with the Trust Indenture Act as in force at the date of execution of such supplemental indenture) providing that each Note shall be convertible into the kind and amount of shares of stock, other securities or other
property or assets (including cash or any combination thereof) receivable upon such transaction that a holder of a number of shares of Common Stock equal to the Conversion Rate immediately prior to such transaction would have owned or been entitled
to receive (the “Reference Property”) upon such transaction. If the transaction causes Common Stock to be converted into the right to receive more than a single type of consideration (determined based in part upon any form of
stockholder election), the Reference Property into which the Notes will be convertible shall be deemed to be the weighted average of the types and amounts of consideration received by the holders of Common Stock that affirmatively make such an
election. However, at and after the effective time of the transaction, the amount otherwise payable in cash upon conversion of the Notes will continue to be payable in cash, and the Daily Conversion Value shall be calculated based on the value of
the Reference Property. The Company shall not become a party to any such transaction unless its terms are consistent with this Section 15.08. Such supplemental indenture shall provide for adjustments which shall be as nearly equivalent as may
be practicable to the adjustments provided for in this Article 15. If, in the case of any such transaction, the Reference Property receivable thereupon by a holder of Common Stock includes shares of stock, other securities or other property or
assets (including cash or any combination thereof) of a corporation other than the successor or purchasing corporation, as the case may be, in such transaction, then such supplemental indenture shall also be executed by such other corporation and
shall contain such additional provisions to protect the interests of the Noteholders as the Board of Directors shall reasonably consider necessary by reason of the foregoing. 
  

 76 








 The Company shall cause notice of the execution of such supplemental indenture to be mailed to each
holder of Notes, at its address appearing on the Note Register provided for in Section 2.05 of this Indenture, within twenty (20) days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of
such supplemental indenture. 
 The above provisions of this Section shall similarly apply to successive reclassifications, changes,
consolidations, mergers, combinations, sales and conveyances. 
 If this Section 15.08 applies to any event or occurrence,
Section 15.06 shall not apply. 
 Section 15.09. Taxes on Shares Issued. The issue of stock certificates, if any, on conversions of Notes
shall be made without charge to the converting Noteholder for any documentary, stamp or similar issue or transfer tax in respect of the issue thereof. The Company shall not, however, be required to pay any such tax which may be payable in respect of
any transfer involved in the issue and delivery of stock in any name other than that of the holder of any Note converted, and the Company shall not be required to issue or deliver any such stock certificate unless and until the Person or Persons
requesting the issue thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid. 
 Section 15.10. Reservation of Shares; Shares to Be Fully Paid; Compliance with Governmental Requirements; Listing of Common Stock. The Company shall provide, free from preemptive rights, out of its
authorized but unissued shares or shares held in treasury, sufficient shares of Common Stock to provide for the conversion of the Notes from time to time as such Notes are presented for conversion. 
 Before taking any action which would cause an adjustment increasing the Conversion Rate to an amount that would cause the Conversion Price to be reduced
below the then par value, if any, of the shares of Common Stock issuable upon conversion of the Notes, the Company will take all corporate action which may, in the opinion of its counsel, be necessary in order that the Company may validly and
legally issue shares of such Common Stock at such adjusted Conversion Rate. 
 The Company covenants that all shares of Common Stock which
may be issued upon conversion of Notes will upon issue be fully paid and non-assessable by the Company and free from all taxes, liens and charges with respect to the issue thereof. 
 The Company covenants that, if any shares of Common Stock to be provided for the purpose of conversion of Notes hereunder require registration with or
approval of any governmental authority under any federal or state law before such shares may be validly issued upon conversion, the Company will in good faith and as expeditiously as possible, to the extent then permitted by the rules and
interpretations of the Commission (or any successor thereto), endeavor to secure such registration or approval, as the case may be. 
 The
Company further covenants that, if at any time the Common Stock shall be listed on the New York Stock Exchange or any other national securities exchange or automated quotation system, the Company will, if permitted by the rules of such exchange or
automated quotation system, list and keep listed, so long as the Common Stock shall be so listed on such exchange or automated quotation system, all Common Stock issuable upon conversion of the Notes; provided  

  

 77 








 
that if the rules of such exchange or automated quotation system permit the Company to defer the listing of such Common Stock until the first conversion of
the Notes in accordance with the provisions of this Indenture, the Company covenants to list such Common Stock issuable upon conversion of the Notes in accordance with the requirements of such exchange or automated quotation system at such time.

 Section 15.11. Responsibility of Trustee. The Trustee and any other conversion agent shall not at any time be under any duty or responsibility
to any Noteholder to determine the Conversion Rate or whether any facts exist which may require any adjustment of the Conversion Rate, or with respect to the nature or extent or calculation of any such adjustment when made, or with respect to the
method employed, or herein or in any supplemental indenture provided to be employed, in making the same. The Trustee and any other conversion agent shall not be accountable with respect to the validity or value (or the kind or amount) of any shares
of Common Stock, or of any securities or property, which may at any time be issued or delivered upon the conversion of any Note; and the Trustee and any other conversion agent make no representations with respect thereto. Neither the Trustee nor any
conversion agent shall be responsible for any failure of the Company to issue, transfer or deliver any shares of Common Stock or stock certificates or other securities or property or cash upon the surrender of any Note for the purpose of conversion
or to comply with any of the duties, responsibilities or covenants of the Company contained in this Article 15. Without limiting the generality of the foregoing, neither the Trustee nor any conversion agent shall be under any responsibility to
determine the correctness of any provisions contained in any supplemental indenture entered into pursuant to Section 15.08 relating either to the kind or amount of shares of stock or securities or property (including cash) receivable by
Noteholders upon the conversion of their Notes after any event referred to in such Section 15.08 or to any adjustment to be made with respect thereto, but, subject to the provisions of Section 8.01, may accept as conclusive evidence of the
correctness of any such provisions, and shall be protected in relying upon, the Officer’s Certificate (which the Company shall be obligated to file with the Trustee prior to the execution of any such supplemental indenture) with respect
thereto. 
 Section 15.12. Notice to Holders Prior to Certain Actions. In case: 
 (a) the Company shall declare a dividend (or any other distribution) on its Common Stock that would require an adjustment in the
Conversion Rate pursuant to Section 15.06; or 
 (b) the Company shall authorize the granting to the holders of all or
substantially all of its Common Stock of rights or warrants to subscribe for or purchase any share of any class or any other rights or warrants; or 
 (c) of any reclassification or reorganization of the Common Stock of the Company (other than a subdivision or combination of its outstanding Common Stock, or a change in par value, or from par value to no par value,
or from no par value to par value), or of any consolidation or merger to which the Company is a party and for which approval of any shareholders of the Company is required, or of the sale or transfer of all or substantially all of the assets of the
Company; or 
  

 78 








 (d) of the voluntary or involuntary dissolution, liquidation or winding-up of the
Company; 
 the Company shall cause to be filed with the Trustee and to be mailed to each Noteholder at such holder’s address appearing on the Note
Register provided for in Section 2.05 of this Indenture, as promptly as possible but in any event at least ten (10) days prior to the applicable date hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution or rights or warrants, or, if a record is not to be taken, the date as of which the holders of Common Stock of record to be entitled to such dividend, distribution or rights are to be determined,
or (y) the date on which such reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding-up is expected to become effective or occur, and the date as of which it is expected that holders of Common Stock of
record shall be entitled to exchange their Common Stock for securities or other property deliverable upon such reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding-up. Failure to give such notice, or any
defect therein, shall not affect the legality or validity of such dividend, distribution, reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding-up. 
 Section 15.13. Shareholder Rights Plans. Each share of Common Stock, if any, issued upon conversion of Notes pursuant to this Article 15 shall be entitled to receive the appropriate number of rights, if
any, and the certificates representing the Common Stock issued upon such conversion shall bear such legends, if any, in each case as may be provided by the terms of any shareholder rights plan adopted by the Company, as the same may be amended from
time to time. If at the time of conversion, however, the rights have separated from the shares of Common Stock in accordance with the provisions of the applicable shareholder rights agreement so that the holders of the Notes would not be entitled to
receive any rights in respect of any Common Stock issuable upon conversion of the Notes, the Conversion Rate will be adjusted in accordance with Section 15.06(d) treating all rights previously issued as Securities for purposes of such
adjustment, subject to readjustment in the event of the expiration, termination or redemption of the rights. 
 ARTICLE 16 
 SUBORDINATION 
 Section 16.01. Agreement to
Subordinate. The Company agrees, and each Noteholder by accepting a Note agrees, that the Indebtedness evidenced by the Notes is subordinated in right of payment, to the extent and in the manner provided in this Article 16, to the prior payment
in full of all Senior Indebtedness of the Company and that the subordination is for the benefit of and enforceable by the holders of such Senior Indebtedness. The Notes shall in all respects rank pari passu with all other Senior Subordinated
Indebtedness of the Company, senior in right of payment to all existing and future Subordinated Indebtedness, and only Indebtedness of the Company that is Senior Indebtedness of the Company shall rank senior to the Notes in accordance with the
provisions set forth herein. All provisions of this Article 16 shall be subject to Section 16.12. 
  

 79 








 Section 16.02. Liquidation, Dissolution, Bankruptcy. Upon any payment or distribution of the assets of the
Company to creditors upon a total or partial liquidation or a total or partial dissolution of the Company or in a bankruptcy, reorganization, insolvency, receivership or similar proceeding relating to the Company or its property: 
 (i) holders of Senior Indebtedness of the Company shall be entitled to receive payment in full of such Senior Indebtedness before
Noteholders shall be entitled to receive any payment of principal of or interest (including Contingent Interest) on the Notes; and 
 (ii) until the Senior Indebtedness of the Company is paid in full, any payment or distribution to which Noteholders would be entitled but for this Article 16 shall be made to holders of such Senior Indebtedness as their interests may
appear, except that Noteholders may receive any Permitted Junior Securities (in the case of clauses (i) or (ii). 
 Section 16.03. Default on
Senior Indebtedness. (a) The Company may not make any payment or distribution to the Trustee or any Noteholder in respect of the amounts owed in respect of the Notes and may not acquire from the Trustee or any Noteholder any Notes for cash or
property (other than Permitted Junior Securities) until all principal and other amounts owing in respect of Designated Senior Indebtedness have been paid in full if: 
 (i) a default in the payment of any principal or other amounts owed in respect of Designated Senior Indebtedness occurs; or 
 (ii) a default, other than a payment default, on Designated Senior Indebtedness occurs and is continuing that then permits holders of the
Designated Senior Indebtedness to accelerate its maturity, or in the case of a lease, a default occurs and is continuing that permits the lessor to either terminate the lease or require the Company to make an irrevocable offer to terminate the lease
following an event of default under the lease, and the Trustee receives a notice of the default (a “Payment Blockage Notice”) from the holder or holders of the Designated Senior Indebtedness or the trustee, agent or Representative
acting on behalf of such Designated Senior Indebtedness. If the Trustee receives any such Payment Blockage Notice, no subsequent Payment Blockage Notice shall be effective for purposes of this Section unless and until (A) at least 365 days
shall have elapsed since the effectiveness of the immediately prior Payment Blockage Notice and (B) all scheduled payments of principal, any premium and interest (including Contingent Interest) on the Notes that have come due have been paid in
full in cash. No nonpayment default that existed or was continuing on the date of delivery of any Payment Blockage Notice to the Trustee shall be, or be made, the basis for a subsequent Payment Blockage Notice. 
 (b) The Company may and shall resume payments on and distributions in respect of the Notes: 
 (i) in the case of a default referred to in clause (i) of paragraph (a) above, the date upon which the default is cured or
waived; 
  

 80 








 (ii) in the case of a default referred to in clause (ii) of paragraph
(a) above, upon the earlier of the date on which such nonpayment default is cured or waived or 179 days after the date on which the applicable Payment Blockage Notice is received, unless the maturity of any Designated Senior Indebtedness has
been accelerated, or in the case of a lease, 179 days after notice is received if the Company has not received notice that the lessor under such lease has exercised its right to terminate the lease or require the Company to make an irrevocable offer
to terminate the lease following an event of default under the lease; and 
 (iii) in either case, upon the earlier of the
payment in full of the obligations outstanding under and the satisfaction and discharge or defeasance of Designated Senior Indebtedness, 
 if this Article
16 otherwise permits the payment, distribution or acquisition at the time of such payment or acquisition. 
 In the case of clause (b), upon the earlier of
the date on which such nonpayment default is cured or waived or 179 days after the date on which the applicable Payment Blockage Notice is received, unless the maturity of any Designated Senior Debt has been accelerated. 
 Section 16.04. Acceleration of Payment of Notes. If payment of the Notes is accelerated because of an Event of Default, the Company or the Trustee (provided,
that the Trustee shall have received written notice from the Company, on which notice the Trustee shall be entitled to conclusively rely) shall promptly notify the holders of the Designated Senior Indebtedness of the Company (or their
Representative) of the acceleration. If any Designated Senior Indebtedness of the Company is outstanding, the Company may not pay the Notes (other than Permitted Junior Securities) until five Business Days after such holders or the Representative of
such Designated Senior Indebtedness receive notice of such acceleration and, thereafter, may pay the Notes only if this Article 16 otherwise permits payment at that time. 
 Section 16.05. When Distribution Must Be Paid Over. If a distribution is made to the Trustee or to the Noteholders that because of this Article 16 should not have been made to them, the Trustee or the
Noteholders who receive the distribution shall hold it in trust for holders of Senior Indebtedness of the Company and pay it over to them as their interests may appear. 
 Section 16.06. Subrogation. After all Senior Indebtedness of the Company is paid in full and until the Notes are paid in full, Noteholders shall be subrogated to the rights of holders of such Senior
Indebtedness to receive distributions applicable to Senior Indebtedness. A distribution made under this Article 16 to holders of such Senior Indebtedness which otherwise would have been made to Noteholders is not, as between the Company and
Noteholders, a payment by the Company on such Senior Indebtedness. 
 Section 16.07. Relative Rights. This Article 16 defines the relative rights
of Noteholders and holders of Senior Indebtedness of the Company. Nothing in this Indenture shall: 
 (i) impair, as between
the Company and Noteholders, the obligation of the Company, which is absolute and unconditional, to pay principal of and Interest on the Notes in accordance with their terms; or 
  

 81 








 (ii) prevent the Trustee or any Noteholder from exercising its available remedies upon a
Default, subject to the rights of holders of Senior Indebtedness of the Company to receive distributions otherwise payable to Noteholders. 
 Section 16.08. Subordination May Not Be Impaired by Company. No right of any holder of Senior Indebtedness of the Company to enforce the subordination of the Indebtedness evidenced by the Notes shall be impaired by any act or
failure to act by the Company, the Trustee or any Noteholders or by its or their failure to comply with this Indenture. 
 Section 16.09. Rights of
Trustee and Paying Agent. Notwithstanding Section 16.03, the Trustee or Paying Agent may continue to make payments on the Notes and shall not be charged with knowledge of the existence of facts that would prohibit the making of any such
payments unless, not less than two Business Days prior to the date of such payment, a Trust Officer of the Trustee receives written notice that payments may not be made under this Article 16. The Company, the Note Registrar, the Paying Agent, a
Representative or a holder of Senior Indebtedness of the Company may give the notice; provided, however, that, if an issue of Senior Indebtedness of the Company has a Representative, only the Representative may give the notice.

 The Trustee in its individual or any other capacity may hold Senior Indebtedness of the Company with the same rights it would have if it
were not Trustee. The Note Registrar and the Paying Agent may do the same with like rights. The Trustee shall be entitled to all the rights set forth in this Article 16 with respect to any Senior Indebtedness of the Company which may at any time be
held by it, to the same extent as any other holder of such Senior Indebtedness; and nothing in Article 8 shall deprive the Trustee of any of its rights as such holder. Nothing in this Article 16 shall apply to claims of, or payments to, the Trustee
under or pursuant to Section 8.06 or any other Section of this Indenture. 
 Section 16.10. Distribution or Notice to Representative.
Whenever a distribution is to be made or a notice given to holders of Senior Indebtedness of the Company, the distribution may be made and the notice given to their Representative (if any). 
 Section 16.11. Article 16 Not to Prevent Events of Default or Limit Right to Accelerate. The failure to make a payment pursuant to the Notes by reason
of any provision in this Article 16 shall not be construed as preventing the occurrence of a Default. Nothing in this Article 16 shall have any effect on the right of the Noteholders or the Trustee to accelerate the maturity of the Notes.

 Section 16.12. Trust Monies Not Subordinated. Notwithstanding anything contained herein to the contrary, payments from money held in trust
under Article 13 by the Trustee for the payment of principal of and Interest on the Notes shall not be subordinated to the prior payment of any Senior Indebtedness of the Company or subject to the restrictions set forth in this Article 16, and none
of the Noteholders shall be obligated to pay over any such amount to the Company or any holder of Senior Indebtedness of the Company or any other creditor of the Company. 
 Section 16.13. Trustee Entitled to Rely. Upon any payment or distribution pursuant to this Article 16, the Trustee and the Noteholders shall be entitled to conclusively rely (a) upon any order or
decree of a court of competent jurisdiction in which any proceedings of the nature 

  

 82 








 
referred to in Section 16.02 are pending, (b) upon a certificate of the liquidating trustee or agent or other Person making such payment or
distribution to the Trustee or to the Noteholders or (c) upon the Representatives for the holders of Senior Indebtedness of the Company for the purpose of ascertaining the Persons entitled to participate in such payment or distribution, the
holders of such Senior Indebtedness and other Indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article 16. In the event that the
Trustee determines, in good faith, that evidence is required with respect to the right of any Person as a holder of Senior Indebtedness of the Company to participate in any payment or distribution pursuant to this Article 16, the Trustee may request
such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of such Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and other
facts pertinent to the rights of such Person under this Article 16, and, if such evidence is not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment.
The provisions of Sections 8.01 and 8.02 shall be applicable to all actions or omissions of actions by the Trustee pursuant to this Article 16. 
 Section 16.14. Trustee to Effectuate Subordination. Each Noteholder by accepting a Note authorizes and directs the Trustee on his behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the
subordination between the Noteholders and the holders of Senior Indebtedness of the Company as provided in this Article 16 and appoints the Trustee as attorney-in-fact for any and all such purposes. 
 Section 16.15. Trustee Not Fiduciary for Holders of Senior Indebtedness. The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior
Indebtedness of the Company and shall not be liable to any such holders if it shall mistakenly pay over or distribute to Noteholders or the Company or any other Person, money or assets to which any holders of Senior Indebtedness of the Company shall
be entitled by virtue of this Article 16 or otherwise. 
 Section 16.16. Reliance by Noteholders of Senior Indebtedness on Subordination
Provisions. 
 Each Noteholder by accepting a Note acknowledges and agrees that the foregoing subordination provisions are, and are
intended to be, an inducement and a consideration to each holder of any Senior Indebtedness of the Company, whether such Senior Indebtedness was created or acquired before or after the issuance of the Notes, to acquire and continue to hold, or to
continue to hold, such Senior Indebtedness and such holder of such Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold, or in continuing to hold, such Senior
Indebtedness. 
 ARTICLE 17 
 MISCELLANEOUS PROVISIONS 
 Section 17.01. Provisions Binding on Company’s Successors. 
 All the covenants, stipulations, promises and agreements by the Company contained in this Indenture shall bind its successors and assigns whether so
expressed or not. 
  

 83 








 Section 17.02. Official Acts by Successor Corporation. 
 Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of the Company
shall and may be done and performed with like force and effect by the like board, committee or officer of any Person that shall at the time be the lawful sole successor of the Company. 
 Section 17.03. Addresses for Notices, Etc. 
 Any notice or demand which by any provision of this
Indenture is required or permitted to be given or served by the Trustee or by the holders of Notes on the Company shall be deemed to have been sufficiently given or made, for all purposes, if given or served by being deposited postage prepaid by
registered or certified mail in a post office letter box or sent by telecopier transmission addressed as follows: to Headwaters Incorporated, 10653 South Riverfront Parkway, Suite 300, South Jordan, Utah 84095, Attention: Harlan M. Hatfield, General
Counsel, Telecopier No.: (801) 984-9430. Any notice, direction, request or demand hereunder to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or served by being deposited, postage
prepaid, by registered or certified mail in a post office letter box or sent by telecopier transmission addressed as follows: Wells Fargo Bank, N.A. Sixth & Marquette; N9303-120 Minneapolis, MN 55479 Attn: Corporate Trust Services Fax:
(612) 667-9825. 
 The Trustee, by notice to the Company, may designate additional or different addresses for subsequent notices or
communications. 
 Any notice or communication mailed to a Noteholder shall be mailed to such holder by first-class mail, postage prepaid, at
his address as it appears on the Note Register and shall be sufficiently given to such holder if so mailed within the time prescribed. 
 Failure to mail a notice or communication to a Noteholder or any defect in it shall not affect its sufficiency with respect to other Noteholders. If a notice or communication is mailed in the manner provided above, it is duly given, whether
or not the addressee receives it. 
 Section 17.04. Governing Law. 
 This Indenture and each Note shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of laws principles thereof. 
 Section 17.05. Evidence of Compliance with Conditions Precedent; Certificates to Trustee. 
 Upon any application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company shall furnish
to the Trustee an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with, and an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent have been complied with. 
 Each certificate or opinion provided for in this Indenture and delivered
to the Trustee with respect to compliance with a condition or covenant provided for in this Indenture shall 

  

 84 








 
include: (1) a statement that the person making such certificate or opinion has read such covenant or condition; (2) a brief statement as to the
nature and scope of the examination or investigation upon which the statement or opinion contained in such certificate or opinion is based; (3) a statement that, in the opinion of such person, he has made such examination or investigation as is
necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and (4) a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied
with. 
 Section 17.06. Legal Holidays. 
 In any case in which the date of maturity of Interest on or principal of the Notes or the redemption date of any Note will not be a Business Day, then payment of such Interest on or principal of the Notes need not be made on such date, but
may be made on the next succeeding Business Day with the same force and effect as if made on the date of maturity or the redemption date, and no Interest shall accrue for the period from and after such date. 
 Section 17.07. Company Responsible for Making Calculations. 
 Except as specified in Section 4.01 and in relation to Section 15.01(a)(iv), the Company will be responsible for making all calculations required under the Notes and this Indenture. The Company will make
these calculations in good faith and absent manifest error, these calculations will be final and binding on the Noteholders. Promptly after the calculation thereof, the Company will provide to each of the Trustee and the Conversion Agent an
Officer’s Certificate setting forth a schedule of its calculations, and each of the Trustee and the Conversion Agent is entitled to conclusively rely upon the accuracy of such calculations without independent verification. The Trustee will
forward the Company’s calculations to any Holder upon the written request of such Holder. 
 Section 17.08. Trust Indenture Act. 

This Indenture is hereby made subject to, and shall be governed by, the provisions of the Trust Indenture Act required to be part of and to govern
indentures qualified under the Trust Indenture Act; provided that this Section 17.08 shall not require this Indenture or the Trustee to be qualified under the Trust Indenture Act prior to the time such qualification is in fact required
under the terms of the Trust Indenture Act, nor shall it constitute any admission or acknowledgment by any party to this Indenture that any such qualification is required prior to the time such qualification is in fact required under the terms of
the Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another provision hereof which is required to be included in an indenture qualified under the Trust Indenture Act, such required provision shall control.

 Section 17.09. No Security Interest Created. 
 Nothing in this Indenture or in the Notes, express or implied, shall be construed to constitute a security interest under the Uniform Commercial Code or similar legislation, as now or hereafter enacted and in effect,
in any jurisdiction in which property of the Company or its subsidiaries is located. 
  

 85 








 Section 17.10. Benefits of Indenture. 
 Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other than the parties hereto, any paying agent, any
authenticating agent, any Note Registrar and their successors hereunder and the holders of Notes any benefit or any legal or equitable right, remedy or claim under this Indenture. 
 Section 17.11. Table of Contents, Headings, Etc. 
 The table of contents and the titles and
headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof. 
 Section 17.12. Authenticating Agent. 
 The
Trustee may appoint an authenticating agent that shall be authorized to act on its behalf, and subject to its direction, in the authentication and delivery of Notes in connection with the original issuance thereof and transfers and exchanges of
Notes hereunder, including under Sections 2.04, 2.05, 2.06, 2.07, 3.03, 3.05, 3.06, 3.10 and 15.02, as fully to all intents and purposes as though the authenticating agent had been expressly authorized by this Indenture and those Sections to
authenticate and deliver Notes. For all purposes of this Indenture, the authentication and delivery of Notes by the authenticating agent shall be deemed to be authentication and delivery of such Notes “by the Trustee” and a certificate of
authentication executed on behalf of the Trustee by an authenticating agent shall be deemed to satisfy any requirement hereunder or in the Notes for the Trustee’s certificate of authentication. Such authenticating agent shall at all times be a
Person eligible to serve as trustee hereunder pursuant to Section 8.09. 
 Any corporation into which any authenticating agent may be
merged or converted or with which it may be consolidated, or any corporation resulting from any merger, consolidation or conversion to which any authenticating agent shall be a party, or any corporation succeeding to the corporate trust business of
any authenticating agent, shall be the successor of the authenticating agent hereunder, if such successor corporation is otherwise eligible under this Section 17.12, without the execution or filing of any paper or any further act on the part of
the parties hereto or the authenticating agent or such successor corporation. 
 Any authenticating agent may at any time resign by giving
written notice of resignation to the Trustee and to the Company. The Trustee may at any time terminate the agency of any authenticating agent by giving written notice of termination to such authenticating agent and to the Company. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time any authenticating agent shall cease to be eligible under this Section, the Trustee shall either promptly appoint a successor authenticating agent or itself assume the
duties and obligations of the former authenticating agent under this Indenture and, upon such appointment of a successor authenticating agent, if made, shall give written notice of such appointment of a successor authenticating agent to the Company
and shall mail notice of such appointment of a successor authenticating agent to all holders of Notes as the names and addresses of such holders appear on the Note Register. 
  

 86 








 The Company agrees to pay to the authenticating agent from time to time such reasonable compensation for
its services as shall be agreed upon in writing between the Company and the authenticating agent. 
 The provisions of Sections 8.02, 8.03,
8.04 and 9.03 and this Section 17.12 shall be applicable to any authenticating agent. 
 Section 17.13. Execution in Counterparts

 This Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together
constitute but one and the same instrument. 
 Section 17.14. Severability 
 In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, then (to the extent permitted by law) the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  

 87 








 IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed. 
  

			
	HEADWATERS INCORPORATED
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	  

	Name:	 	
	Title:	 	









 EXHIBIT A 
 THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE
REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”), A NEW YORK CORPORATION, TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
 HEADWATERS INCORPORATED 
 2 7/8% CONVERTIBLE SENIOR SUBORDINATED NOTES DUE 2016 
 CUSIP:
[            ] 
 No. 1
$[            ] 
 Headwaters Incorporated, a corporation duly organized and
validly existing under the laws of the State of Delaware (herein called the “Company,” which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received hereby promises to pay to
CEDE & CO. or its registered assigns, the principal sum as set forth on Schedule I hereto on June 1, 2016, at the office or agency of the Company maintained for that purpose in accordance with the terms of the Indenture, in such coin
or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest, semi-annually on June 1 and December 1 of each year, commencing June 1,
2007, on said principal sum at said office or agency, in like coin or currency, at the rate per annum of 2-7/8%, from and including December 1, 2006 or from the most recent Interest Payment Date to which interest has been paid or duly provided
for to, but excluding the following Interest Payment Date. Contingent Interest, if any, will accrue for any six month interest period and be payable to holders of this Note on the applicable Interest Payment Date to the person in whose name this
Note is registered on the corresponding record date. Except as otherwise provided in the Indenture, the interest payable on the Note pursuant to the Indenture on any June 1 or December 1 will be paid to the Person entitled thereto as it
appears in the Note Register at the close of business on the record date, which shall be the 








 
May 15 or November 15 (whether or not a Business Day) next preceding such June 1 or December 1, as provided in the Indenture;
provided that any such interest not punctually paid or duly provided for shall be payable as provided in the Indenture. The Company shall pay interest (i) on any Notes in certificated form by check mailed to the address of the Person
entitled thereto as it appears in the Note Register (provided that the holder of Notes with an aggregate principal amount in excess of $2,000,000 shall, at the written election of such holder, be paid by wire transfer of immediately available
funds) or (ii) on any Global Note by wire transfer of immediately available funds to the account of the Depositary or its nominee. 
 The Company promises to pay interest, including Contingent Interest, if any, on overdue principal and (to the extent that payment of such interest is enforceable under applicable law) interest at the rate borne by the Notes, plus
1% per annum. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof, including, without
limitation, provisions giving the holder of this Note the right to convert this Note into cash and, if applicable, Common Stock of the Company on the terms and subject to the limitations referred to on the reverse hereof and as more fully specified
in the Indenture. Such further provisions shall for all purposes have the same effect as though fully set forth at this place. 
 This Note
shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of laws principles thereof. 
 This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been manually signed by the Trustee or a duly authorized authenticating agent under the Indenture. 
  

 A-2 








 IN WITNESS WHEREOF, the Company has caused this Note to be duly executed. 
  

			
	 HEADWATERS INCORPORATED

		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Attest:
		
	By:	 	  

	Name:	 	
	Title:	 	

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Notes described in the within-named Indenture. 
  

			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

		
	By:	 	  

	Authorized Signatory
		
	or	 	
		
	By:	 	  

	As Authenticating Agent
	(if different from Trustee)
		
	By:	 	  

	Authorized Signatory

  

 A-3 








 FORM OF REVERSE OF NOTE 
 HEADWATERS INCORPORATED 
 2 7/8% CONVERTIBLE SENIOR SUBORDINATED NOTE DUE 2016 
 This Note is one of a duly authorized issue of Notes of the Company, designated as its 2 7/8% Convertible Senior Subordinated Notes due 2016 (herein called the “Notes”), in an initial aggregate
principal amount to $[    ], issued and to be issued under and pursuant to an Indenture dated as of March [        ], 2007 (herein called the “Indenture”), between the
Company and Wells Fargo Bank, National Association, as trustee (herein called the “Trustee”), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights,
obligations, duties and immunities thereunder of the Trustee, the Company and the holders of the Notes. 
 In case an Event of Default
shall have occurred and be continuing, the principal of and accrued and unpaid Interest on all Notes may be declared by either the Trustee or the holders of not less than 25% in aggregate principal amount of the Notes then outstanding, and upon said
declaration shall become, due and payable, in the manner, with the effect and subject to the conditions provided in the Indenture. 
 The
Indenture contains provisions permitting the Company and the Trustee, with the consent of the holders of at least a majority in aggregate principal amount of the Notes at the time outstanding, to execute supplemental indentures adding any provisions
to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in any manner the rights of the holders of the Notes; provided that no such supplemental indenture shall
(i) extend the fixed maturity of any Note, (ii) reduce the rate or extend the time of payment of Interest thereon, (iii) reduce the principal amount thereof or reduce any amount payable upon redemption or repurchase thereof,
(iv) change the obligation of the Company to repurchase any Note at the option of a Noteholder on a Repurchase Date in a manner adverse to the holders of Notes, (v) change the obligation of the Company to repurchase any Note upon the
happening of a Fundamental Change in a manner adverse to the holders of Notes, (vi) impair the right of any Noteholder to institute suit for the payment thereof, (vii) make the principal thereof or interest thereon payable in any coin or
currency other than that provided in the Notes, (viii) impair the right to convert the Notes or reduce the amount of cash, the number of shares of Common Stock, if any, or any other property receivable by a Noteholder upon conversion subject to
the terms set forth in the Indenture, including Section 15.08 thereof, in each case, without the consent of the holder of each Note so affected, (ix) modify any of the provisions of Section 11.02 or Section 7.07 thereof, except
to increase any such percentage or to provide that certain other provisions of the Indenture cannot be modified or waived without the consent of the holder of each Note so affected, (x) change any obligation of the Company to maintain an office
or agency in the places and for the purposes set forth in Section 5.02 thereof, (xi) reduce the quorum or voting requirements set forth in Article 10, (xii) make any change in Article 16 of the Indenture that adversely affects
the rights of any Noteholder under Article 16 of the Indenture, or (xiii) reduce the aforesaid percentage of Notes, the holders of which are required to consent to any such supplemental indenture, without the consent of the holders of all
Notes then outstanding. Subject to the provisions of the Indenture, the holders of a majority in 

  

 A-4 








 
aggregate principal amount of the Notes at the time outstanding may on behalf of the holders of all of the Notes waive any past Default or Event of Default
under the Indenture and its consequences except (A) a default in the payment of Interest on, or the principal of, any of the Notes, (B) a failure by the Company to convert any Notes into cash and, at the Company’s option, Common Stock
of the Company, (C) a default in the payment of the redemption price pursuant to Article 3 of the Indenture, (D) a default in the payment of the repurchase price pursuant to Article 3 of the Indenture, or (E) a default in respect of a
covenant or provisions of the Indenture which under Article 11 of the Indenture cannot be modified or amended without the consent of the holders of each or all Notes then outstanding or affected thereby. Any such consent or waiver by the holder of
this Note (unless revoked as provided in the Indenture) shall be conclusive and binding upon such holder and upon all future holders and owners of this Note and any Notes which may be issued in exchange or substitution hereof, irrespective of
whether or not any notation thereof is made upon this Note or such other Notes. 
 No reference herein to the Indenture and no provision of
this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and Interest on this Note at the place, at the respective times, at the rate and in the coin or currency
herein prescribed. 
 Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months. 
 The Notes are issuable in fully registered form, without coupons, in denominations of $1,000 principal amount and any multiple of $1,000. At the office
or agency of the Company referred to on the face hereof, and in the manner and subject to the limitations provided in the Indenture, without payment of any service charge but with payment of a sum sufficient to cover any tax, assessment or other
governmental charge that may be imposed in connection with any registration or exchange of Notes, Notes may be exchanged for a like aggregate principal amount of Notes of any other authorized denominations. 
 The Company may not redeem any Notes prior to June 1, 2007. On or after June 1, 2007 and prior to June 4, 2011, the Notes may be redeemed
at the option of the Company, in whole or in part, upon mailing a notice of such redemption not less than 20 days but not more than 60 days before the redemption date to the holders of Notes at their last registered addresses, all as provided in the
Indenture, at a cash redemption price equal to 100% of the principal amount of the Notes being redeemed, together with accrued and unpaid Interest, if any, to, but excluding, the date fixed for redemption if the Closing Sale Price has exceeded 130%
of the Conversion Price for at least 20 Trading Days in any consecutive period of 30 Trading Days ending on the Trading Day prior to the mailing of the notice of redemption described above. If the redemption date falls after a record date and on or
prior to the corresponding Interest Payment Date, then accrued and unpaid Interest, if any, to, but excluding, the date fixed for redemption shall be paid on such Interest Payment Date to the holders of record of such Notes on the applicable record
date instead of the holders surrendering such Notes for redemption on such date. 
 If the Company redeems the Notes on or after June 1,
2007 and prior to June 4, 2011, Holders of the Notes will be paid a Make Whole Payment in accordance with the Indenture. 
  

 A-5 








 At any time on or after June 4, 2011 and prior to maturity, the Notes may be redeemed at the option
of the Company, in whole or in part, upon mailing a notice of such redemption not less than 20 days but not more than 60 days before the redemption date to the holders of Notes at their last registered addresses, all as provided in the Indenture, at
a cash redemption price equal to 100% of the principal amount of the Notes being redeemed and accrued and unpaid Interest, to, but excluding, the redemption date; provided that if the redemption date falls after a record date and on or prior
the corresponding interest payment date, then accrued and unpaid Interest to, but excluding, the redemption date shall be paid on such interest payment date to the holders of record of such Notes on the applicable record date instead of to the
holders surrendering such Notes for redemption on such date. 
 The Company may not give notice of any redemption of the Notes if a default
in the payment of Interest on the Notes has occurred and is continuing. 
 The Notes are not subject to redemption through the operation of
any sinking fund. 
 If a Fundamental Change occurs at any time prior to maturity of the Notes, the Company shall become obligated to
purchase, at the option of the holder, all or any portion of the Notes held by such holder, on a date specified by the Company that is thirty (30) calendar days after notice thereof at a cash repurchase price of 100% of the principal amount,
plus any accrued and unpaid Interest, on such Note up to, but excluding, the Fundamental Change Repurchase Date; provided that if the repurchase date falls after a record date and on or prior the corresponding interest payment date, then
accrued and unpaid Interest to, but excluding, the Fundamental Change Repurchase Date shall be paid on such interest payment date to the holders of record of such Notes on the applicable record date instead of to the holders surrendering such Notes
for repurchase on such date. The Notes will be subject to repurchase in multiples of $1,000 principal amount. The Company shall mail to all holders of record of the Notes a notice of the occurrence of a Fundamental Change and of the repurchase right
arising as a result thereof on or before the 15th day after the occurrence of such Fundamental Change. To exercise such right, a holder shall deliver to the Company such Note with the form entitled “Fundamental Change Repurchase Notice” on
the reverse thereof duly completed, together with the Note, duly endorsed for transfer, at any time prior to the close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date, and shall deliver the Notes to the
Trustee (or other paying agent appointed by the Company) as set forth in the Indenture. 
 Subject to the terms and conditions of the
Indenture, the Company shall become obligated to purchase, at the option of the holder, all or any portion of the Notes held by such holder on June 1, 2011 in whole multiples of $1,000 at a cash repurchase price of 100% of the principal amount,
plus any accrued and unpaid Interest, on such Note to, but excluding, the Repurchase Date. To exercise such right, a holder shall deliver to the Company such Note with the form entitled “Repurchase Notice” on the reverse thereof duly
completed, together with the Note, duly endorsed for transfer, at any time from the opening of business on the date that is 20 Business Days prior to such Repurchase Date until the close of business on the date that is two Business Days prior to the
Repurchase Date, and shall deliver the Notes to the Trustee (or other paying agent appointed by the Company) as set forth in the Indenture. 
  

 A-6 








 Holders have the right to withdraw any Fundamental Change Repurchase Notice or the Repurchase Notice, as
the case may be, by delivering to the Trustee (or other paying agent appointed by the Company) a written notice of withdrawal up to the close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date or the
Repurchase Date, as the case may be, all as provided in the Indenture. 
 If money or cash, sufficient to pay the repurchase price of all
Notes or portions thereof to be purchased as of the Fundamental Change Repurchase Date or the Repurchase Date, as the case may be, is deposited with the Trustee (or other paying agent appointed by the Company), on the Fundamental Change Repurchase
Date or the Repurchase Date, as the case may be, interest will cease to accrue on such Notes (or portions thereof) immediately after such Repurchase Date, and the holder thereof shall have no other rights as such other than the right to receive the
repurchase price upon surrender of such Note. 
 Subject to the occurrence of certain events and in compliance with the provisions of the
Indenture, prior to the final maturity date of the Notes, the holder hereof has the right, at its option, to convert each $1,000 principal amount of the Notes into cash and, if applicable, shares of Common Stock at an initial Conversion Rate of
33.3333 shares of Common Stock (a conversion price of approximately $30.00 per share), as such shares shall be constituted at the date of conversion and subject to adjustment from time to time as provided in the Indenture, upon surrender of this
Note with the form entitled “Conversion Notice” on the reverse thereof duly completed, to the Company at the office or agency of the Company maintained for that purpose in accordance with the terms of the Indenture, or at the option of
such holder, the Corporate Trust Office, and, unless any shares issuable on conversion are to be issued in the same name as this Note, duly endorsed by, or accompanied by instruments of transfer in form satisfactory to the Company duly executed by,
the holder or by his duly authorized attorney. The Company will notify the holder thereof of any event triggering the right to convert the Notes as specified above in accordance with the Indenture. 
 No adjustment in respect of interest on any Note converted or dividends on any shares issued upon conversion of such Note will be made upon any
conversion except as set forth in the next sentence. If this Note (or portion hereof) is surrendered for conversion during the period from the close of business on any record date for the payment of interest to the close of business on the Business
Day preceding the following interest payment date, this Note (or portion hereof being converted) must be accompanied by payment, in immediately available funds or other funds acceptable to the Company, of an amount equal to the interest otherwise
payable on such interest payment date on the principal amount being converted; provided that no such payment shall be required (1) if the Company has specified a redemption date that is after a record date and prior to the next interest
payment date, (2) if the Company has specified a Fundamental Change Repurchase Date that is during such period or (3) to the extent of any overdue Interest, if any overdue interest exists at the time of conversion with respect to such
Note. 
 No fractional shares will be issued upon any conversion, but an adjustment and payment in cash will be made, as provided in the
Indenture, in respect of any fraction of a share which would otherwise be issuable upon the surrender of any Note or Notes for conversion. 
  

 A-7 








 A Note in respect of which a holder is exercising its right to require repurchase upon a Fundamental
Change or repurchase on a Repurchase Date may be converted only if such holder withdraws its election to exercise either such right in accordance with the terms of the Indenture. 
 Any Notes called for redemption, unless surrendered for conversion by the holders thereof on or before the close of business on the Business Day
preceding the redemption date, may be deemed to be redeemed from the holders of such Notes for an amount equal to the applicable redemption price, together with accrued but unpaid Interest to, but excluding, the date fixed for redemption, by one or
more investment banks or other purchasers who may agree with the Company (i) to purchase such Notes from the holders thereof and convert them and (ii) to make payment for such Notes as aforesaid to the Trustee in trust for the holders.

 To the extent provided in the Indenture, the Notes are subordinated to Senior Indebtedness, as defined in the Indenture, pari passu
with any and all other Senior Subordinated Indebtedness, as defined in the Indenture, of the Company and senior to all Subordinated Indebtedness of the Company. To the extent provided in the Indenture, Senior Indebtedness must be paid before the
Notes may be paid. The Company agrees, and each Noteholder by accepting a Note agrees, to the subordination provisions contained in the Indenture and authorizes the Trustee to give it effect and appoints the Trustee as attorney-in-fact for such
purpose. 
 Upon due presentment for registration of transfer of this Note at the office or agency of the Company maintained for that purpose
in accordance with the terms of the Indenture, a new Note or Notes of authorized denominations for an equal aggregate principal amount will be issued to the transferee in exchange thereof, subject to the limitations provided in the Indenture,
without charge except for any tax, assessment or other governmental charge imposed in connection therewith. 
 The Company, the Trustee, any
authenticating agent, any paying agent, any conversion agent and any Note Registrar may deem and treat the registered holder hereof as the absolute owner of this Note (whether or not this Note shall be overdue and notwithstanding any notation of
ownership or other writing hereon made by anyone other than the Company or any Note Registrar) for the purpose of receiving payment hereof, or on account hereof, for the conversion hereof and for all other purposes, and neither the Company nor the
Trustee nor any other authenticating agent nor any paying agent nor other conversion agent nor any Note Registrar shall be affected by any notice to the contrary. All payments made to or upon the order of such registered holder shall, to the extent
of the sum or sums paid, satisfy and discharge liability for monies payable on this Note. 
 No recourse for the payment of the principal of
or Interest on this Note, or for any claim based hereon or otherwise in respect hereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture or any supplemental indenture or in any Note, or because of
the creation of any indebtedness represented thereby, shall be had against any incorporator, shareholder, employee, agent, officer or director or subsidiary, as such, past, present or future, of the Company or of any successor corporation, either
directly or through the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability being, by acceptance hereof and as part
of the consideration for the issue hereof, expressly waived and released. 
  

 A-8 








 For purposes of sections 1272, 1273 and 1275 of the Internal Revenue Code of 1986, as amended, this Note
is being issued with Tax Original Issue Discount and the issue date of this Note is March [        ], 2007. In addition, this Note is subject to the United States federal income tax regulations
governing contingent payment debt instruments. For purposes of sections 1272, 1273 and 1275 of the Internal Revenue Code, the comparable yield of this Note is 8.00% per year, compounded semi-annually (which will be treated as the yield to
maturity for United States federal income tax purposes). 
 The Company agrees, and by acceptance of a beneficial interest in a Note each
holder and any beneficial owner of a Note shall be deemed to have agreed to treat the Note as indebtedness of the Company for United States federal income tax purposes that is subject to Treasury Regulation Section 1.1275-4 or any successor
provision (the “contingent payment regulations”) and to be bound (in the absence of an administrative determination or judicial ruling to the contrary) by the Company’s determination of the comparable yield and the projected payment
schedule within the meaning of the contingent payment regulations. A holder of Notes may obtain the issue price amount of Tax Original Issue Discount, issue date, yield to maturity, comparable yield and projected payment schedule for the Notes,
determined by the Company pursuant to the contingent payment regulations, by submitting a written request for it to the Company at the following address: Headwaters Incorporated, 10653 South Riverfront Parkway, Suite 300, South Jordan, UT 84095,
Attention: Harlan M. Hatfield, General Counsel. 
 This Note shall be governed by and construed in accordance with the laws of New York,
without regard to conflicts of laws principles thereof. 
 Terms used in this Note and defined in the Indenture are used herein as therein
defined. 
  

 A-9 








 ABBREVIATIONS 
 The following abbreviations, when used in the inscription of the face of this Note, shall be construed as though they were written out in full according to applicable laws or regulations. 
  

											
	TEN COM	 	-	  	as tenants in common	 	UNIF GIFT MIN ACT	 	-	 	Custodian
	TEN ENT	 	-	  	as tenant by the entireties	 	(Cust) (Minor)	 		 	
	JT TEN	 	-	  	as joint tenants with right of survivorship under Uniform Gifts to Minors Act and not as tenants in common

  

			
	  
	 	
	(State)	 	 


 Additional abbreviations may also be used though not in the above list. 
  

 A-10 








 CONVERSION NOTICE 
 TO: HEADWATERS INCORPORATED 

 The undersigned registered owner
of this Note hereby irrevocably exercises the option to convert this Note, or the portion thereof (which is $1,000 or a multiple thereof) below designated, into cash and, if applicable, shares of Common Stock of Headwaters Incorporated in accordance
with the terms of the Indenture referred to in this Note, and directs that the shares, if any, issuable and deliverable upon such conversion, together with any check in payment for cash, if any, payable upon conversion or for fractional shares and
any Notes representing any unconverted principal amount hereof, be issued and delivered to the registered holder hereof unless a different name has been indicated below. Capitalized terms used herein but not defined shall have the meanings ascribed
to such terms in the Indenture. If shares or any portion of this Note not converted are to be issued in the name of a person other than the undersigned, the undersigned will provide the appropriate information below and pay all transfer taxes
payable with respect thereto. Any amount required to be paid by the undersigned on account of interest, including contingent interest, if any, accompanies this Note. 
 Dated: 
  

  

 Signature(s) 
 Signature(s) must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program
(“STAMP”) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

  

 Fill in the registration of
shares of Common Stock, if any, if to be issued, and Notes if to be delivered, other than to and in the name of the registered holder: 
  

	
	
	  

	(Name)
	
	  

	(Street Address)

  

 A-11 









			
	
	  

	(City, State and Zip Code)
	
	  

	Please print name and address
	 	 	 
	 Principal amount to be converted
 (if less than all):

		
	$	 	  

	 
	Social Security or Other Taxpayer
	Identification Number:
	
	  


  

 A-12 








 FUNDAMENTAL CHANGE REPURCHASE NOTICE 
 TO: HEADWATERS INCORPORATED 

 The
undersigned registered owner of this Note hereby irrevocably acknowledges receipt of a notice from Headwaters Incorporated (the “Company”) regarding the right of holders to elect to require the Company to repurchase the Notes upon the
occurrence of a Fundamental Change with respect to the Company and requests and instructs the Company to repay the entire principal amount of this Note, or the portion thereof (which is $1,000 or an integral multiple thereof) below designated, in
accordance with the terms of the Indenture at the price of 100% of such entire principal amount or portion thereof, together with accrued and unpaid Interest to, but excluding, the Fundamental Change Repurchase Date, to the registered holder hereof.
Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the Indenture. The Notes shall be repurchased by the Company as of the portion thereof, together with accrued and unpaid Interest to, but excluding, the
Fundamental Change Repurchase Date pursuant to the terms and conditions specified in the Indenture. 
 $             principal amount of the Notes to which this Fundamental Change Repurchase Notice relates (if less than entire principal amount) 
 Dated: 
 Signature(s): 
 NOTICE: The above signatures of the holder(s) hereof must correspond with the name as written upon the face of the Note in every particular without alteration or
enlargement or any change whatever. 
 Note Certificate Number (if applicable): 
 Principal amount to be repurchased (if less than all): 
 Social Security or Other Taxpayer Identification Number: 

 

 A-13 








 REPURCHASE NOTICE 
 TO: HEADWATERS INCORPORATED 

 The undersigned registered owner
of this Note hereby irrevocably acknowledges receipt of a notice from Headwaters Incorporated (the “Company”) regarding the right of holders to elect to require the Company to repurchase the Notes and requests and instructs the Company to
repay the entire principal amount of this Note, or the portion thereof (which is $1,000 or an integral multiple thereof) below designated, in accordance with the terms of the Notes and the Indenture at the price of 100% of such entire principal
amount or portion thereof, together with accrued and unpaid Interest to, but excluding, the Repurchase Date, to the registered holder hereof. Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the
Indenture. The Notes shall be repurchased by the Company as of the Repurchase Date pursuant to the terms and conditions specified in the Indenture. 
 $
             principal amount of the Notes to which this Repurchase Notice relates (if less than entire principal amount) 
 Dated: 
 Signature(s): 
 NOTICE: The above signatures of the holder(s) hereof must correspond with the name as written upon the face of the Note in every particular without alteration or enlargement or any change whatever. 
 Note Certificate Number (if applicable): 
 Principal amount to be repurchased
(if less than all): 
 Social Security or Other Taxpayer Identification Number: 
  

 A-14 








 ASSIGNMENT 
 For value received
                                        
                                        
                                        
                                         hereby
sell(s) 
 assign(s) and transfer(s) unto
                                        
                                     (Please insert social
security or other Taxpayer Identification Number of assignee) the within Note, and hereby irrevocably constitutes and appoints
                                        
             
                                        
                                        
         attorney to transfer said Note on the books of the Company, with full power of substitution in the premises. 
 Dated: 
  

 A-15 









 Signature(s) 
 Signature(s) must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note 
  

 Registrar, which requirements include
membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended. 
  

 Signature Guarantee 
 NOTICE: The signature on the Conversion Notice,
the Fundamental Change Repurchase Notice, the Repurchase Notice or the Assignment must correspond with the name as written upon the face of the Note in every particular without alteration or enlargement or any change whatever. 
  

 A-16 








 Schedule I 
 HEADWATERS INCORPORATED 
 2 7/8% Convertible Senior Subordinated Notes due 2016 
 No. [        ] 
 The original
principal amount of this Note is [    ] DOLLARS ($[    ]). The principal amount has been adjusted in accordance with the terms of the Indenture as set forth below: 
 Date 
 Principal Amount

 Notation Explaining Principal 
 Amount Recorded 
 Authorized Signature of Trustee or Custodian 
  

 A-17