Document:

EX-4.2

 Exhibit 4.2 
  

 
 ADVANCED MICRO DEVICES, INC.

  
  

FIRST SUPPLEMENTAL INDENTURE 

Dated as of September 14, 2016 

to 
 INDENTURE 

Dated as of September 14, 2016 
  

 
 2.125%
Convertible Senior Notes due 2026 
  
  

WELLS FARGO BANK, NATIONAL ASSOCIATION 

Trustee 
  

 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
		
	 ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE
	  	 	1	  
			
	 Section 1.01
	 	Scope	  	 	1	  
	 Section 1.02
	 	Definitions	  	 	2	  
	 Section 1.03
	 	References to Interest	  	 	11	  
	 Section 1.04
	 	References to Principal	  	 	11	  
		
	 ARTICLE 2 ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF
NOTES
	  	 	11	  
			
	 Section 2.01
	 	Designation and Amount	  	 	11	  
	 Section 2.02
	 	Form of Notes	  	 	11	  
	 Section 2.03
	 	Date and Denomination of Notes; Payments of Interest and Defaulted Amounts	  	 	12	  
	 Section 2.04
	 	Exchange and Registration of Transfer of Notes; Restrictions on Transfer; Depositary	  	 	13	  
	 Section 2.05
	 	Cancellation of Notes Paid, Converted, Etc	  	 	14	  
	 Section 2.06
	 	Additional Notes; Repurchases	  	 	15	  
		
	 ARTICLE 3 SATISFACTION AND DISCHARGE
	  	 	15	  
			
	 Section 3.01
	 	Applicability of Article 8 of the Base Indenture	  	 	15	  
	 Section 3.02
	 	Satisfaction and Discharge	  	 	15	  
		
	 ARTICLE 4 PARTICULAR COVENANTS OF THE COMPANY
	  	 	16	  
			
	 Section 4.01
	 	Maintenance of Office or Agency	  	 	16	  
	 Section 4.02
	 	Appointments to Fill Vacancies in Trustee’s Office	  	 	16	  
	 Section 4.03
	 	Provisions as to Paying Agent	  	 	16	  
	 Section 4.04
	 	Reports	  	 	17	  
	 Section 4.05
	 	Statements as to Defaults	  	 	18	  
		
	 ARTICLE 5 DEFAULTS AND REMEDIES
	  	 	18	  
			
	 Section 5.01
	 	Applicability of Article 6 of the Base Indenture	  	 	18	  
	 Section 5.02
	 	Events of Default	  	 	18	  
	 Section 5.03
	 	Acceleration; Rescission and Annulment	  	 	20	  
	 Section 5.04
	 	Additional Interest	  	 	20	  
	 Section 5.05
	 	Payments of Notes on Default; Suit Therefor	  	 	21	  
	 Section 5.06
	 	Application of Monies Collected by Trustee	  	 	22	  
	 Section 5.07
	 	Proceedings by Holders	  	 	22	  
	 Section 5.08
	 	Remedies Cumulative and Continuing	  	 	23	  
	 Section 5.09
	 	Direction of Proceedings and Waiver of Defaults by Majority of Holders	  	 	24	  
	 Section 5.10
	 	Notice of Defaults	  	 	24	  
	 Section 5.11
	 	Undertaking to Pay Costs	  	 	24	  

  
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 TABLE OF CONTENTS 

(Continued) 
  

							
	 	 	 	  	Page	 
		
	 ARTICLE 6 CONCERNING THE TRUSTEE
	  	 	24	  
			
	 Section 6.01
	 	Amendments to Article 7 of the Base Indenture	  	 	24	  
		
	 ARTICLE 7 CONCERNING THE HOLDERS
	  	 	25	  
			
	 Section 7.01
	 	Applicability of Section 2.14.6 of the Base Indenture	  	 	25	  
	 Section 7.02
	 	Action by Holders	  	 	25	  
	 Section 7.03
	 	Proof of Execution by Holders	  	 	25	  
	 Section 7.04
	 	Who Are Deemed Absolute Owners	  	 	25	  
	 Section 7.05
	 	Company-Owned Notes	  	 	26	  
	 Section 7.06
	 	Revocation of Consents; Future Holders Bound	  	 	26	  
		
	 ARTICLE 8 HOLDERS’ MEETINGS
	  	 	26	  
			
	 Section 8.01
	 	Applicability of Section 10.6 of the Base Indenture	  	 	26	  
	 Section 8.02
	 	Purpose of Meetings	  	 	26	  
	 Section 8.03
	 	Call of Meetings by Trustee	  	 	27	  
	 Section 8.04
	 	Call of Meetings by Company or Holders	  	 	27	  
	 Section 8.05
	 	Qualifications for Voting	  	 	27	  
	 Section 8.06
	 	Regulations	  	 	27	  
	 Section 8.07
	 	Voting	  	 	28	  
	 Section 8.08
	 	No Delay of Rights by Meeting	  	 	28	  
		
	 ARTICLE 9 SUPPLEMENTAL INDENTURES
	  	 	29	  
			
	 Section 9.01
	 	Applicability of Article 9 of the Base Indenture	  	 	29	  
	 Section 9.02
	 	Supplemental Indentures Without Consent of Holders	  	 	29	  
	 Section 9.03
	 	Supplemental Indentures with Consent of Holders	  	 	30	  
	 Section 9.04
	 	Effect of Supplemental Indentures	  	 	31	  
		
	 ARTICLE 10 CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE
	  	 	31	  
			
	 Section 10.01
	 	Applicability of Article 5 of the Base Indenture	  	 	31	  
	 Section 10.02
	 	Company May Consolidate, Etc. on Certain Terms	  	 	32	  
	 Section 10.03
	 	Successor Corporation to Be Substituted	  	 	32	  
	 Section 10.04
	 	Opinion of Counsel to Be Given to Trustee	  	 	33	  
		
	 ARTICLE 11 CONVERSION OF NOTES
	  	 	33	  
			
	 Section 11.01
	 	Conversion Privilege	  	 	33	  
	 Section 11.02
	 	Conversion Procedure; Settlement upon Conversion	  	 	35	  
	 Section 11.03
	 	Increased Conversion Rate Applicable to Certain Notes Surrendered in Connection with Make-Whole Fundamental Changes	  	 	39	  
	 Section 11.04
	 	Adjustment of Conversion Rate	  	 	41	  
	 Section 11.05
	 	Adjustments of Prices	  	 	52	  
	 Section 11.06
	 	Effect of Recapitalizations, Reclassifications and Changes of the Common Stock	  	 	52	  

  
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 TABLE OF CONTENTS 

(Continued) 
  

							
	 	 	 	  	Page	 
			
	 Section 11.07
	 	Certain Covenants	  	 	54	  
	 Section 11.08
	 	Responsibility of Trustee	  	 	54	  
	 Section 11.09
	 	Stockholder Rights Plans	  	 	55	  
	 Section 11.10
	 	Exchange in Lieu of Conversion	  	 	56	  
		
	 ARTICLE 12 REPURCHASE OF NOTES AT OPTION OF HOLDERS
	  	 	56	  
			
	 Section 12.01
	 	Repurchase at Option of Holders Upon a Fundamental Change	  	 	56	  
	 Section 12.02
	 	Withdrawal of Fundamental Change Repurchase Notice	  	 	59	  
	 Section 12.03
	 	Deposit of Fundamental Change Repurchase Price	  	 	60	  
	 Section 12.04
	 	Covenant to Comply with Applicable Laws upon Repurchase of Notes	  	 	60	  
		
	 ARTICLE 13 NO REDEMPTION
	  	 	61	  
			
	 Section 13.01
	 	No Redemption	  	 	61	  
		
	 ARTICLE 14 MISCELLANEOUS PROVISIONS
	  	 	61	  
			
	 Section 14.01
	 	Provisions Binding on Company’s Successors	  	 	61	  
	 Section 14.02
	 	Official Acts by Successor Corporation	  	 	61	  
	 Section 14.03
	 	Governing Law; Jurisdiction	  	 	61	  
	 Section 14.04
	 	Legal Holidays	  	 	62	  
	 Section 14.05
	 	No Security Interest Created	  	 	62	  
	 Section 14.06
	 	Benefits of Indenture	  	 	62	  
	 Section 14.07
	 	Table of Contents, Headings, Etc	  	 	62	  
	 Section 14.08
	 	Execution in Counterparts	  	 	62	  
	 Section 14.09
	 	Severability	  	 	62	  
	 Section 14.10
	 	Waiver of Jury Trial	  	 	62	  
	 Section 14.11
	 	USA PATRIOT Act	  	 	62	  

							
	
	EXHIBIT	  
		
	 Exhibit A Form of Note
	  	 	A-1	  

  
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 This First Supplemental Indenture (this “First Supplemental Indenture”) dated as
of September 14, 2016 between ADVANCED MICRO DEVICES, INC., a company incorporated under the laws of Delaware, as issuer (“Company”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association organized under the
laws of the United States of America, as trustee (“Trustee”). 
 W I T N E S S E T H: 

WHEREAS, the Company and the Trustee executed and delivered an Indenture, dated as of September 14, 2016 (the “Base
Indenture” and as supplemented by this First Supplemental Indenture and as may be further supplemented or amended with respect to the Notes, the “Indenture”), to provide for the issuance by the Company from time to time of
its debentures, notes or other debt instruments (the “Securities”); 
 WHEREAS, Section 2.1, Section 2.2 and
Section 9.1(i) of the Base Indenture provide that the Company, when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental to the Base Indenture, without the
consent of any Holders, to, among other things, establish the form or terms of Securities of any series as permitted by the Base Indenture; 

WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issuance of its 2.125% Convertible Senior Notes due 2026 (the
“Notes”), initially in an aggregate principal amount not to exceed $700,000,000 (or $805,000,000 if the Underwriters exercise their option to purchase additional Notes in full in accordance with the Underwriting Agreement), and in
order 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 First Supplemental Indenture; and 

WHEREAS, the Company desires to issue $700,000,000 (or $805,000,000 if the Underwriters exercise their option to purchase additional Notes in
full in accordance with the Underwriting Agreement) aggregate principal amount of the Notes as of the date hereof. 
 NOW, THEREFORE: 

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Notes. 

ARTICLE 1 
 DEFINITIONS
AND INCORPORATION BY REFERENCE 
 Section 1.01 Scope. This First Supplemental Indenture
constitutes a supplement to the Base Indenture and an integral part of the Indenture and shall be read together with the Base Indenture as though all the provisions thereof are contained in one instrument. Except as expressly amended by this First
Supplemental Indenture, the terms and provisions of the Base Indenture shall 

 
remain in full force and effect. Notwithstanding the foregoing, this First Supplemental Indenture shall only apply to the Notes. For all purposes under the Base Indenture, the Notes
shall constitute a single Series, and with regard to any matter requiring the consent under the Base Indenture of Holders (as defined under the Base Indenture) of multiple Series of Notes voting together as a single class, the consent of
Holders of the Notes issued hereunder voting as a separate class shall also be required and the same threshold shall apply. With respect to the Notes, if the terms of the Base Indenture are inconsistent with the terms of this First Supplemental
Indenture, the terms of this First Supplemental Indenture shall control. 
 Section 1.02
Definitions. For all purposes of this First Supplemental Indenture unless otherwise specified herein: 
 (a) all terms used in
this First Supplemental Indenture that are not otherwise defined herein shall have the meanings they are given in the Base Indenture; 
 (b)
the rules of construction stated in Section 1.4 of the Base Indenture shall apply to this First Supplemental Indenture; 
 (c) the
words “herein,” “hereof,” “hereto” and “hereunder” and other words of similar import in this First Supplemental Indenture shall refer to this First Supplemental Indenture as a whole and not to the Base
Indenture or any particular Article, Section or other subdivision of the Base Indenture or this First Supplemental Indenture; and 

(d) Section 1.1 of the Base Indenture is amended and supplemented, solely with respect to the Notes, by inserting the following
additional defined terms in their appropriate alphabetical positions and deleting any defined terms therein that are also defined in this Section 1.02. 

“1% Provision” shall have the meaning specified in Section 11.04(j). 

“Additional Interest” means all amounts, if any, payable pursuant to Section 5.04. 

“Additional Shares” shall have the meaning specified in Section 11.03(a). 

“Base Indenture” shall have the meaning specified in the first paragraph of the recitals of this First Supplemental
Indenture. 
 “Bid Solicitation Agent” means the Person appointed by the Company to solicit bids for the Trading Price of
the Notes in accordance with Section 11.01(b)(i). The Company shall initially act as the Bid Solicitation Agent. 

“Business Day” means, with respect to any Note, any day other than a Saturday, a Sunday or a day on which the Federal Reserve
Bank of New York is authorized or required by law or executive order to close or be closed. If any Interest Payment Date, Fundamental Change Repurchase Date or Maturity Date falls on a day that is not a Business Day, a day on which the
applicable place of payment is authorized or required by law or executive order to close or be closed will be deemed not to be a “Business Day.” 

  
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 “Cash Settlement” shall have the meaning specified in Section 11.02(a).

 “Clause A Distribution” shall have the meaning specified in Section 11.04(c). 

“Clause B Distribution” shall have the meaning specified in Section 11.04(c). 

“Clause C Distribution” shall have the meaning specified in Section 11.04(c). 

“close of business” means 5:00 p.m. (New York City time). 

“Combination Settlement” shall have the meaning specified in Section 11.02(a). 

“Common Equity” of any Person means Capital Stock of such Person that is generally entitled (a) to vote in the election
of directors of such Person or (b) if such Person is not a corporation, to vote or otherwise participate in the selection of the governing body, partners, managers or others that will control the management or policies of such Person. 

“Common Stock” means the shares of common stock of the Company, par value $0.01 per share, at the date of this First
Supplemental Indenture, subject to Section 11.06. 
 “Common Stock Change Event” shall have the meaning specified in
Section 11.06(a). 
 “Company” shall have the meaning specified in the first paragraph of this First Supplemental
Indenture, and subject to the provisions of Article 10, shall include its successors and assigns. 
 “Conversion
Agent” shall have the meaning specified in Section 4.01(a). 
 “Conversion Consideration” shall have the
meaning specified in Section 11.10. 
 “Conversion Date” shall have the meaning specified in Section 11.02(c).

 “Conversion Obligation” shall have the meaning specified in Section 11.01(a). 

“Conversion Price” means as of any time, $1,000, divided by the Conversion Rate as of such time. 

“Conversion Rate” shall have the meaning specified in Section 11.01(a). 

“Daily Conversion Value” means, for each of the 20 consecutive Trading Days during the relevant Observation Period, 1/20th of
the product of (a) the Conversion Rate on such Trading Day and (b) the Daily VWAP for such Trading Day. 
 “Daily
Measurement Value” means the Specified Dollar Amount (if any), divided by 20. 

  
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 “Daily Settlement Amount,” for each of the 20 consecutive Trading Days during
the relevant Observation Period, shall consist of: 
 (a) cash in an amount equal to the lesser of (i) the Daily Measurement Value and
(ii) the Daily Conversion Value on such Trading Day; and 
 (b) if the Daily Conversion Value on such Trading Day exceeds the Daily
Measurement Value, a number of shares of Common Stock equal to (i) the difference between the Daily Conversion Value and the Daily Measurement Value, divided by (ii) the Daily VWAP for such Trading Day. 

“Daily VWAP” means, for each of the 20 consecutive Trading Days during the relevant Observation Period, the per share
volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page “AMD <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 this purpose by the Company). The “Daily VWAP” shall be determined without regard to after-hours trading or any other
trading outside of the regular trading session trading hours. 
 “Defaulted Amounts” means any amounts on any Note
(including, without limitation, the Fundamental Change Repurchase Price, principal and interest) that are payable but are not punctually paid or duly provided for. 

“Depositary” means, with respect to each Global Note, the Person specified in Section 2.04(d) as the Depositary with
respect to such Notes, 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 Institution” shall have the meaning specified in Section 11.10. 

“Distributed Property” shall have the meaning specified in Section 11.04(c). 

“Effective Date” shall have the meaning specified in Section 11.03(c), except that, as used in Section 11.04 and
Section 11.05, “Effective Date” means the first date on which the Common Stock trades on the applicable exchange or in the applicable market, regular way, reflecting the relevant share split or share combination, as applicable.

 “Event of Default” shall have the meaning specified in Section 5.02. 

“Ex-Dividend Date” means the first date on which the shares of Common Stock trade on the applicable exchange or in the
applicable market, regular way, without the right to receive the issuance, dividend or distribution in question, from the Company or, if applicable, from the seller of shares of Common Stock on such exchange or market (in the form of due bills or
otherwise) as determined by such exchange or market. 

  
 -4- 

 “Exchange Election” shall have the meaning specified in Section 11.10. 

“First Supplemental Indenture” shall have the meaning specified in the first paragraph of this First Supplemental Indenture.

 “Form of Fundamental Change Repurchase Notice” means the “Form of Fundamental Change Repurchase Notice”
attached as Attachment 2 to the Form of Note attached hereto as Exhibit A. 
 “Form of Note” means the “Form of
Note” attached hereto as Exhibit A. 
 “Form of Notice of Conversion” means the “Form of Notice of
Conversion” attached as Attachment 1 to the Form of Note attached hereto as Exhibit A. 
 “Fundamental Change”
shall be deemed to have occurred at the time after the Notes are originally issued if any of the following occurs: 
 (a) a
“person” or “group” within the meaning of Section 13(d) of the Exchange Act, other than the Company, its Wholly Owned Subsidiaries and the employee benefit plans of the Company and its Wholly Owned Subsidiaries, files a
Schedule TO or any schedule, form or report under the Exchange Act 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; 
 (b) the consummation of (A) any
recapitalization, reclassification or change of the Common Stock (other than changes resulting from a subdivision or combination) as a result of which the Common Stock would be converted into, or exchanged for, shares, stock, other securities, other
property or assets; (B) any share exchange, consolidation or merger of the Company pursuant to which the Common Stock will be converted into cash, securities or other property or assets; or (C) 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 whole, to any Person other than one of the Company’s Wholly Owned Subsidiaries; provided,
however, that a transaction described in clause (B) in which the holders 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 transaction in substantially the same proportions as such ownership immediately prior to such transaction shall not be a Fundamental Change
pursuant to this clause (b); 
 (c) the shareholders of the Company approve any plan or proposal for the liquidation or dissolution of the
Company; or 
 (d) the Common Stock (or other common stock underlying the Notes) ceases to be listed or quoted on any of The NASDAQ Global
Select Market, The NASDAQ Global Market, the NASDAQ Capital Market, The New York Stock Exchange or the NYSE MKT (or any of their respective successors); 

  
 -5- 

 provided, however, that a transaction or transactions described in clause (a) or clause
(b) above shall not constitute a Fundamental Change, if at least 90% of the consideration received or to be received by the common shareholders of the Company, excluding cash payments for fractional shares and cash payments made pursuant to
dissenters’ appraisal rights, in connection with such transaction or transactions consists of common stock that is listed or quoted on any of The NASDAQ Global Select Market, The NASDAQ Global Market, the NASDAQ Capital Market, The New York
Stock Exchange or the NYSE MKT (or any of their respective successors) or will be so listed or quoted when issued or exchanged in connection with such transaction or transactions and as a result of such transaction or transactions the Notes become
convertible into such consideration, excluding cash payments for fractional shares (subject to the provisions of Section 11.02(a)). If any transaction in which the Common Stock is replaced by the securities of another entity occurs,
following completion of any related Make-Whole Fundamental Change Period (or, in the case of a transaction that would have been a Fundamental Change or a Make-Whole Fundamental Change but for the proviso immediately following clause (d) of the
definition thereof, following the effective date of such transaction) references to the Company in this definition shall instead be references to such other entity. 

“Fundamental Change Company Notice” shall have the meaning specified in Section 12.01(c). 

“Fundamental Change Repurchase Date” shall have the meaning specified in Section 12.01(a). 

“Fundamental Change Repurchase Notice” shall have the meaning specified in Section 12.01(b)(i). 

“Fundamental Change Repurchase Price” shall have the meaning specified in Section 12.01(a). 

“Global Note” shall have the meaning specified in Section 2.04(c). 

“Holder,” as applied to any Note, or other similar terms (but excluding the term “beneficial owner”), means
any Person in whose name at any given time a particular Note is registered on the Note Register. 
 “Indenture” shall have
the meaning specified in the first paragraph of the recitals of this First Supplemental Indenture. 
 “Interest Payment
Date” means each March 1 and September 1 of each year, beginning on March 1, 2017. 

  
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 “Last Reported Sale Price” of the Common Stock on any date means the closing
sale price per share (or if no closing sale price is reported, the average of the bid and ask prices or, if more than one in either case, the average of the average bid and the average ask prices) on that date as reported in composite transactions
for the principal U.S. national or regional securities exchange on which the Common Stock is traded. If the Common Stock is not listed for trading on a U.S. national or regional securities exchange on the relevant date, the “Last
Reported Sale Price” shall be the last quoted bid price for the Common Stock in the over-the-counter market on the relevant date as reported by OTC Markets Group Inc. or a similar organization. If the Common Stock is not so quoted, the
“Last Reported Sale Price” shall be the average of the mid-point of the last bid and ask prices for the Common Stock on the relevant date from a nationally recognized independent investment banking firm selected by the Company for
this purpose. 
 “Make-Whole Fundamental Change” means any transaction or event that constitutes a Fundamental Change (as
defined above and determined after giving effect to any exceptions to or exclusions from such definition, but without regard to the proviso in clause (b) of the definition thereof). 

“Make-Whole Fundamental Change Period” shall have the meaning specified in Section 11.03(a). 

“Market Disruption Event” means, for the purposes of determining amounts due upon conversion (a) a failure by the
primary U.S. national or regional securities exchange or market on which the Common Stock is listed or admitted for trading to open for trading during its regular trading session or (b) the occurrence or existence prior to 1:00 p.m., New York
City time, on any Scheduled Trading Day for the Common Stock for more than one half-hour period in the aggregate during regular trading hours of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits
permitted by the relevant stock exchange or otherwise) in the Common Stock or in any options contracts or futures contracts relating to the Common Stock. 

“Maturity Date” means September 1, 2026. 

“Measurement Period” shall have the meaning specified in Section 11.01(b)(i). 

“Note” or “Notes” shall have the meaning specified in the first paragraph of the recitals of this First
Supplemental Indenture. 
 “Note Register” means the register maintained by the Registrar with respect to the Notes in
accordance with Section 2.4 of the Base Indenture. 
 “Notice of Conversion” shall have the meaning specified in
Section 11.02(b). 
 “Observation Period” with respect to any Note surrendered for conversion means: (i) if the
relevant Conversion Date occurs prior to the 25th Scheduled Trading Day immediately preceding the Maturity Date, the 20 consecutive Trading Day period beginning on, and including, the second Trading Day immediately succeeding such Conversion Date;
and (ii) if the relevant Conversion Date 

  
 -7- 

 
occurs on or after the 25th Scheduled Trading Day immediately preceding the Maturity Date, the 20 consecutive Trading Days beginning on, and including, the 22nd Scheduled Trading Day immediately
preceding the Maturity Date. 
 “open of business” means 9:00 a.m. (New York City time). 

“outstanding,” when used with reference to Notes, shall, subject to the provisions of Section 2.10 of the Base Indenture
and Section 7.05 of this First Supplemental Indenture, mean, as of any particular time, all Notes authenticated and delivered by the Trustee under the Indenture, except: 

(a) Notes theretofore canceled by the Trustee or accepted by the Trustee for cancellation; 

(b) Notes, or portions thereof, that have become due and payable and in respect 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 shall have been set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent); 

(c) Notes that have been paid pursuant to Section 2.05 or Notes in lieu of which, or in substitution for which, other Notes shall have
been authenticated and delivered pursuant to the terms of Section 2.05 unless proof satisfactory to the Trustee is presented that any such Notes are held by protected purchasers in due course; 

(d) Notes converted pursuant to Article 11 and required to be cancelled pursuant to Section 2.05; and 

(e) Notes repurchased by the Company pursuant to the penultimate sentence of Section 2.06; 

provided that (i) Section 2.9 of the Base Indenture shall not apply to the Notes and (ii) references in the Base Indenture to any
“outstanding” Notes shall be deemed to refer to the foregoing definition of “outstanding.” 
 “Physical
Notes” means permanent certificated Notes in registered form issued in denominations of $1,000 principal amount and integral multiples thereof. 

“Physical Settlement” shall have the meaning specified in Section 11.02(a). 

“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 2.05 in lieu of or in exchange for a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same
debt as the mutilated, lost, destroyed or stolen Note that it replaces. 

  
 -8- 

 “Prospectus Supplement” means the preliminary prospectus supplement
dated September 6, 2016, as supplemented by the related pricing term sheet dated September 8, 2016, relating to the offering and sale of the Notes. 

“Record Date” means, with respect to any dividend, distribution or other transaction or event in which the holders of Common
Stock (or other applicable security) have the right to receive any cash, securities or other property or in which the Common Stock (or such other security) is exchanged for or converted into any combination of cash, securities or other property, the
date fixed for determination of holders of the Common Stock (or such other security) entitled to receive such cash, securities or other property (whether such date is fixed by the Board of Directors, by statute, by contract or otherwise). 

“Reference Property” shall have the meaning specified in Section 11.06(a). 

“Regular Record Date,” with respect to any Interest Payment Date, means the February 15 or August 15 (whether or
not such day is a Business Day) immediately preceding the applicable March 1 or September 1 Interest Payment Date, respectively. 

“Scheduled Trading Day” means a day that is scheduled to be a Trading Day on the principal U.S. national or regional
securities exchange or market on which the Common Stock is listed or admitted for trading. If the Common Stock is not so listed or admitted for trading, “Scheduled Trading Day” means a Business Day. 

“Settlement Amount” has the meaning specified in Section 11.02(a)(iv). 

“Settlement Method” means, with respect to any conversion of Notes, Physical Settlement, Cash Settlement or Combination
Settlement, as elected (or deemed to have been elected) by the Company. 
 “Settlement Notice” has the meaning specified in
Section 11.02(a)(iii). 
 “Significant Subsidiary” means a Subsidiary of the Company that meets the definition of
“significant subsidiary” in Article 1, Rule 1-02 of Regulation S-X under the Exchange Act. 
 “Specified
Dollar Amount” means the maximum cash amount per $1,000 principal amount of Notes to be received upon conversion as specified in the Settlement Notice (or deemed) related to any converted Notes. 

“Spin-Off” shall have the meaning specified in Section 11.04(c). 

“Stock Price” shall have the meaning specified in Section 11.03(c). 

“Successor Company” shall have the meaning specified in Section 10.02(a). 

“Trading Day” means a day on which (i) trading in the Common Stock (or other security for which a closing sale price
must be determined) generally occurs on the NASDAQ Capital Market or, 

  
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if the Common Stock (or such other security) is not then listed on the NASDAQ Capital Market, on the principal other U.S. national or regional securities exchange on which the Common Stock (or
such other security) is then listed or, if the Common Stock (or such other security) is not then listed on a U.S. national or regional securities exchange, on the principal other market on which the Common Stock (or such other security) is then
traded and (ii) a Last Reported Sale Price for the Common Stock (or such other security) is available on such securities exchange or market; provided that if the Common Stock (or such other security) is not so listed or traded,
“Trading Day” means a Business Day; and provided, further, that for purposes of determining amounts due upon conversion only, “Trading Day” means a day on which (x) there is no Market Disruption Event
and (y) trading in the Common Stock generally occurs on the NASDAQ Capital Market or, if the Common Stock is not then listed on the NASDAQ Capital Market, on the principal other U.S. national or regional securities exchange on which the Common Stock
is then listed or, if the Common Stock is not then listed on a U.S. national or regional securities exchange, on the principal other market on which the Common Stock is then listed or admitted for trading, except that if the Common Stock is not so
listed or admitted for trading, “Trading Day” means a Business Day. 
 “Trading Price” of the Notes on any
date of determination means the average of the secondary market bid quotations obtained by the Bid Solicitation Agent for $5,000,000 principal amount of Notes at approximately 3:30 p.m., New York City time, on such determination date from three
independent nationally recognized securities dealers the Company selects for this purpose; provided that if three such bids cannot reasonably be obtained by the Bid Solicitation Agent but two such bids are obtained, then the average of the
two bids shall be used, and if only one such bid can reasonably be obtained by the Bid Solicitation Agent, then that one bid shall be used. If the Bid Solicitation Agent cannot reasonably obtain at least one bid for $5,000,000 principal amount
of Notes from a nationally recognized securities dealer on any determination date, then the Trading Price per $1,000 principal amount of Notes on such determination date shall be deemed to be less than 98% of the product of the Last Reported Sale
Price of the Common Stock and the Conversion Rate. 
 “Trigger Event” shall have the meaning specified in
Section 11.04(c). 
 “Trustee” means the Person named as the “Trustee” in the first paragraph of this First
Supplemental Indenture until a successor trustee shall have become such pursuant to the applicable provisions of the Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee hereunder. 

“Underwriters” means J.P. Morgan Securities LLC, Barclays Capital Inc. and Credit Suisse Securities (USA) LLC. 

“Underwriting Agreement” means that certain Underwriting Agreement, dated as of September 8, 2016, among the Company and
the Underwriters. 
 “unit of Reference Property” shall have the meaning specified in Section 11.06(a). 

“Valuation Period” shall have the meaning specified in Section 11.04(c). 

  
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 “Wholly Owned Subsidiary” means, with respect to any Person, any Subsidiary of
such Person, except that, solely for purposes of this definition, the reference to “more than 50%” in the definition of “Subsidiary” in the Base Indenture shall be deemed replaced by a reference to “100%.” 

Section 1.03 References to Interest. Unless the context otherwise requires, any reference to interest on, or
in respect of, any Note in the Indenture shall be deemed to include Additional Interest if, in such context, Additional Interest is, was or would be payable pursuant to Section 5.04. Unless the context otherwise requires, any express
mention of Additional Interest in any provision hereof shall not be construed as excluding Additional Interest in those provisions hereof where such express mention is not made. 

Section 1.04 References to Principal. Unless the context otherwise requires, any reference to the principal
of, or the principal amount of, any Note in the Base Indenture or this First Supplemental Indenture shall be deemed to include the Fundamental Change Repurchase Price, if, in such context, the Fundamental Change Repurchase Price is, was or would be
payable in accordance with Article 12. Unless the context otherwise requires, any express mention of the Fundamental Change Repurchase Price in any provision hereof shall not be construed as excluding the Fundamental Change Repurchase
Price in those provisions hereof where such express mention is not made. 
 ARTICLE 2 

ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES 

Section 2.01 Designation and Amount. The Notes shall be designated as the “2.125% Convertible Senior
Notes due 2026.” The aggregate principal amount of Notes that may be authenticated and delivered under the Indenture is initially limited to $700,000,000 (or $805,000,000 if the Underwriters exercise their option to purchase additional Notes in
full in accordance with the Underwriting Agreement), subject to Section 2.06 and except for Notes authenticated and delivered upon registration or transfer of, or in exchange for, or in lieu of other Notes pursuant to Section 2.7,
Section 2.8, Section 2.11 and Section 9.6 of the Base Indenture as amended, in each case as applicable, by this First Supplemental Indenture and to the extent expressly permitted 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 respective forms set forth in Exhibit A, the terms and provisions of which shall constitute, and are hereby expressly incorporated in and made a part of the Indenture. To the extent applicable, the
Company and the Trustee, by their execution and delivery of this First Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby. 

Any Global Note may be endorsed with or have incorporated in the text thereof such legends or recitals or changes not inconsistent with the
provisions of the Indenture as may be required by the Custodian or the Depositary, or as may be required to comply with any applicable law or any regulation thereunder or with the rules and regulations of any securities exchange or automated
quotation system upon which the Notes may be listed or traded or designated for issuance or to conform with any usage with respect thereto, or to indicate any special limitations or restrictions to which any particular Notes are subject. 

  
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 Any of the Notes may have such letters, numbers or other marks of identification and such
notations, legends or endorsements as the Officer executing the same may approve (execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions of the Indenture, or as may be required to comply with
any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange or automated quotation system on which the Notes may be listed or designated for issuance, or to conform to usage or to indicate
any special limitations or restrictions to which any particular Notes are subject. 
 Each Global Note shall represent such principal amount
of the outstanding Notes as shall be specified therein and shall provide that it shall represent the aggregate principal amount of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes
represented thereby may from time to time be increased or reduced to reflect repurchases, cancellations, 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 the Indenture. Payment
of principal (including the Fundamental Change Repurchase Price, if applicable) of, and accrued and unpaid interest on, a Global Note shall be made to the Holder of such Note on the date of payment, unless a record date or other means of determining
Holders eligible to receive payment is provided for herein. 
 Section 2.03 Date and Denomination of Notes;
Payments of Interest and Defaulted Amounts. (a) 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 such Note. Accrued interest on the Notes shall be computed on the basis of a 360-day year composed of twelve 30-day months and, for partial months, on the basis of the number of days
actually elapsed in a 30-day month. 
 (b) The Person in whose name any Note (or its Predecessor Note) is registered on the Note Register at
the close of business on any Regular Record Date with respect to any Interest Payment Date shall be entitled to receive the interest payable on such Interest Payment Date. The principal amount of any Note (x) in the case of any Physical Note, shall
be payable at the office or agency of the Company maintained by the Company for such purposes in the contiguous United States, which shall initially be the Corporate Trust Office of the Trustee and (y) in the case of any Global Note, shall be
payable by wire transfer of immediately available funds to the account of the Depositary or its nominee. The Company shall pay interest (i) on any Physical Notes (A) to Holders holding Physical Notes having an aggregate principal amount of
$5,000,000 or less, by check mailed to the Holders of these Notes at their address as it appears in the Note Register and (B) to Holders holding Physical Notes having an aggregate principal amount of more than $5,000,000, either by check mailed to
each Holder or, upon application by such a Holder to the Registrar not later than the 

  
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relevant Regular Record Date, by wire transfer in immediately available funds to that Holder’s account within the United States, which application shall remain in effect until the Holder
notifies, in writing, the Registrar to the contrary or (ii) on any Global Note by wire transfer of immediately available funds to the account of the Depositary or its nominee. 

Section 2.04 Exchange and Registration of Transfer of Notes; Restrictions on Transfer; Depositary. (a) The
last sentence of the first paragraph of Section 2.7 of the Base Indenture and the second paragraph of Section 2.7 of the Base Indenture shall not apply to the Notes. 

(b) No service charge shall be imposed by the Company, the Trustee, the Registrar, any co-Registrar or the Paying Agent for any exchange or
registration of transfer of Notes, but the Company may require a Holder to pay a sum sufficient to cover any documentary, stamp or similar issue or transfer tax required in connection therewith as a result of the name of the Holder of new Notes
issued upon such exchange or registration of transfer being different from the name of the Holder of the old Notes surrendered for exchange or registration of transfer. 

Notwithstanding anything to the contrary in the Indenture, none of the Company, the Trustee, the Registrar or any co-Registrar shall be
required to exchange or register a transfer of (i) any Notes surrendered for conversion or, if a portion of any Note is surrendered for conversion, such portion thereof surrendered for conversion or (ii) any Notes, or a portion of any
Note, surrendered for repurchase (and not withdrawn) in accordance with Article 12. 
 (c) So long as the Notes are eligible for
book-entry settlement with the Depositary, unless otherwise required by law, subject to the third paragraph of Section 2.04(d), all Notes shall be represented by one or more Notes in global form (each, a “Global Note”)
registered in the name of the Depositary or the nominee of the Depositary. The transfer and exchange of beneficial interests in a Global Note that does not involve the issuance of a Physical Note shall be effected through the Depositary (but
not the Trustee or the Custodian) in accordance with the Indenture and the procedures of the Depositary therefor. 
 (d) Notwithstanding any
other provisions of the Indenture (other than the provisions set forth in this Section 2.04(d)), a Global Note may not be transferred as a whole or in part except (i) by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary and (ii) for exchange of a Global Note or a portion thereof for one
or more Physical Notes in accordance with the second immediately succeeding paragraph. 
 The Company initially appoints The Depository
Trust Company to act as Depositary with respect to each Global Note. Initially, each Global Note shall be issued to the Depositary, registered in the name of Cede & Co., as the nominee of the Depositary, and deposited with the Trustee
as custodian for Cede & Co. 
 Section 2.14.2 of the Base Indenture shall not apply to the Notes. If (i) the
Depositary notifies the Company at any time that the Depositary is unwilling or unable to continue as depositary 

  
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for the Global Notes and a successor depositary is not appointed within 90 days, (ii) the Depositary ceases to be registered as a clearing agency under the Exchange Act and a successor
depositary is not appointed within 90 days or (iii) an Event of Default with respect to the Notes has occurred and is continuing and a beneficial owner of any Note requests that its beneficial interest therein be issued as a Physical Note, the
Company shall execute, and the Trustee, upon receipt of an Officer’s Certificate and a Company Order for the authentication and delivery of Notes, shall authenticate and deliver (x) in the case of clause (iii), a Physical Note to such
beneficial owner in a principal amount equal to the principal amount of such Note corresponding to such beneficial owner’s beneficial interest and (y) in the case of clause (i) or (ii), Physical Notes to each beneficial owner of the
related Global Notes (or a portion thereof) in an aggregate principal amount equal to the aggregate principal amount of such Global Notes in exchange for such Global Notes, and upon delivery of the Global Notes to the Trustee such Global Notes shall
be canceled. 
 Physical Notes issued in exchange for all or a part of the Global Note pursuant to this Section 2.04(d) shall be
registered in such names and in such authorized denominations as the Depositary, pursuant to instructions from its direct or indirect participants or otherwise, or, in the case of clause (iii) of the immediately preceding paragraph, the
relevant beneficial owner, shall instruct the Trustee. Upon execution and authentication, the Trustee shall deliver such Physical Notes to the Persons in whose names such Physical Notes are so registered. 

At such time as all interests in a Global Note have been converted, canceled, repurchased or transferred, such Global Note shall be, upon
receipt thereof, canceled by the Trustee in accordance with its customary procedures and existing instructions between the Depositary and the Custodian. At any time prior to such cancellation, if any interest in a Global Note is exchanged for
Physical Notes, converted, canceled, repurchased or transferred to a transferee who receives Physical Notes therefor or any Physical Note is exchanged or transferred for part of such Global Note, 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 or increased, as the case may be, 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 or increase. 
 None of the Company, the Trustee or any agent of the
Company or the Trustee shall have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Note or maintaining, supervising or reviewing any records relating
to such beneficial ownership interests. 
 Section 2.05 Cancellation of Notes Paid, Converted, Etc.
Section 2.12 of the Base Indenture is hereby amended with respect to the Notes by (i) replacing the first sentence thereof with the sentence: “The Company shall cause all Notes surrendered for the purpose of payment, repurchase,
registration of transfer or exchange or conversion, if surrendered to any Person other than the Trustee (including any of the Company’s agents, Subsidiaries or Affiliates), to be surrendered to the Trustee for cancellation” and (ii)
inserting at the end of the fourth sentence thereof the phrase “, except as expressly permitted by any of the provisions of the Indenture”. 

  
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 Section 2.06 Additional Notes; Repurchases. The Company may,
without the consent of the Holders and notwithstanding Section 2.01, reopen the Indenture and issue additional Notes hereunder with the same terms as the Notes initially issued hereunder (other than differences in the issue date, the issue
price and interest accrued prior to the issue date of such additional Notes and, if applicable, restrictions on transfer in respect of such additional notes) in an unlimited aggregate principal amount; provided that if any such additional
Notes are not fungible with the Notes initially issued hereunder for U.S. federal income tax purposes, such additional Notes shall have one or more separate CUSIP numbers. Prior to the issuance of any such additional Notes, the Company shall
deliver to the Trustee a Company Order, an Officer’s Certificate and an Opinion of Counsel, such Officer’s Certificate and Opinion of Counsel to cover such matters, in addition to those required by Sections 2.3 and 10.5 of the Base
Indenture, as the Trustee shall reasonably request. In addition, the Company may, to the extent permitted by law, and directly or indirectly (regardless of whether such Notes are surrendered to the Company), repurchase Notes in the open market or
otherwise, whether by the Company or its Subsidiaries or through a private or public tender or exchange offer or through counterparties pursuant to private agreements, including by cash-settled swaps or other derivatives. The Company shall cause any
Notes so repurchased (other than Notes repurchased pursuant to cash-settled swaps or other derivatives) to be surrendered to the Trustee for cancellation in accordance with Section 2.05 and such Notes shall no longer be considered outstanding
under the Indenture upon their repurchase. 
 ARTICLE 3 

SATISFACTION AND DISCHARGE 

Section 3.01 Applicability of Article 8 of the Base Indenture. Article 8 of the Base
Indenture shall not apply to the Notes. Instead, the satisfaction and discharge provisions set forth in this Article 3 shall, with respect to the Notes, supersede in their entirety such Article 8 of the Base Indenture, and all references
in the Base Indenture to such Article 8 or any Sections thereof and satisfaction and discharge provisions therein, as the case may be, shall, with respect to the Notes, be deemed to be references to this Article 3 and
Section 3.02 and the satisfaction and discharge provisions set forth in this Article 3 and Section 3.02. 

Section 3.02 Satisfaction and Discharge. The Indenture shall upon request of the Company contained in an
Officer’s Certificate cease to be of further effect, and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of the Indenture, when (a) (i) all Notes theretofore
authenticated and delivered (other than Notes which have been destroyed, lost or stolen and which have been replaced, paid or converted as provided in Section 2.8 of the Base Indenture (as amended by Section 2.05 of this First Supplemental
Indenture)) have been delivered to the Trustee for cancellation; or (ii) the Company has irrevocably deposited with the Trustee or delivered to Holders, as applicable, after the Notes have become due and payable, whether on the Maturity Date, any
Fundamental Change Repurchase Date or upon conversion or otherwise, cash, shares of Common Stock (or, if applicable, Reference Property) or a combination thereof, as applicable, solely to satisfy the Company’s Conversion Obligation, sufficient
to pay all of the outstanding Notes and all other sums due and payable under the Indenture by the Company; and (b) the Company has delivered to the Trustee an Officer’s Certificate and an 

  
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Opinion of Counsel, each stating that all conditions precedent in the Indenture provided for relating to the satisfaction and discharge of the Indenture have been complied with. Notwithstanding
the satisfaction and discharge of the Indenture, the obligations of the Company to the Trustee under Section 7.7 of the Base Indenture shall survive. 

ARTICLE 4 
 PARTICULAR
COVENANTS OF THE COMPANY 
 Section 4.01 Maintenance of Office or Agency. (a) Pursuant to
Section 2.2 and Section 2.4 of the Base Indenture, the Company hereby initially designates the Trustee as the Paying Agent, Registrar, Custodian and Conversion Agent (the “Conversion Agent”) and the Corporate Trust Office
as the office or agency where Notes may be presented or surrendered for payment, where Notes may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Notes and the Indenture
may be served. 
 The Company may also from time to time designate one or more other additional conversion agents and may from time to time
rescind such designations; provided that the Company shall at all times maintain a Conversion Agent for the Notes. The term “Conversion Agent” includes any such additional or other offices or agencies, as applicable.

 (b) The definition of the term “Agent” in Section 1.1 of the Base Indenture is hereby amended, with respect to the
Notes, by replacing the phrase “Paying Agent or additional paying agent” with “Paying Agent, additional paying agent, Conversion Agent or additional conversion agent”. 

Section 4.02 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 7.8 of the Base Indenture, a Trustee, so that there shall at all times be a Trustee hereunder. 

Section 4.03 Provisions as to Paying Agent. (a) Section 2.5 of the Base Indenture shall not apply
to the Notes. 
 (b) If the Company shall appoint a Paying Agent other than the Trustee, 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 4.03: 

(i) that it will hold all sums held by it as such agent for the payment of the principal (including the Fundamental Change Repurchase Price,
if applicable) of, and accrued and unpaid interest on, the Notes in trust for the benefit of the Holders of the Notes; 
 (ii) that it will
give the Trustee prompt notice of any failure by the Company to make any payment of the principal (including the Fundamental Change Repurchase Price, if applicable) of, and accrued and unpaid interest on, the Notes when the same shall be due and
payable; and 
 (iii) 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. 

  
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 The Company shall, on or before each due date of the principal (including the Fundamental Change
Repurchase Price, if applicable) of, or accrued and unpaid interest on, the Notes, deposit with the Paying Agent a sum sufficient to pay such principal (including the Fundamental Change Repurchase Price, if applicable) or accrued and unpaid
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 must be received by the Paying Agent
by 11:00 a.m., New York City time, on such date. 
 (c) If the Company shall act as its own Paying Agent, it will, on or before each due
date of the principal (including the Fundamental Change Repurchase Price, if applicable) of, and accrued and unpaid interest on, the Notes, set aside, segregate and hold in trust for the benefit of the Holders of the Notes a sum sufficient to pay
such principal (including the Fundamental Change Repurchase Price, if applicable) and accrued and unpaid interest so becoming due and will promptly notify the Trustee in writing of any failure to take such action and of any failure by the Company to
make any payment of the principal (including the Fundamental Change Repurchase Price, if applicable) of, or accrued and unpaid interest on, the Notes when the same shall become due and payable. 

(d) Anything in this Section 4.03 to the contrary notwithstanding, the Company may, at any time, for the purpose of obtaining a
satisfaction and discharge of the Indenture, or for any other reason, pay, cause to be paid or deliver to the Trustee all sums or amounts held in trust by the Company or any Paying Agent hereunder as required by this Section 4.03, such sums or
amounts to be held by the Trustee upon the trusts herein contained and upon such payment or delivery by the Company or any Paying Agent to the Trustee, the Company or such Paying Agent shall be released from all further liability but only with
respect to such sums or amounts. 
 (e) All references in the Base Indenture to such Section 2.5 shall, with respect to the Notes, be
deemed to be references to this Section 4.03(e). Subject to applicable escheatment laws, any money and shares of Common Stock deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the
principal (including the Fundamental Change Repurchase Price, if applicable) of, accrued and unpaid interest on and the consideration due upon conversion of any Note and remaining unclaimed for two years after such principal (including the
Fundamental Change Repurchase Price, if applicable), interest or consideration due upon conversion has become due and payable shall be paid to the Company on request of the Company contained in an Officer’s Certificate, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such
trust money and shares of Common Stock, and all liability of the Company as trustee thereof, shall thereupon cease. 

Section 4.04 Reports. (a) The Company shall file with the Trustee, within 15 days after the same
are required to be filed with the SEC, copies of any documents or reports that the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act (giving effect to 

  
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any grace period provided by Rule 12b-25 under the Exchange Act or any similar or successor grace period). Any such document or report that the Company files with the SEC via the
SEC’s EDGAR system shall be deemed to be filed with the Trustee for purposes of this Section 4.04(a) at the time such documents are filed via the EDGAR system. Notwithstanding anything to the contrary, the Company shall in no event be
required to file with, or otherwise provide or disclose to, the Trustee or any Holder any information for which the Company is requesting (assuming such request has not been denied), or have received, confidential treatment from the Securities
Exchange Commission. 
 (b) Delivery of the reports and documents described in subsection (a) above 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 conclusively rely on an Officer’s Certificate). 

Section 4.05 Statements as to Defaults. The Company shall deliver to the Trustee within 30 days after
the occurrence of any Event of Default or Default, an Officer’s Certificate setting forth the details of such Event of Default or Default, its status and the action that the Company is taking or proposing to take in respect thereof. 

ARTICLE 5 
 DEFAULTS
AND REMEDIES 
 Section 5.01 Applicability of Article 6 of the Base
Indenture. Section 6.1, Section 6.2, Section 6.3, Section 6.6, Section 6.7, Section 6.10, Section 6.13 and Section 6.14 of the Base Indenture shall not apply to the Notes. Instead, the Event of Default
provisions set forth in this Article 5 shall, with respect to the Notes, supersede in their entirety Section 6.1, Section 6.2, Section 6.3, Section 6.6, Section 6.7, Section 6.10, Section 6.13 and Section 6.14 of the
Base Indenture, and all references in the Base Indenture to such Sections and Event of Default provisions therein, as the case may be, shall, with respect to the Notes, be deemed to be references to the corresponding Sections of this
Article 5 and the Event of Default provisions set forth therein. 
 Section 5.02 Events of
Default. Each of the following events shall be an “Event of Default” with respect to the Notes: 
 (a) default in any
payment of interest on any Note when due and payable, and the default continues for a period of 30 days; 
 (b) default in the payment of
principal of any Note when due and payable on the Maturity Date, upon any required repurchase, upon declaration of acceleration or otherwise; 

(c) failure by the Company to comply with its obligation to convert the Notes in accordance with the Indenture upon exercise of a
Holder’s conversion right and such failure continues for five Business Days; 

  
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 (d) failure by the Company to issue a Fundamental Change Company Notice in accordance with
Section 12.01(c) or notice of a specified corporate event in accordance with Section 11.01(b)(ii) or Section 11.01(b)(iii), in each case when due; 

(e) failure by the Company to comply with its obligations under Article 10; 

(f) failure by the Company for 60 days after written notice from the Trustee or the Holders of at least 25% in principal amount of the Notes
then outstanding has been received by the Company to comply with any of its other agreements contained in the Notes or the Indenture; 
 (g)
default by the Company or any Significant Subsidiary with respect to any mortgage, agreement or other instrument under which there may be outstanding, or by which there may be secured or evidenced, any indebtedness for money borrowed in excess of
$50,000,000 (or its foreign currency equivalent) in the aggregate of the Company and/or any such Subsidiary, whether such indebtedness now exists or shall hereafter be created (i) resulting in such indebtedness becoming or being declared due
and payable or (ii) constituting a failure to pay the principal or interest of any such debt when due and payable at its stated maturity, upon required repurchase, upon declaration of acceleration or otherwise, in each case after the expiration
of any applicable grace period, if such default is not cured or waived or such acceleration is not rescinded within 30 days after written notice to the Company by the Trustee or to the Company and the Trustee by Holders of at least 25% in aggregate
principal amount of the Notes then outstanding in accordance with this Indenture; 
 (h) a final judgment or judgments for the payment of
$50,000,000 (or its foreign currency equivalent) or more (excluding any amounts covered by insurance) in the aggregate rendered against the Company or any Subsidiary of the Company, which judgment is not discharged, paid, bonded, waived or stayed
within 60 days after (i) the date on which the right to appeal thereof has expired if no such appeal has commenced, or (ii) the date on which all rights to appeal have been extinguished; 

(i) the Company or any Significant Subsidiary shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other
relief with respect to the Company or any such Significant Subsidiary 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 such Significant Subsidiary or any substantial part of its property, 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 it, or shall make a general assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due; or 

(j) an involuntary case or other proceeding shall be commenced against the Company or any Significant Subsidiary seeking liquidation,
reorganization or other relief with respect to the Company or such Significant Subsidiary 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 such Significant Subsidiary or any substantial part of its property, and such involuntary case or other proceeding shall remain undismissed and unstayed for a period of 30 consecutive days. 

  
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 Section 5.03 Acceleration; Rescission and Annulment. If one
or more Events of Default shall have occurred and be continuing (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), then, and in each and every such case (other than an Event of Default specified in Section 5.02(i) or Section 5.02(j) with respect to the Company), unless
the principal of all of the Notes shall have already become due and payable, either the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding, by notice in writing to the Company (and to the Trustee if
given by Holders), may declare 100% of the principal of, and accrued and unpaid interest on, all the Notes to be due and payable immediately, and upon any such declaration the same shall become and shall automatically be immediately due and payable,
anything contained in the Indenture or in the Notes to the contrary notwithstanding. If an Event of Default specified in Section 5.02(i) or Section 5.02(j) with respect to the Company occurs and is continuing, 100% of the principal
of, and accrued and unpaid interest, if any, on, all Notes shall become and shall automatically be immediately due and payable. 
 The
immediately preceding paragraph, 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 installments of accrued and unpaid interest upon all Notes and the principal of any and all Notes that shall have
become due otherwise than by acceleration (with interest on overdue installments of accrued and unpaid 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 at
such time) and amounts due to the Trustee pursuant to Section 7.7 of the Base Indenture, and if (1) rescission would not conflict with any judgment or decree of a court of competent jurisdiction and (2) any and all existing Events of Default
under the Indenture, other than the nonpayment of the principal of and accrued and unpaid interest, if any, on Notes that shall have become due solely by such acceleration, shall have been cured or waived pursuant to Section 5.09, then and in
every such case (except as provided in the immediately succeeding sentence) 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 with respect to the Notes and rescind and annul such declaration and its consequences and such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of the Indenture;
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. Notwithstanding anything to the contrary herein, no such waiver or
rescission and annulment shall extend to or shall affect any Default or Event of Default resulting from (i) the nonpayment of the principal (including the Fundamental Change Repurchase Price, if applicable) of, or accrued and unpaid interest
on, any Notes, (ii) a failure to repurchase any Notes when required or (iii) a failure to pay or deliver, as the case may be, the consideration due upon conversion of the Notes. 

Section 5.04 Additional Interest. Notwithstanding anything in the Indenture or in the Notes to the
contrary, if the Company elects, the sole remedy for an Event of Default relating to the 

  
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Company’s failure to comply with its obligations as set forth in Section 4.3 of the Base Indenture or Section 4.04(a) of this First Supplemental Indenture shall after the
occurrence of such an Event of Default consist exclusively of the right to receive Additional Interest on the Notes at a rate equal to (x) 0.25% per annum of the principal amount of the Notes outstanding for the first 180-day period during which
such Event of Default has occurred and is continuing, beginning on, and including, the date on which such an Event of Default first occurs, and (y) 0.50% per annum of the principal amount of the Notes outstanding for each day during the next 185-day
period during which such Event of Default is continuing beginning on, and including, the 181st day after such Event of Default occurred. If the Company so elects, such Additional Interest shall be payable in the same manner and on the same
dates as the stated interest payable on the Notes. On the 366th day after such Event of Default (if such Event of Default is not cured or waived prior to such 366th day), the Notes shall be immediately subject to acceleration as provided in
Section 5.03. The provisions of this paragraph will not affect the rights of Holders of Notes in the event of the occurrence of any Event of Default other than the Company’s failure to comply with its obligations as set forth in
Section 4.3 of the Base Indenture and Section 4.04(a) of this First Supplemental Indenture. In the event the Company does not elect to pay Additional Interest following an Event of Default in accordance with this Section 5.04 or the
Company elected to make such payment but does not pay the Additional Interest when due, the Notes shall be immediately subject to acceleration as provided in Section 5.03. 

In order to elect to pay Additional Interest as the sole remedy during the first 365 days after the occurrence of any Event of Default
described in the immediately preceding paragraph, the Company must notify all Holders of the Notes, the Trustee and the Paying Agent of such election prior to the beginning of such 365-day period the amount of Additional Interest and the date
payable. Upon the failure to timely give such notice, the Notes shall be immediately subject to acceleration as provided in Section 5.03. In the absence of such notice, the Trustee shall assume without investigation that no Additional Interest shall
be due or become due. 
 Section 5.05 Payments of Notes on Default; Suit Therefor. If an Event of
Default described in clause (a) or (b) of Section 5.02 shall have occurred, the Company shall, upon demand of the Trustee, pay to the Trustee, for the benefit of the Holders of the Notes, the whole amount then due and payable on the
Notes for principal and interest, if any, with interest on any overdue principal and interest, if any, at the rate borne by the Notes at such time, and, in addition thereto, such further amount as shall be sufficient to cover any amounts due to the
Trustee under Section 7.7 of the Base Indenture and such further amount as shall be sufficient to cover the costs and expenses of collection, including the compensation, reasonable expenses, disbursements and advances of the Trustee, its agents
and counsel. If the Company shall fail to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, may
prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor upon the Notes and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the
Company or any other obligor upon the Notes, wherever situated. 
 In any proceedings brought by the Trustee (and in any proceedings
involving the interpretation of any provision of the 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. 

  
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 Section 5.06 Application of Monies Collected by
Trustee. Any monies collected by the Trustee pursuant to this Article 5 with respect to the Notes shall be applied in the following order, at the date or dates fixed by the Trustee for the distribution of such monies, upon presentation
of the several Notes, and stamping thereon the payment, if only partially paid, and upon surrender thereof, if fully paid: 
 First, to the
payment of all amounts due the Trustee, in each of its capacities under the Indenture, including those under Section 7.7 of the Base Indenture; 

Second, in case the principal of the outstanding Notes shall not have become due and be unpaid, to the payment of interest on, and any cash
due upon conversion of, the Notes in default in the order of the date due of the payments of such interest and cash due upon conversion, as the case may be, with interest (to the extent that such interest has been collected by the Trustee) upon such
overdue payments at the rate borne by the Notes at such time such payments to be made ratably to the Persons entitled thereto; 

Third, 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 (including, if applicable, the payment of the Fundamental Change Repurchase Price and any cash due upon conversion) then owing and unpaid upon the Notes for principal and interest, if any, 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 at such time, 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 (including, if applicable, the Fundamental Change Repurchase Price and the cash due upon conversion) 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 (including, if applicable, the Fundamental Change Repurchase Price and any cash due
upon conversion) and accrued and unpaid interest; and 
 Fourth, to the payment of the remainder, if any, to the Company. 

Section 5.07 Proceedings by Holders. Section 6.7 of the Base Indenture shall not apply to the
Notes. Except to enforce the right to receive payment of principal (including, if applicable, the Fundamental Change Repurchase Price) or interest when due, or the right to receive payment or delivery of the consideration due upon conversion,
no Holder of any Note shall have any right by virtue of or by availing of any provision of the Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to the Indenture, or for the appointment of a
receiver, trustee, liquidator, custodian or other similar official, or for any other remedy hereunder, unless: 
 (a) such Holder previously
shall have given to the Trustee written notice of an Event of Default and of the continuance thereof, as herein provided; 

  
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 (b) Holders of at least 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; 
 (c) such
Holders shall have offered to the Trustee such security or indemnity satisfactory to it against any loss, liability or expense to be incurred therein or thereby; 

(d) the Trustee for 60 days after its receipt of such notice, request and offer of such security or indemnity, shall have failed to institute
any such action, suit or proceeding; and 
 (e) no direction that is inconsistent with such written request shall have been given to the
Trustee by the Holders of a majority of the aggregate principal amount of the Notes then outstanding within such 60-day period pursuant to Section 5.09, 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 shall have any right in any manner whatever by virtue of or by availing of any provision of the Indenture to affect, disturb or prejudice the rights of any
other Holder, or to obtain or seek to obtain priority over or preference to any other such Holder, or to enforce any right under the Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all Holders (except
as otherwise provided herein) (it being understood that the Trustee does not have an affirmative duty to ascertain whether or not such actions or forbearances are unduly prejudicial to such Holders). For the protection and enforcement of this
Section 5.07, each and every Holder and the Trustee shall be entitled to such relief as can be given either at law or in equity. 

Notwithstanding any other provision of the Indenture and any provision of any Note, the right of any Holder to receive payment or delivery, as
the case may be, of (x) the principal (including the Fundamental Change Repurchase Price, if applicable) of, (y) accrued and unpaid interest, if any, on, and (z) the consideration due upon conversion of, such Note, on or after the respective due
dates expressed or provided for in such Note or in the Indenture, or to institute suit for the enforcement of any such payment or delivery, as the case may be, on or after such respective dates against the Company shall not be impaired or affected
without the consent of such Holder. 
 Section 5.08 Remedies Cumulative and Continuing. Except as
provided in the last paragraph of Section 2.05, all powers and remedies given by this Article 5 to the Trustee or to the Holders 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 the 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 shall impair any such right or power, or shall be construed to be a waiver of any such Default or Event of Default or any
acquiescence therein; and, subject to the provisions of Section 5.07, every power and remedy given by this Article 5 or by law to the Trustee or to the Holders may be exercised from time to time, and as often as shall be deemed expedient,
by the Trustee or by the Holders. 

  
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 Section 5.09 Direction of Proceedings and Waiver of Defaults by
Majority of Holders. The Holders of a majority in 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 hereunder and its consequences
except (i) a default in the payment of accrued and unpaid interest, if any, on, or the principal (including any Fundamental Change Repurchase Price) of, the Notes when due that has not been cured pursuant to the provisions of Section 5.02,
(ii) a failure by the Company to pay or deliver, as the case may be, the consideration due upon conversion of the Notes or (iii) a default in respect of a covenant or provision hereof which under Article 9 cannot be modified or
amended without the consent of each Holder of an outstanding Note affected. 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 5.09, said Default or Event of
Default shall for all purposes of the Notes and the 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 5.10 Notice of Defaults. Section 7.5 of the Base Indenture is hereby amended with respect
to the Notes by inserting immediately prior to the words “the Securities” in the first line thereof the phrase “, or a Default or Event of Default in the payment or delivery of the consideration due upon conversion occurs and is
continuing in respect of”. 
 Section 5.11 Undertaking to Pay Costs. All parties to the Indenture
agree, and each Holder of any Note by its 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 the 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 5.11 (to the
extent permitted by law) shall not apply to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of the Notes at the time outstanding, or to any
suit instituted by any Holder for the enforcement of the payment of the principal of or accrued and unpaid interest, if any, on any Note (including, but not limited to, the Fundamental Change Repurchase Price, if applicable) on or after the due date
expressed or provided for in such Note or to any suit for the enforcement of the right to convert any Note, or receive the consideration due upon conversion, in accordance with the provisions of Article 11. 

ARTICLE 6 
 CONCERNING
THE TRUSTEE 
 Section 6.01 Amendments to Article 7 of the Base
Indenture. Unless the context otherwise requires, all references in the Base Indenture to “money” shall be deemed, solely with respect to the Notes, to include shares of Common Stock or other Reference Property underlying the
Notes. 

  
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 ARTICLE 7 

CONCERNING THE HOLDERS 

Section 7.01 Applicability of Section 2.14.6 of the Base
Indenture. Section 2.14.6 of the Base Indenture shall not apply to the Notes. 
 Section 7.02
Action by Holders. Whenever in the Indenture it is provided that the Holders of a specified percentage of the 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 Holders in person or by agent or proxy appointed in writing, or (b) by the record of the Holders voting in favor thereof at any meeting of Holders duly called and held in accordance with the provisions of
Article 8, or (c) by a combination of such instrument or instruments and any such record of such a meeting of Holders. Whenever the Company or the Trustee solicits the taking of any action by the Holders of the Notes, the Company or
the Trustee may, but shall not be required to, fix in advance of such solicitation, a date as the record date for determining Holders entitled to take such action. The record date if one is selected shall be not more than fifteen days prior to
the date of commencement of solicitation of such action. 
 Section 7.03 Proof of Execution by
Holders. Subject to the provisions of Section 7.1 of the Base Indenture, Section 7.2 of the Base Indenture and Section 8.06 of this First Supplemental Indenture, proof of the execution of any instrument by a Holder 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 Note
Register or by a certificate of the Registrar. The record of any Holders’ meeting shall be proved in the manner provided in Section 8.07. 

Section 7.04 Who Are Deemed Absolute Owners. The second sentence of Section 2.14.5 of the Base
Indenture shall not apply to the Notes. The Company, the Trustee, any authenticating agent, any Paying Agent, any Conversion Agent and any Registrar may deem the Person in whose name a 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 ownership or other writing thereon made by any Person other than the Company or any Registrar) for the purpose of
receiving payment of or on account of the principal of and (subject to Section 2.03) accrued and unpaid 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 Registrar shall be affected by any notice to the contrary. All such payments or deliveries so made to any Holder for the time being, or upon its order, shall be valid, and, to the extent of the sums or shares of
Common Stock so paid or delivered, effectual to satisfy and discharge the liability for monies payable or shares deliverable upon any such Note. Notwithstanding anything to the contrary in the Indenture or the Notes following an Event of
Default, any holder of a beneficial interest in a Global Note may directly enforce against the Company, without the consent, solicitation, proxy, authorization or any other action of the Depositary or any other Person, such holder’s right to
exchange such beneficial interest for a Note in certificated form in accordance with the provisions of the Indenture. 

  
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 Section 7.05 Company-Owned Notes. Notes that are owned as
described in Section 2.10 of the Base Indenture that have been pledged in good faith may be regarded as outstanding for the purposes of such Section 2.10 if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s
right to so act with respect to such Notes and that the pledgee is not the Company, a Subsidiary thereof or an Affiliate of the Company or a Subsidiary thereof. 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 7.1 of the Base Indenture, 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 7.06 Revocation of Consents; Future Holders Bound. At any time prior to (but not after)
the evidencing to the Trustee, as provided in Section 7.02, of the taking of any action by the Holders of the percentage of the aggregate principal amount of the Notes specified in the Indenture in connection with such action, any Holder of a
Note that 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 the Corporate Trust Office of the Trustee and upon proof of holding as provided in
Section 7.03, 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 or upon registration of transfer thereof, irrespective of whether any notation in regard thereto is made upon such Note or any Note issued in exchange or substitution therefor or upon
registration of transfer thereof. 
 ARTICLE 8 

HOLDERS’ MEETINGS 

Section 8.01 Applicability of Section 10.6 of the Base Indenture. Section 10.6 of the
Base Indenture shall not apply to the Notes. Instead, the provisions set forth in this Article 8 shall, with respect to the Notes, supersede in its entirety Section 10.6 of the Base Indenture. 

Section 8.02 Purpose of Meetings. A meeting of Holders may be called at any time and from time to time
pursuant to the provisions of this Article 8 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 the Indenture, or to consent to the waiving of any Default or Event of Default hereunder (in each case, as permitted under the Indenture) and its consequences, or to take any other
action authorized to be taken by Holders pursuant to any of the provisions of Article 5; 

  
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 (b) to remove the Trustee and nominate a successor trustee pursuant to the provisions of
Article 7 of the Base Indenture; 
 (c) to consent to the execution of an indenture or indentures supplemental hereto pursuant to the
provisions of Section 9.03; 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 the Indenture or under applicable law. 

Section 8.03 Call of Meetings by Trustee. The Trustee may at any time call a meeting of Holders to take
any action specified in Section 8.02, to be held at such time and at such place as the Trustee shall determine. Notice of every meeting of the Holders, setting forth the time and the 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 7.02, shall be mailed to Holders of such 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 20 nor more than 90 days prior to the date fixed for the meeting. 
 Any
meeting of Holders 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 then 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 8.04 Call of Meetings by Company or Holders. In case at any time the Company, pursuant to a
Board Resolution, or the Holders of at least 10% of the aggregate principal amount of the Notes then outstanding, shall have requested the Trustee to call a meeting of Holders, 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 20 days after receipt of such request, then the Company or such Holders may determine the time and the place for such meeting and may call
such meeting to take any action authorized in Section 8.02, by mailing notice thereof as provided in Section 8.03. 

Section 8.05 Qualifications for Voting. To be entitled to vote at any meeting of Holders 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 Holders 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. 
 Section 8.06 Regulations. Notwithstanding any other provisions of the
Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of Holders, 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. 

  
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 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 Holders as provided in Section 8.04, in which case the Company or the Holders 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 aggregate principal amount of the Notes represented at the meeting and entitled to vote at the meeting. 

Subject to the provisions of Section 2.10 of the Base Indenture and Section 7.05, at any meeting of Holders each Holder or
proxyholder shall be entitled to one vote for each $1,000 principal amount of Notes held or represented by him or her; provided, however, 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 it or instruments in writing as aforesaid duly designating it as the proxy
to vote on behalf of other Holders. Any meeting of Holders duly called pursuant to the provisions of Section 8.03 or Section 8.04 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 quorum, and the meeting may be held as so adjourned without further notice. 

Section 8.07 Voting. The vote upon any resolution submitted to any meeting of Holders shall be by
written ballot on which shall be subscribed the signatures of the Holders or of their representatives by proxy and the outstanding aggregate 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 Holders 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 8.03. The record shall show the aggregate
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 held 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. 
 Section 8.08 No
Delay of Rights by Meeting. Nothing contained in this Article 8 shall be deemed or construed to authorize or permit, by reason of any call of a meeting of Holders 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 Holders under any of the provisions of the Indenture or of the Notes. 

  
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 ARTICLE 9 

SUPPLEMENTAL INDENTURES 

Section 9.01 Applicability of Article 9 of the Base Indenture. Section 9.1 and
Section 9.2 of the Base Indenture shall not apply to the Notes. Instead, the supplemental indenture provisions set forth in Section 9.02 and Section 9.03, respectively, shall, with respect to the Notes, supersede in their
entirety Section 9.1 and Section 9.2 of the Base Indenture, and all references in the Base Indenture to such Sections and amendment and waiver provisions therein, as the case may be, shall, with respect to the Notes, be deemed to be
references to Section 9.02 and Section 9.03, as applicable, and the supplemental indenture provisions set forth therein. 

Section 9.02 Supplemental Indentures Without Consent of Holders. The Company, at the Company’s
expense, may, along with the Trustee, 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) to cure any ambiguity, omission, defect or inconsistency (as evidenced by an Officer’s Certificate); 

(b) to provide for the assumption by a Successor Company of the obligations of the Company under the Indenture pursuant to Article 10;

 (c) to add guarantees with respect to the Notes; 

(d) to provide for the issuance of additional Notes; 

(e) to secure the Notes; 
 (f)
to add to the covenants or Events of Default of the Company for the benefit of the Holders or surrender any right or power conferred upon the Company pursuant to the Indenture; 

(g) to make any change that does not adversely affect the rights of any Holder in any material respect, as confirmed by an Officer’s
Certificate delivered to the Trustee; 
 (h) in connection with any Common Stock Change Event, to provide that the Notes are convertible
into Reference Property, subject to the provisions of Section 11.02, and make such related changes to the terms of the Notes to the extent expressly required by Section 11.06; 

(i) to comply with any requirement of the SEC in connection with the qualification of this Indenture under the Trust Indenture Act; 

(j) to appoint a successor trustee with respect to the Notes; 

(k) to conform the provisions of the Indenture or the Notes to any provision of the “Description of notes” section of the Prospectus
Supplement (as evidenced by an Officer’s Certificate); 

  
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 (l) to comply with the rules of any applicable securities depositary, including DTC, so long as
such amendment does not adversely affect the rights of any Holder in any material respect; 
 (m) to irrevocably elect or eliminate one of
the Settlement Methods and/or irrevocably elect a minimum Specified Dollar Amount; or 
 (n) to increase the Conversion Rate as provided the
Indenture. 
 Upon the written request of the Company, 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, but 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 the Indenture or otherwise. 
 Any supplemental indenture authorized by the provisions
of this Section 9.02 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 9.03. 

Section 9.03 Supplemental Indentures with Consent of Holders. With the consent (evidenced as provided in
Article 7) of the Holders of at least a majority of the aggregate principal amount of the Notes then outstanding (determined in accordance with Article 7 and including, without limitation, consents obtained in connection with a repurchase
of, or tender or exchange offer for, Notes), the Company, at the Company’s expense, may, along with the Trustee, 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 the Indenture or any supplemental indenture or of modifying in any manner the rights of the Holders; provided, however, that, without the consent of each
Holder of an outstanding Note affected, no such supplemental indenture shall: 
 (a) reduce the amount of Notes whose Holders must consent
to an amendment; 
 (b) reduce the rate of or extend the stated time for payment of interest, including any Additional Interest, on any
Note; 
 (c) reduce the principal of, or any premium on, or extend the Maturity Date of any Note; 

(d) make any change that adversely affects the conversion rights of any Notes; 

(e) reduce the Fundamental Change Repurchase Price of any Note or amend or modify in any manner adverse to the Holders the Company’s
obligation to make such payments, whether through an amendment or waiver of provisions in the covenants, definitions or otherwise; 
 (f)
make any Note payable in a currency, or at a place of payment, other than that stated in the Note; 

  
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 (g) change the ranking of the Notes; or 

(h) make any change in this Article 9 that requires each Holder’s consent or in the waiver provisions in Section 5.03 or
Section 5.09; or 
 (i) impair the rights of any Holders to receive payment of principal and interest on such Holder’s Notes on or
after the due date therefor or institute a suit for the enforcement of any payment on or with respect to such Holder’s Notes. 
 Upon
the written request of the Company, and upon the filing with the Trustee of evidence of the consent of Holders as aforesaid and subject to Section 10.4 of the Base Indenture, 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 the Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such
supplemental indenture. 
 Holders do not need under this Section 9.03 to approve the particular form of any proposed supplemental
indenture. It shall be sufficient if such Holders approve the substance thereof. After any such supplemental indenture becomes effective, the Company shall send to the Holders a notice briefly describing such supplemental indenture. However,
the failure to give such notice to all the Holders, or any defect in the notice, will not impair or affect the validity of the supplemental indenture. 

Section 9.04 Effect of Supplemental Indentures. Upon the execution of any supplemental indenture pursuant to
the provisions of this Article 9, the 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 the Indenture of the Trustee,
the Company and the Holders 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 the Indenture for any and all purposes. 
 ARTICLE 10 

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE 

Section 10.01 Applicability of Article 5 of the Base Indenture. Article 5 of the
Base Indenture shall not apply to the Notes. Instead, the consolidation, merger, sale, conveyance and lease provisions set forth in this Article 10 shall, with respect to the Notes, supersede in their entirety such Article 5 of the Base
Indenture, and all references in the Base Indenture to such Article and the Company successor provisions therein, as the case may be, shall, with respect to the Notes, be deemed to be references to this Article 10 and the consolidation, merger,
sale, conveyance and lease provisions set forth in this Article 10, respectively. 

  
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 Section 10.02 Company May Consolidate, Etc. on
Certain Terms. Subject to the provisions of Section 10.03, the Company shall not consolidate with, merge with or into, or sell, convey, transfer or lease all or substantially all of its properties and assets to another Person, unless:

 (a) the resulting, surviving or transferee Person (the “Successor Company”), if not the Company, shall be a corporation
organized and existing under the laws of the United States of America, any State thereof or the District of Columbia, and the Successor Company (if not the Company) shall expressly assume, by supplemental indenture all of the obligations of the
Company under the Notes and the Indenture; and 
 (b) immediately after giving effect to such transaction, no Default or Event of Default
shall have occurred and be continuing under the Indenture. 
 For purposes of this Section 10.02, the sale, conveyance, transfer or
lease of all or substantially all of the properties and assets of one or more Subsidiaries of the Company to another Person, which properties and assets, if held by the Company instead of such Subsidiaries, would constitute all or substantially all
of the properties and assets of the Company on a consolidated basis, shall be deemed to be the sale, conveyance, transfer or lease of all or substantially all of the properties and assets of the Company to another Person. 

Section 10.03 Successor Corporation to Be Substituted. In case of any such consolidation, merger, sale,
conveyance, transfer or lease and upon the assumption by the Successor Company, 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 accrued
and unpaid interest on all of the Notes, the due and punctual delivery or payment, as the case may be, of any consideration due upon conversion of the Notes and the due and punctual performance of all of the covenants and conditions of the Indenture
to be performed by the Company, such Successor Company (if not the Company) shall succeed to and, except in the case of a lease of all or substantially all of the Company’s properties and assets, shall be substituted for the Company, with the
same effect as if it had been named herein as the party of the first part. Such Successor Company thereupon may cause to be signed, and may issue either in its own name or in the name of the Company any or all of the Notes issuable hereunder
which theretofore shall not have been signed by the Company and delivered to the Trustee; and, upon the order of such Successor Company instead of the Company and subject to all the terms, conditions and limitations in the 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 an Officer of the Company to the Trustee for authentication, and any Notes that such
Successor Company 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 the Indenture as the Notes theretofore or thereafter
issued in accordance with the terms of the 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 or transfer (but not in the case of a lease),
upon compliance with this Article 10 the Person named as the “Company” in the first paragraph of this First Supplemental Indenture (or any successor that shall thereafter have become such in the manner prescribed in this
Article 10) may be dissolved, wound up and liquidated at any time thereafter and, except in the case of a lease, such Person shall be released from its liabilities as obligor and maker of the Notes and from its obligations under the Indenture
and the Notes. 

  
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 Section 10.04 Opinion of Counsel to Be Given to Trustee. No
such consolidation, merger, sale, conveyance, transfer or lease shall be effective unless 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 and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture, complies with the provisions of the Indenture. 

ARTICLE 11 

CONVERSION OF NOTES 

Section 11.01 Conversion Privilege. (a) Subject to and upon compliance with the provisions of this
Article 11, each Holder of a Note shall have the right, at such Holder’s option, to convert all or any portion (if the portion to be converted is $1,000 principal amount or an integral multiple thereof) of such Note (i) subject to
satisfaction of the conditions described in Section 11.01(b), at any time prior to the close of business on the Business Day immediately preceding June 1, 2026 and (ii) regardless of the conditions described in Section 11.01(b),
on or after June 1, 2026 and prior to the close of business on the Business Day immediately preceding the Maturity Date, in each case, at an initial conversion rate of 125.0031 shares of Common Stock (subject to adjustment as provided in this
Article 11, the “Conversion Rate”) per $1,000 principal amount of Notes (subject to, and in accordance with, the settlement provisions of Section 11.02, the “Conversion Obligation”). 

(b) (i) Prior to the close of business on the Business Day immediately preceding June 1, 2026, a Holder may surrender all or any
portion of its Notes for conversion at any time during the five Business Day period immediately after any ten consecutive Trading Day period (the “Measurement Period”) in which the Trading Price per $1,000 principal amount of Notes,
as determined following a request by a Holder of Notes in accordance with this subsection (b)(i), for each Trading Day of the Measurement Period was less than 98% of the product of the Last Reported Sale Price of the Common Stock on each such
Trading Day and the Conversion Rate on each such Trading Day. The Trading Prices shall be determined by the Bid Solicitation Agent pursuant to this subsection (b)(i) and the definition of Trading Price set forth in this First Supplemental
Indenture. The Company shall provide written notice to the Bid Solicitation Agent (if other than the Company) of the three independent nationally recognized securities dealers selected by the Company pursuant to the definition of Trading Price,
along with appropriate contact information for each. The Bid Solicitation Agent (if other than the Company) shall have no obligation to determine in the manner above the Trading Price per $1,000 principal amount of Notes unless the Company has
requested such determination (or, if the Company is acting as Bid Solicitation Agent, the Company shall have no obligation to determine the Trading Price), and the Company shall have no obligation to make such request unless a Holder of at least
$5,000,000 aggregate principal amount of Notes provides the Company with reasonable evidence that the Trading Price per $1,000 principal amount of Notes on any Trading Day would be less than 98% of the product of the Last Reported Sale Price of the

  
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Common Stock on such Trading Day and the Conversion Rate on such Trading Day and such Holder requests that the Company request that the Bid Solicitation Agent determine or, if the Company is
acting as the Bid Solicitation Agent, requests that the Company determine, the Trading Price of the Notes, at which time the Company shall instruct the Bid Solicitation Agent (if other than the Company) to determine or, if the Company is acting as
the Bid Solicitation Agent, the Company shall determine, the Trading Price per $1,000 principal amount of 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 Last Reported Sale Price of the Common Stock and the Conversion Rate. If (x) the Company is not acting as the Bid Solicitation Agent, and the Company does not instruct the Bid Solicitation
Agent to determine the Trading Price per $1,000 principal amount of Notes when obligated as provided in the preceding sentence, or if the Company instructs the Bid Solicitation Agent to obtain bids and the Bid Solicitation Agent fails to make such
determination, or (y) the Company is acting as the Bid Solicitation Agent and the Company fails to make such determination, then, in either case, the Trading Price per $1,000 principal amount of Notes shall be deemed to be less than 98% of the
product of the Last Reported Sale Price of the Common Stock and the Conversion Rate on each Trading Day of such failure. If the Trading Price condition set forth above has been met, the Company shall so notify the Holders, the Trustee and the
Conversion Agent (if other than the Trustee) in accordance with the provisions of the Indenture. If, at any time after the Trading Price condition set forth above has been met, the Trading Price per $1,000 principal amount of Notes is greater
than or equal to 98% of the product of the Last Reported Sale Price of the Common Stock and the Conversion Rate for such date, the Company shall so notify the Holders of the Notes, the Trustee and the Conversion Agent (if other than the Trustee), in
accordance with the provisions of the Indenture, that conversion of the Notes pursuant to this Section 11.01(b)(i) is no longer applicable. 

(ii) If, prior to the close of business on the Business Day immediately preceding June 1, 2026, the Company elects to: 

(A) issue to all or substantially all holders of the Common Stock any rights, options or warrants (other than pursuant to a stockholders
rights plan in connection with the initial adoption by the Company, so long as such rights have not separated from the shares of Common Stock) entitling them, for a period of not more than 45 calendar days after the announcement date of such
issuance, to subscribe for or purchase Common Stock at a price per share that is less than the average of the Last Reported Sale Price of the Common Stock for the 10 consecutive Trading Day period ending on, and including, the Trading Day
immediately preceding the date of announcement of such issuance; or 
 (B) distribute to all or substantially all holders of the Common
Stock the Company’s assets, securities or rights to purchase securities of the Company, which distribution has a per share value, as reasonably determined by the Board of Directors, exceeding 10% of the Last Reported Sale Price of the Common
Stock on the Trading Day preceding the date of announcement for such distribution, 

  
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then, in either case, the Company shall notify all Holders of the Notes, the Trustee and the Conversion Agent (if other than the Trustee) at least 25 Scheduled Trading Days prior to the
Ex-Dividend Date for such issuance or distribution. Once the Company has given such notice, a Holder may surrender all or any portion of its Notes for conversion at any time until the earlier of (1) the close of business on the Business Day
immediately preceding the Ex-Dividend Date for such issuance or distribution and (2) the Company’s announcement that such issuance or distribution will not take place, in each case, even if the Notes are not otherwise convertible at such
time. A Holder may not exercise this right if it participates (other than in the case of a share split or share combination), at the same time and upon the same terms as holders of the Common Stock and solely as a result of holding the Notes,
in any of the transactions described above without having to convert its Notes as if it held a number of shares of Common Stock equal to the applicable Conversion Rate multiplied by the principal amount (expressed in thousands) of Notes held by such
Holder. 
 (iii) If a transaction or event that constitutes a Fundamental Change or a Make-Whole Fundamental Change occurs, regardless of
whether a Holder has the right to require the Company to repurchase the Notes pursuant to Section 12.01, or if the Company is a party to a consolidation, merger, binding share exchange, or transfer or lease of all or substantially all of its
assets (other than a merger effected solely to change the Company’s jurisdiction of incorporation that does not otherwise constitute a Fundamental Change or a Make-Whole Fundamental Change), in each case, that occurs prior to the close of
business on the Business Day immediately preceding June 1, 2026 and pursuant to which the Common Stock would be converted into cash, securities or other assets, all or any portion of a Holder’s Notes may be surrendered for conversion at
any time from or after the effective date of the transaction until 35 Trading Days after such effective date or, if such transaction also constitutes a Fundamental Change, until the related Fundamental Change Repurchase Date. The Company shall
notify Holders, the Trustee and the Conversion Agent (if other than the Trustee) no later than the effective date of such transaction. 

(iv) Prior to the close of business on the Business Day immediately preceding June 1, 2026, a Holder may surrender all or any portion of
its Notes for conversion at any time during any calendar quarter commencing after the calendar quarter ending on September 30, 2016 (and only during such calendar quarter), if the Last Reported Sale Price of the Common Stock for at least 20
Trading Days (whether or not consecutive) during the period of 30 consecutive Trading Days ending on the last Trading Day of the immediately preceding calendar quarter is greater than or equal to 130% of the Conversion Price on each applicable
Trading Day, as determined by the Company.
 Section 11.02 Conversion Procedure; Settlement upon
Conversion.
 (a) Subject to this Section 11.02, Section 11.03(b) and Section 11.06(a), upon conversion of any Note, the
Company shall pay or deliver, as the case may be, to the converting Holder, in respect of each $1,000 principal amount of Notes being converted, cash (“Cash Settlement”), shares of Common Stock, together with cash, if applicable, in
lieu of delivering any fractional shares of Common Stock in accordance with subsection (j) of this Section 11.02 (“Physical Settlement”) or a combination of cash and shares of Common Stock, together with cash, if applicable, in
lieu of delivering any fractional shares of Common Stock in accordance with subsection (j) of this Section 11.02 (“Combination Settlement”), at its election, as set forth in this Section 11.02. 

  
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 (i) All conversions for which the relevant Conversion Date occurs on or after June 1, 2026
shall be settled using the same Settlement Method. 
 (ii) Except for any conversions for which the relevant Conversion Date occurs on or
after June 1, 2026, the Company shall use the same Settlement Method for all conversions with the same Conversion Date, but the Company shall not have any obligation to use the same Settlement Method with respect to conversions with different
Conversion Dates. 
 (iii) If, in respect of any Conversion Date (or the period described in clause (i) above, as the case may be), the
Company elects to deliver a notice (the “Settlement Notice”) of the relevant Settlement Method in respect of such Conversion Date (or such period, as the case may be), the Company, through the Conversion Agent, shall deliver such
Settlement Notice to converting Holders no later than the close of business on the second Trading Day immediately following the relevant Conversion Date (or, in the case of any conversions for which the relevant Conversion Date occurs on or after
June 1, 2026, no later than June 1, 2026). If the Company does not elect a Settlement Method prior to the deadline set forth in the immediately preceding sentence, the Company shall no longer have the right to elect Cash Settlement or
Physical Settlement with respect to any conversion on such Conversion Date or during such period, and the Company shall be deemed to have elected Combination Settlement in respect of its Conversion Obligation, and the Specified Dollar Amount per
$1,000 principal amount of Notes shall be equal to $1,000. Such Settlement Notice shall specify the relevant Settlement Method and in the case of an election of Combination Settlement, the relevant Settlement Notice shall indicate the Specified
Dollar Amount per $1,000 principal amount of Notes. If the Company delivers a Settlement Notice electing Combination Settlement in respect of its Conversion Obligation but does not indicate a Specified Dollar Amount per $1,000 principal amount
of Notes to be converted in such Settlement Notice, the Specified Dollar Amount per $1,000 principal amount of Notes shall be deemed to be $1,000. 

(iv) The cash, shares of Common Stock or combination of cash and shares of Common Stock in respect of any conversion of Notes (the
“Settlement Amount”) shall be computed as follows: 
 (A) if the Company elects to satisfy its Conversion Obligation in
respect of such conversion by Physical Settlement, the Company shall deliver to the converting Holder in respect of each $1,000 principal amount of Notes being converted a number of shares of Common Stock equal to the Conversion Rate in effect on
the Conversion Date; 
 (B) if the Company elects to satisfy its Conversion Obligation in respect of such conversion by Cash Settlement,
the Company shall pay to the converting Holder in respect of each $1,000 principal amount of Notes being converted cash in an amount equal to the sum of the Daily Conversion Values for each of the 20 consecutive Trading Days during the relevant
Observation Period; and 

  
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 (C) if the Company elects (or is deemed to have elected) to satisfy its Conversion Obligation in
respect of such conversion by Combination Settlement, the Company shall pay or deliver, as the case may be, in respect of each $1,000 principal amount of Notes being converted, a Settlement Amount equal to the sum of the Daily Settlement Amounts for
each of the 20 consecutive Trading Days during the relevant Observation Period. 
 (v) The Daily Settlement Amounts (if applicable) and the
Daily Conversion Values (if applicable) shall be determined by the Company promptly following the last day of the Observation Period. Promptly after such determination of the Daily Settlement Amounts or the Daily Conversion Values, as the case
may be, and the amount of cash payable in lieu of delivering any fractional share of Common Stock, the Company shall notify the Trustee and the Conversion Agent (if other than the Trustee) of the Daily Settlement Amounts or the Daily Conversion
Values, as the case may be, and the amount of cash payable in lieu of delivering fractional shares of Common Stock. The Trustee and the Conversion Agent shall have no responsibility for any such determination. 

(b) Subject to Section 11.02(e), before any Holder of a Note shall be entitled to convert a Note as set forth above, such Holder shall
(i) in the case of a Global Note, comply with the procedures of the Depositary in effect at that time and, if required, pay funds equal to interest payable on the next Interest Payment Date to which such Holder is not entitled as set forth in
Section 11.02(h) and (ii) in the case of a Physical Note (1) complete, manually sign and deliver an irrevocable notice to the Conversion Agent as set forth in the Form of Notice of Conversion (or a facsimile thereof) (a “Notice of
Conversion”) at the office of the Conversion Agent and state in writing therein the principal amount of Notes to be converted and the name or names (with addresses) in which such Holder wishes the certificate or certificates for any shares
of Common Stock to be delivered upon settlement of the Conversion Obligation to be registered, (2) surrender such Notes, duly endorsed to the Company or in blank (and accompanied by appropriate endorsement and transfer documents), at the office of
the Conversion Agent, (3) if required, furnish appropriate endorsements and transfer documents and (4) if required, pay funds equal to interest payable on the next Interest Payment Date to which such Holder is not entitled as set forth in
Section 11.02(h). The Trustee (and if different, the Conversion Agent) shall notify the Company of any conversion pursuant to this Article 11 on the Conversion Date for such conversion. No Notice of Conversion with respect to any
Notes may be surrendered by a Holder thereof if such Holder has also delivered a Fundamental Change Repurchase Notice to the Company in respect of such Notes and has not validly withdrawn such Fundamental Change Repurchase Notice in accordance with
Section 12.02. 
 If more than one Note shall be surrendered for conversion at one time by the same Holder, the Conversion Obligation
with respect to such Notes shall be computed on the basis of the aggregate principal amount of the Notes (or specified portions thereof to the extent permitted thereby) so surrendered. 

(c) A Note shall be deemed to have been converted immediately prior to the close of business on the date (the “Conversion
Date”) that the Holder has complied with the requirements set 

  
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forth in subsection (b) above. Except as set forth in Section 11.03(b) and Section 11.06(a), the Company shall pay or deliver, as the case may be, the consideration due in
respect of the Conversion Obligation on the third Business Day immediately following the relevant Conversion Date, if the Company elects Physical Settlement, or on the third Business Day immediately following the last Trading Day of the Observation
Period, in the case of any other Settlement Method. If any shares of Common Stock are due to converting Holders, the Company shall issue or cause to be issued, and deliver (if applicable) to the Conversion Agent or to such Holder, or such
Holder’s nominee or nominees, the full number of shares of Common Stock to which such Holder shall be entitled, in certificate form or in book-entry format, in satisfaction of the Company’s Conversion Obligation. 

(d) In case any Note shall be surrendered for partial conversion, the Company (1) in the case of a Global Note, shall cause the principal
balance of a Global Note to be adjusted in accordance with the procedures of the Depositary in effect at that time or (2) in the case of a Physical Note, shall execute and the Trustee shall authenticate and deliver to or upon the written order of
the Holder of the Note so surrendered a new Note or Notes in authorized denominations in an aggregate principal amount equal to the unconverted portion of the surrendered Note, without payment of any service charge by the converting Holder but, if
required by the Company or Trustee, with payment of a sum sufficient to cover any documentary, stamp or similar issue or transfer tax or similar governmental charge required by law or that may be imposed in connection therewith as a result of the
name of the Holder of the new Notes issued upon such conversion being different from the name of the Holder of the old Notes surrendered for such conversion. 

(e) If a Holder submits a Note for conversion, the Company shall pay any documentary, stamp or similar issue or transfer tax due on the issue
of any shares of Common Stock upon conversion, unless the tax is due because the Holder requests such shares to be issued in a name other than the Holder’s name, in which case the Holder shall pay that tax. The Conversion Agent may refuse
to deliver the certificates representing the shares of Common Stock being issued in a name other than the Holder’s name until the Trustee receives a sum sufficient to pay any tax that is due by such Holder in accordance with the immediately
preceding sentence. 
 (f) Except as provided in Section 11.04, no adjustment shall be made for dividends on any shares of Common Stock
issued upon the conversion of any Note as provided in this Article 11. 
 (g) Upon the conversion of an interest in a Global Note, the
Trustee, or the Custodian at the direction of the Trustee, 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 conversion of Notes
effected through any Conversion Agent other than the Trustee. 
 (h) Upon conversion, a Holder shall not receive any separate cash payment
for accrued and unpaid interest, if any, except as set forth below, and the Company shall not adjust the Conversion Rate to adjust for any accrued and unpaid interest on the Notes. The Company’s settlement of the full Conversion Obligation
shall be deemed to satisfy in full its obligation to pay the principal amount of the Note and accrued and unpaid interest, if any, to, but excluding, the relevant Conversion Date. As a result, accrued and unpaid interest, if any, to, but
excluding, the relevant Conversion Date shall be deemed to be paid in full rather than cancelled, extinguished or 

  
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forfeited. Upon a conversion of Notes into a combination of cash and shares of Common Stock, accrued and unpaid interest will be deemed to be paid first out of the cash paid upon such
conversion. Notwithstanding the foregoing, if Notes are converted after the close of business on a Regular Record Date, Holders of such Notes as of the close of business on such Regular Record Date will receive the full amount of interest
payable on such Notes on the corresponding Interest Payment Date notwithstanding the conversion. Notes surrendered for conversion during the period from the close of business on any Regular Record Date to the open of business on the immediately
following Interest Payment Date must be accompanied by funds equal to the amount of interest payable on the Notes so converted; provided that no such payment shall be required (1) for conversions after the close of business on the Regular
Record Date immediately preceding the Maturity Date; (2) if the Company has specified a Fundamental Change Repurchase Date that is after a Regular Record Date and on or prior to the Business Day immediately following the corresponding Interest
Payment Date; or (3) to the extent of any Defaulted Amounts, if any Defaulted Amounts exist at the time of conversion with respect to such Note. Therefore, for the avoidance of doubt, all Holders of record at the close of business on the
Regular Record Date immediately preceding the Maturity Date shall receive the full interest payment due on the Maturity Date regardless of whether their Notes have been converted following such Regular Record Date. 

(i) The Person in whose name the shares of Common Stock shall be issuable upon conversion shall be treated as a stockholder of record as of
the close of business on the relevant Conversion Date (if the Company elects to satisfy the related Conversion Obligation by Physical Settlement) or the last Trading Day of the relevant Observation Period (if the Company elects (or is deemed to have
elected) to satisfy the related Conversion Obligation by Combination Settlement), as the case may be. Upon a conversion of Notes, such Person shall no longer be a Holder of such Notes surrendered for conversion. 

(j) The Company shall not issue any fractional shares of Common Stock upon conversion of the Notes and shall instead pay cash in lieu of
delivering any fractional shares of Common Stock issuable upon conversion based on the Daily VWAP for the relevant Conversion Date (or, if such Conversion Date is not a Trading Day, the immediately preceding Trading Day) (in the case of Physical
Settlement) or based on the Daily VWAP for the last Trading Day of the relevant Observation Period (in the case of Combination Settlement). For each Note surrendered for conversion, if the Company has elected Combination Settlement, the full
number of shares of Common Stock that shall be issued upon conversion thereof shall be computed on the basis of the aggregate Daily Settlement Amounts for the relevant Observation Period and any fractional shares of Common Stock remaining after such
computation shall be paid in cash. 
 Section 11.03 Increased Conversion Rate Applicable to Certain Notes
Surrendered in Connection with Make-Whole Fundamental Changes. (a) If the Effective Date of a Make-Whole Fundamental Change occurs prior to the Maturity Date and a Holder elects to convert its Notes in connection with such Make-Whole Fundamental
Change, the Company shall, under the circumstances described below, increase the Conversion Rate for the Notes so surrendered for conversion by a number of additional shares of Common Stock (the “Additional Shares”), as described
below. A conversion of Notes shall be deemed for these purposes to be “in connection 

  
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with” such Make-Whole Fundamental Change if the relevant Notice of Conversion is received by the Conversion Agent from, and including, the Effective Date of the Make-Whole Fundamental Change
up to, and including, the Business Day immediately prior to the related Fundamental Change Repurchase Date (or, in the case of a Make-Whole Fundamental Change that would have been a Fundamental Change but for the proviso in clause (b) of the
definition thereof, the 35th Trading Day immediately following the Effective Date of such Make-Whole Fundamental Change) (such period, the “Make-Whole Fundamental Change Period”). 

(b) Upon surrender of Notes for conversion in connection with a Make-Whole Fundamental Change pursuant to Section 11.01(b)(iii), the
Company shall, at its option, satisfy the related Conversion Obligation by Physical Settlement, Cash Settlement or Combination Settlement in accordance with Section 11.02; provided, however, that if, at the effective time of a
Make-Whole Fundamental Change described in clause (b) of the definition of Fundamental Change, the Reference Property following such Make-Whole Fundamental Change is composed entirely of cash, for any conversion of Notes following the Effective
Date of such Make-Whole Fundamental Change, the Conversion Obligation shall be calculated based solely on the Stock Price for the transaction and shall be deemed to be an amount of cash per $1,000 principal amount of converted Notes equal to the
Conversion Rate (including any adjustment for Additional Shares), multiplied by such Stock Price. In such event, the Conversion Obligation shall be paid to Holders in cash on the third Business Day following the Conversion Date. The
Company shall notify the Holders of Notes of the Effective Date of any Make-Whole Fundamental Change no later than five Business Days after such Effective Date. 

(c) The number of Additional Shares, if any, by which the Conversion Rate shall be increased shall be determined by reference to the table
below, based on the date on which the Make-Whole Fundamental Change occurs or becomes effective (the “Effective Date”) and the price (the “Stock Price”) paid (or deemed to be paid) per share of Common Stock in the
Make-Whole Fundamental Change. If the holders of the Common Stock receive in exchange for their shares of Common Stock only cash in a Make-Whole Fundamental Change described in clause (b) of the definition of Fundamental Change, the Stock
Price shall be the cash amount paid per share. Otherwise, the Stock Price shall be the average of the Last Reported Sale Prices of the Common Stock over the five consecutive Trading Day period ending on, and including, the Trading Day
immediately preceding the Effective Date of the Make-Whole Fundamental Change.
 (d) The Stock Prices set forth in the column headings of
the table below shall be adjusted as of any date on which the Conversion Rate of the Notes is otherwise 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 such 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 the table below shall be adjusted in the same manner and at the same time as the Conversion Rate as set forth in Section 11.04. 

  
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 (e) The following table sets forth the number of Additional Shares by which the Conversion Rate
shall be increased per $1,000 principal amount of Notes pursuant to this Section 11.03 for each Stock Price and Effective Date set forth below: 
  

																																													
	 Stock Price
	 
	 Effective Date
	 	$6.00	 	 	$7.00	 	 	$8.00	 	 	$9.00	 	 	$10.00	 	 	$15.00	 	 	$20.00	 	 	$25.00	 	 	$30.00	 	 	$40.00	 	 	$50.00	 
	 September 14, 2016
	 	 	41.6635	  	 	 	33.8372	  	 	 	27.2749	  	 	 	22.4287	  	 	 	18.7376	  	 	 	8.8872	  	 	 	4.8550	  	 	 	2.8282	  	 	 	1.6879	  	 	 	0.5761	  	 	 	0.1347	  
	 September 1, 2017
	 	 	41.6635	  	 	 	34.3245	  	 	 	27.5229	  	 	 	22.5241	  	 	 	18.7343	  	 	 	8.7299	  	 	 	4.7071	  	 	 	2.7125	  	 	 	1.6022	  	 	 	0.5331	  	 	 	0.1186	  
	 September 1, 2018
	 	 	41.6635	  	 	 	34.7279	  	 	 	27.6672	  	 	 	22.5072	  	 	 	18.6168	  	 	 	8.4806	  	 	 	4.4939	  	 	 	2.5504	  	 	 	1.4836	  	 	 	0.4732	  	 	 	0.0926	  
	 September 1, 2019
	 	 	41.6635	  	 	 	35.0129	  	 	 	27.6693	  	 	 	22.3393	  	 	 	18.3479	  	 	 	8.1180	  	 	 	4.2059	  	 	 	2.3401	  	 	 	1.3338	  	 	 	0.4006	  	 	 	0.0630	  
	 September 1, 2020
	 	 	41.6635	  	 	 	35.2705	  	 	 	27.5885	  	 	 	22.0595	  	 	 	17.9537	  	 	 	7.6475	  	 	 	3.8477	  	 	 	2.0865	  	 	 	1.1584	  	 	 	0.3213	  	 	 	0.0351	  
	 September 1, 2021
	 	 	41.6635	  	 	 	35.3236	  	 	 	27.2605	  	 	 	21.5185	  	 	 	17.3008	  	 	 	6.9995	  	 	 	3.3843	  	 	 	1.7724	  	 	 	0.9486	  	 	 	0.2316	  	 	 	0.0101	  
	 September 1, 2022
	 	 	41.6635	  	 	 	34.7555	  	 	 	26.3250	  	 	 	20.4070	  	 	 	16.1253	  	 	 	6.0629	  	 	 	2.7738	  	 	 	1.3852	  	 	 	0.7043	  	 	 	0.1384	  	 	 	0.0000	  
	 September 1, 2023
	 	 	41.6635	  	 	 	33.6340	  	 	 	24.7765	  	 	 	18.6858	  	 	 	14.3773	  	 	 	4.8300	  	 	 	2.0401	  	 	 	0.9553	  	 	 	0.4516	  	 	 	0.0558	  	 	 	0.0000	  
	 September 1, 2024
	 	 	41.6635	  	 	 	31.3432	  	 	 	22.0235	  	 	 	15.8308	  	 	 	11.6179	  	 	 	3.2087	  	 	 	1.2098	  	 	 	0.5277	  	 	 	0.2278	  	 	 	0.0051	  	 	 	0.0000	  
	 September 1, 2025
	 	 	41.6635	  	 	 	27.0796	  	 	 	17.1183	  	 	 	10.9766	  	 	 	7.1713	  	 	 	1.2880	  	 	 	0.4540	  	 	 	0.2043	  	 	 	0.0797	  	 	 	0.0000	  	 	 	0.0000	  
	 September 1, 2026
	 	 	41.6635	  	 	 	17.8540	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  

 The exact Stock Prices and Effective Dates may not be set forth in the table above, in which case: 

(i) if the Stock Price is between two Stock Prices in the table above or the Effective Date is between two Effective Dates in the table, the
number of Additional Shares shall be determined by a straight-line interpolation between the number of Additional Shares set forth for the higher and lower Stock Prices and the earlier and later Effective Dates, as applicable, based on a 365-day
year; 
 (ii) if the Stock Price is greater than $50.00 per share (subject to adjustment in the same manner as the Stock Prices set forth in
the column headings of the table above pursuant to subsection (d) above), no Additional Shares shall be added to the Conversion Rate; and 

(iii) if the Stock Price is less than $6.00 per share (subject to adjustment in the same manner as the Stock Prices set forth in the column
headings of the table above pursuant to subsection (d) above), no Additional Shares shall be added to the Conversion Rate. 
 Notwithstanding the
foregoing, in no event shall the Conversion Rate per $1,000 principal amount of Notes exceed 166.6666 shares of Common Stock, subject to adjustment in the same manner as the Conversion Rate pursuant to Section 11.04. 

(f) Nothing in this Section 11.03 shall prevent an adjustment to the Conversion Rate pursuant to Section 11.04 in respect of a
Make-Whole Fundamental Change. 
 Section 11.04 Adjustment of Conversion Rate. The Conversion Rate shall be
adjusted from time to time by the Company if any of the following events occurs, except that the Company shall not make any adjustments to the Conversion Rate if Holders of the Notes participate (other than in the case of (x) a share split or share
combination or (y) a tender or exchange offer), at the same time and upon the same terms as holders of the shares of Common Stock and solely as a result of holding 

  
 -41- 

 
the Notes, in any of the transactions described in this Section 11.04, without having to convert their Notes, as if they held a number of shares of Common Stock equal to the Conversion Rate,
multiplied by the principal amount (expressed in thousands) of Notes held by such Holder. 
 (a) If the Company exclusively issues shares of
Common Stock as a dividend or distribution on the shares of Common Stock, or if the Company effects a share split or share combination, the Conversion Rate shall be adjusted based on the following formula: 

 
 

 
 where, 
  

					
	CR0	  	=	  	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date of such dividend or distribution, or immediately prior to the open of business on the Effective Date of such share split or share
combination, as applicable;
			
	CR’	  	=	  	the Conversion Rate in effect immediately after the open of business on such Ex-Dividend Date or Effective Date, as applicable;
			
	OS0	  	=	  	the number of shares of Common Stock outstanding immediately prior to the open of business on such Ex-Dividend Date or Effective Date, as applicable; and
			
	OS’	  	=	  	the number of shares of Common Stock outstanding immediately after giving effect to such dividend, distribution, share split or share combination, as applicable.

 Any adjustment made under this Section 11.04(a) shall become effective immediately after the open of business on the
Ex-Dividend Date for such dividend or distribution, or immediately after the open of business on the Effective Date for such share split or share combination, as applicable. If any dividend or distribution of the type described in this
Section 11.04(a) is declared but not so paid or made, the Conversion Rate shall be immediately readjusted, effective as of the date the Board of Directors determines not to pay such dividend or distribution, to the Conversion Rate that would
then be in effect if such dividend or distribution had not been declared. 
 (b) If the Company issues to all or substantially all holders
of the shares of Common Stock any rights, options or warrants (other than pursuant to a stockholder rights plan, so long as such rights have not separated from the shares of Common Stock) entitling them, for a period of not more than 45 calendar
days after the announcement date of such issuance, to subscribe for or purchase of shares of Common Stock at a price per share that is less than the average of the Last Reported Sale Prices of the shares of Common Stock for the 10 consecutive
Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement of such issuance, the Conversion Rate shall be increased based on the following formula: 

 
 

 

  
 -42- 

 where, 
  

					
	CR0	  	=	  	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date for such issuance;
			
	CR’	  	=	  	the Conversion Rate in effect immediately after the open of business on such Ex-Dividend Date;
			
	OS0	  	=	  	the number of shares of Common Stock outstanding immediately prior to the open of business on such Ex-Dividend Date;
			
	X	  	=	  	the total number of shares of Common Stock issuable pursuant to such rights, options or warrants; and
			
	Y	  	=	  	the number of shares of Common Stock equal to the aggregate price payable to exercise such rights, options or warrants, divided by the average of the Last Reported Sale Prices of the Common Stock over the 10
consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement of the issuance of such rights, options or warrants.

 Any increase made under this Section 11.04(b) shall be made successively whenever any such rights, options or warrants
are issued and shall become effective immediately after the open of business on the Ex-Dividend Date for such issuance. To the extent that the shares of Common Stock are not delivered after the expiration of such rights, options or warrants,
the Conversion Rate shall be decreased to the Conversion Rate that would then be in effect had the increase with respect to the issuance of such rights, options or warrants been made on the basis of delivery of only the number of shares of Common
Stock actually delivered. If no such rights, options or warrants are issued, or if no such rights, options or warrants are exercised prior to expiration, the Conversion Rate shall be decreased to the Conversion Rate that would then be in effect
if such Ex-Dividend Date for such issuance had not occurred. 
 For purposes of this Section 11.04(b) and for the purpose of
Section 11.01(b)(ii)(A), in determining whether any rights, options or warrants entitle the holders of the Common Stock to subscribe for or purchase shares of Common Stock at less than such average of the Last Reported Sale Prices of the Common
Stock for the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement for such issuance, and in determining the aggregate offering price of such Common Stock, there shall be taken
into account any consideration received by the Company for such rights, options 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 Company in good faith.

 (c) If the Company distributes shares of its Capital Stock, evidences of its indebtedness, other assets or property of the Company or
rights, options or warrants to acquire its Capital Stock or other securities, to all or substantially all holders of the Common Stock, excluding (i) dividends, distributions or issuances as to which an adjustment was effected (or will be
effected, in accordance 

  
 -43- 

 
with the 1% Provision) pursuant to Section 11.04(a) or Section 11.04(b), (ii) rights issued under a stockholders rights plan (except as set forth below), (iii) dividends or
distributions paid exclusively in cash as to which the provisions set forth in Section 11.04(d) shall apply (or shall apply, in accordance with the 1% Provision), (iv) distributions of Reference Property issued in exchange for the Common Stock
in connection with a Common Stock Change Event, and (v) Spin-Offs as to which the provisions set forth below in this Section 11.04(c) shall apply (or shall apply, in accordance with the 1% Provision) (any of such shares of Capital Stock,
evidences of indebtedness, other assets or property of the Company or rights, options or warrants to acquire Capital Stock of the Company or other securities, the “Distributed Property”), then the Conversion Rate shall be increased
based on the following formula: 
  
 

 
 where, 
  

					
	CR0	  	=	  	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date for such distribution;
			
	CR’	  	=	  	the Conversion Rate in effect immediately after the open of business on such Ex-Dividend Date for such distribution;
			
	SP0	  	=	  	the average of the Last Reported Sale Prices of the Common Stock over the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the Ex-Dividend Date for such distribution; and
			
	FMV	  	=	  	the fair market value (as determined by the Company in good faith) of the Distributed Property with respect to each outstanding share of Common Stock on the Ex-Dividend Date for such distribution.

 Any increase made under the portion of this Section 11.04(c) above shall become effective immediately after the open of
business on the Ex-Dividend Date for such distribution. If such distribution is not so paid or made, the Conversion Rate shall be decreased to the Conversion Rate that would then be in effect if such distribution had not been
declared. Notwithstanding the foregoing, if “FMV” (as defined above) is equal to or greater than “SP0” (as defined above), then, in lieu of the foregoing increase, each
Holder of a Note shall receive, in respect of each $1,000 principal amount of Notes it holds, at the same time and upon the same terms as holders of the Common Stock receive the Distributed Property, the amount and kind of Distributed Property such
Holder would have received if such Holder owned a number of shares of Common Stock equal to the Conversion Rate in effect on the Ex-Dividend Date for the distribution. If the Board of Directors determines the “FMV” (as defined above)
of any distribution for purposes of this Section 11.04(c) by reference to the actual or when-issued trading market for any securities, it shall in doing so consider the prices in such market over the same period used in computing the Last
Reported Sale Prices of the Common Stock over the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the Ex-Dividend Date for such distribution. 

  
 -44- 

 With respect to an adjustment pursuant to this Section 11.04(c) where there has been a
payment of a dividend or other distribution on the shares of Common Stock or shares of Capital Stock of any class or series, or similar equity interest, of or relating to a Subsidiary of the Company or other business units of the Company, that are,
or, when issued, will be, listed or admitted for trading on a U.S. national securities exchange (a “Spin-Off”), the Conversion Rate shall be increased based on the following formula: 

 
 

 
 where, 
  

					
	CR0	  	=	  	the Conversion Rate in effect immediately prior to the end of the Valuation Period;
			
	CR’	  	=	  	the Conversion Rate in effect immediately after the end of the Valuation Period;
			
	FMV0	  	=	  	the average of the Last Reported Sale Prices of the Capital Stock or similar equity interest distributed to holders of the shares of Common Stock applicable to one share of Common Stock (determined by reference to the definition of
Last Reported Sale Price as set forth in Section 1.02 as if references therein to Common Stock were to such Capital Stock or similar equity interest) over the first 10 consecutive Trading Day period after, and including, the Ex-Dividend Date of
the Spin-Off (the “Valuation Period”); and
			
	MP0	  	=	  	the average of the Last Reported Sale Prices of the Common Stock over the Valuation Period.

 The increase to the Conversion Rate under the preceding paragraph shall occur on the last Trading Day of the Valuation Period;
provided that (x) in respect of any conversion of Notes for which Physical Settlement is applicable, if the relevant Conversion Date occurs during the Valuation Period, references in the portion of this Section 11.04(c) related to
Spin-Offs to 10 Trading Days shall be deemed to be replaced with such lesser number of Trading Days as have elapsed between the Ex-Dividend Date of such Spin-Off and the Conversion Date in determining the Conversion Rate and (y) in respect of any
conversion of Notes for which Cash Settlement or Combination Settlement is applicable, subject to the immediately succeeding sentence, for any Trading Day that falls within the relevant Observation Period for such conversion and within the Valuation
Period, references in the portion of this Section 11.04(c) related to Spin-Offs to 10 Trading Days shall be deemed to be replaced with such lesser number of Trading Days as have elapsed between the Ex-Dividend Date of such Spin-Off and such
Trading Day in determining the Conversion Rate as of such Trading Day. If the Ex-Dividend Date of the Spin-Off is after the 10th Trading Day immediately preceding, and including, the end of any Observation Period in respect of a conversion of
Notes, references in the preceding paragraph to 10 Trading Days will be deemed to be replaced, solely in respect of that conversion of Notes, with such lesser number of Trading Days as have elapsed from, and including, the Ex-Dividend Date for the
Spin-Off to, and including, the last Trading Day of such Observation 

  
 -45- 

 
Period. If the distribution constituting the Spin-Off is not so paid or made, the Conversion Rate shall be decreased to the Conversion Rate that would be in effect if such distribution had
not been declared. 
 For purposes of this Section 11.04(c) (and subject in all respect to Section 11.09), rights, options or
warrants distributed by the Company to all holders of the Common Stock entitling them to subscribe for or purchase shares of the Company’s Capital Stock, including shares of Common Stock (either initially or under certain circumstances), which
rights, options 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 the Common Stock, shall be deemed not to have been distributed for purposes of this Section 11.04(c) (and no adjustment to the Conversion Rate under this Section 11.04(c) will be required) until the
occurrence of the earliest Trigger Event, whereupon such rights, options or 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 11.04(c). If any such right, option or warrant, including any such existing rights, options or warrants distributed prior to the date hereof, are subject to events, upon the occurrence of which such rights, options 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 Ex-Dividend Date with respect to new
rights, options or warrants with such rights (in which case the existing rights, options or warrants shall be deemed to terminate and expire on such date without exercise by any of the holders thereof). In addition, in the event of any
distribution (or deemed distribution) of rights, options or warrants, or any Trigger Event or other event (of the type described in the immediately 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 11.04(c) was made, (1) in the case of any such rights, options or warrants that shall all have been redeemed or purchased without exercise by any holders thereof, upon
such final redemption or purchase (x) the Conversion Rate shall be readjusted as if such rights, options or warrants had not been issued and (y) the Conversion Rate shall then again be readjusted to give effect to such distribution, deemed
distribution or Trigger Event, as the case may be, as though it were a cash distribution, equal to the per share redemption or purchase price received by a holder or holders of Common Stock with respect to such rights, options or warrants (assuming
such holder had retained such rights, options or warrants), made to all holders of Common Stock as of the date of such redemption or purchase, and (2) in the case of such rights, options 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, options and warrants had not been issued. 
 For
purposes of Section 11.04(a),Section 11.04(b) and this Section 11.04(c), if any dividend or distribution to which this Section 11.04(c) is applicable also includes one or both of: 

(A) a dividend or distribution of Common Stock to which Section 11.04(a) is applicable (the “Clause A
Distribution”); or 
 (B) a dividend or distribution of rights, options or warrants to which Section 11.04(b) is applicable
(the “Clause B Distribution”), 

  
 -46- 

 then, in either case, (1) such dividend or distribution, other than the Clause A Distribution and the
Clause B Distribution, shall be deemed to be a dividend or distribution to which this Section 11.04(c) is applicable (the “Clause C Distribution”) and any Conversion Rate adjustment required by this
Section 11.04(c) with respect to such Clause C Distribution shall then be made, and (2) the Clause A Distribution and Clause B Distribution shall be deemed to immediately follow the Clause C Distribution and any Conversion
Rate adjustment required by Section 11.04(a) and Section 11.04(b) with respect thereto shall then be made, except that, if determined by the Company (I) the “Ex-Dividend Date” of the Clause A Distribution and the
Clause B Distribution shall be deemed to be the Ex-Dividend Date of the Clause C Distribution and (II) any Common Stock included in the Clause A Distribution or Clause B Distribution shall be deemed not to be “outstanding
immediately prior to the open of business on such Ex-Dividend Date or Effective Date” within the meaning of Section 11.04(a) or “outstanding immediately prior to the open of business on such Ex-Dividend Date” within the meaning
of Section 11.04(b). 
 (d) If any cash dividend or distribution is made to all or substantially all holders of the Common Stock,
excluding any consideration payable in connection with a tender offer or exchange offer made by the Company or any of its Subsidiaries, the Conversion Rate shall be adjusted based on the following formula: 

 
 

 
 where, 
  

					
	CR0	  	=	  	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date for such dividend or distribution;
			
	CR’	  	=	  	the Conversion Rate in effect immediately after the open of business on the Ex-Dividend Date for such dividend or distribution;
			
	SP0	  	=	  	the Last Reported Sale Price of the Common Stock on the Trading Day immediately preceding the Ex-Dividend Date for such dividend or distribution; and
			
	C	  	=	  	the amount in cash per share the Company distributes to all or substantially all holders of the Common Stock.

 Any increase pursuant to this Section 11.04(d) shall become effective immediately after the open of business on the
Ex-Dividend Date for such dividend or distribution. If such dividend or distribution is not so paid, the Conversion Rate shall be decreased, effective as of the date the Board of Directors determines not to make or pay such dividend or
distribution, to be the Conversion Rate that would then be in effect if such dividend or distribution had not been declared. Notwithstanding the foregoing, if “C” (as defined above) is equal to or greater than “SP0” (as defined above), then, in lieu 

  
 -47- 

 
of the foregoing increase, each Holder of a Note shall receive, for each $1,000 principal amount of Notes it holds, at the same time and upon the same terms as holders of the Common Stock, the
amount of cash that such Holder would have received if such Holder owned a number of shares of Common Stock equal to the Conversion Rate in effect on the Ex-Dividend Date for such cash dividend or distribution. 

(e) If the Company or any of its Subsidiaries make a payment in respect of a tender or exchange offer for the Common Stock (other than an
odd-lot tender offer), to the extent that the cash and value of any other consideration included in the payment per share of Common Stock exceeds the average of the Last Reported Sale Prices of the Common Stock over the 10 consecutive Trading Day
period commencing on, and including, the Trading Day next succeeding the last date on which tenders or exchanges may be made pursuant to such tender or exchange offer, the Conversion Rate shall be increased based on the following formula: 

 
 

 
 where, 
  

					
	CR0	  	=	  	the Conversion Rate in effect immediately prior to the close of business on the 10th Trading Day immediately following, and including, the Trading Day next succeeding the date such tender or exchange offer expires;
			
	CR’	  	=	  	the Conversion Rate in effect immediately after the close of business on the 10th Trading Day immediately following, and including, the Trading Day next succeeding the date such tender or exchange offer expires;
			
	AC	  	=	  	the aggregate value of all cash and any other consideration (as determined by the Company in good faith) paid or payable for shares of Common Stock purchased in such tender or exchange offer;
			
	OS0	  	=	  	the number of shares of Common Stock outstanding immediately prior to the date such tender or exchange offer expires (prior to giving effect to the purchase of all shares of Common Stock accepted for purchase or exchange in such
tender or exchange offer);
			
	OS’	  	=	  	the number of shares of Common Stock outstanding immediately after the date such tender or exchange offer expires (after giving effect to the purchase of all shares of Common Stock accepted for purchase or exchange in such tender or
exchange offer); and
			
	SP’	  	=	  	the average of the Last Reported Sale Prices of the Common Stock over the 10 consecutive Trading Day period commencing on, and including, the Trading Day next succeeding the date such tender or exchange offer expires.

  
 -48- 

 The increase to the Conversion Rate under this Section 11.04(e) shall occur at the close of
business on the 10th Trading Day immediately following, and including, the Trading Day next succeeding the date such tender or exchange offer expires; provided that (x) in respect of any conversion of Notes for which Physical Settlement is
applicable, if the relevant Conversion Date occurs during the 10 Trading Days immediately following, and including, the Trading Day next succeeding the expiration date of any tender or exchange offer, references in this Section 11.04(e) with
respect to 10 Trading Days shall be deemed replaced with such lesser number of Trading Days as have elapsed between the date that such tender or exchange offer expires and the Conversion Date in determining the Conversion Rate and (y) in respect of
any conversion of Notes for which Cash Settlement or Combination Settlement is applicable, subject to the immediately succeeding sentence, for any Trading Day that falls within the relevant Observation Period for such conversion and within the 10
Trading Days immediately following, and including, the Trading Day next succeeding the expiration date of any tender or exchange offer, references in this Section 11.04(e) with respect to 10 Trading Days shall be deemed replaced with such
lesser number of Trading Days as have elapsed between the expiration date of such tender or exchange offer and such Trading Day in determining the Conversion Rate as of such Trading Day. In addition, if the Trading Day next succeeding the date
such tender or exchange offer expires is after the 10th Trading Day immediately preceding, and including, the end of any Observation Period in respect of a conversion of Notes, references in the preceding paragraph to 10 Trading Days shall be deemed
to be replaced, solely in respect of that conversion of Notes, with such lesser number of Trading Days as have elapsed from, and including, the Trading Day next succeeding the date such tender or exchange offer expires to, and including, the last
Trading Day of such Observation Period. 
 (f) Notwithstanding this Section 11.04 or any other provision of the Indenture or the Notes,
if a Conversion Rate adjustment for any event (i) becomes effective on any Ex-Dividend Date; (ii) a Note is to be converted pursuant to Physical Settlement or Combination Settlement; (iii) the Conversion Date for such conversion (in the case of
Physical Settlement) or any Trading Day in the Observation Period for such conversion (in the case of Combination Settlement) occurs on or after such Ex-Dividend Date or on or before the related Record Date; (iv) the consideration due upon
conversion (in the case of Physical Settlement) or due with respect to such Trading Day (in the case of Combination Settlement) includes any whole shares of Common Stock; and (v) the Holder of such Note would be treated, on such Record Date, as the
record holder of such shares of Common Stock based on an adjusted Conversion Rate that is adjusted for such event on such basis, then, such Conversion Rate adjustment will not be given effect for such conversion (in the case of Physical Settlement)
or for such Trading Day (in the case of Combination Settlement). Instead, such Holder shall be treated as if such Holder were, as of such Record Date, the record owner of such shares of Common Stock on an unadjusted basis and will participate
in such event. In addition, notwithstanding the foregoing, if (x) a Note is to be converted and, as of the Conversion Date for such conversion (in the case of Physical Settlement) or as of any Trading Day in the Observation Period for such
conversion (in the case of Combination Settlement), the Record Date or Effective Date for any event that requires an adjustment to the Conversion Rate as described above has occurred but an adjustment to the Conversion Rate for such event has not
yet become effective; (y) the consideration due upon such conversion (in the case of Physical Settlement) or due in respect of such Trading Day (in the case of Combination Settlement) consists of any whole shares of Common

  
 -49- 

 
Stock; and (z) such shares of Common Stock are not entitled to participate in such event (because they were not held on the related Record Date or otherwise), then, solely for purposes of such
conversion, the Company shall, without duplication, give effect to such adjustment on such Conversion Date (in the case of Physical Settlement) or such Trading Day (in the case of Combination Settlement). 

(g) Except as stated herein, the Company shall not adjust the Conversion Rate for the issuance of shares of Common Stock or any securities
convertible into or exchangeable for shares of Common Stock or the right to purchase shares of Common Stock or such convertible or exchangeable securities. 

(h) In addition to those adjustments required by clauses (a), (b), (c), (d) and (e) of this Section 11.04, and to the extent
permitted by applicable law and subject to the applicable rules of any exchange on which any of the Company’s securities are then listed, the Company from time to time may (but is not required to) increase the Conversion Rate by any amount for
a period of at least 20 Business Days if the Board of Directors determines that such increase would be in the Company’s best interest. In addition, to the extent permitted by applicable law and subject to the applicable rules of any
exchange on which any of the Company’s securities are then listed, the Company may (but is not required to) increase the Conversion Rate to avoid or diminish any income tax to holders of Common Stock or rights to purchase Common Stock in
connection with a dividend or distribution of shares of Common Stock (or rights to acquire shares of Common Stock) or similar event. Whenever the Conversion Rate is increased pursuant to either of the preceding two sentences, the Company shall
mail to the Holder of each Note at its last address appearing on the Note Register a notice of the increase at least 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) Except as described in this Article 11, the Conversion Rate shall not be
adjusted. Without limiting the foregoing, the Conversion Rate shall not be required to be adjusted: 
 (i) upon the issuance of Common
Stock at a price below the Conversion Price or otherwise; 
 (ii) upon the issuance of any shares of Common Stock pursuant to any present or
future plan providing for the reinvestment of dividends or interest payable on the Company’s securities and the investment of additional optional amounts in Common Stock under any plan; 

(iii) upon the issuance of any shares of Common Stock or options or rights to purchase those shares pursuant to any present or future
employee, director or consultant benefit plan or program of or assumed by the Company or any of the Company’s Subsidiaries; 
 (iv)
upon the issuance of any shares of Common Stock pursuant to any option, warrant, right or exercisable, exchangeable or convertible security not described in clause (ii) of this subsection and outstanding as of the date the Notes were first
issued; 

  
 -50- 

 (v) for a third-party tender offer by any party other than a tender offer by one or more
Subsidiaries of the Company as described in Section 11.04(e); 
 (vi) upon the repurchase of any shares of Common Stock pursuant to an open
market share purchase program or other buy-back transaction, including structured or derivative transactions, that is not a tender offer or exchange offer of the kind described in Section 11.04(e) above; 

(vii) as a result of a tender offer solely to holders of fewer than 100 shares of Common Stock; 

(viii) solely for a change in the par value of the Common Stock; or 

(ix) for accrued and unpaid interest, if any. 

(j) All calculations and other determinations under this Article 11 shall be made by the Company and shall be made to the nearest one-ten
thousandth (1/10,000th) of a share. If an adjustment to the Conversion Rate otherwise required under this Article 11 would result in a change of less than 1% to the Conversion Rate, then, notwithstanding the foregoing, the Company may, at its
election, defer and carry forward such adjustment, except that all such deferred adjustments must be given effect immediately upon the earliest to occur of the following: (i) when such deferred adjustments would result in an aggregate change of at
least 1% to the Conversion Rate, or (ii) the Conversion Date of, or any Trading Day of an Observation Period for any Note; (iii) the date a Fundamental Change or Make-Whole Fundamental Change occurs; and (iv) June 1, 2026. The provisions
described in the preceding sentence are referred to herein as the “1% Provision.”
 (k) Whenever the Conversion Rate is
adjusted as herein provided, the Company shall promptly file with the Trustee (and the Conversion Agent if not 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 without inquiry 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 each Holder at its last address appearing on the Note Register of the Indenture. 

(l) For purposes of this Section 11.04, the number of shares of Common Stock at any time outstanding shall not include shares of Common
Stock held in the treasury of the Company so long as the Company does not pay any dividend or make any distribution on the shares of Common Stock held in the treasury of the Company, but shall include shares of Common Stock issuable in respect of
scrip certificates issued in lieu of fractional shares of Common Stock. 

  
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 Section 11.05 Adjustments of Prices. Whenever any provision
of the Indenture requires the Company to calculate the Last Reported Sale Prices, the Daily VWAPs, the Daily Conversion Values or the Daily Settlement Amounts over a span of multiple days (including an Observation Period and the period for
determining the Stock Price for purposes of a Make-Whole Fundamental Change), the Company shall make appropriate adjustments in its good faith judgment to each calculation to account for any adjustment to the Conversion Rate that becomes effective,
or any event requiring an adjustment to the Conversion Rate as provided in Section 11.04 where the Ex-Dividend Date, effective time, Effective Date or expiration date, as the case may be, of the event occurs, at any time during the period when the
Last Reported Sale Prices, the Daily VWAPs, the Daily Conversion Values or the Daily Settlement Amounts are to be calculated. 
 For the
avoidance of doubt, the adjustments made pursuant to the foregoing paragraph will be made, solely to the extent the Company determines in its good faith judgment that any such adjustment is necessary, without duplication of any adjustment made
Section 11.04. 
 Section 11.06 Effect of Recapitalizations, Reclassifications and Changes of the Common
Stock.
 (a) In the case of: 

(i) any recapitalization, reclassification or change of the Common Stock (other than a change to par value, or from par value to no par value,
or changes resulting from a subdivision or combination), 
 (ii) any consolidation, merger, combination or similar transaction involving the
Company, 
 (iii) any sale, lease or other transfer to a third party of the consolidated assets of the Company and the Company’s
Subsidiaries substantially as an entirety, or 
 (iv) any statutory share exchange, 

in each case, as a result of which the Common Stock would be converted into, or exchanged for, stock, other securities, other property or assets, including
cash or any combination thereof (any such transaction, a “Common Stock Change Event”), then, at and after the effective time of such Common Stock Change Event, the Company or the successor or acquiring corporation, as the case may
be, shall execute a supplemental indenture with the Trustee, without the consent of the Holders, providing that the right to convert each $1,000 principal amount of Notes shall be changed into a right to convert such principal amount of Notes into
the kind and amount of shares of stock, other securities or other property or assets (including cash or any combination thereof) that a holder of a number of shares of Common Stock equal to the Conversion Rate immediately prior to such Common Stock
Change Event would have owned or been entitled to receive (the “Reference Property,” with each “unit of Reference Property” meaning the kind and amount of Reference Property that a holder of one share of Common Stock is
entitled to receive) upon such Common Stock Change Event and, prior to or at the effective time of such Common Stock Change Event, the 

  
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Company or the successor or purchasing Person, as the case may be, shall execute with the Trustee a supplemental indenture permitted under Section 9.02(h) providing for such change in the
right to convert each $1,000 principal amount of Notes; provided, however, that at and after the effective time of the Common Stock Change Event (A) the Company shall continue to have the right to elect Physical Settlement, Cash
Settlement or Combination Settlement with respect to conversions in accordance with Section 11.02 and (B) (I) any amount payable in cash upon conversion of the Notes in accordance with Section 11.02 shall continue to be payable in
cash, (II) any shares of Common Stock that the Company would have been required to deliver upon conversion of the Notes in accordance with Section 11.02 shall instead be deliverable in the amount and type of Reference Property that a holder of
that number of shares of Common Stock would have been entitled to receive in such Common Stock Change Event, (III) the Daily VWAP shall be calculated based on the value of the kind and amount of Reference Property and (IV) the conditions to
conversion pursuant to Section 11.01(b)(iii) and Section 11.01(b)(iv) shall be determined as if each reference to a share of Common Stock were instead a reference to a unit of Reference Property. 

If the Common Stock Change Event causes the Common Stock to be converted into, or exchanged for, the right to receive more than a single type
of consideration (determined based in part upon any form of shareholder election), then (i) the Reference Property will be deemed to be (x) the weighted average of the types and amounts of consideration received by the holders of Common Stock
that affirmatively make such an election or (y) if no holders of Common Stock affirmatively make such an election, the types and amounts of consideration actually received by the holders of Common Stock, and (ii) the unit of Reference Property
for purposes of the immediately preceding paragraph shall refer to the consideration referred to in clause (i) attributable to one share of Common Stock. The Company shall notify Holders, the Trustee and the Conversion Agent (if other than
the Trustee) of the composition of the unit of Reference Property as soon as reasonably practicable after such determination is made. If the holders of the Common Stock receive only cash in such Common Stock Change Event, then for all
conversions for which the relevant Conversion Date occurs after the effective date of such Common Stock Change Event (A) the consideration due upon conversion of each $1,000 principal amount of Notes shall be solely cash in an amount equal to
the Conversion Rate in effect on the Conversion Date (as may be increased by any Additional Shares pursuant to Section 11.03), multiplied by the cash price paid per share of Common Stock in such Common Stock Change Event and (B) the
Company shall satisfy the Conversion Obligation by paying cash to converting Holders on or before the third Business Day immediately following the relevant Conversion Date. The Company shall not become party to any Common Stock Change Event
unless its terms are consistent with this Section 11.06. 
 Such supplemental indenture described in the second immediately preceding
paragraph shall provide for anti-dilution and other adjustments that shall be as nearly equivalent as is possible to the adjustments provided for in this Article 11 in a manner that the Company shall reasonably deem appropriate to preserve the
economic interests of Holders. If, in the case of any Common Stock Change Event, the Reference Property includes shares of stock, securities or other property or assets (including cash or any combination thereof) of a Person other than the
successor or purchasing corporation, as the case may be, in such Common Stock Change Event, then such supplemental indenture shall also be executed by such other Person and shall contain such additional provisions to

  
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protect the interests of the Holders of the Notes as the Company shall reasonably consider necessary by reason of the foregoing, including the provisions providing for the purchase rights set
forth in Article 12. 
 (b) When the Company executes a supplemental indenture pursuant to subsection (a) of this
Section 11.06, the Company shall promptly file with the Trustee an Officer’s Certificate briefly stating the reasons therefor, the kind or amount of cash, securities or property or assets that will comprise a unit of Reference Property
after any such Common Stock Change Event, any adjustment to be made with respect thereto and that all conditions precedent have been complied with, and shall promptly mail notice thereof to all Holders. Failure to deliver such notice shall not
affect the legality or validity of such supplemental indenture. 
 (c) The Company shall not become a party to any Common Stock Change Event
unless its terms are consistent with this Section 11.06. None of the foregoing provisions shall affect the right of a holder of Notes to convert its Notes into cash, shares of Common Stock or a combination of cash and shares of Common
Stock, as applicable, as set forth in Section 11.01 and Section 11.02 prior to the effective date of such Common Stock Change Event. 

(d) The above provisions of this Section shall similarly apply to successive Common Stock Change Events. 

Section 11.07 Certain Covenants. 

(a) The Company covenants that all shares of Common Stock issued upon conversion of Notes will be fully paid and non-assessable by the Company
and free from all taxes, liens and charges with respect to the issue thereof. 
 (b) 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 conversion of the Notes from time to time as such Notes are presented for conversion (assuming delivery of the maximum number of
Additional Shares pursuant to Section 11.03 and that at the time of computation of such number of shares, all such Notes would be converted by a single Holder and that Physical Settlement were applicable). 

(c) The Company further covenants that if at any time the shares of Common Stock shall be listed on any national securities exchange or
automated quotation system the Company will use its reasonable efforts to list and keep listed, so long as the shares of Common Stock shall be so listed on such exchange or automated quotation system, any shares of Common Stock issuable upon
conversion of the Notes. 
 Section 11.08 Responsibility of Trustee. The Trustee and any other
Conversion Agent shall not at any time be under any duty or responsibility to any Holder to determine the Conversion Rate (or any adjustment thereto) or whether any facts exist that may require any adjustment (including any increase) 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 

  
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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, property or cash that 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. 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 11.06 relating either to the kind or amount of shares of stock or securities or
property (including cash) receivable by Holders upon the conversion of their Notes after any event referred to in such Section 11.06 or to any adjustment to be made with respect thereto, but, subject to the provisions of Section 7.1 of the
Base Indenture, may accept (without any independent investigation) 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. Neither the Trustee nor the Conversion Agent shall be responsible for determining whether any event contemplated by Section 11.01(b) has
occurred that makes the Notes eligible for conversion or no longer eligible therefor until the Company has delivered to the Trustee and the Conversion Agent the notices referred to in Section 11.01(b) with respect to the commencement or
termination of such conversion rights, on which notices the Trustee and the Conversion Agent may conclusively rely, and the Company agrees to deliver such notices to the Trustee and the Conversion Agent immediately after the occurrence of any such
event or at such other times as shall be provided for in Section 11.01(b). The Trustee shall forward calculations of the Company to any Holder upon the request of such Holder at the sole cost and expense of the Company. Neither the
Trustee nor the Conversion Agent shall be accountable for and make any representation as to the validity or value of any securities or assets issued upon conversion of the Notes. 

Section 11.09 Stockholder Rights Plans. If the Company has a stockholder rights plan in effect upon
conversion of the Notes, each share of Common Stock, if any, issued upon such conversion shall be entitled to receive the appropriate number of rights, if any, and the certificates representing the shares of Common Stock issued upon such conversion
shall bear such legends, if any, in each case as may be provided by the terms of any such stockholder rights plan, as the same may be amended from time to time. However, if, prior to any conversion of Notes, the rights have separated from the
Common Stock in accordance with the provisions of the applicable stockholder rights plan, the Conversion Rate shall be adjusted at the time of separation as if the Company distributed to all or substantially all holders of the Common Stock
Distributed Property as provided in Section 11.04(c), subject to readjustment in the event of the expiration, termination or redemption of such rights. 

  
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 Section 11.10 Exchange in Lieu of Conversion.

(a) When a Holder surrenders its Notes for conversion, the Company may, at its election (an “Exchange Election”), direct the
Conversion Agent to surrender, on or prior to the second Business Day following the Conversion Date, such Notes to a financial institution designated by the Company for exchange in lieu of conversion. In order to accept any Notes surrendered
for conversion, the designated institution must agree to timely deliver, in exchange for such Notes, cash, shares of Common Stock or a combination of cash and shares of Common Stock, at its election, that would otherwise be due upon conversion
pursuant to Section 11.02 (the “Conversion Consideration”). If the Company makes an Exchange Election, the Company shall, by the close of business on the second Business Day following the relevant Conversion Date, notify the Holder
surrendering its Notes for conversion that the Company has made the Exchange Election and the Company shall notify the Designated Institution of the relevant deadline for delivery of the Conversion Consideration. Any notes exchanged by the
Designated Institution shall remain outstanding, subject to applicable Depositary procedures. 
 (b) If the Designated Institution agrees to
accept any Notes for exchange but does not timely deliver the related Conversion Consideration, or if such Designated Institution does not accept the Notes for exchange, the Company shall deliver the relevant Conversion Consideration as if the
Company had not made an Exchange Election. 
 (c) For the avoidance of doubt, in no event shall the Company’s designation of a
Designated Institution pursuant to this Section 11.10 require such institution to accept any Notes for exchange. 
 ARTICLE 12

 REPURCHASE OF NOTES AT OPTION OF HOLDERS 

Section 12.01 Repurchase at Option of Holders Upon a Fundamental Change.

(a) If a Fundamental Change occurs at any time prior to the Maturity Date, each Holder shall have the right, at such Holder’s option, to
require the Company to repurchase for cash all of such Holder’s Notes, or any portion thereof that is equal to minimum denominations of $1,000 or an integral multiple of $1,000, on the date (the “Fundamental Change Repurchase
Date”) specified by the Company that is not less than 20 Business Days or more than 35 Business Days following the date of the Fundamental Change Company Notice at a repurchase price equal to 100% of the principal amount thereof, plus
accrued and unpaid interest thereon to, but excluding, the Fundamental Change Repurchase Date (the “Fundamental Change Repurchase Price”), unless the Fundamental Change Repurchase Date falls after a Regular Record Date but on or
prior to the Interest Payment Date to which such Regular Record Date relates, in which case the Company shall instead pay the full amount of accrued and unpaid interest to Holders of record as of such Regular Record Date, and the Fundamental Change
Repurchase Price shall be equal to 100% of the principal amount of Notes to be repurchased pursuant to this Article 12. The Fundamental Change Repurchase Date shall be subject to postponement by the Company in order to allow the Company to
comply with applicable law as a result of changes to such applicable law occurring after the date hereof. 
 (b) Repurchases of Notes under
this Section 12.01 shall be made, at the option of the Holder thereof, upon: 
 (i) delivery to the Paying Agent by a Holder of a duly
completed notice (the “Fundamental Change Repurchase Notice”) in the form set forth in Attachment 2 to the Form of Note attached hereto as Exhibit A, if the Notes are Physical Notes, or in compliance with the Depositary’s
procedures for surrendering interests in Global Notes, if the Notes are Global Notes, in each case on or before the close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date; and 

  
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 (ii) delivery of the Notes, if the Notes are Physical Notes, to the Paying Agent at any time
after delivery of the Fundamental Change Repurchase Notice (together with all necessary endorsements for transfer) at the Corporate Trust Office of the Trustee (or, if at any time the Trustee is not serving as the Paying Agent, such corporate office
or agency as shall be designated by the Paying Agent), or book-entry transfer of the Notes, if the Notes are Global Notes, in compliance with the procedures of the Depositary, in each case such delivery being a condition to receipt by the Holder of
the Fundamental Change Repurchase Price therefor. 
 The Fundamental Change Repurchase Notice in respect of any Notes to be repurchased
shall state: 
 (i) in the case of Physical Notes, the certificate numbers of the Notes to be delivered for repurchase; 

(ii) the portion of the principal amount of Notes to be repurchased, which must be $1,000 or an integral multiple thereof; and 

(iii) that the Notes are to be repurchased by the Company pursuant to the applicable provisions of the Notes and the Indenture; 

provided, however, that if the Notes are Global Notes, the Fundamental Change Repurchase Notice must comply with the procedures of the
Depositary in effect at such time. 
 Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the
Fundamental Change Repurchase Notice contemplated by this Section 12.01 shall have the right to withdraw, in whole or in part, such Fundamental Change Repurchase Notice at any time prior to the close of business on the Business Day immediately
preceding the Fundamental Change Repurchase Date by delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 12.02. 

The Paying Agent shall promptly notify the Company of the receipt by it of any Fundamental Change Repurchase Notice or written notice of
withdrawal thereof. 
 (c) On or before the 20th calendar day after the occurrence of the effective date of a Fundamental Change, the
Company shall provide to all Holders of Notes and the Trustee and the Paying Agent (in the case of a Paying Agent other than the Trustee) a notice (the “Fundamental Change Company Notice”) of the occurrence of the effective date of
the Fundamental Change and of the repurchase right at the option of the Holders arising as a result thereof. In the case of Physical 

  
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Notes, such notice shall be by first class mail or, in the case of Global Notes, such notice shall be delivered in accordance with the applicable procedures of the Depositary. Each
Fundamental Change Company Notice shall specify: 
 (i) the events causing the Fundamental Change; 

(ii) the effective date of the Fundamental Change; 

(iii) the last date on which a Holder may exercise the repurchase right pursuant to this Article 12; 

(iv) the Fundamental Change Repurchase Price; 

(v) the Fundamental Change Repurchase Date; 

(vi) the name and address of the Paying Agent and the Conversion Agent, if applicable; 

(vii) if applicable, the Conversion Rate and any adjustments to the Conversion Rate as a result of the Fundamental Change; 

(viii) that the Notes with respect to which a Fundamental Change Repurchase Notice has been delivered by a Holder may be converted only if the
Holder withdraws the Fundamental Change Repurchase Notice in accordance with the terms of the Indenture; and 
 (ix) the procedures that
Holders must follow to require the Company to repurchase their Notes. 
 No failure of the Company to give the foregoing notices and no
defect therein shall limit the Holders’ repurchase rights or affect the validity of the proceedings for the repurchase of the Notes pursuant to this Section 12.01. 

At the Company’s request, the Trustee shall give such notice in the Company’s name and at the Company’s expense;
provided, however, that, in all cases, the text of such Fundamental Change Company Notice shall be prepared by the Company. 

(d) Notwithstanding the foregoing, the Company shall not be required to repurchase, or to make an offer to repurchase, the Notes upon a
Fundamental Change if a third party makes such an offer in the same manner, at the same time and otherwise in compliance with the requirements for an offer made by the Company as set forth in this Article 12, and such third party purchases all Notes
properly surrendered and not validly withdrawn under its offer in the same manner, at the same time and otherwise in compliance with the requirements for an offer made by the Company as set forth in this Article 12. 

(e) Notwithstanding the foregoing, the Company shall not be required to give such notice or repurchase the Notes as described in Section
12.01(c) upon a Fundamental Change pursuant to 

  
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clause (b) of the definition thereof if (1) such Fundamental Change results in the Notes becoming convertible (pursuant to Section 11.06) into an amount of cash per Note (which is a fixed
aggregate amount of cash that is required to be delivered upon conversion under the supplemental indenture for such Fundamental Change, excluding any cash payable as a result of any Settlement Method election or cash paid in lieu of fractional
shares) greater than the Fundamental Change Repurchase Price (assuming the maximum amount of accrued interest would be payable based on the latest possible Fundamental Change Repurchase Date) and (2) the Company provides timely notice of the
Holders’ right to convert their Notes based on such Fundamental Change as described in Section 11.01(b)(iii); provided, that in the event the Company shall not be required to give such notice or repurchase the Notes pursuant to this
Section 12.01(e), for purposes of determining the Make-Whole Fundamental Change Period, a conversion shall be deemed “in connection with” if the relevant Notice of Conversion is received by the Conversion Agent from, and including, the
Effective Date of the Make-Whole Fundamental Change up to, and including, the Business Day immediately prior to the related Fundamental Change Repurchase Date that would have occurred but for the provisions of this Section 12.01(e). 

(f) Notwithstanding the foregoing, no Notes may be repurchased by the Company on any date at the option of the Holders upon a Fundamental
Change if the principal amount of the Notes has been accelerated, and such acceleration has not been rescinded, on or prior to such date (except in the case of an acceleration resulting from a Default by the Company in the payment of the Fundamental
Change Repurchase Price with respect to such Notes). The Paying Agent will promptly return to the respective Holders thereof any Physical Notes held by it during the acceleration of the Notes (except in the case of an acceleration resulting
from a Default by the Company in the payment of the Fundamental Change Repurchase Price with respect to such Notes), or any instructions for book-entry transfer of the Notes in compliance with the procedures of the Depositary shall be deemed to have
been cancelled, and, upon such return or cancellation, as the case may be, the Fundamental Change Repurchase Notice with respect thereto shall be deemed to have been withdrawn. 

Section 12.02 Withdrawal of Fundamental Change Repurchase Notice. (a) A Fundamental Change Repurchase Notice
delivered by Holders of Physical Notes may be withdrawn (in whole or in part) by means of a written notice of withdrawal delivered to the Corporate Trust Office of the Trustee (or, if at any time the Trustee is not serving as the Paying Agent, such
corporate office or agency as shall be designated by the Paying Agent) in accordance with this Section 12.02 at any time prior to the close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date, specifying:

 (i) the principal amount of the Notes with respect to which such notice of withdrawal is being submitted, which portion must be $1,000 or
a multiple thereof; 
 (ii) if Physical Notes have been issued, the certificate number of the Note in respect of which such notice of
withdrawal is being submitted, and 
 (iii) the principal amount, if any, of such Note that remains subject to the original Fundamental
Change Repurchase Notice, which portion must be $1,000 or a multiple thereof; 

  
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 provided, however, that if the Notes are Global Notes, the notice must comply with the applicable
procedures of the Depositary. 
 Section 12.03 Deposit of Fundamental Change Repurchase
Price. (a) 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 4.03) on or
prior to 11:00 a.m., New York City time, on the Fundamental Change Repurchase Date an amount of money sufficient (as determined by the Company) to repurchase all of the Notes to be repurchased at the appropriate Fundamental Change Repurchase
Price. 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 close of business on the Business Day immediately
preceding the Fundamental Change Repurchase Date) will be made on the later of (i) the Fundamental Change Repurchase Date (provided the Holder has satisfied the conditions in Section 12.01) and (ii) the time of book-entry
transfer or the 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 12.01 by mailing checks for the amount payable to the Holders of such Notes entitled
thereto as they shall appear in the Note Register; provided, however, that payments to the Depositary shall be made by wire transfer of immediately available funds to the account of the Depositary or its nominee. The Trustee
shall, promptly after such payment and upon written demand by the Company, return to the Company any funds in excess of the Fundamental Change Repurchase Price. 

(b) If by 11:00 a.m., New York City time, on the Fundamental Change Repurchase Date, the Trustee (or other Paying Agent appointed by the
Company) holds money sufficient to make payment on all the Notes or portions thereof that are to be repurchased on such Fundamental Change Repurchase Date, then, with respect to the Notes that have been properly surrendered for repurchase and have
not been validly withdrawn, (i) such Notes will cease to be outstanding, (ii) interest will cease to accrue on such Notes (whether or not book-entry transfer of the Notes has been made or the Notes have been delivered to the Trustee or
Paying Agent) and (iii) all other rights of the Holders of such Notes will terminate (other than the right to receive the Fundamental Change Repurchase Price and, if applicable, accrued and unpaid interest). 

(c) Upon surrender of a Note that is to be repurchased in part pursuant to Section 12.01, the Company shall execute and the Trustee shall
authenticate and deliver to the Holder a new Note in an authorized denomination equal in principal amount to the unrepurchased portion of the Note surrendered. 

Section 12.04 Covenant to Comply with Applicable Laws upon Repurchase of Notes. In connection with any
repurchase offer, the Company will comply with applicable federal and state securities laws so as to permit the rights and obligations under this Article 12 to be exercised in the time and in the manner specified herein. 

  
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 ARTICLE 13 

NO REDEMPTION 

Section 13.01 No Redemption. Article 3 of the Base Indenture shall not apply to the Notes. The
Notes shall not be redeemable by the Company prior to the Maturity Date, and no sinking fund is provided for the Notes. 
 ARTICLE 14

 MISCELLANEOUS PROVISIONS 

Section 14.01 Provisions Binding on Company’s Successors. All agreements of the
Company in this First Supplemental Indenture and the Notes shall bind its successors. All agreements of the Trustee in this First Supplemental Indenture shall bind its successors. 

Section 14.02 Official Acts by Successor Corporation. Any act or proceeding by any provision of the
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 corporation or other entity that
shall at the time be the lawful sole successor of the Company. 
 Section 14.03 Governing Law;
Jurisdiction. (a) Section 10.10 of the Base Indenture shall not apply to the Notes. 
 (b) THE INDENTURE AND EACH NOTE,
AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THE INDENTURE AND EACH NOTE, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

The Company irrevocably consents and agrees, for the benefit of the Holders from time to time of the Notes and the Trustee, that any legal
action, suit or proceeding against it with respect to obligations, liabilities or any other matter arising out of or in connection with the Indenture or the Notes may be brought in the courts of the State of New York or the courts of the United
States located in the Borough of Manhattan, New York City, New York and, until amounts due and to become due in respect of the Notes have been paid, hereby irrevocably consents and submits to the non-exclusive jurisdiction of each such court in
personam, generally and unconditionally with respect to any action, suit or proceeding for itself in respect of its properties, assets and revenues. 

The Company irrevocably and unconditionally waives, to the fullest extent permitted by law, any objection which it may now or hereafter have
to the laying of venue of any of the aforesaid actions, suits or proceedings arising out of or in connection with the Indenture brought in the courts of the State of New York or the courts of the United States located in the Borough of Manhattan,
New York City, New York and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. 

  
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 Section 14.04 Legal Holidays. Section 10.7 of the Base
Indenture shall not apply to the Notes. In any case where any Interest Payment Date, Fundamental Change Repurchase Date or Maturity Date is not a Business Day, then any action to be taken on such date need not be taken on such date, but may be
taken on the next succeeding Business Day with the same force and effect as if taken on such date, and no interest shall accrue in respect of the delay. 

Section 14.05 No Security Interest Created. Nothing in the Indenture or in the Notes, expressed 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. 

Section 14.06 Benefits of Indenture. Nothing in the Indenture or in the Notes, expressed or implied,
shall give to any Person, other than the Holders, the parties hereto, any Paying Agent, any Conversion Agent, any authenticating agent, any Registrar and their successors hereunder, any benefit or any legal or equitable right, remedy or claim under
the Indenture. 
 Section 14.07 Table of Contents, Headings, Etc. The table of contents and the titles
and headings of the articles and sections of this First Supplemental 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 14.08 Execution in Counterparts. This First Supplemental 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. The exchange of copies of this First Supplemental Indenture and of signature pages by facsimile
or PDF transmission shall constitute effective execution and delivery of this First Supplemental Indenture as to the parties hereto and may be used in lieu of the original First Supplemental Indenture for all purposes. Signatures of the parties
hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes. 

Section 14.09 Severability. In the event any provision of this First Supplemental Indenture or in the
Notes shall be invalid, illegal or unenforceable, the validity, legality or enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

Section 14.10 Waiver of Jury Trial. THE COMPANY, THE TRUSTEE AND THE HOLDERS (BY THEIR ACCEPTANCE OF THE
SECURITIES) EACH HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS FIRST SUPPLEMENTAL INDENTURE, THE NOTES OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY. 
 Section 14.11 USA PATRIOT Act. The parties hereto acknowledge that
in accordance with Section 326 of the U.S.A. Patriot Act, the Trustee is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Trustee. The
parties to the Indenture agree that they will provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements of the U.S.A. Patriot Act. 

[Remainder of page intentionally left blank] 

  
 -62- 

 IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly
executed as of the date first written above. 
  

			
	ADVANCED MICRO DEVICES, INC.
		
	By:	 	 /s/ Devinder Kumar

	Name:	 	Devinder Kumar
	Title:	 	Senior Vice President, Chief Financial Officer and Treasurer

 IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly
executed as of the date first written above. 
  

			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

		
	By:	 	 /s/ Maddy Hughes

	Name:	 	Maddy Hughes
	Title:	 	Vice President

 EXHIBIT A 

[FORM OF FACE OF NOTE] 
 [INCLUDE
FOLLOWING LEGEND IF A GLOBAL NOTE] 
 [THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY. THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE,
AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY
OR A NOMINEE OF SUCH A SUCCESSOR DEPOSITARY. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), 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 HEREUNDER 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 INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 

  
 A-1 

 Advanced Micro Devices, Inc. 

2.125% Convertible Senior Note due 2026 
  

			
	No. [    ]	 	[Initially]1 $[        ]

 CUSIP No. 

Advanced Micro Devices, Inc., a corporation duly organized and validly existing under the laws of the State of Delaware (the
“Company,” which term includes any successor corporation or other entity under the Indenture referred to on the reverse hereof), for value received hereby promises to pay to [CEDE & CO.]2 [    ]3, or registered assigns, the principal sum [as set forth in the “Schedule of Exchanges of Notes” attached
hereto]4 [of $[        ]]5, which amount, taken together with the principal amounts of all other
outstanding Notes, shall not, unless permitted by the Indenture, exceed $700,000,000 in aggregate at any time (or $805,000,000 if the Underwriters exercise their option to purchase additional Notes in full as set forth in the Underwriting
Agreement), in accordance with the rules and procedures of the Depositary, on September 1, 2026, and interest thereon as set forth below. 

This Note shall bear interest at the rate of 2.125% per year from September 14, 2016, or from the most recent date to which interest had been
paid or provided for to, but excluding, the next scheduled Interest Payment Date until September 1, 2026. Interest is payable semi-annually in arrears on each March 1 and September 1, commencing on March 1, 2017, to Holders of record at
the close of business on the preceding February 15 and August 15 (whether or not such day is a Business Day), respectively. Additional Interest will be payable as set forth in Section 5.04 of the within-mentioned First
Supplemental Indenture, and any reference to interest on, or in respect of, any Note therein shall be deemed to include Additional Interest if, in such context, Additional Interest is, was or would be payable pursuant to Section 5.04, and any
express mention of the payment of Additional Interest in any provision therein shall not be construed as excluding Additional Interest in those provisions thereof where such express mention is not made. 

The Company shall pay the principal of and interest on this Note, if and so long as such Note is a Global Note, in immediately available funds
to the Depositary or its nominee, as the case may 
  

	1 	Include if a global note. 

	2 	Include if a global note. 

	3 	Include if a physical note. 

	4 	Include if a global note. 

	5 	Include if a physical note. 

  
 A-2 

 
be, as the registered Holder of such Note. As provided in and subject to the provisions of the Indenture, the Company shall pay the principal of any Notes (other than Notes that are Global Notes)
at the office or agency designated by the Company for that purpose. The Company has initially designated the Trustee as its Paying Agent and Registrar in respect of the Notes and the Corporate Trust Office of the Trustee as a place where Notes may
be presented for payment or for registration of transfer and exchange. 
 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, shares of Common Stock or a combination of cash and shares of Common Stock, as applicable, on the terms and
subject to the limitations set forth in the Indenture. Such further provisions shall for all purposes have the same effect as though fully set forth at this place. 

This Note, and any claim, controversy or dispute arising under or related to this Note, shall be construed in accordance with and governed by
the laws of the State of New York (without regard to the conflicts of laws provisions thereof). 
 In the case of any conflict between this
Note and the Indenture, the provisions of the Indenture shall control and govern. 
 This Note shall not be valid or become obligatory for
any purpose until the certificate of authentication hereon shall have been signed manually by the Trustee or a duly authorized authenticating agent under the Indenture. 

[Remainder of page intentionally left blank] 

  
 A-3 

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

 

			
	ADVANCED MICRO DEVICES, INC.
		
	By:	 	  

		 	Name:
		 	Title:

  

			
	Dated:	 	
	
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION as Trustee, certifies that this is one of the Notes described in the within-named Indenture.

			
		
	By:	 	  

		 	Authorized Signatory

  
 A-4 

 [FORM OF REVERSE OF NOTE] 

Advanced Micro Devices, Inc. 

2.125% Convertible Senior Note due 2026 

This Note is one of a duly authorized issue of Notes of the Company, designated as its 2.125% Convertible Senior Notes due 2026 (the
“Notes”), limited to the aggregate principal amount of $700,000,000 (as increased by an amount equal to the aggregate principal amount of any additional Notes purchased by the Underwriters pursuant to the exercise of their option to
purchase additional Notes as set forth in the Underwriting Agreement) all issued or to be issued under and pursuant to the First Supplemental Indenture dated as of September 14, 2016 (the “First Supplemental Indenture”), between the
Company and Wells Fargo Bank, National Association (the “Trustee”), which amends and supplements the Indenture dated as of September 14, 2016 between the Company and the Trustee (the “Base Indenture” and, as amended
and supplemented by the First Supplemental Indenture and from time to time with respect to the Notes, the “Indenture”) 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. Additional Notes may be issued in an unlimited aggregate principal amount, subject to certain conditions
specified in the Indenture. Capitalized terms used in this Note and not defined in this Note shall have the respective meanings set forth in the Indenture. 

In case certain Events of Default shall have occurred and be continuing, the principal of, and interest on, all Notes may be declared, by
either the Trustee or Holders of at least 25% in aggregate principal amount of Notes then outstanding, and upon said declaration shall become, due and payable, in the manner, with the effect and subject to the conditions and certain exceptions set
forth in the Indenture. 
 Subject to the terms and conditions of the Indenture, the Company will make all payments and deliveries in
respect of the Fundamental Change Repurchase Price on the Fundamental Change Repurchase Date and the principal amount on the Maturity Date, as the case may be, to the Holder who surrenders a Note to a Paying Agent to collect such payments in respect
of the Note. The Company will pay cash amounts in money of the United States that at the time of payment is legal tender for payment of public and private debts. 

The Indenture contains provisions permitting the Company and the Trustee in certain circumstances, without the consent of the Holders of the
Notes, and in certain other circumstances, with the consent of the Holders of not less than a majority in aggregate principal amount of the Notes at the time outstanding, evidenced as in the Indenture provided, to execute supplemental indentures
modifying the terms of the Indenture and the Notes as described therein. It is also provided in the Indenture that, subject to certain exceptions, the Holders of a majority in 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. 

  
 A-5 

 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 or deliver, as the case may be, the principal (including the Fundamental Change Repurchase Price, if applicable) of, accrued and unpaid interest on, and the
consideration due upon conversion of, this Note at the place, at the respective times, at the rate and in the lawful money or shares of Common Stock, as the case may be, herein prescribed. 

The Notes are issuable in registered form without coupons in denominations of $1,000 principal amount and integral multiples thereof. 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, Notes may be exchanged for a like aggregate principal amount of Notes of other authorized denominations,
without payment of any service charge but, if required by the Company or Trustee, with payment of a sum sufficient to cover any transfer or similar tax that may be imposed in connection therewith as a result of the name of the Holder of the new
Notes issued upon such exchange of Notes being different from the name of the Holder of the old Notes surrendered for such exchange. 
 The
Notes are not subject to redemption through the operation of any sinking fund or otherwise. 
 Upon the occurrence of a Fundamental Change,
the Holder has the right, at such Holder’s option, to require the Company to repurchase for cash all of such Holder’s Notes or any portion thereof (in principal amounts of $1,000 or integral multiples thereof) on the Fundamental Change
Repurchase Date at a price equal to the Fundamental Change Repurchase Price. 
 Subject to the provisions of the Indenture, the Holder
hereof has the right, at its option, during certain periods and upon the occurrence of certain conditions specified in the Indenture, prior to the close of business on the Business Day immediately preceding the Maturity Date, to convert any Notes or
portion thereof that is $1,000 or an integral multiple thereof, into cash, shares of Common Stock or a combination of cash and shares of Common Stock, as applicable, at the Conversion Rate specified in the Indenture, as adjusted from time to time as
provided in the Indenture. 

  
 A-6 

 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 = Uniform Gifts to Minors Act 
 CUST =
Custodian 
 TEN ENT = as tenants by the entireties 
 JT TEN =
joint tenants with right of survivorship and not as tenants in common 
 Additional abbreviations may also be used though not in the above
list. 

  
 A-7 

 SCHEDULE A6 

SCHEDULE OF EXCHANGES OF NOTES 

Advanced Micro Devices, Inc. 

2.125% Convertible Senior Notes due 2026 

The initial principal amount of this Global Note is      DOLLARS ($[        ]).
The following increases or decreases in this Global Note have been made: 
  

																	
	 Date of exchange
	  	Amount of
decrease in
principal
amount of this
Global Note	 	  	Amount of
increase in
principal
amount of this
Global Note	 	  	Principal
amount of this
Global Note
following such
decrease or
increase	 	  	Signature of
authorized
signatory of
Trustee or
Custodian	 
		  				  				  				  			
		  				  				  				  			
		  				  				  				  			

  

	6 	Include if a global note. 

  
 A-8 

 ATTACHMENT 1 

[FORM OF NOTICE OF CONVERSION] 
  

	To:	Wells Fargo Bank, National Association 

 600 South
4th Street, 7th Floor 

Minneapolis, MN 55415 

Attention: Bondholder Communications 

The undersigned registered owner of this Note hereby exercises the option to convert this Note, or the portion hereof (that is $1,000
principal amount or an integral multiple thereof) below designated, into cash, shares of Common Stock or a combination of cash and shares of Common Stock, as applicable, in accordance with the terms of the Indenture referred to in this Note, and
directs that any cash payable and any shares of Common Stock issuable and deliverable upon such conversion, together with any cash for any fractional share, 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. If any shares of Common Stock 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
pay all documentary, stamp or similar issue or transfer taxes, if any in accordance with Section 11.02(d) and Section 11.02(e) of the First Supplemental Indenture. Any amount required to be paid to the undersigned on account of
interest accompanies this Note. Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the Indenture. 
  

							
	Dated:	 	  
	 		 	  

				
		 		 		 	  

		 		 	 Signature(s)

			
	  
	 		 	
	 Signature Guarantee
	 		 	
			
	Signature(s) must be guaranteed by an eligible Guarantor Institution (banks, stock brokers, savings and loan associations and credit unions) with membership in an approved signature guarantee medallion program pursuant
to Securities and Exchange Commission Rule 17Ad-15 if Common Shares are to be issued, or Notes are to be delivered, other than to and in the name of the registered holder.	 		 	

  
 -1- 

							
	Fill in for registration of shares if to be issued, and Notes if to be delivered, other than to and in the name of the registered holder:	 		 	
			
	  
	 		 	
	 (Name)
	 		 	
			
	  
	 		 	
	 (Street Address)
	 		 	
			
	  
	 		 	
	 (City, State and Zip Code)
	 		 	
	 Please print name and address
	 		 	
				
		 		 		 	Principal amount to be converted (if less than all): $    ,000
				
		 		 		 	NOTICE: The above signature(s) 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.
				
		 		 		 	  

		 		 		 	Social Security or Other Taxpayer
		 		 		 	Identification Number

  
 -2- 

 ATTACHMENT 2 

[FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE] 
  

	To:	Wells Fargo Bank, National Association 

 600 South
4th Street, 7th Floor 

Minneapolis, MN 55415 

Attention: Bondholder Communications 

The undersigned registered owner of this Note hereby acknowledges receipt of a notice from Advanced Micro Devices, Inc. (the
“Company”) as to the occurrence of a Fundamental Change with respect to the Company and specifying the Fundamental Change Repurchase Date and requests and instructs the Company to pay to the registered holder hereof in accordance
with Section 12.01 of the First Supplemental Indenture referred to in this Note (1) the entire principal amount of this Note, or the portion thereof (that is $1,000 principal amount or an integral multiple thereof) below designated, and
(2) if such Fundamental Change Repurchase Date does not fall during the period after a Regular Record Date and on or prior to the corresponding Interest Payment Date, accrued and unpaid interest, if any, thereon to, but excluding, such
Fundamental Change Repurchase Date. Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the Indenture. 

In the case of Physical Notes, the certificate numbers of the Notes to be repurchased are as set forth below: 

 

							
	Dated:	 	  
	 		 	
				
		 		 		 	  

		 		 		 	Signature(s)
				
		 		 		 	  

		 		 		 	Social Security or Other Taxpayer
		 		 		 	Identification Number
				
		 		 		 	Principal amount to be repaid (if less than all): $    ,000
				
		 		 		 	NOTICE: The above signature(s) 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.

  
 -1-Exhibit

Exhibit 10.1
PURCHASE AGREEMENT
by and among
TEA LEAF ACQUISITION CORP.,
as Purchaser
and
CHINA MIST BRANDS, INC., 
as the Seller,
CERTAIN STOCKHOLDERS OF THE SELLER WHO ARE PARTIES HERETO,
Solely for Purposes of Article X, Daniel W. Schweiker and John S. Martinson,
and
Daniel W. Schweiker,
as the Sellers’ Representative
September 9, 2016

147946

TABLE OF CONTENTS
Page
		
	 DEFINITIONS; CONSTRUCTION
	1

Section 1.1Definitions    1
Section 1.2Construction    12
Section 1.3Accounting Terms    13
		
	 PURCHASE AND SALE
	13

Section 2.1Purchase and Sale; Assumed Liabilities; Excluded Liabilities    13
Section 2.2Return of Excluded Assets    17
Section 2.3Allocation of Assets and Liabilities    17
		
	 Consideration; ADJUSTMENTS
	17

Section 3.1Consideration    17
Section 3.2Closing Payment    18
Section 3.3Working Capital Adjustment    18
Section 3.4Earn-Out    20
Section 3.5Consents and Waivers; Further Assurances    21
		
	 REPRESENTATIONS AND WARRANTIES OF THE SELLER PARTIES
	22

Section 4.1Organization    23
Section 4.2Authorization    23
Section 4.3Absence of Restrictions and Conflicts    25
Section 4.4Real Property.    26

Section 4.5Title to Assets; Related Matters.    27
Section 4.6Financial Statements    27
Section 4.7No Undisclosed Liabilities    28
Section 4.8Absence of Certain Changes    28
Section 4.9Legal Proceedings    28
Section 4.10Compliance with Law    28
Section 4.11Material Contracts    28
Section 4.12Tax Returns; Taxes    31
Section 4.13Officers and Employees    32
Section 4.14Company Benefit Plans    33
Section 4.15Labor Relations    34
Section 4.16Insurance Policies    34
Section 4.17Environmental Matters    35
Section 4.18Intellectual Property    36
Section 4.19Transactions with Affiliates    36
Section 4.20Undisclosed Payments    37
Section 4.21Customer Relations    37
Section 4.22Supplier Relations    37
Section 4.23Accounts Receivable; Accounts Payable.    37
Section 4.24Licenses.    38
Section 4.25Product and Services Warranties; Warranty Claims    38
Section 4.26Inventories    39

2

Section 4.27Regulatory and Certification Compliance    39
Section 4.28Import/Export    40
Section 4.29Ethical Practices    41
Section 4.30Brokers and Finders    41
Section 4.31Solvency    41
		
	 REPRESENTATIONS AND WARRANTIES OF THE PURCHASERs
	42

Section 5.1Organization    42
Section 5.2Authorization    42
Section 5.3Absence of Restrictions and Conflicts    42
		
	 CERTAIN COVENANTS AND AGREEMENTS
	43

Section 6.1Conduct of the Business    43
Section 6.2Inspection and Access to Information    46
Section 6.3Notices of Certain Events    46
Section 6.4Interim Financials    47
Section 6.5No Solicitation of Transactions    47
Section 6.6Reasonable Efforts; Further Assurances; Cooperation    47
Section 6.7Public Announcements    48
Section 6.8Company Benefit Plans and Employment Agreements    48
Section 6.9[RESERVED]    49
Section 6.10Tax Matters    49
Section 6.11Accounts    51

3

Section 6.12Payment of Other Excluded Liabilities    51
Section 6.13Employees and Employee Benefits    51
Section 6.14Confidentiality    53
Section 6.15Use of Names; Dissolution of Tea Packers    53
		
	 Conditions to closing
	53

Section 7.1Conditions to Obligations of the Purchaser    53
Section 7.2Conditions to Obligations of the Seller Parties    55
		
	 CLOSING
	56

Section 8.1Closing    56
Section 8.2Seller Parties’ Closing Deliveries    56
Section 8.3Purchaser’s Closing Deliveries    58
		
	 TERMINATION
	59

Section 9.1Termination    59
Section 9.2Specific Performance and Other Remedies    59
Section 9.3Effect of Termination    60
		
	 INDEMNIFICATION
	60

Section 10.1Indemnification Obligations of the Seller Parties    60
Section 10.2Indemnification Obligations of Purchaser    60
Section 10.3Indemnification Procedures    61
Section 10.4Claims Period    63

4

Section 10.5Liability Limits    64
Section 10.6Escrow    64
Section 10.7Payment of Claims    65
Section 10.8Exclusive Remedy    65
Section 10.9Fraud or Intentional and Willful Misconduct    65
Section 10.10Tax Treatment of Indemnity Payments    65
Section 10.11[RESERVED]    65
Section 10.12Mitigation; Calculation of Losses    65
		
	 MISCELLANEOUS PROVISIONS
	66

Section 11.1Notices    66
Section 11.2Schedules and Exhibits    67
Section 11.3Binding Effect; Assignment    67
Section 11.4Amendment; Modification    67
Section 11.5Governing Law    67
Section 11.6Captions    68
Section 11.7Dispute Resolution; Arbitration    68
Section 11.8Ancillary Proceedings    68
Section 11.9Waiver of Jury Trial    68
Section 11.10Attorneys’ Fees    69
Section 11.11Severability    69
Section 11.12Counterparts    69
Section 11.13Third-Party Beneficiary    69

5

Section 11.14Waiver        69
Section 11.15Integration    69
Section 11.16Transaction Costs    69
Section 11.17Sellers’ Representative    70
LIST OF EXHIBITS
Exhibit A    Persons with Knowledge
Exhibit B    Form of Escrow Agreement
Exhibit C    Form of Bill of Sale
Exhibit D    Form of Assumption Agreement
Exhibit E    Form of Assignment of Lease
Exhibit F    Form of Non-Competition Agreement
Exhibit G    Form of Schweiker Consulting LLC Consulting Agreement
Exhibit H    Form of Marburn LLC Consulting Agreement  

6

PURCHASE AGREEMENT
This PURCHASE AGREEMENT (this “Agreement”), dated as of September 9, 2016, is made and entered into by and among Tea Leaf Acquisition Corp., a Delaware corporation (the “Purchaser”), China Mist Brands, Inc., an Arizona corporation (“China Mist” or “Seller”), certain stockholders of China Mist executing this Agreement (the “Party Stockholders” and, together with the Seller, the “Seller Parties”), solely for purposes of Article X, Daniel W. Schweiker (“Schweiker”) and John S. Martinson (“Martinson”), individually, and Daniel W. Schweiker, in his capacity as the Sellers’ Representative.  The Purchaser, the Seller and the Party Stockholders are sometimes individually referred to herein as a “Party” and collectively as the “Parties.”
W I T N E S S E T H:
WHEREAS, the Seller is engaged in the business of manufacturing, processing, packaging, marketing, distributing and selling tea and related business activities (the “Business”);
WHEREAS, the Seller owns all right, title and interest in and to all of the Purchased Assets (as defined below);
WHEREAS, the Purchased Assets constitute substantially all of the assets used or held for use by the Seller or any of its Affiliates in the conduct of the Business as conducted as of the date hereof;
WHEREAS, on the terms and subject to the conditions set forth herein, the Parties desire to enter into this Agreement, pursuant to which, among other things, the Seller shall sell to the Purchaser, and the Purchaser shall purchase from the Seller, the Purchased Assets (such transaction, the “Acquisition”); and 
WHEREAS, the Parties desire to make certain representations, warranties and agreements in connection with the Acquisition.
NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements hereinafter set forth, and intending to be legally bound hereby, each Party hereby agrees:

Article I 
DEFINITIONS; CONSTRUCTION

Section 1.1 
    Definitions.  The following terms, as used herein, have the following meanings:
“AAA” has the meaning set forth in Section 11.7.
“Acquisition” has the meaning set forth in the Recitals.
“Action” means any claim, action, suit, inquiry, proceeding, audit or investigation by or before any Governmental Entity, or any other arbitration, mediation or similar proceeding.
“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.
“Agreement” has the meaning set forth in the Preamble.
“Allocation Schedule” has the meaning set forth in Section 6.10(c).
“Assignment of Lease” has the meaning set forth in Section 8.2(d).
“Assumed Contracts” has the meaning set forth in Section 2.1(a)(v).
“Assumed Liabilities” has the meaning set forth in Section 2.1(c).
“Assumed Plans” has the meaning set forth in Section 2.1(a).
“Assumption Agreement” has the meaning set forth in Section 8.2(c).
“Balance Sheet” means the unaudited balance sheet of the Seller as of the Balance Sheet Date included in the Financial Statements.
“Balance Sheet Date” means June 30, 2016. 
“Base Amount” has the meaning set forth in Section 3.1.
“Basket” has the meaning set forth in Section 10.5(a).
“Bill of Sale” has the meaning set forth in Section 8.2(b).
“Business” has the meaning set forth in the Recitals.
“Business Day” means any day other than a Saturday, Sunday or a day on which the Federal Reserve Bank of Dallas is closed.
“Business Records” means all books, records, ledgers and files or other similar information of the Seller (in any form or medium) related to, used or held for use in connection with the Business 

2

as currently conducted, including all client lists, vendor and supplier lists, correspondence, mailing lists, revenue records, invoices, advertising materials, brochures, records of operation, standard forms of documents, manuals of operations or business procedures, photographs, blueprints, research files and materials, data books, Company Intellectual Property disclosures and information, media materials, accounting records and litigation files (but excluding the organization documents, minute and stock record books and corporate seals of the Seller and records more than three years old that are immaterial to the current operation of the Business).  
“Cap” has the meaning set forth in Section 10.5(a).
“CERCLA” means the United States Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9607 et seq. and the rules and regulations promulgated thereunder.
“Change of Control Payments” means the aggregate amount payable (including “success fees” or bonuses, severance payments, increased payments or benefits, accelerated vesting and any amounts payable to offset any excise Taxes imposed under Section 4999 of the Code and any related income Taxes) by Seller (a) to any third party as a result of the transactions contemplated by this Agreement or (b) to or for the benefit of current or former officers, directors, employees or contractors of Seller, including (i) accrued and unpaid bonuses as of the date hereof and (ii) amounts payable (whether prior to, on or following the date hereof) pursuant to any applicable agreement (whether written or oral) or other governing document or policy as a result of the transactions contemplated by this Agreement, in the case of both clauses (a) and (b) above, to the extent not paid prior to the Closing Date.
“Changes” has the meaning set forth in Section 6.3.
“Claim” has the meaning set forth in Section 10.6.
“Claims Period” means the period during which a claim for indemnification may be asserted hereunder by an Indemnified Party.
“Closing” means the consummation of the transactions contemplated by this Agreement as set forth in Section 8.1.
“Closing Date” has the meaning set forth in Section 8.1.
“Closing Payment Deficiency” has the meaning set forth in Section 3.3(e).
“Closing Payment Excess” has the meaning set forth in Section 3.3(e).
“Closing Payment” has the meaning set forth in Section 3.2(a).
“Closing Working Capital Statement” has the meaning set forth in Section 3.3(a).
“Code” means the United States Internal Revenue Code of 1986, as amended.

3

“Company Benefit Plan” means each Employee Benefit Plan currently sponsored or maintained or required to be sponsored or maintained by Seller or to which Seller makes, or has any obligation to make, directly or indirectly, any contributions or with respect to which Seller has, or might have, any other Liabilities.
“Company Contracts” means all Contracts to which the Seller is a party, by which the Seller or any of its property (including the Purchased Assets) is subject, or by which the Seller is otherwise bound.
“Company Intellectual Property” means any Intellectual Property that is owned by or licensed to the Seller, including the Company Registered Intellectual Property.
“Company Registered Intellectual Property” means all of the Registered Intellectual Property owned by, or filed in the name of the Seller.
“Confidentiality Agreement” has the meaning set forth in Section 6.14. 
“Contract” means any agreement, contract, lease, license, obligation, promise or undertaking (whether written or oral and whether express or implied) that is or is intended to be legally binding.
“Control” means, when used with respect to any specified Person, the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise.
“Customer” means any customer (including any end customer, reseller or distributor customer) from which the Seller received in the aggregate more than $25,000 during the 12-month period ended on December 31, 2015 or during the six-month period ended on the Balance Sheet Date.
“Direct Claim” has the meaning set forth in Section 10.3(c).
“Disclosure Schedule” has the meaning set forth in Article IV.
“Disputed Amounts” has the meaning set forth in Section 3.3(d).
“Earn-Out Amount” means $500,000.
“Earn-Out Condition” has the meaning set forth in Section 3.4(a).
“Earn-Out Payment” has the meaning set forth in Section 3.4(a).
“Employee Benefit Plan” means, with respect to any Person, (a) each plan, fund, program, agreement, arrangement or scheme, including each plan, fund, program, agreement, arrangement or scheme maintained or required to be maintained under the Laws of a jurisdiction outside the United States of America, in each case, that is at any time sponsored or maintained or required to be sponsored or maintained by such Person or to which such Person makes or has made, or has or has had an obligation to make, contributions providing for employee benefits or for the remuneration, 

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direct or indirect, of the employees, former employees, directors, managers, officers, consultants, independent contractors, contingent workers or leased employees of such Person or the dependents of any of them (whether written or oral), including each deferred compensation, bonus, incentive compensation, pension, retirement, stock purchase, stock option and other equity compensation plan, or “welfare” plan (within the meaning of Section 3(1) of ERISA, determined without regard to whether such plan is subject to ERISA), (b) each “pension” plan (within the meaning of Section 3(2) of ERISA, determined without regard to whether such plan is subject to ERISA), (c) each severance, retention or change in control plan or agreement, each plan or agreement providing health, vacation, summer hours, supplemental unemployment benefit, hospitalization insurance, medical, dental or legal benefit and (d) each other employee benefit plan, fund, program, agreement, arrangement or scheme.
“Employment Agreement” means any employment Contract, consulting Contract with an individual consultant, any related termination or severance Contract, salary continuation Contract, change of control Contract, non-compete Contract or any other Contract respecting the terms and conditions of employment or payment of compensation, or of a consulting or independent contractor relationship in respect of any current or former officer, employee, individual consultant or individual independent contractor.
“Environment” means any surface or ground water, drinking water supply, soil, surface or subsurface strata or medium, or the ambient air.
“Environmental Laws” means all federal, state, local or foreign Laws relating to protection of the Environment and health and safety, including pollution control, product registration and Hazardous Materials.
“ERISA” means the United States Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.
“ERISA Affiliate” means any Person (whether incorporated or unincorporated) that, together with Seller, would be deemed a “single employer” within the meaning of Section 414 of the Code.
“Escrow Account” has the meaning set forth in Section 3.2(b).
“Escrow Agent” has the meaning set forth in Section 10.6.
“Escrow Agreement” has the meaning set forth in Section 3.2(b).
“Escrow Amount” has the meaning set forth in Section 3.2(b).
“Escrow Termination Date” has the meaning set forth in Section 10.6.
“Estimated Working Capital Amount” has the meaning set forth in Section 3.2(a).
“Excluded Assets” has the meaning set forth in Section 2.1(b).

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“Excluded Employee Liabilities” means all Liabilities (including all related Taxes) (i) for severance, separation, termination or notice period pay or similar payments by or in respect of employees of the Seller whose employment terminates prior to the Closing (whether statutory, contractual or otherwise), (ii) under Company Benefit Plans with respect to employees of the Seller who do not become Hired Personnel, (iii) for any amounts and/or contributions due and/or payable by the Seller prior to the Closing under any Company Benefit Plan, and (iv) for any retention or transaction bonus payable under arrangements with the Seller.
“Excluded Liabilities” has the meaning set forth in Section 2.1(d).
“Exhibit” means any exhibit attached to this Agreement.
“Expiration Date” has the meaning set forth in Section 9.1(d).
“Export/Import Approvals” means all applicable export and import licenses, license exceptions and other consents, notices, approvals, orders, permits, authorizations, declarations, classifications and filings with any Governmental Entity required for the import, export and re-export of products, services and technology.
“FDA” has the meaning set forth in Section 4.27(a).
“FTC” has the meaning set forth in Section 4.27(a).
“Final Working Capital” has the meaning set forth in Section 3.3(e).
“Financial Statements” means the reviewed balance sheet of the Seller as of December 31, 2013, December 31, 2014 and December 31, 2015 and the reviewed statement of operations and accumulated deficit and statement of cash flows of the Seller for the 12-month periods then ended and (b) the unaudited balance sheet of the Seller as of the Balance Sheet Date and the unaudited statement of operations and accumulated deficit and statement of cash flows of the Seller for the six-month period then ended.
“GAAP” means generally accepted accounting principles in the United States of America as applied on a consistent basis to the relevant Person.
“Governmental Entity” means any federal, state, local or foreign government, any political subdivision thereof, or any court, administrative or regulatory agency, department, instrumentality, body or commission or other governmental or quasi-governmental authority or agency.  Governmental Entity includes the Internal Revenue Service and the U.S. Food and Drug Administration.
“Hazardous Materials” means any waste, pollutant, contaminant, hazardous substance, toxic, ignitable, reactive or corrosive substance, hazardous waste, special waste, industrial substance, by-product, process-intermediate product or waste, asbestos or asbestos-containing materials, lead-based paint, petroleum or petroleum-derived substance or waste, polychlorinated biphenyls, chemical liquids or solids, liquid or gaseous products, or any constituent of any such 

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substance or waste, whether liquid, solid, semi-solid, sludge or gaseous, the management, use, handling or disposal of which is in any way governed by or subject to any applicable Law.
“Hired Personnel” has the meaning set forth in Section 6.13(a).
“Indebtedness” means, with respect to any Person, (i) the principal of and premium (if any) in respect of (A) indebtedness of such Person for money borrowed and (B) indebtedness evidenced by notes, debentures, bonds or other similar instruments for the payment of which such Person is responsible or liable; (ii) all obligations of such Person issued or assumed as the deferred purchase price of property, all conditional sale obligations of such Person and all obligations of such Person under any title retention agreement (but excluding trade accounts payable and other accrued current liabilities arising in the Ordinary Course); (iii) all obligations of such Person under leases required to be capitalized in accordance with GAAP; (iv) all obligations of such Person for the reimbursement of any obligor on any letter of credit, banker’s acceptance or similar credit transaction; (v) all obligations of the type referred to in clauses (i) through (iv) of any Persons for the payment of which such Person is responsible or liable, directly or indirectly, as obligor, guarantor, surety or otherwise, including guarantees of such obligations; (vi) all obligations of the type referred to in clauses (i) through (v) of other Persons secured by any Lien on any property or asset of such Person (whether or not such obligation is assumed by such Person); and (vii) interest, fees, or financing charges on any of the foregoing. 
“Indemnified Party” has the meaning set forth in Section 10.3.
“Indemnifying Party” has the meaning set forth in Section 10.3.
“Independent Accountant” has the meaning set forth in Section 3.3(d).
“Insurance Contracts” has the meaning set forth in Section 4.16.
“Intellectual Property” means any or all of the following and all rights arising out of or associated therewith: (a) all United States of America and foreign patents and applications therefor and all reissues, divisions, renewals, extensions, provisionals, continuations and continuations-in-part thereof; (b) all inventions (whether patentable or not), invention disclosures, improvements, mask works, trade secrets, proprietary information, know-how, Software, technology, technical data and customer lists, and all documentation relating to any of the foregoing anywhere in the world; (c) all works of authorship (whether copyrightable or not), all copyrights, copyright registrations and applications therefor, and all other rights corresponding thereto anywhere in the world; (d) all industrial designs and any registrations and applications therefor anywhere in the world; (e) all internet uniform resource locators, domain names, accounts with Twitter, Facebook and other social media companies and the content found thereon and related thereto, trade names, logos, slogans, designs, trade dress, common law trademarks and service marks, trademark and service mark and trade dress registrations and applications therefor anywhere in the world; (f) all databases and data collections and all rights therein anywhere in the world; (g) all moral and economic rights of authors and inventors, however denominated, anywhere in the world; and (h) any similar or equivalent rights to any of the foregoing anywhere in the world.

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“Inventory” means all inventory, including raw and packing materials, work-in-progress, finished goods, supplies, parts and similar items used or held for use by Seller in connection with the Business.
“Laws” means all statutes, rules, codes, regulations, restrictions, ordinances, orders, decrees, approvals, directives, judgments, injunctions, writs, awards and decrees of, or issued by, any Governmental Entity.
“Leased Real Property” has the meaning set forth in Section 4.4(a).
“Legal Dispute” means any action, suit, arbitration or proceeding between or among the Parties and their respective Affiliates arising in connection with any disagreement, dispute, controversy or claim arising out of or relating to this Agreement or any related document, including any matter relating to indemnification under this Agreement.
“Legal Proceeding” has the meaning set forth in Section 4.9.
“Liabilities” means any debt, loss, damage (of any kind or nature), adverse claim, liability, obligation or commitment (whether direct or indirect, known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, or due or to become due, and whether in contract, tort, strict liability or otherwise), and including all costs and expenses relating thereto.
“Licenses” means all notifications, licenses, permits (including environmental, construction and operation permits), qualifications, franchises, certificates, approvals, exemptions, classifications, registrations and other similar documents and authorizations issued by any Governmental Entity, and pending applications therefor.
“Liens” means all mortgages, liens, pledges, security interests, charges, claims, restrictions and encumbrances of any nature whatsoever.
“Losses” has the meaning set forth in Section 10.11.
“Marburn LLC Consulting Agreement” has the meaning set forth in Section 8.2(k).
“Martinson” has the meaning set forth in the Preamble.
“Martinson Family Trust” means The John Martinson and Suzanne Picket Martinson Family Trust.
“Material Adverse Effect” means any state of facts, change, event, effect or occurrence with respect to the Business that, individually or in the aggregate, has had, or would reasonably be expected to have, a material adverse effect on the Business, its financial condition, results of operations, prospects, properties, assets or Liabilities, including the Leased Real Property, or that would reasonably be expected to prevent, impair or delay the ability of the Seller to consummate the transactions contemplated hereby or to perform its obligations hereunder, other than any event, change, circumstance or effect relating to (i) the United States economy in general (that does not 

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affect the operations or financial condition of the Seller or its Business in a materially disproportionate manner), (ii) the Seller’s industry in general (that does not affect the operations or financial condition of the Business in a materially disproportionate manner), (iii) financial, banking or securities markets (including any disruption thereof and any decline in the price of any security or any market index), (iv) any outbreak or escalation of hostilities or act of terrorism involving the United States or any declaration of war by the United States, or (v) the fact the Purchaser is the proposed acquirer of the Business or arising from the public announcement of the transactions contemplated by this Agreement. 
“Material Contracts” has the meaning set forth in Section 4.11.
“Net Working Capital” means the current assets (to the extent included in the Purchased Assets), less the current liabilities (to the extent included in the Assumed Liabilities) of the Seller, as of the close of business on the last Business Day immediately preceding the Closing Date determined in accordance with GAAP.
“Non-Competition Agreement” has the meaning set forth in Section 8.2(h).
“Ordinary Course” means the ordinary course of the Business of the Seller, consistent with past practice.
“Parent” has the meaning set forth in Section 6.14.
“Parties” has the meaning set forth in the Preamble.
“Party” has the meaning set forth in the Preamble.
“Party Stockholders” has the meaning set forth in the Preamble.
“Permitted Liens” means (a) Liens for Taxes not yet due and payable, (b) statutory Liens of landlords, (c) Liens of carriers, warehousemen, mechanics, materialmen and repairmen incurred in the Ordinary Course and not yet delinquent, (d) security interests of equipment lessors to evidence title retention, and (e) in the case of the Leased Real Property, zoning, building or other restrictions, variances, covenants, rights of way, encumbrances, easements and other minor irregularities in title.
“Person” means any individual, corporation, partnership, joint venture, limited liability company, trust, unincorporated organization or Governmental Entity.
“Personal Property” means all machinery, equipment, furniture, furnishings, rolling stock, tools, office supplies, vehicles, computer hardware and other tangible personal property owned or leased by the Seller and related to, used or held for use in connection with the Business.
“Prepaid Items” means all credits, cash reserves, prepaid expenses, advance payments, security deposits, escrows and other prepaid items of the Seller arising from or related to the Business.
“Products” has the meaning set forth in Section 4.27(a).

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“Purchased Assets” has the meaning set forth in Section 2.1(a).
“Purchaser” has the meaning set forth in the Preamble.
“Purchaser Ancillary Documents” means any certificate, agreement, document or other instrument, other than this Agreement, to be executed and delivered by the Purchaser or any of its Affiliates in connection with the transactions contemplated hereby.
“Purchaser Indemnified Parties” means the Purchaser and its Affiliates (including any Affiliate of the Purchaser which is designated by the Purchaser to receive the Purchased Assets or any portion thereof), and each of their respective officers, directors, managers, employees, agents and representatives and each of the heirs, executors, successors and assigns of any of the foregoing.
“Purchaser Losses” has the meaning set forth in Section 10.1.
“Receivables” means all receivables (including accounts receivable, loans receivable and advances) arising from or related to the Business, including all receivables arising in respect of: (i) all assets recorded or reflected on the Balance Sheet (including assets such as Company Contracts to which no value was attributed); (ii) all assets acquired by the Seller since the Balance Sheet Date which, had they been held by the Seller on such date, would have been recorded or reflected on the Balance Sheet (including assets such as Company Contracts to which no value would have been attributed); and (iii) all assets that would be recorded or reflected on a balance sheet of the Business as of the date hereof prepared in accordance with GAAP, together with any unpaid interest, fees or financing charges accrued on any of the foregoing.
“Registered Intellectual Property” means all United States of America and foreign: (a) patents and patent applications (including provisional applications); (b) registered trademarks and service marks, applications to register trademarks and service marks, and trade dress, intent-to-use applications, or other registrations or applications related to trademarks and service marks and trade dress; (c) registered copyrights and applications for copyright registration; (d) domain name registrations; (e) registered mask works and applications for mask work registration; and (f) any other Intellectual Property that is the subject of an application, certificate, filing, or registration filed with, or recorded with any federal, state, local or foreign Governmental Entity.
“Release” means, with respect to any Hazardous Material, any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping or disposing into the Environment.
“Representative Matters” has the meaning set forth in Section 11.17(a).
“Resolution Period” has the meaning set forth in Section 3.3(c).
“Review Period” has the meaning set forth in Section 3.3(b).
“Rights” means all claims, causes of action, rights of recovery and rights of set-off against any Person arising from or related to the Business, the Purchased Assets or the Assumed Liabilities, including: (i) all rights under any Assumed Contract, including all rights to receive payment for 

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products sold and services rendered thereunder, to receive goods and services thereunder, to assert claims and to take other rightful actions in respect of breaches, defaults and other violations thereof; (ii) all rights under or in respect of any Company Intellectual Property owned by the Seller, including all rights to sue and recover damages for past, present and future infringement, dilution, misappropriation, violation, unlawful imitation or breach thereof, and all rights of priority and protection of interests therein under the laws of any jurisdiction; and (iii) all rights under all guarantees, warranties, and indemnities to the extent included in the Purchased Assets or the Assumed Liabilities. 
“Sales” means the amounts that the Purchaser and its Affiliates actually receive from (a) the sale of the Products of the Business to (or by) distributors (including current distributors of the Business and distributors for the Products added post-Closing by Purchaser and its Affiliates), and (b) the direct deliveries of Products of the Business to customers (including current customers of the Business and customers for the Products added post-Closing by Purchaser and its Affiliates and including any distribution mark-up by any Affiliate of the Purchaser, but, for the avoidance of double-counting, not including any internal sales from one Affiliate to another).
“Schweiker” has the meaning set forth in the Preamble.
“Schweiker Consulting LLC Consulting Agreement” has the meaning set forth in Section 8.2(j).
“Schweiker Family Trust” means The Daniel W Schweiker Family Revocable Trust.
“Seller” has the meaning set forth in the Preamble.
“Seller Ancillary Documents” means any certificate, agreement, document or other instrument, other than this Agreement, to be executed and delivered by the Seller, any Party Stockholder or any of their respective Affiliates in connection with the transactions contemplated hereby. 
“Seller Indemnified Parties” means the Seller and its Affiliates, and each of their respective officers, directors, managers, employees, agents and representatives and each of the heirs, executors, successors and assigns of any of the foregoing.
“Seller Losses” has the meaning set forth in Section 10.2.
“Seller Parties” has the meaning set forth in the Preamble.
“Seller’s Knowledge” or other references to the knowledge of the Seller means both (i) the actual knowledge of the individuals listed on Exhibit A, and (ii) for each of the foregoing listed individuals, such knowledge that such individual would be expected to have had assuming such individual performed a reasonably thorough inquiry appropriate for a person in such position. Notwithstanding the foregoing, the inquiry standard imposed on any individual in the immediately preceding sentence shall not require such individual to perform any inquiry with any person who is not a director, officer, employee, consultant or advisor of the Seller.

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“Sellers’ Representative” has the meaning set forth in Section 11.17(a).
“Software” means all computer software programs, together with any error corrections, updates, modifications or enhancements thereto, in both machine-readable form and human-readable form, including all comments and any procedural code.
“State Authorities” has the meaning set forth in Section 4.27(a).
“Statement of Objections” has the meaning set forth in Section 3.3(c).
“Supplier” means any supplier that the Seller paid in the aggregate more than $25,000 during the 12-month period ended on December 31, 2015 or during the six-month period ended on the Balance Sheet Date.
“Surviving Obligations” has the meaning set forth in Section 10.4(a).
“Surviving Obligations Cap” has the meaning set forth in Section 10.5(a).
“Target Working Capital” means an amount equal to $0.00.
“Tax Return” means any report, return, declaration or other information required to be supplied to a Governmental Entity in connection with Taxes, including extensions, estimated returns, amended returns, information statements and reports of every kind with respect to Taxes.
“Taxes” means (a) any and all federal, state, local, or foreign taxes, assessments, charges, duties, fees, imports, levies or other charges from any Governmental Entity (including interest, penalties or additions associated therewith), including income, franchise, capital stock, real property, personal property, tangible, withholding, employment, payroll, social security (or similar tax), social contribution, unemployment compensation, unclaimed property escheat, disability, transfer, sales, bulk sales, use, excise, license, occupation, registration, stamp, premium, environmental, customs duties, alternative or add-on minimum, estimated, gross receipts, value-added, ad valorem, profits, estimated, and all other taxes of any kind for which the Seller may have any Liability imposed by any Governmental Entity, whether disputed or not, and any charges, interest or penalties imposed by any Governmental Entity, and (b) any Liability in respect of any items described in clause (a) payable by reason of contract, assumption, transferee liability, operation of law, Treasury Regulations section 1.1502-6(a) (or any predecessor or successor thereof or any analogous or similar provision under law) or otherwise.
“Tea Packers” means Tea Packers LLC, an Arizona limited liability company.
“Third Party Claim” has the meaning set forth in Section 10.3(a).
“Total Consideration” has the meaning set forth in Section 3.1.
“Transaction Expenses” means the fees and expenses incurred by the Seller or any of its Affiliates in connection with the transactions contemplated by this Agreement and not paid prior 

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to the Closing Date, including any and all legal, accounting, financial advisory, broker and other third party advisory or consulting fees and expenses.  
“Transfer Taxes” has the meaning set forth in Section 6.10(b).
“Treasury Regulations” means the Income Tax Regulations, promulgated under the Code.
“Trusts” means the Schweiker Family Trust and the Martinson Family Trust, with each of the foregoing sometimes referred to herein individually as a “Trust”.
“Trust Documents” means, for each Trust, all instruments and other documents creating and governing the operation and administration of such Trust, all as currently in effect.
“Unresolved Claims” has the meaning set forth in Section 10.6.
“USDA” has the meaning set forth in Section 4.27(a).
“WARN” means the United States Worker Adjustment and Retraining Notification Act, and the rules and regulations promulgated thereunder.

Section 1.2 
    Construction.  Unless the context of this Agreement clearly requires otherwise, (a) references to the plural include the singular, and references to the singular include the plural, (b) references to any gender include the other genders, (c) the words “include,” “includes” and “including” mean “including, but not limited to” and “including, without limitation”, (d) the terms “hereof”, “herein”, “hereunder”, “hereto” and similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement, (e) the terms “day” and “days” mean and refer to calendar day(s) unless Business Days are specified, (f) the terms “year” and “years” mean and refer to calendar year(s), (g) all references in this Agreement to “dollars” or “$” shall mean United States Dollars, and (h) “made available” to the Purchaser means included in the electronic data room hosted by Billow Butler & Company, LLC related to the Acquisition to which the Purchaser has full access as of the date hereof.  Unless otherwise set forth herein, references in this Agreement to (i) any document, instrument or agreement (including this Agreement) (A) includes and incorporates all exhibits, schedules and other attachments thereto, (B) includes all documents, instruments or agreements issued or executed in replacement thereof and (C) means such document, instrument or agreement, or replacement or predecessor thereto, as amended, modified or supplemented from time to time in accordance with its terms and in effect at any given time, and (ii) a particular Law means such Law as amended, modified, supplemented or succeeded, from time to time and in effect at any given time.  All Article, Section, Exhibit and Schedule references herein are to Articles, Sections, Exhibits and Schedules, as applicable, of this Agreement, unless otherwise specified.  The Parties have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises under any provision of this Agreement, this Agreement will be construed as if drafted jointly by the Parties, and no presumption or burden of proof will arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement or by virtue of any prior drafts of this Agreement.  

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Section 1.3 
    Accounting Terms.  All accounting terms not specifically defined herein shall be construed in accordance with GAAP.

Article II 
PURCHASE AND SALE

Section 2.1 
    Purchase and Sale; Assumed Liabilities; Excluded Liabilities.
(a)
    Purchase and Sale.  Subject to the terms and conditions of this Agreement, at the Closing, the Seller shall sell, transfer, convey and deliver to the Purchaser (or to the Purchaser’s designee), and the Purchaser shall purchase and acquire from the Seller, all of the Seller’s rights, titles and interests, direct or indirect, in, to and under the assets, properties and rights of every nature, kind and description, whether tangible or intangible, real, personal or mixed, accrued or contingent, wherever located and whether now existing or hereafter acquired (in each case other than the Excluded Assets), related to, used or held for use by the Seller in connection with the Business, whether or not carried or reflected on or specifically referred to in the Seller’s books or financial statements or in the Schedules (collectively, the “Purchased Assets”), in each case free and clear of any Liens (other than Permitted Liens), including all of the Seller’s rights, titles and interests in, to and under the following:
(i)
    all assets (excluding cash and cash equivalents) recorded or reflected on the Balance Sheet (including assets such as Assumed Contracts to which no value was attributed);
(ii)
    all assets (excluding cash and cash equivalents) acquired by the Seller since the Balance Sheet Date which, had they been held by Seller on such date, would have been recorded or reflected on the Balance Sheet (including assets such as Assumed Contracts to which no value would have been attributed);
(iii)
    all assets that would be recorded or reflected on a balance sheet of the Business as of the date hereof prepared in accordance with GAAP;
(iv)
    all Receivables;
(v)
    all Company Contracts that are listed or described on Schedule 2.1(a)(v) (the “Assumed Contracts”);

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(vi)
    all Company Intellectual Property, including the name of the Company, “China Mist Tea” and “China Mist Tea Company” brand names, the chinamist.com web site, telephone, facsimile and email addresses and listings, and including any Company Intellectual Property licensed-in from third parties to the extent such licenses are transferable;
(vii)
    all Leased Real Property;
(viii)
    all Personal Property;
(ix)
    all Inventory;
(x)
    all Business Records;
(xi)
    to the extent such can be transferred without violation of applicable Law, all personnel and files pertaining to any employee or former employee (but excluding any records relating to former employees dating from prior to January 1, 2011);
(xii)
    the Company Benefit Plans that are listed on Schedule 2.1(a)(xii) but only if they can be transferred to the Purchaser without the consent of any third party or if such third parties actually consent to such transfer (the “Assumed Plans”); 
(xiii)
    all rights in connection with, and the assets of the Assumed Plans, if any, and any other employee benefits, employment, consulting, severance, salary, wages and similar arrangements that transfer to the Purchaser or its Affiliates by operation of Law;
(xiv)
    all Licenses to the extent such Licenses are transferable;
(xv)
    all Prepaid Items; 
(xvi)
    all Rights; and

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(xvii)
    the goodwill and going concern value and other intangible assets, if any, arising from or related to the Business.
(b)
    Excluded Assets.  Notwithstanding the foregoing, the Purchased Assets shall not include the following assets (the “Excluded Assets”):
(i)
    cash and cash equivalents, including bank deposits;
(ii)
    all bank accounts and safety deposit boxes;
(iii)
    all Company Contracts that are not listed or described on Schedule 2.1(a)(v), including the Company Contracts expressly listed or described as Excluded Assets in Schedule 2.1(b);
(iv)
    all rights to any Actions of any nature available to or being pursued by the Seller Parties and all defenses and counterclaims, in each case, to the extent relating to Excluded Liabilities, including any claims that Seller may have for Tax refunds;
(v)
    the corporate or company seals, organizational documents, minute books, stock books, Tax Returns (including worksheets, notes, files or documents primarily related thereto, wherever located), books of account or other records having to do with the organization of the Seller, personnel and other records that Seller is required by law to retain, documents prepared in connection with the transactions contemplated by this Agreement, and any other books and records not relevant to the current operation of the Business;
(vi)
    any other assets, properties and rights specifically set forth on Schedule 2.1(b); 
(vii)
    Sellers’ assets and rights relating to the Company Benefits Plan (other than the Assumed Plans, if any) and Seller’s Insurance Contracts;
(viii)
    the equity interests of the Seller in Tea Packers; and

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(ix)
    the rights which accrue or will accrue to the Seller Parties under this Agreement, the Purchaser Ancillary Documents and the Seller Ancillary Documents. 
(c)
    Assumed Liabilities.  In connection with the purchase and sale of the Purchased Assets pursuant to this Agreement, at the Closing, the Purchaser shall assume from the Seller, only the following Liabilities related to the Business (the “Assumed Liabilities”):
(i)
    all trade accounts payable of the Seller to third parties in connection with the Business that remain unpaid and are not delinquent as of the Closing Date, that are reflected on the Balance Sheet or arose in the Ordinary Course since the Balance Sheet Date and that are included in the calculation of Net Working Capital; 
(ii)
    all Liabilities under the Assumed Contracts but only to the extent that such Liabilities thereunder either arise after the Closing Date or are required to be performed after the Closing Date and do not relate to any failure to perform, improper performance, warranty or other breach, default or violation by the Seller on or prior to the Closing Date except to the extent Liabilities relate to product return or similar obligations that are consistent with the Seller’s reserve for such matters as described in Schedule 2.1(c)(ii); 
(iii)
    other than the Excluded Employee Liabilities, all Liabilities under or with respect to the Assumed Plans, if any (solely to the extent such Liabilities relate to any Hired Personnel); and 
(iv)
    all Liabilities of the Seller described on Schedule 2.1(c)(iii). 
(d)
    Excluded Liabilities.  Notwithstanding anything to the contrary in this Agreement, any Schedule or Exhibit, any Purchaser Ancillary Agreement or any Seller Ancillary Agreement to the contrary, and regardless of any disclosure to the Purchaser (other than the Assumed Liabilities specifically listed in Section 2.1(c)(iii)), the Purchaser does not assume, agree to pay, discharge or satisfy, or otherwise have any responsibility for any Liability of the Seller of any kind, character or description whatsoever, whether direct or indirect, known or unknown, absolute or contingent, matured or unmatured, insured or uninsured and currently existing or hereinafter arising, including any Liability of the Seller related to the Acquisition, this Agreement or arising from the conduct of the Business or the ownership of the Purchased Assets prior to the Closing, whether or not accrued and whether or not such Liability is disclosed in this Agreement or in any Schedule or Exhibit hereto (the “Excluded Liabilities”).  For the avoidance of doubt, Excluded Liabilities include the following:

17

(i)
    any Liability arising from or related to any and all products manufactured or sold and/or services performed by Seller or any of its Affiliates on or before the Closing Date except to the extent Liabilities relate to product return or similar obligations that are consistent with the Seller’s reserve for such matters as described in Schedule 2.1(c)(ii);
(ii)
    any Liability for (A) the portion of any Transfer Taxes to be paid by the Seller Parties under Section 6.10(b) (B) any Taxes of any Seller Party, (C) any Taxes that relate to the Purchased Assets or the Assumed Liabilities for taxable periods (or portions thereof) ending on or before the Closing Date, including Taxes allocable to any Seller Party pursuant to Section 6.10(d), and (D) any and all Tax Liability arising by reason of any Seller Party being liable for Taxes of another Person by reason of contract, assumption, transferee Liability, operation of law, Treasury Regulations section 1.1502-6(a) (or any predecessor or successor thereof or any analogous or similar provision under Law) or otherwise;
(iii)
    any Liability of Seller pursuant to any Environmental Law arising from or related to any action, event, circumstance or condition occurring or existing on or prior the Closing Date;
(iv)
    any Indebtedness outstanding as of the Closing Date;
(v)
    any Liability arising from or related to any breach, failure to perform, torts related to the performance of, violations of Law, infringements or indemnities under, guaranties pursuant to and overcharges or underpayments under, any Company Contract prior to the Closing Date;
(vi)
    any Liability arising from or related to any compliance or noncompliance prior to the Closing Date with any Law applicable to the Seller, the Business or the Purchased Assets;
(vii)
    any Liability arising from or related to any Action against the Seller, the Business or the Purchased Assets pending as of the Closing Date or based upon any actions, events, circumstances or conditions arising prior to the Closing Date;
(viii)
    any Liability arising from or related to the matters described in the first sentence of Section 6.13(b) and Section 6.13(c);

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(ix)
    the Excluded Employee Liabilities and, except as set forth in Section 2.1(c)(iii), all Liabilities under or with respect to the Company Benefit Plans and any other employee benefits arrangements of the Seller;
(x)
    any Liability arising from or related to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) other than in connection with actions taken by the Purchaser or its Affiliates after the Closing; and
(xi)
    any Liability incurred by the Seller or any Person other than the Purchaser or its Affiliates arising out of or relating to the negotiation and preparation of this Agreement, the Purchaser Ancillary Agreements or the Seller Ancillary Agreements (including fees and expenses payable to all attorneys and accountants, other professional fees and expenses and bankers’, brokers’ or finders’ fees for persons not engaged by the Purchaser or its Affiliates). 

Section 2.2 
    Return of Excluded Assets.  If any Seller Party or the Purchaser determines after the Closing that any books, records or other material or assets (whether tangible or intangible, in whatever form or media, including electronic) constituting Excluded Assets were delivered to the Purchaser, the Purchaser shall promptly return them to the Seller Parties.

Section 2.3 
    Allocation of Assets and Liabilities.  Notwithstanding the foregoing, at the Closing, the Purchased Assets and the Assumed Liabilities shall be allocated between the Purchaser and its designee(s), if any, as set forth in the applicable Purchaser Ancillary Documents and Seller Ancillary Documents.

Article III 
CONSIDERATION; ADJUSTMENTS

Section 3.1 
    Consideration.  The aggregate consideration to be paid by the Purchaser for the Purchased Assets shall be an amount, payable in cash, equal to $10,800,000.00 (the “Base Amount”), as adjusted pursuant to Sections 3.2, 3.3 and 3.4, and the assumption of the Assumed Liabilities (together with the Base Amount, the “Total Consideration”).

Section 3.2 
    Closing Payment.  
(a)
    Not less than two Business Days prior to the anticipated Closing Date, the Sellers’ Representative shall deliver to the Purchaser a signed statement (on behalf and in the name of the Seller), setting forth the Seller’s good faith estimate of, and the 

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Purchaser and the Sellers’ Representative shall cooperate in good faith to agree upon an estimate of, the Net Working Capital (as such estimate is agreed to, the “Estimated Working Capital Amount”).  At the Closing, the Purchaser shall pay to, or on behalf of the Seller, an amount equal to (a) the Base Amount, plus (b) the amount by which the Estimated Working Capital Amount exceeds the Target Working Capital, if any, minus (c) the amount by which the Target Working Capital exceeds the Estimated Working Capital Amount, if any, minus (d) the Escrow Amount, minus (e) any and all outstanding Indebtedness (including any prepayment penalties or other fees or expenses associated with such payment) of the Seller that is not paid by the Seller at or prior to the Closing, minus (f) any and all Transaction Expenses that are not paid by the Seller at or prior to the Closing (the “Closing Payment”), by wire transfer of immediately available funds to an account(s) designated in writing by the Seller to the Purchaser. 
(a)
    At the Closing, an amount equal to $1,000,000 (the “Escrow Amount”) shall be withheld by the Purchaser and deposited, by wire transfer of immediately available funds, in an escrow account (the “Escrow Account”) to be governed by the terms of this Agreement and of an escrow agreement, substantially in the form of Exhibit B attached hereto (the “Escrow Agreement”), the purpose of which, as more fully set forth elsewhere in this Agreement and in the Escrow Agreement, shall be to provide non-exclusive, readily accessible funds to indemnify the Purchaser Indemnified Parties for any Purchaser Losses upon the terms of and subject to the limitations of Article X.
(b)
    The Purchaser shall be entitled to deduct and withhold from the Base Amount, the Escrow Amount, and/or any other portion of the consideration all Taxes that the Purchaser may be required to deduct and withhold under any provision of any Tax Law. All such withheld amounts shall be treated as delivered to the Seller hereunder.  The Purchaser shall consult with Seller prior to making any such deduction to confirm the legal requirement for any such deduction and withholding and the Parties shall use good faith efforts to minimize any such deduction. 

Section 3.3 
    Working Capital Adjustment.
(a)
    Not more than 90 days following the Closing Date, the Purchaser shall deliver to the Sellers’ Representative a statement (the “Closing Working Capital Statement”), signed by an authorized officer of the Purchaser, setting forth the Purchaser’s calculation of the Net Working Capital and the Closing Payment Excess or Closing Payment Deficiency, as the case may be.
(b)
    After receipt of the Closing Working Capital Statement, the Sellers’ Representative shall have 45 days (the “Review Period”) to review the Closing Working Capital 

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Statement.  During the Review Period, the Sellers’ Representative shall have full access to the relevant books and records of the Purchaser, the personnel of, and work papers prepared by, the Purchaser to the extent that they relate to the Closing Working Capital Statement and to such historical financial information (to the extent in the Purchaser’s possession) relating to the Closing Working Capital Statement as the Sellers’ Representative may reasonably request for the purpose of reviewing the Closing Working Capital Statement and to prepare a Statement of Objections, provided, that such access shall be in a manner that does not unreasonably interfere with the normal business operations of the Purchaser.
(c)
    On or prior to the last day of the Review Period, the Sellers’ Representative may object to the Closing Working Capital Statement by delivering to the Purchaser a written statement setting forth the Sellers’ Representative’s objections in reasonable detail, indicating each disputed item or amount and the basis for the Sellers’ Representative’s disagreement therewith (the “Statement of Objections”).  Each item not disputed in the Statement of Objections shall be deemed to be accepted by the Sellers’ Representative.  If the Sellers’ Representative fails to deliver the Statement of Objections before the expiration of the Review Period, the Closing Working Capital Statement and the Closing Payment Excess or Closing Payment Deficiency, as the case may be, reflected in the Closing Working Capital Statement shall be deemed to have been accepted by the Sellers’ Representative and be final and binding on the Parties.  If the Sellers’ Representative delivers the Statement of Objections before the expiration of the Review Period, the Purchaser and the Sellers’ Representative shall negotiate in good faith to resolve such objections within 30 days after the delivery of the Statement of Objections (the “Resolution Period”).
(d)
    If the Sellers’ Representative and the Purchaser fail to reach an agreement with respect to all of the matters set forth in the Statement of Objections before expiration of the Resolution Period, then any amounts remaining in dispute (“Disputed Amounts”) shall be submitted for resolution to the office of Grant Thornton LLP, or if Grant Thornton LLP is unable to serve, the Purchaser and the Sellers’ Representative shall appoint by mutual agreement the office of an impartial firm of independent certified public accountants (the “Independent Accountant”) who shall resolve any Disputed Amounts only and determine the Closing Payment Excess or Closing Payment Deficiency, as the case may be, based solely on the provisions of this Agreement and the written presentations by the Purchaser and the Seller, and not on an independent review.  The Independent Accountant may not take oral testimony from the parties hereto or any other Person.  The parties hereto agree that all adjustments shall be made without regard to materiality.  The Independent Accountant shall only decide the specific items under dispute by the parties as set forth in the Statement of Objections and its decision for each Disputed Amount must be within the range of values assigned to each such item in the Closing Working Capital Statement and the Statement of Objections, respectively.  The Independent Accountant shall make a determination, and deliver such determination in writing to the Sellers’ Representative and the Purchaser, as soon as practicable within 60 days (or such other time as the Parties shall agree in writing) after its engagement, and its resolution of the Disputed Amounts and its determination of the Closing Payment Excess or Closing Payment Deficiency, as the case may be, shall be conclusive and binding upon the Parties, absent manifest error.  The fees and expenses of the Independent Accountant shall be paid by the 

21

Seller Parties, on the one hand, and the Purchaser, on the other hand, based upon the percentage that the amount actually contested but not awarded to the Seller or the Purchaser, respectively, bears to the aggregate amount actually contested by the Sellers’ Representative and the Purchaser.
(e)
    If the Final Working Capital exceeds the Estimated Working Capital Amount, the Purchaser shall pay to the Seller, in the manner as provided in Section 3.3(f), such excess (a “Closing Payment Deficiency”) as an adjustment to the Base Amount.  If the Estimated Working Capital Amount exceeds the Final Working Capital, the Seller and the Party Stockholders, jointly and severally, shall pay to the Purchaser, in the manner as provided in Section 3.3(f), such excess (a “Closing Payment Excess”) as an adjustment to the Base Amount; provided, that, at the Purchaser’s election, the Purchaser and the Sellers’ Representative shall jointly instruct the Escrow Agent in writing to release to the Purchaser the amount of such Closing Payment Excess from the Escrow Account. If the amount of the Closing Payment Excess or any portion thereof shall be paid to the Purchaser from the Escrow Account pursuant to this Section 3.3(e), the Seller and the Party Stockholders, jointly and severally, shall promptly (and, in any case, within five Business Days) pay to the Escrow Agent, to be credited to the Escrow Account, the amount deducted from the Escrow Account pursuant to this Section.  “Final Working Capital” means the Net Working Capital as of the Closing Date (i) as shown in the Closing Working Capital Statement if no Statement of Objections is delivered pursuant to Section 3.3(c), or (ii) if a Statement of Objections is delivered pursuant to Section 3.3(c), (A) as agreed by the Purchaser and the Sellers’ Representative pursuant to Section 3.3(c) or (B) in the absence of such agreement, as shown in the Independent Accountant’s calculation delivered pursuant to Section 3.3(d).  
(f)
    Any payment pursuant to Section 3.3(e) shall be made at a mutually convenient time and place within five Business Days after Final Working Capital has been determined by wire transfer by the Purchaser or the Seller and/or the Party Stockholders, as the case may be, of immediately available funds to the account of such other Party as may be designated in writing by such other Party.  

Section 3.4 
    Earn-Out.  
(a)
    As additional consideration for the Purchased Assets, following the Closing, if the Business achieves $10,000,000 or more in Sales during the 12-month period ending December 31, 2017 or the 12-month period ending December 31, 2018 (the “Earn-Out Condition”), the Purchaser shall pay to the Seller Parties an amount equal to the Earn-Out Amount (the “Earn-Out Payment”).  For the avoidance of doubt, the Earn-Out Payment, if any, shall be a one-time payment to the Seller Parties, and if the Earn-Out Condition is not satisfied, no Earn-Out Payment shall be made by, or required of, the Purchaser.  The maximum amount to be paid by the Purchaser pursuant to this Section 3.4 shall be the Earn-Out Amount.
(b)
    The amount of Sales shall be determined in accordance with GAAP 

22

and consistent with the Seller’s accounting principles used prior to the Closing, following the preparation of the Business’s financial statements for each 12-month period described in this Section 3.4.  
(c)
    The Purchaser shall promptly notify the Sellers’ Representative within sixty (60) days following the 12-month period ending December 31, 2017 or the 12-month period ending December 31, 2018, as applicable, whether the Earn-Out Condition has been achieved and provide Sellers’ Representative with Purchaser’s calculation of Sales for the relevant period. Within five Business Days of notification by the Purchaser to the Sellers’ Representative of the satisfaction of the Earn-Out Condition, the Purchaser shall make or cause to be made the Earn-Out Payment by wire transfer of immediately available funds to the account(s) designated in writing by the Sellers’ Representative to the Purchaser.  
(d)
    The Purchaser shall have the right to withhold and set off against any amount otherwise due to be paid pursuant to this Section 3.4 the amount of (i) adjustment to the purchase price set forth in Section 3.3 and (ii) any Losses to which any Purchaser Indemnified Party is then entitled to under Article X. 
(e)
    The parties hereto understand and agree that (i) the contingent rights to receive any Earn-Out Payment shall not be represented by any form of certificate or other instrument, are not transferable, except by operation of Laws relating to descent and distribution, divorce and community property, and do not constitute an equity or ownership interest in the Purchaser or any of its Affiliates, (ii) none of the Seller Parties shall have any rights as a security holder of the Purchaser or any of its Affiliates as a result of such Seller Party’s contingent right to receive any Earn-Out Payment hereunder, and (iii) no interest is payable with respect to the Earn-Out Payment, provided it is timely paid as set forth in this Section 3.4.
(f)
    If the Sellers’ Representative objects in writing (which objection must set forth in reasonable detail the grounds for the objection) to the Purchaser’s calculation delivered under Section 3.4(c) within 45 days following its receipt of such calculation, the parties will negotiate in good faith to resolve the dispute over such calculation during the 30 days following delivery of such objection. If the Sellers’ Representative and the Purchaser are unable to resolve the dispute within such 30-day period, such dispute shall be resolved by the Independent Accountant.  The fees and expenses of such accounting firm shall be borne equally by the Sellers’ Representative and the Purchaser.  Each of the Sellers’ Representative and the Purchaser will furnish the Independent Accountant with any documents and information that the Independent Accountant may request, and each of Sellers’ Representative and Purchaser may present to the Independent Accountant any additional documents and information relating to the disputed issues.  In resolving any disputed item, the Independent Accountant may not assign a value to any item greater than the greatest value for such item claimed by either Party or less than the smallest value for such item claimed by either Party, and absent manifest error the Independent Accountant’s resolution of the disputed issue will 

23

be binding on the Parties and used to determine whether the Earn-Out Condition has been satisfied.  In the event the Independent Accountant determines that the Earn-Out Condition has been satisfied, the Purchaser shall remit payment to the Seller or the Sellers’ Representative of the Earn-Out Payment within five Business Days per the payment procedures described in Section 3.4(c).

Section 3.5 
    Consents and Waivers; Further Assurances.
(a)
    Nothing in this Agreement, the Purchaser Ancillary Agreements or the Seller Ancillary Agreements shall be construed as an agreement or obligation to assign any Purchased Asset that by its terms or pursuant to applicable Law is not capable of being sold, assigned, transferred or delivered without the consent or waiver of a third party or Governmental Entity unless and until such consent or waiver shall be given.  In the event any such consents or waivers are not obtained prior to the Closing Date, the Seller Parties shall, and the Purchaser shall cooperate reasonably with the Seller Parties to, obtain such consents and waivers and to resolve the impediments to the sale, assignment, transfer or delivery contemplated by this Agreement, the Purchaser Ancillary Agreements or the Seller Ancillary Agreements and to obtain any other consents and waivers necessary to convey to the Purchaser all of the Purchased Assets until such consents or waivers are obtained; provided, however, that neither Party shall be required to make any payment to a third party in order to obtain its consent.  In the event any such consents or waivers are not obtained prior to the Closing Date, the Seller Parties will cooperate with the Purchaser in any lawful arrangement and for a reasonable period following the Closing to provide that the Purchaser shall receive the interest of the Seller in the benefits under any such Purchased Asset, including performance by the Seller, as agent; provided, that the Purchaser shall undertake to pay or satisfy any corresponding Liabilities for the enjoyment of such benefit to the extent the Purchaser would have been responsible therefor hereunder if such consents or waivers had been obtained.  
(b)
    Following the Closing, the Seller and the Purchaser shall execute, acknowledge and deliver all such further conveyances, notices, assumptions and releases and such other instruments, and shall take such further actions, as may be necessary or appropriate to assure fully to the Purchaser all of the properties, rights, titles, interests, estates, remedies, powers and privileges intended to be conveyed to the Purchaser under this Agreement, the Purchaser Ancillary Agreements and the Seller Ancillary Agreements and to assure fully to the Seller the assumption of the Liabilities intended to be assumed by the Purchaser pursuant to this Agreement, the Purchaser Ancillary Agreements and the Seller Ancillary Agreements, and to otherwise make effective as promptly as practicable the transactions contemplated hereby and thereby.

ARTICLE IV
     
REPRESENTATIONS AND WARRANTIES OF THE SELLER PARTIES
The Seller, and each of the Party Stockholders, jointly and severally, hereby represent and warrant to the Purchaser that the statements contained in this Article IV are true and correct as of the date of this Agreement and will be true and correct as of the Closing Date (except for any such 

24

representation and warranty that expressly is made as of a specific date, which such representation and warranty shall be true and correct as of such date), subject to such qualifications as are set forth in the disclosure Schedules referring to the sections or subsections of this Article IV attached to this Agreement (all such Schedules collectively, the “Disclosure Schedule”).  The Disclosure Schedule shall be arranged according to Schedules corresponding to specific section numbers in this Article IV and shall provide exceptions to, or otherwise qualify in reasonable detail, only the corresponding section in this Article IV; provided, that where it is reasonably apparent that a disclosure in one Schedule within the Disclosure Schedule would apply to another Schedule of the Disclosure Schedule, such disclosure shall be deemed to apply to such other Schedule.  In Section 4.2(b) through Section 4.2(d) below, the relevant Seller Party to which such representations and warranties relate, represents and warrants to the Purchaser, jointly with the Seller, that the statements contained in such subsections of this Article IV are true and correct as of the date hereof and as of the Closing Date.

Section 4.1 
    Organization.  The Seller is a corporation, duly formed and validly existing under the laws of Arizona and has all requisite power and authority to own, lease and operate its properties and to carry on the Business as currently conducted.  The Seller is duly qualified or registered as a foreign corporation to transact business under the Laws of each jurisdiction where the character of its activities or the location of the properties owned or leased by it requires such qualification or registration.  The Seller has heretofore provided (or made available) to the Purchaser correct and complete copies of Seller’s articles of incorporation, bylaws and shareholders agreement, each as currently in effect, and the corporate record books with respect to actions taken during the prior five (5) years by its board of directors and shareholders.  Schedule 4.1 contains a true, correct and complete list of the jurisdictions in which the Seller is qualified or registered to do business as a foreign corporation.  The Seller formed Tea Packers as a wholly owned subsidiary in 2005, but Tea Packers has never conducted business, held any assets or entered into any Contracts or arrangements with any Person since its formation.  Tea Packers has remained an inactive shell entity throughout its existence.  The Seller intends to dissolve Tea Packers shortly following the Closing. 

Section 4.2 
    Authorization.  
(g)
    The Seller has the full right, power and authority to execute and deliver this Agreement, the Purchaser Ancillary Documents executed by Seller, and the Seller Ancillary Documents executed by Seller, and to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby.  The consummation of the transactions contemplated hereby have been duly authorized by all required corporate action of Seller.  This Agreement, the Purchaser Ancillary Documents executed by the Seller, and the Seller Ancillary Documents executed by the Seller have been duly executed and delivered by the Seller and constitute the valid and binding agreement of the Seller, enforceable against it in accordance with their respective terms, except to the extent that their enforceability may be, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors’ rights generally, and by general equitable principles.

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(h)
    With respect to each Party Stockholder, Schweiker and Martinson, (i) such Person has the full right, power, authority and capacity to execute and deliver this Agreement, the Purchaser Ancillary Documents executed by such Party Stockholder, Schweiker and/or Martinson, as applicable, and the Seller Ancillary Documents executed by such Party Stockholder, Schweiker and/or Martinson, as applicable, to carry out his, her or its respective obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby, and (ii) this Agreement, the Purchaser Ancillary Documents executed by such Party Stockholder, Schweiker and/or Martinson, as applicable, and the Seller Ancillary Documents executed by such Party Stockholder, Schweiker and/or Martinson, as applicable, have been duly executed and delivered by such Party Stockholder, Schweiker and/or Martinson, as applicable, and constitute the valid and binding agreement of such Party Stockholder, Schweiker and/or Martinson, as applicable, enforceable against him or it in accordance with their respective terms, except to the extent that their enforceability may be, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors’ rights generally, and by general equitable principles.
(i)
    With respect to the Schweiker Family Trust:
(i)
    such Trust was validly created and is duly existing under the Laws of the State of Arizona;
(ii)
    such Trust is revocable;
(iii)
    Daniel W. Schweiker is the trustor and primary beneficiary of such Trust; 
(iv)
    Daniel W. Schweiker and Suzanne Smith-Schweiker are the trustees of such Trust;
(v)
    the trust assets of such Trust may be used to satisfy the obligations of such Trust under this Agreement and each of the Purchaser Ancillary Documents and Seller Ancillary Documents to which such Trust is a party or by which such Trust is bound and to consummate the transactions contemplated hereby and thereby;
(vi)
    the trustee of such Trust is duly qualified under the Laws of the State of Arizona to serve as trustee of such Trust and is fully authorized under the Laws of the State of Arizona and the Trust Documents for such Trust to execute and deliver this Agreement and each of the Purchaser Ancillary Documents and Seller Ancillary 

26

Documents to which such Trust is a party or by which such Trust is bound as trustee of such Trust and to encumber the trust assets of such Trust; 
(vii)
    this Agreement and each of the Purchaser Ancillary Documents and Seller Ancillary Documents to which such Trust is a party or by which such Trust is bound have been duly executed and delivered by such Trust and constitute the valid and binding agreement of such Trust, enforceable against such Trust, the trustee of such Trust, the trust assets of such Trust and the beneficial interests in such Trust in accordance with their respective terms, except to the extent that their enforceability may be, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors’ rights generally, and by general equitable principles;
(viii)
    no other actions by the trustee of such Trust or any other Persons are necessary to make the obligations of such Trust under this Agreement and each of the Purchaser Ancillary Agreements and Seller Ancillary Agreements to which such Trust is a party or by which such Trust is bound, including the indemnification obligations under Article X, enforceable against such Trust, the trustee of such Trust, the trust assets of such Trust and the beneficial interests in such Trust; and
(ix)
    correct and complete copies of the Trust Documents for such Trust have been made available to the Purchaser.
(j)
    With respect to the Martinson Family Trust:
(i)
    such Trust was validly created and is duly existing under the Laws of the State of Arizona;
(ii)
    such Trust is revocable;
(iii)
    John Martinson and Suzanne Pickett Martinson are the settlors and primary beneficiaries of such Trust; 
(iv)
    John Martinson and Suzanne Pickett Martinson are the trustees of such Trust;
(v)
    the trust assets of such Trust may be used to satisfy the obligations 

27

of such Trust under this Agreement and each of the Purchaser Ancillary Documents and Seller Ancillary Documents to which such Trust is a party or by which such Trust is bound and to consummate the transactions contemplated hereby and thereby;
(vi)
    the trustee of such Trust is duly qualified under the Laws of the State of Arizona to serve as trustee of such Trust and is fully authorized under the Laws of the State of Arizona and the Trust Documents for such Trust to execute and deliver this Agreement and each of the Purchaser Ancillary Documents and Seller Ancillary Documents to which such Trust is a party or by which such Trust is bound as trustee of such Trust and to encumber the trust assets of such Trust; 
(vii)
    this Agreement and each of the Purchaser Ancillary Documents and Seller Ancillary Documents to which such Trust is a party or by which such Trust is bound have been duly executed and delivered by such Trust and constitute the valid and binding agreement of such Trust, enforceable against such Trust, the trustee of such Trust, the trust assets of such Trust and the beneficial interests in such Trust in accordance with their respective terms, except to the extent that their enforceability may be, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors’ rights generally, and by general equitable principles;
(viii)
    no other actions by the trustee of such Trust or any other Persons are necessary to make the obligations of such Trust under this Agreement and each of the Purchaser Ancillary Agreements and Seller Ancillary Agreements to which such Trust is a party or by which such Trust is bound, including the indemnification obligations under Article X, enforceable against such Trust, the trustee of such Trust, the trust assets of such Trust and the beneficial interests in such Trust; and
(ix)
    correct and complete copies of the Trust Documents for such Trust have been made available to the Purchaser.

Section 4.3 
    Absence of Restrictions and Conflicts.  The execution, delivery and performance of this Agreement, the Purchaser Ancillary Documents to which the Seller is a party and the Seller Ancillary Documents to which the Seller is a party, the consummation of the transactions contemplated hereby and thereby, and the fulfillment of and compliance with the terms and conditions hereof and thereof, do not or will not (as the case may be), with the passing of time or the giving of notice or both, result in the creation of any Liens upon any of the Purchased Assets or violate or conflict with, constitute a breach of or default under, result in the loss of any benefit under, permit the acceleration of any obligation under or create in any party the right to terminate, modify or cancel, (a) any term or provision of the articles of incorporation, articles of organization, bylaws or shareholders agreements or trust documents, as applicable, of any Seller Party, (b) except 

28

as indicated on Schedule 4.3(a), any Company Contract or any other Contract applicable to the Seller, (c) any judgment, decree or order of any court or Governmental Entity or agency to which the Seller is a party or by which its properties are bound or (d) any Law or arbitration award applicable to the Seller.  Except as indicated on Schedule 4.3(b), no consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Entity is required with respect to the Seller in connection with the execution, delivery or performance of this Agreement, the Purchaser Ancillary Documents to which the Seller is a party, or the Seller Ancillary Documents to which the Seller is a Party, or the consummation of the transactions contemplated hereby or thereby.  

Section 4.4 
    Real Property.
(c)
    Schedule 4.4(a) sets forth a true, correct and complete legal description of each parcel of real property in which the Seller holds, or purports to hold, a leasehold interest (together with all fixtures and improvements thereon, the “Leased Real Property”). 
(d)
    The Seller has a valid and enforceable leasehold interest in the Leased Real Property, and the leases granting such interests are in full force and effect. 
(e)
    The Seller neither owns, nor since its formation has owned, any real property. 
(f)
    To Seller's Knowledge, no portion of the Leased Real Property, or any building or improvement located thereon, violates any Law, including those Laws relating to zoning, building, land use, environmental, health and safety, fire, air, sanitation and noise control.  Except as set forth in Schedule 4.4(d), and except for the Permitted Liens, to Seller’s Knowledge no Leased Real Property is subject to (i) any decree or order of any Governmental Entity or threatened or proposed order or (ii) any rights of way, building use restrictions, exceptions, variances, reservations or limitations of any nature whatsoever, other than those that are a matter of public record.  To Seller’s Knowledge, there does not exist any actual or threatened or contemplated condemnation or eminent domain proceedings that affect any Leased Real Property or any part thereof, and the Seller has not received any notice, oral or written, of the intention of any Governmental Entity or other Person to take or use all or any part thereof.
(g)
    Except as set forth in Schedule 4.4(e), the improvements and fixtures on the Leased Real Property are in good operating condition and in a state of good maintenance and repair, ordinary wear and tear excepted, and are adequate and suitable for the purposes for which they are presently being used.  The Seller has not received any written notice from any insurance company that has issued a policy with respect to any Leased Real Property requiring performance of any structural or other repairs or alternations to such Leased Real Property.  The Leased Real 

29

Property constitutes all of the real property used or held for use by the Seller in the operation of the Business as currently conducted. 

Section 4.5 
    Title to Assets; Related Matters.
(a)
    Except as set forth on Schedule 4.5(a), the Seller has good and marketable title to all of the Purchased Assets, free and clear of all Liens, except Permitted Liens.  The Purchased Assets and Excluded Assets will constitute all property and assets of the Seller immediately prior to the Closing and, immediately following the Closing, the Purchased Assets will constitute all of the assets necessary to conduct the operations of the Business in the Ordinary Course. Except as set forth in Schedule 4.5(a), none of the Excluded Assets are material to the Business.
(b)
    Except as set forth in Schedule 4.5(b)(1), all equipment and other items of tangible personal property and assets included in the Purchased Assets (i) are in good operating condition and in a state of good maintenance and repair, ordinary wear and tear excepted, (ii) are suitable for the purposes used, and (iii) were acquired and are usable in the Ordinary Course.  There is no defect or problem with any of such equipment, tangible personal property or assets, other than ordinary wear and tear.  Except as set forth in Schedule 4.5(b)(2), no Person other than the Seller owns any equipment or other tangible personal property or assets situated on the premises of the Seller, except for the leased items that are subject to personal property leases.  Except as set forth on Schedule 4.5(b)(3), since the Balance Sheet Date, no Seller has sold, transferred or disposed of any assets, other than sales of inventory in the Ordinary Course.  Schedule 4.5(b)(4) sets forth a true, correct and complete list and general description of each item of tangible personal property of the Seller (including leased personal property) that is reflected on the Balance Sheet as of the Balance Sheet Date.  The Seller has a valid and enforceable leasehold interest for all equipment and other items of tangible personal property and assets included in the Purchased Assets that are subject to personal property leases, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors’ rights generally, and by general equitable principles.  

Section 4.6 
    Financial Statements.  True and correct copies of the Financial Statements have been made available to the Purchaser.  Except as expressly noted in Schedule 4.6, the Financial Statements have been prepared in accordance with GAAP from the books and records of the Seller, and such books and records have been maintained on a basis consistent with GAAP.  Each balance sheet included in the Financial Statements (including the related notes and schedules) fairly presents the financial position of the Seller, as of the date of such balance sheet, and each income statement and statement of cash flows included in the Financial Statements (including any related notes and schedules) fairly presents the results of operations and changes in cash flows of the Seller for the periods set forth therein, in each case in accordance with GAAP (except as expressly noted therein or as disclosed on Schedule 4.6).  Since the Balance Sheet Date, there has been no change in any 

30

accounting (or tax accounting) policy, practice or procedure (except as expressly disclosed on Schedule 4.6) of the Seller.  The Seller maintains accurate books and records reflecting its assets and liabilities and maintains proper and adequate internal accounting controls sufficient to provide reasonable assurances regarding the reliability of financial reporting and the preparation of annual financial statements for external purposes in accordance with GAAP.

Section 4.7 
    No Undisclosed Liabilities.  Except as disclosed on Schedule 4.7, the Seller does not have any Liability of the type that would be required to be disclosed on a balance sheet under GAAP that is not adequately reflected or provided for in the Balance Sheet, except Liabilities that have been incurred since the Balance Sheet Date (including during the period between the date hereof and the Closing) in the Ordinary Course or are approved by the Purchaser pursuant to Section 6.1.

Section 4.8 
    Absence of Certain Changes.  Since the Balance Sheet Date and except as set forth on Schedule 4.8, there has not been (i) any Material Adverse Effect, (ii) any damage, destruction, loss or casualty to property or assets of Seller resulting in a diminution of value in excess of $10,000, whether or not covered by insurance, or (iii) any action taken of the type described in Section 6.1, that, had such action occurred without the Purchaser’s prior approval, would be in violation of Section 6.1.

Section 4.9 
    Legal Proceedings.  Except as set forth on Schedule 4.9, there is no (and there has not been at any time in the past five years) Action pending or, to the Seller’s Knowledge, threatened against, relating to or involving the Purchased Assets, the Assumed Liabilities, the Seller (or pending or threatened against any of the officers, directors, employees or independent contractors of Seller with respect to their business activities on behalf of Seller) or any of its real or personal property (a “Legal Proceeding”).  To the Seller’s Knowledge, there is no reasonable basis for any Legal Proceeding.  None of the Legal Proceedings set forth on Schedule 4.9, if finally determined adversely, could have a Material Adverse Effect.  Neither the Seller, nor any of the officers, directors, employees or independent contractors of Seller with respect to their business activities on behalf of Seller, is subject to any judgment, decree, injunction, rule or order of any court, arbitration panel or Governmental Entity.

Section 4.10 
    Compliance with Law.  Except as set forth on Schedule 4.10(a)(1), the Seller is (and has been at all times during the past five years) in compliance in all material respects with all applicable Laws (including applicable Laws relating to zoning, Environmental matters and the health and safety of employees and contractors) and other requirements of any Governmental Entity.  Except as set forth on Schedule 4.10(a)(2), (i) the Seller has not been charged with, nor received any written notice that it is under investigation with respect to, any violation of any applicable Law or other requirement of a Governmental Entity, (ii) the Seller is not a party to, nor bound by, any order, judgment, decree, injunction, rule or award of any Governmental Entity or arbitrator, and 

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(iii) the Seller has filed all reports and has all Licenses relating to the Business required to be filed with any Governmental Entity on or prior to the date hereof.

Section 4.1 
    Material Contracts.  Schedule 4.11 sets forth a true, correct and complete list of the following Contracts to which Seller is a party, by which Seller or any of its property (including the Purchased Assets) is subject, or by which Seller is otherwise bound (the “Material Contracts”) (other than the Employment Agreements set forth on Schedule 4.13(b), the Company Benefit Plans set forth on Schedule 4.14(a) and the insurance policies set forth on Schedule 4.16(a)) as of the date hereof:
(c)
    all bonds, debentures, notes, loans, credit or loan agreements or loan commitments, mortgages, indentures, guarantees or other Contracts relating to the Indebtedness or the borrowing of money or binding upon any properties or assets (real, personal or mixed, tangible or intangible) of Seller;
(d)
    all leases or licenses involving any properties or assets of Seller (whether real, personal or mixed, tangible or intangible) (other than off-the-shelf agreements for commercially available software or other intangible property for which Seller pays less than $5,000 per year in license fees);
(e)
    all Contracts that: (i) limit or restrict, or purport to limit or restrict, the Seller or any of its officers, directors, employees, agents or representatives (in their capacity as such) from engaging in any business or other activity in any jurisdiction; (ii) create or purport to create any exclusive or preferential relationship or arrangement; or (iii) otherwise limit or restrict, or purport to limit or restrict, the ability of Seller to operate or expand the Business;
(f)
    all confidentiality agreements;
(g)
    all Contracts for capital expenditures or the acquisition or construction of fixed assets requiring the ongoing or future payment by Seller of an amount in excess of $25,000;
(h)
    all Contracts that provide for an increased payment or benefit, or accelerated vesting, upon the execution hereof, or the Closing, or in connection with the transactions contemplated hereby;
(i)
    all Contracts granting any Person a Lien on all or any part of any Purchased Asset;

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(j)
    all Contracts for the cleanup, abatement or other actions in connection with any Hazardous Materials, the remediation of any existing environmental condition or relating to the performance of any environmental audit or study;
(k)
    all Contracts granting to any Person an option or a first refusal, first-offer or similar preferential right to purchase or acquire any Purchased Asset;
(l)
    all Contracts with any Governmental Entity; 
(m)
    all Contracts for the granting or receiving of a license, sublicense or franchise or under which any Person is obligated to pay or has the right to receive a royalty, license fee, franchise fee or similar payment (other than off-the-shelf agreements for commercially available software or other intangible property for which Seller pays less than $5,000 per year in license fees);
(n)
    all Contracts to which Seller is a party (i) with respect to Intellectual Property licensed or transferred by Seller to any third party (other than non-exclusive end-user licenses granted by Seller to customers in the Ordinary Course) or (ii) pursuant to which a third party has licensed or transferred any Intellectual Property to Seller, other than off-the-shelf agreements for commercially available software or other intangible property for which Seller pays less than $5,000 per year in license fees);
(o)
    all joint venture or similar partnership Contracts and all other Contracts providing for the sharing of any profits;
(p)
    all Contracts entered into involving the sale or purchase of assets or capital stock of any Person, other than in the Ordinary Course, or a merger, consolidation, business combination or similar transaction;
(q)
    all Contracts with any agent, distributor or representative that are not terminable without penalty on 90 days’ or less notice;
(r)
    all customer Contracts (excluding work orders and purchase orders that either have been completed or individually will provide revenue to the Seller in an amount less than $15,000) for the provision of $15,000 or more in goods or services by the Seller;
(s)
    all supply Contracts (excluding work orders and purchase orders that 

33

either have been completed or individually will require the Seller to spend an amount less than $15,000) for the provision of $15,000 or more in goods or services for the Seller;
(t)
    all outstanding powers of attorney empowering any Person to act on behalf of Seller; 
(u)
    all existing Contracts (other than those described in subsections (a) through (r) of this Section 4.11) (i) involving an ongoing annual commitment or annual payment to or from the Seller of more than $25,000 individually, or (ii) that is otherwise material to the Seller; and
(v)
    all Contracts (other than those described in subsections (a) through (r) of this Section 4.11) providing for the indemnification or holding harmless by the Seller of any officer, director, employee or other Person; and
(w)
    all proposed Contracts or Contracts currently under negotiation that would be required to be listed under any one of the Sections above if entered into as of the date hereof, and are expected to be executed on or prior to the Closing Date or within 60 days thereafter.
Prior to the date hereof, true, correct and complete copies of all Material Contracts have been provided (or made available) by the Seller to the Purchaser.  Any new Contract applicable to the Seller or the real or personal property of Seller that qualifies as a Material Contract that is entered into between the date hereof and the Closing shall be promptly disclosed and provided (or made available) by the Seller to the Purchaser as required by Section 6.3.  The Material Contracts are legal, valid, binding and enforceable in accordance with their respective terms with respect to the Seller, and, to the Seller’s Knowledge, each other party to such Material Contracts, except to the extent that their enforceability may be subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors’ rights generally, and by general equitable principles.  There is no existing default or breach of Seller under any Material Contract (or event or condition that, with notice or lapse of time or both could constitute a default or breach) and, to the Seller’s Knowledge as of the date hereof, there is no such default (or event or condition that, with notice or lapse of time or both, would be likely to constitute a default or breach) with respect to any third party to any Material Contract.  Except as set forth in Schedule 4.11, neither the Seller nor any Affiliate of Seller is participating in any discussions or negotiations with any third party outside the Ordinary Course regarding either (a) modification of or amendment to any Material Contract or (b) entry into any new Contract applicable to the Seller or the real or personal property of Seller that would be a Material Contract.  Schedule 4.11 identifies (i) each Material Contract set forth therein that requires the consent of the other party thereto with an asterisk (*), and (ii) each Material Contract set forth therein that requires notice to the other party thereto with two asterisks (**), in each case, to avoid any breach, default or violation of such Contract in connection with the Acquisition and the other transactions contemplated by this Agreement.

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Section 4.2 
    Tax Returns; Taxes.
(k)
    Except as otherwise disclosed on Schedule 4.12(a): (i) all Tax Returns of Seller due to be filed have been filed through the date hereof in accordance with any applicable Law, have been duly and timely filed, and are true, correct and complete in all respects; (ii) all Taxes, deposits of Taxes or other payments relating to Taxes due and owing by Seller (whether or not shown on any Tax Return) have been timely paid in full; (iii) there are not now any extensions of time in effect with respect to the dates on which any Tax Returns of Seller were or are due to be filed; (iv) all deficiencies asserted as a result of any examination of any Tax Returns of Seller have been paid in full, accrued on the books of the applicable Seller, or finally settled, and no issue has been raised with Seller in any such examination which, by application of the same or similar principles, reasonably could be expected to result in a proposed deficiency for any other period not so examined; (v) no audits, examinations, investigations, disputes or claims are currently underway, pending, or, to the Seller’s Knowledge, threatened, for any Taxes of Seller, and no proposals or deficiencies for any Taxes of Seller are being asserted, proposed or, to the Seller’s Knowledge, threatened, and to the Seller’s Knowledge, no circumstances exist to form the basis for asserting or raising such a claim or issue; (vi) no claim has been made to Seller by a taxing authority in a jurisdiction in which Seller does not file Tax Returns that it is or may be subject to taxation by that jurisdiction; (vii) the Seller has timely withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor or other third party; (viii) there are no outstanding waivers or agreements by or on behalf of Seller for the extension of time for the assessment of any Taxes or deficiency thereof, nor are there any requests for rulings, outstanding subpoenas or requests for information, notice of proposed reassessment of any property owned or leased by Seller or any other matter pending between Seller and any taxing authority; (ix) there are no Liens for Taxes (other than Liens for Taxes which are not yet due and payable) on any of the assets of Seller, nor are any such Liens pending or, to the Seller’s Knowledge, threatened; (x) Seller is not a party to any Tax allocation, sharing or indemnification agreement under which Seller will have any Liability after the Closing; (xi) Seller has not been a member of an affiliated group filing a consolidated U.S. federal income Tax Return; (xii) Seller has no Liability for the Taxes of any Person (other than for itself) under U.S. Treasury Regulations Section 1.1502-6 (or any similar provision of state, local or non-U.S. Law), as a transferee or successor, by contract, or otherwise; and (xiii) the Seller has at all times used proper accounting methods and periods in computing its Tax Liability.
(l)
    Except as set forth on Schedule 4.12(b), the Seller has delivered to the Purchaser for the Tax periods commencing January 1, 2011, true, correct and complete copies of all federal, state, local and foreign income Tax Returns filed by the Seller.
(m)
    Seller will not be required to include any item of income in, or exclude any item of deduction from, Taxable income for any Taxable period (or portion thereof) beginning on or after the Closing Date as a result of any: (i) change in method of accounting for a Taxable 

35

period ending prior to the Closing Date; (ii) “closing agreement” as described in Section 7121 of the Code (or any corresponding or similar provision of state, local, or non-U.S. Tax Law) executed on or before the Closing Date; (iii) installment sale or open transaction disposition made on or prior to the Closing Date; (iv) prepaid amount received on or before the Closing Date; (v) an intercompany item under Treasury Regulations Section 1.1502-13 or an excess loss account under Treasury Regulations Section 1.1502-19; or (vi) election made (or contemplated to be made) under Section 108(i) of the Code.
(n)
    Seller has not been a party to any “reportable transaction” as defined in Treasury Regulations Section 1.6011-4(b).
(o)
    None of the transactions contemplated hereby is subject to withholding under Section 1445 of the Code.
(p)
    No issue has been raised in writing, or to the Seller’s Knowledge, orally by any Governmental Entity, which, by application of the same principles, would reasonably be expected to affect the Tax treatment of the Seller’s assets in any taxable period (or portion thereof) ending after the date hereof.
(q)
    None of the Seller’s assets or properties is (i) “tax-exempt use property” within the meaning of Section 168(h)(1) of the Code, (ii) “tax-exempt bond financed property” within the meaning of Section 168(g) of the Code, (iii) “limited use property” within the meaning of Rev. Proc. 2001-28, (iv) described in Section 168(g)(1)(A) of the Code with respect to which Seller has claimed depreciation deductions in determining its U.S. federal income tax Liability, or (v) subject to any provision of Law comparable to any of the provisions listed above.
(r)
    Tea Packers has at all times been an entity disregarded from its owners described in clause (i) of Treasury Regulations Section 301.7701-3(b) for federal tax purposes.

Section 4.3 
    Officers and Employees.  Schedule 4.13(a) contains a true, correct and complete list of (a) all of the officers of the Seller, specifying their position, annual rate of compensation, work location, length of service, and any other non-standard benefits provided to each of them and (b) all of the employees (whether full-time, part-time or otherwise) and individual independent contractors of the Seller, specifying their position, status, annual salary, hourly wages, work location, length of service, other non-standard benefits provided to each of them, consulting or other independent contractor fees, together with an appropriate notation next to the name of any officer or other employee on such list who is subject to any Employment Agreement or any other Contract (other than a standard offer letter) describing the terms or conditions of employment of such employee or of the rendering of services by such individual independent contractor.  All of the officers, employees and individual independent contractors of the Seller required to be disclosed on Schedule 4.13(a) 

36

are legally eligible for their employment or contracting services under applicable Law and Seller is in compliance with all applicable Laws pertaining to immigration and work authorization.  Except as set forth on Schedule 4.13(b), the Seller is not a party to or bound by any Employment Agreement or any other Contract with respect to the terms or conditions of employment of any Person.  The Seller has provided (or made available) to the Purchaser true, correct and complete copies of each Employment Agreement to which Seller is a party, or by which it is otherwise bound.  Each such Employment Agreement is legal, valid, binding and enforceable in accordance with its terms with respect to the Seller, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors’ rights generally, and by general equitable principles.  There is no existing default or breach of Seller under any Employment Agreement (or event or condition that, with notice or lapse of time or both could constitute a default or breach) and, to the Seller’s Knowledge, there is no such default (or event or condition that, with notice or lapse of time or both, could constitute a default or breach) with respect to any third party to any Employment Agreement.  The Seller has not received a claim from any Governmental Entity to the effect that Seller has improperly classified any Person listed on Schedule 4.13(a).  Except as set forth in Schedule 4.13(c), the Seller has not made any verbal commitments to any officer, employee, former employee, consultant or independent contractor of Seller or any other Person with respect to compensation, promotion, retention, termination, severance or similar matters in connection with the transactions contemplated hereby.  Except as indicated on Schedule 4.13(d), all officers, employees and individual independent contractors of Seller are active on the date hereof.

Section 4.4 
    Company Benefit Plans.  Each Company Benefit Plan is identified in Schedule 4.14(a), and Seller has provided (or made available) a true, correct and complete copy of each such plan to the Purchaser together with the most recent report filed with respect to such plan with any Governmental Entity.  No Company Benefit Plan is subject to Title IV of ERISA, and no Company Benefit Plan is described in Section 413(c) of the Code or Section 3(40) of ERISA.  The terms of each Company Benefit Plan as currently in effect that purports to be qualified under Section 401(a) of the Code and any trust which is a part of any such Company Benefit Plan are subject to a favorable determination letter or opinion letter from the Internal Revenue Service, and each such Company Benefit Plan has been operated and administered in accordance with all Laws (including ERISA and the Code).  The terms of each other Company Benefit Plan satisfy the requirements of Laws (including ERISA and the Code), and each such Company Benefit Plan has been operated and administered in accordance with all Laws (including ERISA and the Code).  The Seller has timely satisfied all reporting and disclosure obligations under Laws (including ERISA and the Code) with respect to the Company Benefit Plans.  Neither the Seller nor any ERISA Affiliate thereof has any Liability under any Employee Benefit Plan other than a Company Benefit Plan.  There have been no prohibited transactions (as described in Section 406 of ERISA or Section 4975 of the Code) with respect to any Company Benefit Plan which have not been corrected in full with respect to which any Tax or penalty is due or which are not otherwise exempt under Section 4975(d) of the Code or Section 408 of ERISA.  If the benefits under a Company Benefit Plan are funded through a trust, the fair market value of the assets of such trust equal or exceed the Liabilities of such plan and no Liens exist or may arise with respect to any Company Benefit Plan.  If the benefits under a Company Benefit Plan are funded through insurance Contracts, such Contracts are in full force and effect and all premiums have been paid when due.  If benefits under a Company Benefit Plan are 

37

funded from the general assets of Seller, the Liability for funding such benefits is shown on the books and records of Seller in accordance with GAAP and any applicable standards of the Financial Accounting Standards Board.  The Seller has made full and timely payment of all amounts which are required to be paid as contributions to each Company Benefit Plan.  No Company Benefit Plan provides for benefits described in Section 3(1) of ERISA following a termination of employment except as required under Part 6 of Title I of ERISA, and the Seller has complied in all material respects with the healthcare continuation coverage requirements of Part 6 of Title I of ERISA.  Except as set forth in Schedule 4.14(b), there is no Contract or plan with any Person which provides for any payment to any employee by Seller, which payment would fail to be deductible by reason of Section 280G of the Code or which would exceed the deduction limits under Section 404 of the Code.  Except as set forth in Schedule 4.14(c), the Seller has no contractual obligation to maintain any Company Benefit Plan for any period of time or to make contributions from its general assets at a fixed rate to such plan (other than premium payments for an insurance Contract which are set on a year-to-year basis and matching contributions as provided in the 401(k) plan in which any employee of Seller is eligible to participate), and the Seller can terminate any Company Benefit Plan at any time, without any early termination fee or penalty becoming due under the terms of any group annuity or other insurance Contract.  There is no Action pending or, to the Seller’s Knowledge, threatened with respect to any Company Benefit Plan (other than claims for benefits in the Ordinary Course).  To the Seller’s Knowledge, there is no reasonable basis for any Action with respect to any Company Benefit Plan (other than claims for benefits in the Ordinary Course).

Section 4.5 
    Labor Relations.  Except as set forth in Schedule 4.15: (a) the Seller is not a party to any collective bargaining agreement, Contract or legally binding commitment to any trade union or employee organization or group in respect of or affecting employees; (b) the Seller is not currently engaged in any negotiation with any trade union or employee organization; (c) the Seller has not engaged in any unfair labor practice within the meaning of the National Labor Relations Act, and there is no pending or, to the Seller’s Knowledge, threatened complaint regarding any alleged unfair labor practices as so defined; (d) there is no strike, labor dispute, work slowdown or stoppage pending or, to the Seller’s Knowledge, threatened against Seller; (e) there is no grievance or arbitration proceeding arising out of or under any collective bargaining agreement which is pending or, to the Seller’s Knowledge, threatened against Seller; (f) the Seller has not experienced any work stoppage; (g) the Seller is not the subject of any union organization effort; (h) there are no claims pending or, to the Seller’s Knowledge, threatened against Seller related to the status of any individual as an independent contractor or employee; and (i) Seller has complied in all material respects with WARN.  The Seller has not misclassified any Person as (x) an independent contractor rather than as an employee, or (y) an employee exempt from state, federal, provincial or other applicable overtime regulations.  There are no (and for the past five years there have been no) Actions against Seller pending, or to the Seller’s Knowledge, threatened to be brought or filed, by or with any Governmental Entity or arbitrator in connection with the employment of any current or former applicant, employee, consultant or individual independent contractor of the Business, including any claim relating to immigration or work authorization, violation of the Occupational Safety and Health Act or the Americans with Disabilities Act, unfair labor practices, employment discrimination, harassment, retaliation, equal pay, wages and hours or any other employment related matter arising under applicable Laws.

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Section 4.6 
    Insurance Policies.  Schedule 4.16(a) sets forth a list of (a) all policies of insurance maintained (currently maintained or held within the last three years), owned or held by the Seller (collectively, the “Insurance Contracts”), including the policy limits or amounts of coverage, deductibles or self-insured retentions, and annual premiums with respect thereto, and (b) all insurance claims made by Seller in the last three years.  Such Insurance Contracts are valid and binding in accordance with their terms, are in full force and effect, and the Insurance Contracts will continue in effect after the Closing Date.  The Seller has not received written notice that (a) it has breached or defaulted under any of such Insurance Contracts or (b) that any event has occurred that would permit termination, modification, acceleration or repudiation of such Insurance Contracts.  Except as set forth in Schedule 4.16(b), the Seller is not in default (including a failure to pay an insurance premium when due) in any material respect with respect to any Insurance Contract, nor has Seller failed to give any notice of any material claim under such Insurance Contract in due and timely fashion nor has Seller in the last three years been denied or turned down for insurance coverage.  

Section 4.7 
    Environmental Matters.  Except as set forth on Schedule 4.17:
(a)
    the Seller possesses all Licenses required under, and is in compliance with, all Environmental Laws, and the Seller is in compliance with all applicable limitations, restrictions, conditions, standards, prohibitions, requirements, obligations, schedules and timetables contained in all Environmental Laws or contained in any other Law, or any notice or demand letter issued thereunder, including all requirements of Environmental Laws relating to (i) the discharge and handling of Hazardous Materials, (ii) notice, recordkeeping and reporting, and (iii) obtaining and maintaining Licenses for the ownership of its properties and assets and the operation of the Business as presently conducted, including Licenses relating to the handling and discharge of Hazardous Materials;
(b)
    the Seller has not received notice of actual or threatened Liability under CERCLA or any similar foreign, state or local Law from any Governmental Entity or any third party and to Seller’s Knowledge there is no fact or circumstance that could form the basis for the assertion of any claim against Seller under any Environmental Law, including CERCLA or any similar local, state or foreign Law with respect to any on-site or off-site location;
(c)
    the Seller has not entered into or agreed to enter into, and has not contemplated entering into, any consent decree or order, and is not subject to any judgment, decree or judicial or administrative order relating to compliance with, or the cleanup of Hazardous Materials under, any applicable Environmental Law;
(d)
    the Seller has not been alleged to be in violation of, and has not been subject to any administrative or judicial proceeding pursuant to, applicable Environmental Laws;

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(e)
    the Seller is not subject to any fine, penalty, assessment or similar financial Liability or related claims of any kind or nature whatsoever, contingent or otherwise, incurred or imposed or based upon any provision of any Environmental Law and arising out of any act or omission of Seller, or the employees, agents or representatives of Seller or arising out of the ownership, use, control or operation by Seller of any plant, facility, site, area or property (including any plant, facility, site, area or property currently or previously owned or leased by Seller) from which any Hazardous Materials were Released;
(f)
    prior to the date hereof, the Seller has provided (or made available) to the Purchaser true, correct and complete copies of all reports, audits, studies, analyses, correspondence, memoranda, computer data and the complete files relating to environmental matters of the Seller, and the Seller has not paid any fine, penalty or assessment with respect to environmental matters;
(g)
    there has not occurred, nor is there presently occurring, from and due to Seller’s operation of the Business or other use by Seller of the real property at issue, a Release of any Hazardous Material on, into or beneath the surface of any real property currently owned or leased by Seller, in an amount requiring notice or report to a Governmental Entity;
(h)
    to Seller’s Knowledge, no Leased Real Property, improvement or equipment of Seller contains any asbestos, polychlorinated biphenyls, landfill, underground storage tanks, open or closed pits, underground sumps or other similar underground containers; and
(i)
    Seller has not imported, manufactured, stored, managed, used, operated, transported, treated or disposed of any Hazardous Material other than in compliance with all Environmental Laws.

Section 4.8 
    Intellectual Property.
(a)
    Schedule 4.18(a) sets forth a list of all Company Registered Intellectual Property that is owned or purported to be owned by the Seller.  The Seller owns all right, title and interest to the Company Registered Intellectual Property listed on Schedule 4.18(a), free and clear of all Liens.
(b)
    Schedule 4.18(b) identifies each item of Intellectual Property that Seller uses pursuant to a written license or agreement, other than off-the-shelf agreements for commercially available software or other intangible Intellectual Property for which Seller pays less than $5,000 in license fees per year.  With respect to each such item of Intellectual Property listed on Schedule 

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4.18(b): (i) the license or agreement covering the item is legal, valid, binding, enforceable against Seller, and in full force and effect; (ii) Seller is not in breach or default of the license or agreement; and (iii) Seller has not granted any sublicenses with respect to the license or agreement.
(c)
    (i) To the Seller’s Knowledge, the operation of the Business is not infringing or violating the Intellectual Property rights of any other Person, (ii) no Action is pending or, to the Seller’s Knowledge, threatened against Seller in respect of any Company Registered Intellectual Property or asserting that Seller is infringing or violating the Intellectual Property right of any Person, and (iii) Seller has not received any notice from any Person asserting any such infringement or violation.

Section 4.9 
    Transactions with Affiliates.  To Seller’s Knowledge, and except as set forth on Schedule 4.19, no officer or director of any Seller Party or any of its Affiliates, no Person with whom any such officer or director has any direct or indirect relation by blood, marriage or adoption, no entity in which any such officer or director owns any beneficial interest (other than a publicly held corporation whose stock is traded on a national securities exchange or in the over-the-counter market and less than one percent (1%) of the capital stock of which is beneficially owned by such officers and directors in the aggregate), no Affiliate of any of the foregoing and no current or former Affiliate of any Seller Party has entered into or is otherwise bound by: (a) any Contract with, or relating to, Seller or the properties or assets of Seller (excluding agreements disclosed in Schedule 4.13(b) and excluding any standard stock or option agreements to which the Seller is a party); (b) any loan or Contract for indebtedness relating to Seller or the properties or assets of Seller (excluding advances of travel or other Business-related expenses in the Ordinary Course); or (c) any Contract relating to property (real, personal or mixed), tangible or intangible, currently used by Seller.

Section 4.10 
    Undisclosed Payments.  None of (a) the Seller, (b) its officers or directors or (c) anyone acting on behalf of any of them has made or received any payment not adequately disclosed in the books and records of Seller and the Financial Statements in connection with or in any way relating to Seller.

Section 4.11 
    Customer Relations.  Schedule 4.21 contains a correct and complete list of the names and addresses of the Customers (and the amount of sales to each such Customer during the 12-month period ended December 31, 2015 and the six-month period ended on the Balance Sheet Date).  The Seller maintains good relations with each Customer as of the date of this Agreement and, to the Seller’s Knowledge as of the date of this Agreement, no event has occurred that could materially and adversely affect the relations between Seller and the Customer.  Except as set forth on Schedule 4.21, no Customer has, during the 12 months prior to the date of this Agreement, cancelled, terminated or, to Seller’s Knowledge, made any threat to cancel or otherwise terminate any of its Contracts with Seller or to materially decrease its orders from Seller and, to Seller’s Knowledge as of the date of this Agreement, no Customer intends to terminate or materially alter its business relations with Seller, either as a result of the transactions contemplated hereby or otherwise.

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Section 4.12 
    Supplier Relations.  Schedule 4.22 contains a correct and complete list of the names and addresses of the Suppliers (and the amount of purchases from each such Supplier during the 12-month period ended December 31, 2015 and the six-month period ended on the Balance Sheet Date).  The Seller maintains good relations with each Supplier as of the date of this Agreement and, to the Seller’s Knowledge as of the date of this Agreement, no event has occurred that could materially and adversely affect the relations between Seller and the Supplier.  Except as set forth on Schedule 4.22, no Supplier has, during the 12 months prior to the date of this Agreement, cancelled, terminated or, to Seller’s Knowledge, made any threat to cancel or otherwise terminate any of its Contracts with Seller or to materially decrease its supply to Seller, and to Seller’s Knowledge as of the date of this Agreement, no Supplier intends to terminate or materially alter its business relations with Seller, either as a result of the transactions contemplated hereby or otherwise.

Section 4.13 
    Accounts Receivable; Accounts Payable.
(a)
    Accounts Receivable.  The Seller has delivered to the Purchaser a true, correct and complete schedule of the Receivables as of June 30, 2016 showing the amount of each Receivable and an aging of amounts due thereunder, which schedule is correct and complete as of that date.  Except as set forth on Schedule 4.23(a), to the Seller’s Knowledge, the debtors to which the Receivables relate are not in or subject to a bankruptcy or insolvency proceeding and none of the Receivables has been made subject to an assignment for the benefit of creditors.  Except as set forth on Schedule 4.23(a), all such Receivables are current and there are no disputes regarding the collectability of any such Receivables.  Except as set forth on Schedule 4.23(a), all Receivables as of the Closing Date (net of any aggregate reserves shown on Schedule 4.23(a) (i) will be valid, existing and collectible in a manner consistent with the Seller’s past practices without resort to legal proceedings or collection agencies, (ii) represent monies due for goods sold and delivered or services rendered in the Ordinary Course and (iii) will not be subject to any refund or adjustment or any defense, right of set-off, assignment, restriction, security interest or other Lien.  The Seller has not factored any of its receivables.
(b)
    Accounts Payable.  The accounts payable of the Seller reflected on the Balance Sheet, and the accounts payable of the Seller since the Balance Sheet Date, arose or will arise, as applicable, from bona fide transactions in the Ordinary Course.

Section 4.14 
    Licenses.
(a)
    Schedule 4.24(a) is a correct and complete list of all Licenses held by the Seller.  The Seller owns or possesses all Licenses that are necessary to enable it to carry on the Business as presently conducted.  All such Licenses are valid, binding and in full force and effect.  The execution, delivery and performance hereof and the consummation of the Acquisition and the transactions contemplated this Agreement shall not adversely affect any such License, or require 

42

consent from, or notice to, any Governmental Entity.  Schedule 4.24(b) sets forth those Licenses that may be transferrable to the Purchaser at the Closing, and Seller’s best information concerning the consent, notice or filing requirements (relating to the relevant Governmental Entity issuing the License) that would be required for Purchaser to obtain the transfer of such scheduled License as part of the Purchased Assets.  The Seller has taken all necessary action to maintain each License listed on Schedule 4.24(a).  No loss or expiration of any License is pending or, to the Seller’s Knowledge, threatened or reasonably foreseeable (other than expiration upon the end of any term).
(b)
    To the Seller’s Knowledge, each individual independent contractor listed on Schedule 4.13(a), and each other independent contractor, has the requisite License required to provide the services such independent contractor provides to the Seller.

Section 4.15 
    Product and Services Warranties; Warranty Claims.  
(a)
    Except as set forth on Schedule 4.25(a)(1), there are no pending or, to the Seller’s Knowledge, threatened claims against Seller that any of its goods are defective or subject to a product recall, or that the goods or services manufactured, sold or provided by Seller fail to meet any product or service warranties of any applicable standard or the specifications of any foreign, federal, state, or local authority which involve or, to the Seller’s Knowledge, could reasonably be expected to involve a cost to Seller which in the aggregate for all such claims exceeds or could reasonably be expected to exceed $10,000. Except as provided in Schedule 4.25(a)(2), the Seller has not issued any recalls of products sold by it during the past five years.
(b)
    Except as set forth on Schedule 4.25(b), since January 1, 2011, the Seller has not incurred any Liability arising out of an injury to individuals or property as a result of the manufacture, ownership, possession or use of any product designed, manufactured, packaged, sold, leased, licensed, delivered, or otherwise distributed by Seller, and to the Seller’s Knowledge, no events have occurred and no circumstances exist that could give rise to or serve as a basis for any such Liability.

Section 4.16 
    Inventories.  Except as set forth on Schedule 4.26, all Inventories are usable and of merchantable quality. Any aggregate Inventory specifically identified by the Seller as satisfying a specific State of Arizona or other governmental product specification does not include any items which are below such specification, and the aggregate Inventory specifically identified by the Seller as satisfying any customary quality control standards does not include any items which are below such standards.  Except as set forth in Schedule 4.26, any aggregate Inventory includes no items which are of a quality or quantity not usable or, in the case of finished goods, salable in the normal course of business (it being understood that all Inventory shall have remaining shelf life of at least six months, which is the shelf life required by the Seller’s customers; and no such Inventory is (a) adulterated or misbranded within the meaning of the Federal Food, Drug and Cosmetic Act, (b) an item that may not, under Federal Food, Drug and Cosmetic Act, be introduced into interstate 

43

commerce, and (c) adulterated or misbranded within the meaning of or in violation of any disclosure or warning required under the pure food and drug or health, safety or Environmental Laws, regulations or ordinances of any state or other government authority which are applicable to such shipment or delivery). Seller’s report of the value of the Inventory as of August 31, 2016 was made and calculated consistent with the Seller’s past practices. 

Section 4.17 
    Regulatory and Certification Compliance.  
(a)    Compliance Generally. Seller has at all times through the date hereof, with respect to all of Seller’s products currently made, sold or marketed in the United States, or imported by Seller into the United States (collectively, the “Products”), complied in all material respects with the applicable provisions of the Federal Food, Drug, and Cosmetic Act and the implementing regulations, policies and guidances issued by the U.S. Food and Drug Administration (the “FDA”), the applicable provisions of the Federal Trade Commission Act and the implementing regulations, policies and guidances issued by the Federal Trade Commission (the “FTC”), any applicable regulations and requirements adopted by the U.S. Department of Agriculture (the “USDA”), and any applicable requirements established by state or local authorities responsible for regulating tea products and production facilities (collectively, the “State Authorities”), as well as with all terms and conditions imposed in any Licenses granted to Seller by the FDA, the USDA, any State Authority, any other Governmental Entity or any other Person, including any applicable facility registrations and fees; current good manufacturing practice (cGMP), Hazard Analysis and Critical Control Point (HACCP), or sanitation requirements; requirements relating to food; product or nutrition labeling requirements; inspection requirements; product composition requirements; testing requirements or protocols; recordkeeping and product traceability requirements; reporting and monitoring requirements; packaging (including co-packing and repackaging) requirements; laboratory controls; storage and warehousing procedures; prior import notice, product certifications and shipping requirements; and shelf-life requirements.
(b)    Enforcement Actions. Each of the Seller, the Products, and the facilities in which the Products are made, processed, labeled, packaged, handled or stored by or on behalf of Seller, are not now the subject (nor have they been the subject during the previous five years) of any recall, investigation, penalty assessment, non-routine audit or other compliance or enforcement action, or any investigation, by the FDA, the FTC, the USDA, any State Authority, or any other authority having responsibility for the regulation of food or beverage products, and, to the Seller’s Knowledge, none of the assemblers or distributors which receive, assemble or distribute the Products is subject (or has been subject during the previous five years) to any such adverse action with regard to the Products. To the Seller’s Knowledge, no supplier that supplies goods (including tea ingredients) or services in relation to the Products is subject (or has been subject during the previous five years) to any such adverse action with regard to such goods (including tea ingredients) or services. Seller has obtained all necessary Licenses from, and has made all necessary and appropriate applications and other submissions to, the FDA, the USDA, any State Authority and any other applicable authority having responsibility for the regulation of tea products, for its current and past business activities relating to the Products, including, without limitation and as applicable, any new 

44

dietary ingredient (NDI) or generally recognized as safe (GRAS) notifications, and notifications for “structure function” claims for the Products.
(c)    Unsuitability.  The Seller has not received any information or report from the FDA, the FTC, the USDA, any State Authority, or any other authority having responsibility for the regulation of food or tea products, indicating that any Product is unsafe or unsuitable for its intended use, and, to the Seller’s Knowledge, there are no facts that would reasonably be expected to result in the FDA, the FTC, the USDA, any State Authority, or other authority having responsibility for the regulation of food or tea products, prohibiting or restricting the marketing, sale, distribution or use in the United States of any Product currently made or marketed by the Seller, or the operation or use of any facility currently used by the Seller in connection with the Products.

Section 4.18 
    Import/Export.  The Seller has at all times conducted its import and export transactions in accordance and compliance in all material respects with (a) all applicable United States import, export and re-export controls Laws, including the United States Export Administration Act of 2001, as amended and the Export Administration Regulations (including Antiboycott regulations) implemented by the Office of Foreign Assets Control and the customs regulations administered by the U.S. Customs and Board Protection, and (b) consistent with applicable U.S. Laws and all other applicable import / export controls Laws in other countries in which Seller conducts business.  Without limiting the foregoing:
(a)
    Seller has obtained, and is in compliance in all material respects with, all Export/Import Approvals;
(b)
    there are no pending or, to the Seller’s Knowledge, threatened claims against Seller with respect to such Export/Import Approvals;
(c)
    to the Seller’s Knowledge, there are no actions, conditions or circumstances pertaining to Seller’s import or export transactions that would give rise to any future fine, penalty, assessment or similar financial Liabilities or related claims based on its operation of the Business through the Closing Date; 
(d)
    Seller has remitted all appropriate import fees, duties, taxes and/or any other payment required for import transactions in any country in which Seller conducts the Business;
(e)
    the Seller is not a party to any Contract or bid with and Seller has not conducted business with (directly or, to the Seller’s Knowledge, indirectly), any Person located in Central African Republic, Cuba, Belarus, Burma (Myanmar), Burundi, Iran, Libya, North Korea, Somalia, Sudan, Syria or Zimbabwe;

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(f)
    Seller has not received written notice from a Governmental Entity claiming or alleging that it was not in compliance with any applicable Laws relating to the export or import of goods, technology and/or services to or from any foreign jurisdiction; and
(g)
    Seller has not made any voluntary or directed disclosures to, and Seller has not been subject to any fines, penalties or sanctions from, any Governmental Entity regarding any import or export control violations. 

Section 4.19 
    Ethical Practices.  Neither the Seller nor any representative of the Seller has offered or given, and, to the Seller’s Knowledge, no other Person has offered or given on Seller’s behalf, anything of value to: (a) any official of a Governmental Entity, any political party or official thereof or any candidate for political office; (b) any customer or member of any Governmental Entity; or (c) any other Person, in any such case while knowing or having reason to know that all or a portion of such money or thing of value may be offered, given or promised, directly or indirectly, to any customer or member of any Governmental Entity or any candidate for political office for the purpose of the following: (i) influencing any action or decision of such Person, in such Person’s official capacity, including a decision to fail to perform such Person’s official function; (ii) inducing such Person to use such Person’s influence with any Governmental Entity to affect or influence any act or decision of such Governmental Entity to assist the Seller in obtaining or retaining business for, with, or directing business to, any Person; or (iii) where such payment would constitute a bribe, kickback or illegal or improper payment to assist the Seller in obtaining or retaining business for, with, or directing business to, any Person.

Section 4.20 
    Brokers and Finders.  Other than Billow Butler & Company, L.L.C., none of the Seller nor any Affiliate, officer, director or employee thereof has employed any broker, finder or investment banker or incurred any Liability for any investment banking fees, financial advisory fees, brokerage fees or finders’ fees in connection with the transactions contemplated hereby.  The Seller is solely responsible for the fees and expenses of Billow Butler & Company, L.L.C.  

Section 4.21 
    Solvency.  Immediately before and immediately after giving effect to the Acquisition and other transactions contemplated by this Agreement, the Seller shall be able to pay its debts as they become due and shall own property having a fair saleable value greater than the amounts required to pay its debts (including a reasonable estimate of the amount of all contingent Liabilities).  Immediately before and immediately after giving effect to the Acquisition and the other transactions contemplated by this Agreement, the Seller shall have adequate capital to carry on its business.  No transfer of property is being made and no obligation is being incurred in connection with the Acquisition and the other transactions contemplated by this Agreement with the intent to hinder, delay, or defraud either present or future creditors of the Seller.

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ARTICLE V
     
REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS
The Purchaser represents and warrants to the Seller Parties that the statements contained in this Article V are true and correct as of the date hereof and as of the Closing Date:

Section 5.1 
    Organization.  The Purchaser is duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted.

Section 5.2 
    Authorization.  The Purchaser has full power and authority to execute and deliver this Agreement, the Seller Ancillary Documents executed by the Purchaser, and the Purchaser Ancillary Documents, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby.  The execution and delivery by the Purchaser of this Agreement, the Seller Ancillary Documents executed by the Purchaser, and the Purchaser Ancillary Documents, the performance by the Purchaser of its obligations hereunder and thereunder, and the consummation of the transactions provided for herein and therein have been duly and validly authorized by all necessary corporate action on the part of the Purchaser.  This Agreement, the Seller Ancillary Documents executed by the Purchaser, and the Purchaser Ancillary Documents have been duly executed and delivered by the Purchaser and constitute the valid and binding agreement of the Purchaser, enforceable against the Purchaser in accordance with their respective terms, subject to applicable bankruptcy, insolvency and other similar Laws affecting the enforceability of creditors’ rights generally, general equitable principles and the discretion of course in granting equitable remedies.

Section 5.3 
    Absence of Restrictions and Conflicts.  The execution, delivery and performance of this Agreement, the Seller Ancillary Documents executed by the Purchaser, and the Purchaser Ancillary Documents, the consummation of the transactions contemplated hereby and thereby and the fulfillment of, and compliance with, the terms and conditions hereof and thereof do not or shall not (as the case may be), with the passing of time or the giving of notice or both, violate or conflict with, constitute a breach of or default under, result in the loss of any benefit under, or permit the acceleration of any obligation under, (a) any term or provision of the certificate of incorporation or bylaws of the Purchaser, (b) any Contract to which the Purchaser is a party, (c) any judgment, decree or order of any Governmental Entity to which the Purchaser is a party or by which the Purchaser or any of its properties is bound, or (d) any statute, law, rule or regulation applicable to the Purchaser unless, in each case, such violation, conflict, breach, default, loss of benefit or accelerated obligation would not, either individually or in the aggregate, have a material adverse impact on the ability of the Purchaser to consummate the transactions contemplated hereby, by the Seller Ancillary Documents executed by the Purchaser, or the Purchaser Ancillary Documents.

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ARTICLE VI
     
CERTAIN COVENANTS AND AGREEMENTS

Section 6.1 
    Conduct of the Business.  For the period commencing on the date hereof and ending on the Closing Date, the Seller shall, except as expressly required or expressly provided for hereby and except as otherwise consented to in advance in writing by the Purchaser or as set forth in Schedule 6.1:
(g)
    conduct the Business only in the Ordinary Course and not engage in any new line of business or enter into any agreement, transaction or activity, except those in the Ordinary Course and not otherwise prohibited under this Section 6.1;
(h)
    use commercially reasonable efforts to preserve intact Seller’s goodwill and business organization, keep Seller’s officers and employees available to the Purchaser, and preserve Seller’s relationships and goodwill with customers, distributors, suppliers, employees and other Persons having business relations with it, in each case in the Ordinary Course;
(i)
    maintain Seller’s existence and good standing in its jurisdiction of organization and in each jurisdiction in which the ownership or leasing of its property or the conduct of its business requires such qualification;
(j)
    duly and timely file or cause to be filed all Tax Returns required to be filed with any Governmental Entity and promptly pay or cause to be paid when due all Taxes, assessments and governmental charges, including interest and penalties levied or assessed, unless diligently contested in good faith by appropriate proceedings;
(k)
    maintain in existing condition and repair, in the Ordinary Course, all buildings, offices, and other structures located on the Leased Real Property, and all equipment, fixtures and other tangible personal property located on the Leased Real Property;
(l)
    not authorize for issuance or issue and deliver any additional shares of Seller’s capital stock (other than in the Ordinary Course consistent with the terms of any outstanding options to purchase capital stock which are exercised by their holders), or securities convertible into or exchangeable for such capital stock, or issue or grant any right, option or other commitment for the issuance of shares of its capital stock, or split, combine or reclassify any shares of its capital stock;

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(m)
    not amend or modify its organizational or governance documents;
(n)
    not declare, pay or set aside for payment any dividend or other distribution or make any payment to any related parties other than in the Ordinary Course;
(o)
    not create any subsidiary, acquire any capital stock or other equity securities of any Person or acquire any equity or ownership interest in any business or Person;
(p)
    not dispose of or permit to lapse any right to the use of any patent, trademark, trade name, service mark, license or copyright of Seller (including any of the Company Intellectual Property), or dispose of or disclose to any Person, other than in the Ordinary Course and pursuant to a commercially reasonable non-disclosure Contract, any trade secret, formula, process, Software, technology or know-how of Seller not a matter of public knowledge prior to the date hereof;
(q)
    not (i) sell or transfer any asset, (ii) create, incur or assume any indebtedness secured by any asset of Seller, (iii) grant, create, incur or suffer to exist any Lien (other than a Permitted Lien) on any asset of Seller, (iv) incur any Liability (including the guaranty of a Liability or obligation of any other Person), except in the Ordinary Course, (v) write-off any guaranteed check, note or account receivable, (vi) write-down the value of any asset or investment on the books or records of Seller, except for depreciation and amortization in the Ordinary Course, (vii) cancel any debt or waive any claim or right, in each case with a value in excess of $10,000, or (viii) make any commitment for any capital expenditure to be made on or following the date hereof in excess of $10,000 in the case of any single expenditure or $25,000 in the case of all capital expenditures;
(r)
    not increase in any manner the base compensation of, or enter into any new bonus or incentive agreement or arrangement with, any of its employees, officers, directors or consultants, except in the Ordinary Course; provided, however, that the Seller shall not take any action described in this Section 6.1(l) with respect to (i) any officer or director of Seller or (ii) any Person whose annualized base compensation is $75,000 or more or whose annual base compensation for the 12-month period following the date hereof is expected to be $75,000 or more;
(s)
    not pay or agree to pay any additional pension, retirement allowance or other employee benefit under any Company Benefit Plan to any of Seller’s 

49

employees, officers, directors or consultants, whether past or present, except in the Ordinary Course; provided, however, that the Seller shall not take any action described in this Section 6.1(m) with respect to (i) any officer or director of Seller or (ii) any Person whose annualized base compensation is $75,000 or more or whose annual base compensation for the 12-month period following the date hereof is expected to be $75,000 or more;
(t)
    not adopt, amend or terminate any Company Benefit Plan or increase the benefits provided under any Company Benefit Plan, or promise or commit to undertake any of the foregoing in the future;
(u)
    not enter into a collective bargaining agreement or any Contract that, if in effect on the date hereof, would have been required to have been disclosed pursuant to Section 4.15;
(v)
    not amend or terminate any existing Employment Agreement or enter into any new Employment Agreement;
(w)
    maintain supplies and inventory at levels that are in the Ordinary Course;
(x)
    continue to extend customers credit, collect accounts receivable and pay accounts payable and similar obligations in the Ordinary Course;
(y)
    perform in all material respects all of its obligations under, and not default or suffer to exist any event or condition that with notice or lapse of time or both could constitute a default under, each Company Contract (except those being contested in good faith) and not enter into, assume or amend any Contract that is or would be a Company Contract, other than in the Ordinary Course;
(z)
    not pay, discharge or satisfy any claim or Liability other than the payment, discharge or satisfaction in the Ordinary Course of claims and Liabilities;
(aa)
    not increase any reserves for contingent Liabilities (excluding any adjustment to bad debt reserves in the Ordinary Course);
(bb)
    maintain in full force and effect and in the same amounts policies of 

50

insurance comparable in amount and scope of coverage to that now maintained by or on behalf of Seller pursuant to the insurance Company Contracts;
(cc)
    maintain Seller’s books and records on a basis consistent with GAAP;
(dd)
    continue Seller’s cash management practices in the Ordinary Course;
(ee)
    not make or change any election relating to Taxes, change an annual accounting period, adopt or change any accounting method, file any amended Tax Return, enter into any closing agreement, settle any Tax claim or assessment relating to Seller, surrender any right to claim a refund of Taxes, consent to any extension or waiver of the limitation period applicable to any Tax claim or assessment relating to Seller, or take any other similar action relating to the filing of any Tax Return or the payment of any Tax, in each case if such election, adoption, change, amendment, agreement, settlement, surrender, consent or other action would have the effect of increasing the Tax Liability of Seller for any period ending after the Closing Date or of the Purchaser, or decreasing any Tax attribute of Seller existing on the Closing Date; and
(ff)
    not authorize, or commit or agree to take, any of the foregoing actions that are prohibited by this Section 6.1.
In connection with the continued operation of the Seller during the period commencing on the date hereof and ending on the Closing Date, the Seller shall confer in good faith on a regular and frequent basis with the Purchaser regarding material matters and the general status of on-going operations of the Seller.  The Seller Parties hereby acknowledge that the Purchaser does not and shall not waive any right it may have hereunder as a result of such consultations.  None of the Seller Parties shall take any action that would, or could reasonably be expected to, result in any representation or warranty of such Person set forth herein to become untrue.

Section 6.2 
    Inspection and Access to Information.  During the period commencing on the date hereof and ending on the Closing Date, the Seller shall, and shall cause its officers, directors, employees, auditors and agents to (i) provide the Purchaser and its accountants, investment bankers, counsel, environmental consultants and other authorized representatives full access, during reasonable hours and under reasonable circumstances, to any and all of its premises, employees (including executive officers), properties, Contracts, books, records and other information (including Tax Returns filed and those in preparation), and (ii) furnish (or make available) to the Purchaser and its authorized representatives, promptly upon request therefor, any and all financial, technical and operating data and other information pertaining to the Seller and otherwise fully cooperate with the conduct of due diligence by the Purchaser and its representatives.

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Section 6.3 
    Notices of Certain Events.  The Seller (and where specified the other Seller Parties) shall promptly notify the Purchaser prior to the Closing Date of:
(c)
    any change or event that, individually or in the aggregate, has had or could reasonably be expected to have (i) a Material Adverse Effect or (ii) otherwise result in any representation or warranty of the Seller or Seller Parties (or any one or more of them) hereunder being inaccurate in any material respect;
(d)
    any notice or other communication from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated hereby;
(e)
    any notice or other communication from any Governmental Entity in connection with the transactions contemplated hereby;
(f)
    any Action commenced or, to the Seller’s Knowledge, threatened against, relating to or involving or otherwise affecting any of the Seller Parties that, if pending on the date hereof, would have been required to have been disclosed pursuant to Section 4.9 or that relates to the consummation of the transactions contemplated hereby; and
(g)
    (i) the damage or destruction by fire or other casualty of any asset or part thereof of the Seller or (ii) any asset or part thereof becoming the subject of any proceeding (or, to the Seller’s Knowledge, any threatened proceeding) for the taking thereof or of any right relating thereto by condemnation, eminent domain or other similar governmental action.
The Seller Parties hereby acknowledge that the Purchaser does not and shall not waive any right it may have hereunder as a result of such notification.  The Seller shall also promptly notify the Purchaser prior to the Closing Date of any new Material Contracts or any amendments or terminations to any existing Material Contracts.

Section 6.4 
    Interim Financials.  As promptly as practicable following each regular accounting period subsequent to the end of the most recent fiscal year and prior to the Closing Date, the Seller shall deliver to the Purchaser periodic financial reports in the form that they are customarily prepared for the Seller’s internal purposes concerning the Seller and, if available, unaudited statements of the financial position of the Seller as of the last day of each accounting period and statements of income and changes in financial position of Seller for the period then ended.  The Seller shall cause each such interim statement to (a) present fairly in all material respects financial condition of the 

52

Seller and the related results of its operations for the respective periods then ended, and (b) be prepared on a basis consistent with GAAP.

Section 6.5 
    No Solicitation of Transactions.  The Seller shall not, directly or indirectly, through any officer, director or agent of Seller or otherwise, initiate, solicit or encourage (including by way of furnishing non-public information or assistance), or enter into negotiations or discussions of any type, directly or indirectly, or enter into a confidentiality agreement, letter of intent or purchase agreement, merger agreement or other similar agreement with any Person other than the Purchaser with respect to a sale of all or any substantial portion of the assets of the Seller, or a merger, consolidation, business combination, sale of all or any substantial portion of the capital stock or debt or equity securities of the Seller, or the liquidation or similar extraordinary transaction with respect to the Seller.  The Seller shall notify the Purchaser orally (within 24 hours) and in writing (as promptly as practicable) on a no-name basis of the materially relevant terms of any inquiry or proposal by a third party to do any of the foregoing that the Seller Parties or any of their Affiliates or any of their respective officers, directors, employees, investment bankers, financial advisors, attorneys, accountants or other representatives may receive relating to any of such matters.  

Section 6.6 
    Reasonable Efforts; Further Assurances; Cooperation.  Subject to the other provisions hereof, each Party shall use its commercially reasonable, good faith efforts to perform its obligations hereunder and to take, or cause to be taken, and do, or cause to be done, all things necessary, proper or advisable under applicable Law to obtain all consents required as described on Schedule 4.3(b) and to satisfy all conditions to its obligations hereunder and to cause the transactions contemplated herein to be effected as soon as practicable, but in any event on or prior to the Expiration Date, in accordance with the terms hereof and shall cooperate fully with each other Party and its officers, directors, employees, agents, counsel, accountants and other designees in connection with any step required to be taken as a part of its obligations hereunder, including the following:
(d)
    Each Party promptly shall make all filings and submissions and shall take all other actions necessary, proper or advisable under applicable Laws to obtain any required approval of any Governmental Entity with jurisdiction over the transactions contemplated hereby (except that no Party shall have any obligation to take or consent to the taking of any action required by any such Governmental Entity that is reasonably likely to adversely affect such Party or the Acquisition or the other transactions contemplated by this Agreement or the Seller Ancillary Documents or the Purchaser Ancillary Documents).  Each Party shall furnish all information required for any application or other filing to be made pursuant to any applicable Law in connection with the transactions contemplated hereby.  Each of the Parties shall cooperate with the others in promptly filing any other necessary applications, reports or other documents with any Governmental Entity having jurisdiction with respect to this Agreement and the transactions contemplated hereby, and in seeking necessary consultation with and prompt favorable action by such Governmental Entity.  

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(e)
    In the event any Action by any Governmental Entity or other Person is commenced that questions the validity or legality of the Acquisition or any other transaction contemplated hereby or seeks damages in connection therewith, the Parties shall (i) cooperate and use all commercially reasonable efforts to defend against such claim, action, suit, investigation or other proceeding, (ii) in the event an injunction or other order is issued in any such Legal Proceeding, use all commercially reasonable efforts to have such injunction or other order lifted, and (iii) cooperate reasonably regarding any other impediment to the consummation of the transactions contemplated hereby.  Notwithstanding the foregoing, the commencement of any such Action will not affect either Party’s right to notice a Termination of this Agreement on or after the Expiration Date under Section 9.1 and neither Party shall have any obligation under this Agreement to continue to contest any such Action beyond or past the Expiration Date.  
(f)
    The Seller shall give all notices to third parties required hereunder and use commercially reasonable efforts (in consultation with Purchaser and without the requirement that Seller pay for any such consent) to obtain all third-party consents (i) necessary, proper or advisable to consummate the transactions contemplated hereby, (ii) required to avoid a breach of or default by Seller under any Assumed Contract or (iii) required to prevent a Material Adverse Effect, whether prior to, on or following the Closing Date. 
(g)
    Each Party shall, and shall cause each applicable Affiliate of such Party to, do all things required by such Affiliate pursuant to this Agreement.

Section 6.7 
    Public Announcements.  Seller and Purchaser will consult and cooperate with each other concerning the timing and manner of the announcements of the Closing of the Acquisition to Seller’s employees, customers, suppliers, and other business relations. Unless otherwise required by applicable Law or stock exchange requirements, no Party shall make any public announcements in respect of this Agreement or the transactions contemplated hereby or otherwise communicate with any news media without the prior written consent of the other Party (which consent shall not be unreasonably withheld or delayed), and the Parties shall cooperate as to the timing and contents of any such announcement.  

Section 6.8 
    Company Benefit Plans and Employment Agreements.  Prior to the Closing Date, the Seller shall make all required contributions and pay all premiums required under each Company Benefit Plan, including any employer matching and profit sharing contributions, which are due on or before the Closing Date.  Prior to the Closing Date, the Seller shall take all action required (a) to make any amendments to any Company Benefit Plan required to comply with Law for periods on or before the Closing Date, and (b) to file or furnish all documentation related to the Company 

54

Benefit Plans that are required to be filed with or furnished to any participant or Governmental Entity to comply with Laws for periods on or before the Closing Date.  Prior to the Closing Date, the Seller shall provide the Purchaser all documentation reasonably requested by the Purchaser related to all Company Benefit Plans.

Section 6.9 
    [RESERVED].  

Section 6.10 
    Tax Matters.
(a)
    Cooperation on Tax Matters.  The Seller and the Purchaser shall cooperate fully, as and to the extent reasonably requested by the other Party, in connection with the filing of Tax Returns pursuant to this Section 6.10 and any audit, litigation or other proceeding with respect to Taxes.  Such cooperation shall include the retention and (upon the other Party’s request) the provision of records and information which are reasonably relevant to any such audit, litigation or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided (or made available) hereunder.  The Seller shall (i) retain all books and records with respect to Tax matters relating to any taxable period beginning before the Closing Date until the expiration of each applicable statute of limitations (and, to the extent notified by the Purchaser, any extensions thereof) of the respective taxable periods, and to abide by all record retention agreements entered into with any taxing authority, and (ii) give the Purchaser reasonable written notice prior to transferring, destroying or discarding any such books and records and, if the Purchaser reasonably so requests, the Seller Parties shall allow the Purchaser to make copies of such books and records.  The Purchaser and the Seller Parties shall, upon request, use their commercially reasonable efforts to obtain any certificate or other document from any Governmental Entity or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including with respect to the transactions contemplated hereby).
(b)
    Certain Taxes and Fees.  All transfer, documentary, sales, use, stamp, registration and other such Taxes, and all conveyance fees, recording charges, and other fees and charges (including any penalties and interest) incurred in connection with the consummation of the transactions contemplated by this Agreement (the “Transfer Taxes”) shall be paid one-half by the Seller and one-half by the Purchaser if and when due, and each such Party shall, at its own expense, file all necessary Tax Returns and other documentation with respect to all such Taxes, fees, and charges, and, if required by applicable Law, each Party will, and will cause its Affiliates to, join in the execution of any such Tax Returns by the other Party and other documentation.  All income Taxes imposed on the Seller Parties by reason of the asset sale and contribution contemplated by this Agreement shall be paid by the Seller Parties when due, and the Seller Parties will, at their own expense, file all necessary Tax Returns and other documentation with respect to all such Taxes, including Tax Returns for the Seller.

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(c)
    Allocation of Consideration.  The Purchaser and the Seller agree that the Total Consideration (plus the amount of capitalized costs) shall be allocated among the Purchased Assets for all purposes (including Tax and financial accounting) as shown on the allocation schedule (the “Allocation Schedule”) attached as Schedule 6.10(c), which is intended to be consistent with Section 1060 of the Code and the Treasury Regulations thereunder (and any similar provision of state, local and foreign Law, as appropriate).  The Purchaser and the Seller Parties shall file all Tax Returns (including amended returns and claims for refund) and information reports in a manner consistent with the Allocation Schedule.  Any adjustments to the Total Consideration, including pursuant to Sections 3.2, 3.3 and 3.4, shall be allocated to Class VII assets pursuant to the Allocation Schedule.  The Purchaser and the Seller’s Representative shall file, and cause their respective Affiliates to file, all Tax Returns (including IRS Form 8594) in a manner consistent with the Allocation Schedule, and none of the Purchaser or the Seller’s Representative shall take, or shall permit any of their respective Affiliates to take, any position inconsistent with such Allocation Schedule on any tax return or otherwise, unless required to do so by applicable Law or a “determination” within the meaning of Section 1313(a)(1) of the Code.
(d)
    Prorations.  All real property taxes, personal property taxes, or ad valorem obligations and similar recurring taxes and fees on the Purchased Assets for taxable periods beginning before, and ending after, the Closing Date, shall be prorated between the Purchaser and the Seller as of the Closing Date.  The Seller shall be responsible for all such taxes and fees on the Purchased Assets accruing during any period up to and including the Closing Date.  The Purchaser shall be responsible for all such taxes and fees on the Purchased Assets accruing during any period after the Closing Date. With respect to Taxes described in this Section 6.10(d), the Purchaser and the Seller (as applicable) shall prepare and timely file all Tax Returns due after the Closing Date with respect to such Taxes.  If one Party remits to the appropriate taxing authority payment for Taxes, which are subject to proration under this Section 6.10(d) and such payment includes the other Party’s share of such Taxes, such other Party shall promptly reimburse the remitting party for its share of such Taxes.  In the case of any Taxes that are imposed on a periodic basis and are payable for a Tax period that includes (but does not end on) the Closing Date, the portion of such Tax that relates to the portion of such Tax period ending on the Closing Date (i.e., the pre-Closing Taxes) will (i) in the case of any Taxes other than Taxes based upon or related to income or receipts, be deemed to equal the amount of such Tax for the entire Tax period multiplied by a fraction the numerator of which is the number of days in the Tax period ending on the Closing Date and the denominator of which is the number of days in the entire Tax period, and (ii) in the case of any Tax based upon or related to income or receipts, be deemed to equal the amount that would be payable if the relevant Tax period ended on the Closing Date.
(e)
    Notifications and Tax Clearance Certificates.  Upon request from Purchaser, the Seller shall comply, and shall provide the Purchaser with the information and documentation to comply, and cooperate with the Purchaser in its compliance, with all applicable tax bulk sales and tax notification Laws (and all similar Laws) of every jurisdiction where Seller is obligated to file Tax Returns with respect to the Business and/or the Purchased Assets. If the 

56

Purchaser is required by any Governmental Entity to withhold all or a portion of the Total Consideration (or any other consideration hereunder), then the Purchaser shall consult with Seller prior to making any such withholding to confirm the legal requirement for any such withholding (and the Parties shall use good faith efforts to minimize any such withholding) whereafter the Purchaser shall withhold, and not pay to the Seller, the applicable withheld amounts and shall hold such amounts until the applicable Governmental Entity authorizes the Purchaser to release and pay over such amounts to the Seller.  As of the Closing Date, Seller shall obtain from the applicable Governmental Entity in jurisdictions that impose Taxes on Seller or where Seller has a duty to file Tax Returns (or in which there is a claim by a Governmental Entity that Seller has a duty to file Tax Returns in such jurisdictions), to the extent such certificates are issued by the applicable Governmental Entity, tax clearance or similar certificates evidencing Seller’s compliance with and satisfaction of its Tax obligations in such jurisdictions (“Tax Clearance Certificates”). If any Governmental Entity asserts that Seller is liable for any Tax, then Seller shall promptly pay when due any and all such amounts and shall provide evidence to the Purchaser, including a copy of a receipt, that such Taxes have been paid in full or otherwise satisfied.

Section 6.11 
    Accounts.
(c)
    Following the Closing, the Seller Parties will provide any reasonably requested assistance and authority (including where appropriate limited powers of attorney in the name of Seller) to enable Purchaser (i) to collect in a reasonable manner consistent with reasonable past practice for the account of the Purchaser any Purchased Assets and (ii) to institute and prosecute all Actions that the Purchaser may in its sole discretion deem proper in order to enforce any right, title or interest in, to or under the Purchased Assets, and to defend or compromise any and all Actions in respect of the Purchased Assets.
(d)
    All payments and reimbursements received by any of the Seller Parties in connection with or arising out of the Purchased Assets after the Closing shall be held by such Seller Parties in trust for the benefit of the Purchaser and, promptly upon receipt by such Seller Parties of any such payment or reimbursement, such Seller Parties shall pay over to the Purchaser the amount of such payment or reimbursement.
(e)
    All payments and reimbursements received by the Purchaser in connection with or arising out of the Excluded Assets after the Closing Date shall be held by the Purchaser in trust for the benefit of the Seller and, promptly upon receipt by the Purchaser of any such payment or reimbursement, shall pay over to the Seller the amount of such payment or reimbursement.

Section 6.12 
    Payment of Other Excluded Liabilities.  In addition to payment of Taxes pursuant to Section 6.10(b), the Seller shall pay, or make adequate provision for the payment, in full all of the Excluded Liabilities and other Liabilities of the Seller under this Agreement.

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Section 6.13 
    Employees and Employee Benefits.  
(a)
    Commencing on the Closing Date, the Seller shall terminate all employees of the Business who are actively at work on the Closing Date, and the Purchaser or one of its Affiliates at the Closing shall offer employment on an at-will basis, effective as of the Closing Date, to all employees who are employed by the Seller immediately prior to the Closing (the individuals who accept Purchaser’s or such Affiliate’s offer of employment are collectively referred to herein as the “Hired Personnel”), in each case (i) at approximately the same location (and Purchaser and its Affiliates agree not to move Hired Personnel to a different location for a period of ninety (90) days after the Closing Date) in a substantially similar capacity in which they were employed by Seller immediately prior to the Closing Date, (ii) at the same or a substantially similar cash salary level paid or payable to such Hired Personnel as was paid or payable by the Seller immediately prior to the Closing Date, and (iii) providing each such Person who is included in the Hired Personnel and such Person’s eligible dependents, comparable employee benefits as are currently available under the Company Benefit Plans listed on Schedule 2.1(a)(xii) if those Company Benefit Plans become Assumed Plans, or, if such Company Benefit Plans do not become Assumed Plans, comparable employee benefits as are currently available to similarly situated employees of Purchaser’s Affiliates through Purchaser’s Affiliates’ Employee Benefit Plans.  Each employee of the Business who becomes employed by the Purchaser or one of its Affiliates in connection with the Acquisition shall be given service credit for the purpose of eligibility under the group health plan and eligibility and vesting only under the defined contribution retirement plan for his or her period of service with the Seller prior to the Closing Date; provided, however, that (x) such credit shall be given pursuant to payroll or plan records, at the election of the Purchaser or its applicable Affiliate, in its sole and absolute discretion, and (y) such service crediting shall be permitted and consistent with the Purchaser’s or such Affiliate’s defined contribution retirement plan.  
(b)
    Except for the coverage of (and any ongoing benefits provided under) the Assumed Plans, the Seller shall be solely responsible, and the Purchaser shall have no obligations whatsoever for, any compensation or other amounts payable to any current or former employee, officer, director, independent contractor or consultant of the Business, including hourly pay, commission, bonus, salary, fringe, pension or profit sharing benefits or severance pay for any period relating to the service with the Seller at any time on or prior to the Closing Date and the Seller Parties shall pay all such amounts to all entitled persons on or prior to the Closing Date or as soon as reasonably practicable thereafter in accordance with the Seller’s regular pay practices.  The Purchaser shall be solely responsible, and the Seller shall have no obligations whatsoever for, any compensation or other amounts payable to any Hired Personnel, independent contractor or consultant of the Business, including hourly pay, commission, bonus, salary, fringe, pension or profit sharing benefits or severance pay for any post-Closing period relating to the service with the Purchaser following the Closing Date.
(c)
    Except for the coverage of (and any ongoing benefits provided under) the Assumed Plans, 

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the Seller shall remain solely responsible for the satisfaction of all claims for medical, dental, life insurance, health accident or disability benefits brought by or in respect of current or former employees, officers, directors, independent contractors or consultants of the Business or the spouses, dependents or beneficiaries thereof, which claims relate to events occurring on or prior to the Closing Date.  The Seller also shall remain solely responsible for all workers’ compensation claims of any current or former employees, officers, directors, independent contractors or consultants of the Business which relate to events occurring on or prior to the Closing Date.  The Seller shall pay, or cause to be paid, all such amounts to the appropriate persons as and when due.  Purchaser acknowledges and agrees that Purchaser and its representatives shall not be afforded access to any employee records or other records or information the disclosure of which would be prohibited by any applicable Law.
(d)
    With respect to each Employee Benefit Plan, including severance, vacation and paid time-off plans, policies or practices, sponsored or maintained by the Purchaser or an Affiliate of the Purchaser, the Purchaser or such Affiliate shall recognize, for all of the Hired Personnel, credit for all service with the Seller, for all purposes (including eligibility, vesting, level of benefits, benefit accrual (other than under a defined benefit pension plan), pre-existing condition limitations and early retirement subsidies); provided, that no service credit shall be granted to the extent any duplication of benefits results; provided, further, that the Purchaser’s recognition of accrual of vacation or other paid time off shall not exceed five weeks of accrued vacation or other paid time off.
(e)
    Effective as of the Closing Date, except as otherwise required by applicable requirements of Law, the Seller’s obligations and Liability with respect to the accrued and unused vacation days of the Hired Personnel shall be transferred to and assumed by the Purchaser and its Affiliates, and the Purchaser and its Affiliates shall recognize and provide all such unused vacation and pay; provided, that such unused vacation pay is included in the Final Working Capital; provided, further, that the Purchaser will not assume accrued vacation or other paid time off for any of the Hired Personnel in excess of five weeks.

Section 6.14 
    Confidentiality.  Subject to Section 6.7, Farmer Bros. Co., a Delaware corporation (“Parent”), and the Purchaser shall remain obligated under the provisions of that certain Confidentiality Agreement, dated as of July 1, 2016, by and between Parent and the Seller (the “Confidentiality Agreement”), the terms of which are incorporated herein by reference; provided, however, that the obligations of Parent and the Purchaser under such Confidentiality Agreement and the other obligations of Purchaser contained in this Section 6.14 shall terminate at the Closing.  From and after the date of this Agreement, the Seller Parties shall not and shall cause their Affiliates not to, directly or indirectly, disclose, reveal, divulge or communicate to any Person other than authorized officers, directors and employees of the Purchaser (or its designee) or use or otherwise exploit for its own benefit or for the benefit of anyone other than the Purchaser, any confidential information of the Purchaser or the Business (a) except as may be necessary in connection with filing and paying any Taxes imposed on the Seller Parties for Tax periods ending on or before the 

59

Closing Date, (b) unless and until such information becomes public knowledge (other than by disclosure in breach of this Section 6.14), (c) except for use of the confidential information of the Business in the Ordinary Course prior to the Closing, (d) except as required by applicable Law, or (e) except to the extent required in connection with the enforcement or defense of rights in connection with any legal disputes relating to this Agreement or any Seller Ancillary Document or Purchaser Ancillary Document; provided, that before any Seller Party or any of its Affiliates discloses any confidential information as may be required by applicable Law, such Person will, to the extent permitted under applicable Law, give the Purchaser reasonable advance notice and take such reasonable actions as the Purchaser may propose to minimize the required disclosure. 

Section 6.15 
    Use of Names; Dissolution of Tea Packers. Seller shall, within 10 days following the Closing Date, change its name to a name to be mutually agreed by the Parties.  For the avoidance of doubt, as between the Purchaser and its Affiliates, on the one hand, and the Seller and its Affiliates, on the other hand, the Purchaser and its Affiliates shall own all rights to the name “China Mist Tea”, “China Mist Tea Company” and any derivatives thereof from and after the Closing (it being understood and agreed that such names are included in the Purchased Assets).  Seller shall promptly after the date hereof dissolve and liquidate Tea Packers.

ARTICLE VII
     
CONDITIONS TO CLOSING

Section 7.1 
    Conditions to Obligations of the Purchaser.  The obligations of the Purchaser to consummate the transactions contemplated hereby shall be subject to the fulfillment at or prior to the Closing of each of the following additional conditions:
(h)
    Injunction.  There shall be no effective injunction, writ or preliminary restraining order or any order of any nature issued by a Governmental Entity of competent jurisdiction to the effect that the Acquisition may not be consummated as provided herein, no proceeding or lawsuit shall have been commenced by any Governmental Entity or third party for the purpose of obtaining any such injunction, writ or preliminary restraining order and no written notice shall have been received from any Governmental Entity indicating an intent to restrain, prevent, materially delay or restructure the transactions contemplated hereby;
(i)
    Governmental Consents.  All consents, approvals, orders or authorizations of, or registrations, declarations or filings with, all Governmental Entities required in connection with the execution, delivery or performance hereof shall have been obtained or made, including those set forth on Schedule 4.3(b); 
(j)
    Licenses.  The Purchaser shall have obtained (or shall obtain at the 

60

Closing as part of the Purchased Assets) all of the Licenses set forth on Schedule 4.24(a) and any and all other Licenses determined by the Purchaser as necessary to operate the Business.
(k)
    Representations and Warranties.  The representations and warranties of the Seller Parties set forth in Article IV shall have been true and correct in all material respects as of the date hereof and shall be true and correct in all material respects as of the Closing Date as though made on and as of the Closing Date (except to the extent that any representation of warranty is made with respect to a specific date, in which case such representation or warranty shall be true and correct in all material respects as of such specific date), except that those representations and warranties that by their terms are qualified by materiality shall be true and correct in all respects;
(l)
    Performance of Obligations of the Seller Parties.  The Seller Parties shall have performed in all material respects all covenants and agreements required to be performed by each of them hereunder at or prior to the Closing;
(m)
    No Material Adverse Effect.  Between the date hereof and the Closing Date, there shall not have occurred any Material Adverse Effect;
(n)
    Consents.  The Seller Parties shall have obtained and delivered to the Purchaser, in form reasonably satisfactory to the Purchaser, written consents of or notices to, as applicable (or waivers with respect thereto) the third parties to those Company Contracts marked with an asterisk or two asterisks on Schedule 4.11 (other than such items marked therein to be paid off at Closing) and listed on Schedule 4.3(a), and all such consents, notices and waivers shall be in full force and effect on and following the Closing;
(o)
    Ancillary Documents.  The Seller Parties shall have delivered, or caused to be delivered, to the Purchaser the documents listed in Section 8.2;
(p)
    Indebtedness; Release of Liens.  The Seller Parties shall have delivered to the Purchaser payoff letters from each lender to the Indebtedness outstanding as of the Closing Date (including any interest accrued thereon and any prepayment or similar penalties and expenses associated with the prepayment of such Indebtedness on the Closing Date) and an agreement that, if such aggregate amount so identified is paid to such lender on the Closing Date, such Indebtedness shall be repaid in full and that all associated Liens, if any, affecting any real or personal property of the Seller will be released; 

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(q)
    Successor Liability.  The Seller Parties shall have delivered to the Purchaser any documentation or certification requested by Purchaser that may be necessary in order for the Purchaser to be absolved from any successor liability for any Taxes of any Seller Party pursuant to applicable state or local Laws, including a certificate of compliance with bulk sale requirements;
(r)
    Transaction Expenses.  The Seller Parties shall have delivered a true and correct schedule of all Transaction Expenses of the Seller Parties;
(s)
    Facility Lease.  The Purchaser shall have entered into a lease agreement or assumption of lease, as applicable, in form reasonably satisfactory to the Purchaser, to lease the facility located at 7435 E Tierra Buena Lane, Scottsdale, AZ 85260, which is currently used by the Seller in the operation of the Business; and
(t)
    Employment.  Each of Kermit Peterson, Brian S. Locke, Ed Baird and Kevin McCullough shall have accepted employment with the Purchaser, on such terms and conditions as are acceptable to the Purchaser. 

Section 7.2 
    Conditions to Obligations of the Seller Parties.  The obligations of the Seller Parties to consummate the transactions contemplated hereby shall be subject to the fulfillment at or prior to the Closing of each of the following additional conditions:
(h)
    Injunction.  There shall be no effective injunction, writ or preliminary restraining order or any order of any nature issued by a Governmental Entity of competent jurisdiction to the effect that the Acquisition may not be consummated as provided herein, no proceeding or lawsuit shall have been commenced by any Governmental Entity or third party for the purpose of obtaining any such injunction, writ or preliminary restraining order and no written notice shall have been received from any Governmental Entity indicating an intent to restrain, prevent, materially delay or restructure the transactions contemplated hereby;
(i)
    Governmental Consents.  All consents, approvals, orders or authorizations of, or registrations, declarations or filings with, any Governmental Entity required in connection with the execution, delivery or performance hereof shall have been obtained or made;
(j)
    Representations and Warranties.  The representations and warranties of the Purchaser contained in Article V shall have been true and correct in all material 

62

respects as of the date hereof and shall be true and correct in all material respects as of the Closing Date as though made on and as of the Closing Date (except to the extent that any representation of warranty is made with respect to a specific date, in which case such representation or warranty shall be true and correct in all material respects as of such specific date), except that those representations and warranties that by their terms are qualified by materiality shall be true and correct in all respects;
(k)
    Performance of Obligations by the Purchaser.  The Purchaser shall have performed in all material respects all covenants and agreements required to be performed by it hereunder at or prior to the Closing; 
(l)
    Ancillary Documents.  The Purchaser shall have delivered, or caused to be delivered, to the Seller Parties the documents listed Section 8.3; and
(m)
    Employment.  Each of Kermit Peterson, Brian S. Locke, Ed Baird and Kevin McCullough shall have been offered employment by the Purchaser or one of its Affiliates, with compensation comparable to that for each such Person with the Seller. 

ARTICLE VIII
     
CLOSING

Section 8.1 
    Closing.  The Closing shall occur at 10:00 a.m., Dallas, Texas time, on the third Business Day following the satisfaction of the conditions set forth in Article VII (or the waiver thereof by the Party entitled to waive that condition) that are contemplated to be satisfied prior to the Closing, or on such other date as the Parties may agree (the “Closing Date”).  The Closing shall take place at the offices of Wick, Phillips, Gould & Martin, LLP, located at 3131 McKinney Avenue, Suite 100, Dallas, Texas 75204, and shall be deemed effective as of 12:01 a.m., Dallas, Texas time on such Closing Date. 

Section 8.2 
    Seller Parties’ Closing Deliveries.  At the Closing, the Seller Parties shall deliver, or cause to be delivered, to the Purchaser the following:
(a)
    Counterparts of the Escrow Agreement, substantially in the form attached hereto as Exhibit B, executed by the Sellers’ Representative;
(b)
    one or more Bills of Sale, substantially in the form attached hereto as Exhibit C (each, a “Bill of Sale”), executed by Seller;

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(c)
    a counterpart of one or more Assumption Agreements, substantially in the form attached hereto as Exhibit D (each, an “Assumption Agreement”), executed by Seller;
(d)
    a counterpart of the Assignment of Lease to transfer to Farmer Bros. Co. (or its assignee) the Leased Real Property, substantially in the form attached hereto as Exhibit E (the “Assignment of Lease”), executed by Seller;
(e)
    a certificate by the Secretary or any Assistant Secretary of Seller, dated the Closing Date, as to the effectiveness of the resolutions of the stockholders and board of directors of Seller authorizing the execution, delivery and performance hereof by Seller, passed in connection herewith and the transactions contemplated hereby;
(f)
    a certificate of good standing for Seller, issued within five days prior to the Closing Date by the Arizona Corporation Commission and from the Secretary of State of each state in which Seller is qualified to do business; 
(g)
    payoff letters from each lender for the Indebtedness outstanding as of the Closing Date (including any interest accrued thereon and any prepayment or similar penalties and expenses associated with the prepayment of such Indebtedness on the Closing Date) and an agreement that, if such aggregate amount so identified is paid to such lender on the Closing Date, such Indebtedness shall be repaid in full and that all associated Liens, if any, affecting any real or personal property of the Seller will be released;
(h)
    the Non-Competition and Non-Solicitation Agreement, substantially in the form attached hereto as Exhibit F (the “Non-Competition Agreement”), executed separately by the Seller, Schweiker and Martinson;
(i)
    a counterpart of the Consulting Agreement, substantially in the form attached hereto as Exhibit G (the “Schweiker Consulting LLC Consulting Agreement”), executed by Schweiker Consulting LLC; 
(j)
    a counterpart of the Consulting Agreement, substantially in the form attached hereto as Exhibit H (the “Marburn LLC Consulting Agreement”), executed by Marburn LLC; 
(k)
    a counterpart of a letter of employment (each, an “Offer Letter” and 

64

collectively, the “Offer Letters”), executed by each of Kermit Peterson, Brian S. Locke, Ed Baird and Kevin McCullough;
(l)
    a certificate executed by an authorized officer of Seller as to compliance with the conditions set forth in Section 7.1(d) and (e);
(m)
    a certificate of non-foreign status executed by Seller that complies with Treasury Regulation Section 1.1445-2(b)(2); 
(n)
    the Tax Clearance Certificate(s) for each jurisdiction listed on Schedule 8.2(n) or any other documentation or certification requested by Purchaser that may be necessary in order for the Purchaser to be absolved from any successor liability for any Taxes of Seller pursuant to applicable state or local Laws, including a certificate of compliance with bulk sale requirements; 
(o)
    a certificate executed by the trustee(s) of each of the Martinson Family Trust and the Schweiker Family Trust in a form reasonably acceptable to the Purchaser as to the authority of such trust to execute and deliver this Agreement and performance its obligations hereunder.
(p)
    the original certificates of title to any motor vehicles included in the Purchased Assets, executed by an authorized officer of the Seller and notarized, together with a completed Arizona Title and Registration Application; and
(q)
    all other documents required to be entered into by the Seller Parties pursuant hereto or reasonably requested by the Purchaser to convey the Purchased Assets to the Purchaser (or its designee), or to otherwise consummate the Acquisition and the other transactions contemplated hereby.

Section 8.3 
    Purchaser’s Closing Deliveries.  At the Closing:
(j)
    the Purchaser shall deliver, or cause to be delivered, to, or on behalf of, the Seller, the Closing Payment;
(k)
    the Purchaser shall deliver a counterpart of the Escrow Agreement, substantially in the form attached hereto as Exhibit B, executed by the Purchaser or its designee;

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(l)
    the Purchaser shall deliver a counterpart of each Assumption Agreement, substantially in the form attached hereto as Exhibit D, executed by the Purchaser or its designee;
(m)
    the Purchaser shall deliver a counterpart of the Assignment of Lease, substantially in the form attached hereto as Exhibit E, executed by Farmer Bros. Co. or its designee;
(n)
    the Purchaser shall deliver, or cause to be delivered, to the Seller Parties, (i) a release of the guarantees of Martinson and Schweiker with respect to the real property lease that is the subject of the Assignment of Lease, in a form reasonably acceptable to each of the Purchaser and the Seller Parties, and (ii) a substitute corporate guarantee to the landlord under such lease if required by such landlord; 
(o)
    the Purchaser shall deliver, or cause to be delivered, to the Seller Parties, a certificate by the Secretary or any Assistant Secretary of the Purchaser, dated the Closing Date, as to the effectiveness of the resolutions of the board of directors of the Purchaser authorizing the execution, delivery and performance hereof by the Purchaser, passed in connection herewith and the transactions contemplated hereby; 
(p)
    the Purchaser shall deliver a certificate of good standing for the Purchaser issued within five days prior to the Closing Date by the Secretary of State of the State of Delaware;
(q)
    the Purchaser shall deliver a counterpart of the Schweiker Consulting LLC Consulting Agreement, substantially in the form attached hereto as Exhibit G, executed by the Purchaser or its designee;
(r)
    the Purchaser shall deliver a counterpart of the Marburn LLC Consulting Agreement, substantially in the form attached hereto as Exhibit H, executed by the Purchaser or its designee;
(s)
    the Purchaser shall deliver a counterpart of each of the Offer Letters, executed by the Purchaser or its designee;
(t)
    the Purchaser shall deliver a certificate executed by an authorized officer of the Purchaser as to compliance with the conditions set forth in Section 7.2(c) and (d); and

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(u)
    the Purchaser shall deliver, or cause to be delivered, to the Seller Parties, all other documents required to be entered into or delivered by the Purchaser or reasonably requested by the Seller Parties at the Closing pursuant hereto.

ARTICLE IX
     
TERMINATION

Section 9.1 
    Termination.  This Agreement may be terminated:
(r)
    in writing by mutual consent of the Sellers’ Representative and the Purchaser;
(s)
    by written notice from the Sellers’ Representative to the Purchaser, in the event the Purchaser (i) fails to perform in any material respect any of its agreements contained herein required to be performed by it at or prior to the Closing or (ii) materially breaches any of its representations and warranties contained herein, which failure or breach is not cured within 10 days following the Sellers’ Representative having notified the Purchaser of its intent to terminate this Agreement pursuant to this Section 9.1(b);
(t)
    by written notice from the Purchaser to the Sellers’ Representative, in the event any Seller Party (i) fails to perform in any material respect any of its agreements contained herein required to be performed by it at or prior to the Closing or (ii) materially breaches any of its representations and warranties contained herein, which failure or breach is not cured within 10 days following the Purchaser having notified the Sellers’ Representative of its intent to terminate this Agreement pursuant to this Section 9.1(c); or
(u)
    by written notice by the Sellers’ Representative to the Purchaser, or the Purchaser to the Sellers’ Representative, as the case may be, in the event the Closing has not occurred on or prior to October 31, 2016 (the “Expiration Date”) provided, however, that the right to terminate this Agreement shall not be available to any Party whose breach of this Agreement has been the cause of, or resulted in, the failure of the Closing to occur on or before such Expiration Date.

Section 9.2 
    Specific Performance and Other Remedies.  Each Party hereby agrees that the other Parties would suffer irreparable damage in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached by any Party 

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or its Affiliates.  It is accordingly agreed that each Party shall be entitled to seek an injunction or injunctions or specific performance to prevent breaches of this Agreement by the other Parties, as applicable, and to enforce specifically the terms and provisions of this Agreement without the necessity of posting any bond or security, this being in addition to any other remedy to which they are entitled at law or equity.

Section 9.3 
    Effect of Termination.  In the event of termination of this Agreement pursuant to this Article IX, this Agreement shall forthwith become void and there shall be no Liability on the part of any Party or its members, partners, officers, directors or managers, except for obligations under Section 6.7 (Public Announcements), Section 11.1 (Notices), Section 11.5 (Governing Law), Section 11.7 (Consent to Jurisdiction, etc.), Section 11.8 (Waiver of Jury Trial), Section 11.16 (Transaction Costs) and this Section 9.3, all of which shall survive the termination of this Agreement.  Notwithstanding the foregoing, nothing contained herein shall relieve any Party from Liability for (i) any intentional breach hereof prior to the termination of this Agreement, or (ii) any breach following termination of this Agreement with respect to those obligations that survive termination of this Agreement.

ARTICLE X
     
INDEMNIFICATION

Section 10.1 
    Indemnification Obligations of the Seller Parties.  If the Closing occurs, and subject to the limitations set forth in the remainder of this Article X, the Seller, the Party Stockholders, Schweiker and Martinson, jointly and severally, shall indemnify, defend and hold harmless the Purchaser Indemnified Parties from, against, and in respect of, any and all Liabilities, penalties, fines and judgments (at equity or at law, including statutory and common) whenever arising or incurred (including amounts paid in settlement, costs of investigation and reasonable attorneys’ fees and expenses) arising out of or relating to:
(v)
    any breach or inaccuracy of any representation or warranty made by the Seller and Party Stockholders in Article IV of this Agreement or in any Bills of Sale, Assumption Agreements or Assignment of Lease;
(w)
    any breach of any covenant, agreement or undertaking made by the Seller Parties in this Agreement or in any Bills of Sale, Assumption Agreements or Assignment of Lease;
(x)
    (i) Taxes of Seller for periods or portions thereof ending on or before the Closing Date, in addition to any Taxes described in Section 2.1(d)(ii); and (ii) without duplication, Taxes imposed on the Purchaser or its Affiliates as a result of 

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(x) a breach of a representation or warranty set forth in Section 4.14 or (y) a breach of a covenant or agreement set forth in Section 6.1(y) or Section 6.10;
(y)
    the Excluded Assets or the Excluded Liabilities; or
(z)
    the Indebtedness, Change of Control Payments or Transaction Expenses, in each case only to the extent not included in the calculation of the Closing Payment described in Section 3.2(a).
The Liabilities, penalties, fines and judgments of the Purchaser Indemnified Parties described in this Section 10.1 as to which the Purchaser Indemnified Parties are entitled to indemnification are collectively referred to as “Purchaser Losses.”

Section 10.2 
    Indemnification Obligations of Purchaser.  If the Closing occurs, and subject to the limitations set forth in the remainder of this Article X, the Purchaser shall indemnify and hold harmless the Seller Indemnified Parties from, against and in respect of any and all Liabilities, penalties, fines and judgments (at equity or at law, including statutory and common) whenever arising or incurred (including amounts paid in settlement, costs of investigation and reasonable attorneys’ fees and expenses) arising out of or relating to:
(h)
    any breach or inaccuracy of any representation or warranty made by the Purchaser in Article V of this Agreement or in any Assumption Agreements; 
(i)
    any breach of any covenant, agreement or undertaking made by the Purchaser in this Agreement or in any Assumption Agreements;
(j)
    any Liabilities incurred by Seller under the federal WARN Law and any state WARN-related statutes as a result of any layoffs or required relocations by Purchaser following the Closing; or
(k)
    any Assumed Liabilities. 
The Liabilities, penalties, fines and judgments of the Seller Indemnified Parties described in this Section 10.2 as to which the Seller Indemnified Parties are entitled to indemnification are collectively referred to as “Seller Losses.”

Section 10.3 
    Indemnification Procedures.  The Purchaser Indemnified Parties or the Seller Indemnified Parties, as applicable, making a claim under this Article X are referred to as the 

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“Indemnified Party”, and the Party against whom such claims are asserted under this Article X is referred to as the “Indemnifying Party”.
(a)
    Third Party Claims.  If any Indemnified Party receives notice of the assertion or commencement of any Action made or brought by any Person who is not a party to this Agreement (a “Third Party Claim”) against such Indemnified Party with respect to which the Indemnifying Party is obligated to provide indemnification under this Agreement, the Indemnified Party shall give the Indemnifying Party reasonably prompt written notice thereof, but in any event not later than 30 days after receipt of such notice of such Third Party Claim. The delay in giving such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses or is otherwise prejudiced by reason of such failure or such failure causes such notice to occur after the expiration of the relevant Claims Period for the Third Party Claim. Such notice by the Indemnified Party shall describe the Third Party Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Purchaser Losses or Seller Losses, as applicable, that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have the right to participate in, or by giving written notice to the Indemnified Party within 15 days after receipt of notice of such Third Party Claim, to assume the defense of any Third Party Claim at the Indemnifying Party’s expense and by the Indemnifying Party’s own counsel, and the Indemnified Party shall cooperate in good faith in such defense; provided, that the Indemnifying Party shall not have the right to defend or direct the defense of any such Third Party Claim that (i) seeks an injunction or other equitable relief against the Indemnified Party, (ii) alleges criminal conduct on behalf of the Indemnified Party, or (iii) is for an amount in excess of the amount for which the Indemnifying Party is liable pursuant to this Article X. In the event that the Indemnifying Party assumes the defense of any Third Party Claim, subject to Section 10.3(b), it shall have the right to take such action as it deems necessary to avoid, dispute, defend, appeal or make counterclaims pertaining to any such Third Party Claim in the name and on behalf of the Indemnified Party. The Indemnified Party shall have the right to participate in the defense of any Third Party Claim with counsel selected by it subject to the Indemnifying Party’s right to control the defense thereof. The fees and disbursements of such counsel shall be at the expense of the Indemnified Party; provided, that if in the reasonable opinion of counsel to the Indemnified Party, (A) there are legal defenses available to an Indemnified Party that are different from or additional to those available to the Indemnifying Party, or (B) there exists a conflict of interest between the Indemnifying Party and the Indemnified Party that cannot be waived, the Indemnifying Party shall be liable for the reasonable fees and expenses of counsel to the Indemnified Party. If the Indemnifying Party elects not to compromise or defend such Third Party Claim, fails to promptly notify the Indemnified Party in writing of its election to defend as provided in this Agreement, or fails to diligently prosecute the defense of such Third Party Claim, the Indemnified Party may, subject to Section 10.3(b), pay, compromise, and defend such Third Party Claim and seek indemnification for any and all Purchaser Losses or Seller Losses, as applicable, based upon, arising from or relating to such Third Party Claim. The Seller Parties and the Purchaser shall cooperate with each other in all reasonable respects in connection with the defense of any Third Party Claim, including making available records relating to such Third Party Claim and furnishing, without expense (other than reimbursement of actual out-of-pocket expenses) to the defending party, 

70

management employees of the non-defending party as may be reasonably necessary for the preparation of the defense of such Third Party Claim.
(b)
    Settlement of Third Party Claims.  Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not enter into settlement of any Third Party Claim without the prior written consent of the Indemnified Party, except as provided in this Section 10.3(b). If a firm offer is made to settle a Third Party Claim without leading to Liability or the creation of a financial or other obligation on the part of the Indemnified Party and provides, in customary form, for the unconditional release of each Indemnified Party from all Liabilities in connection with such Third Party Claim and the Indemnifying Party desires to accept and agree to such offer, the Indemnifying Party shall give written notice to that effect to the Indemnified Party. If the Indemnified Party fails to consent to such firm offer within 10 days after its receipt of such notice, the Indemnified Party may continue to contest or defend such Third Party Claim and in such event, the maximum liability of the Indemnifying Party as to such Third Party Claim shall not exceed the amount of such settlement offer, and the Purchaser Losses or Seller Losses, as the case may be, incurred by the Indemnified Party prior to the offering of such settlement. If the Indemnified Party fails to consent to such firm offer and also fails to assume defense of such Third Party Claim, the Indemnifying Party may settle the Third Party Claim upon the terms set forth in such firm offer to settle such Third Party Claim. If the Indemnified Party has assumed the defense pursuant to Section 10.3(a) of any Third Party Claim for which the Indemnified Party has acknowledged its obligations to indemnify the Indemnified Party for such Third Party Claim, it shall not agree to any settlement without the written consent of the Indemnifying Party, which consent shall not be unreasonably withheld or delayed.
(c)
    Direct Claims.  Any Action by an Indemnified Party on account of Purchaser Losses or Seller Losses, as applicable, which does not result from a Third Party Claim (a “Direct Claim”) shall be asserted by the Indemnified Party giving the Indemnifying Party reasonably prompt written notice thereof, but in any event not later than 30 days after the Indemnified Party becomes aware of such Direct Claim. Subject to Section 10.4, the failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations except to the extent it is prejudiced thereby or such failure causes such notice to occur after the expiration of the relevant Claims Period for such Direct Claim. Such notice by the Indemnified Party shall describe the Direct Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Purchaser Losses or Seller Losses, as applicable, that have been or may be sustained by the Indemnified Party. The Indemnifying Party shall have 30 days after its receipt of such notice to respond in writing to such Direct Claim. The Indemnified Party shall allow the Indemnifying Party and its professional advisors to investigate the matter or circumstance alleged to give rise to the Direct Claim, and whether and to what extent any amount is payable in respect of the Direct Claim and the Indemnified Party shall assist the Indemnifying Party’s investigation by giving such information and assistance (including access to the Indemnified Party’s premises and personnel and the right to examine and copy any accounts, documents or records) as the Indemnifying Party or any of its professional advisors may reasonably request. If the Indemnifying Party does not so respond within such 30 day 

71

period, the Indemnifying Party shall be deemed to have rejected such claim, in which case the Indemnified Party shall be free to pursue such remedies as may be available to the Indemnified Party on the terms and subject to the provisions of this Agreement.

Section 10.4 
    Claims Period. Subject to Section 10.9, the Claims Period hereunder shall begin on the date hereof and survive or terminate as follows:
(a)
    with respect to Purchaser Losses arising under (i) Section 10.1(a) with respect to any breach or inaccuracy of any representation or warranty in Section 4.1 (Organization), Section 4.2 (Authorization), Section 4.5(a) (Title to Assets; Related Matters), Section 4.12 (Tax Returns; Taxes), Section 4.17 (Environmental Matters, but limited to subsections (b)-(e) and (g) of Section 4.17) and Section 4.30 (Brokers and Finders), the Claims Period shall terminate on the date that is 60 days following the termination of the applicable statute of limitations or, if there is no applicable statute of limitations, the Claims Period shall survive indefinitely (all Purchaser Losses described in Sections 10.4(a)(i), the “Surviving Obligations”), (ii) Section 10.1(a) with respect to any breach or inaccuracy of any representation or warranty in this Agreement not described in clause (i) above, the Claims Period shall terminate on the date that is 18 months following the Closing Date, or (iv) Sections 10.1(b)-(e), the Claims Period shall terminate on the date that is 60 days following the termination of the applicable statute of limitations or, if there is no applicable statute of limitations, the Claims Period shall survive indefinitely; and
(b)
    with respect to Seller Losses, the Claims Period shall terminate on the date that is 60 days following the termination of the applicable statute of limitations or, if there is no applicable statute of limitations, the Claims Period shall survive indefinitely.  Notwithstanding the foregoing, if, prior to 5:00 p.m. Central U.S. Time on the last day of the applicable Claims Period, an Indemnifying Party shall have been properly notified by an Indemnified Party of a Third Party Claim or Direct Claim for indemnity hereunder and such claim shall not have been finally resolved or disposed of at such date, such claim shall continue to survive and shall remain a basis for indemnity hereunder until such claim is finally resolved or disposed of in accordance with the terms hereof.  All claims for which notice is not given in accordance with this Section 10.4 within the applicable Claims Period shall terminate and be deemed to be waived by the Party seeking to assert such claim. 

Section 10.5 
    Liability Limits.
(a)
    Subject to Section 10.9, the Seller Parties, in the aggregate shall not be liable under this Article X for Purchaser Losses unless and until the aggregate amount of such Purchaser Losses exceeds $100,000 (the “Basket”), in which event the Seller Parties shall be liable for all Purchaser Losses in excess of the amount of the Basket, up to an amount not to exceed $1,000,000 (the “Cap”); provided, however, the Surviving Obligations and the Seller Parties’ obligations under Sections 10.1(b)-(e) shall not be subject to, or apply toward satisfaction of, the 

72

Basket or the Cap.  Subject to Section 10.9, the Seller Parties shall be liable for all Purchaser Losses with respect to a breach or inaccuracy of any Surviving Obligation up to an amount not to exceed $3,000,000 (the “Surviving Obligations Cap”); provided, however, the Seller Parties’ obligations under Sections 10.1(b)-(e) shall not be subject to, or apply toward satisfaction of, the Surviving Obligations Cap.  The Schweiker Family Trust and Schweiker shall not be liable under this Article X for Purchaser Losses under Section 10.1(a) in an amount of more than the portion of the Total Consideration actually received by the Schweiker Family Trust as a stockholder of the Seller in the aggregate, and the Martinson Family Trust and Martinson shall not be liable under this Article X for Purchaser Losses under Section 10.1(a) in an amount of more than the portion of the Total Consideration actually received by the Martinson Family Trust as a stockholder of the Seller in the aggregate.  For any Purchaser Losses for which the Purchaser Indemnified Parties seek to recover from the Schweiker Family Trust or Schweiker the Purchase Indemnified Parties shall use commercially reasonable efforts to obtain settlement or recovery from the Schweiker Family Trust prior to seeking recovery directly from Schweiker, and for any Purchaser Losses for which the Purchaser Indemnified Parties seek to recover from the Martinson Family Trust or Martinson the Purchase Indemnified Parties shall use commercially reasonable efforts to obtain settlement or recovery from the Martin Family Trust prior to seeking recovery directly from Martinson; provided, however, that the recovery priority established by this sentence shall not be construed as requiring that any Purchaser Indemnified Parties exhaust remedies or otherwise incur material additional costs or delays in seeking recovery under this Article X before proceeding directly against Schweiker or Martinson. 
(b)
    The Parties hereby acknowledge and agree that all qualifications in any representations and warranties as to or by material or materiality, including each reference to the defined term “Material Adverse Event,” shall be ignored in determining the amount of the applicable Losses arising from any such breach (but not ignored in determining whether or not the breach has occurred). 

Section 10.6 
    Escrow.  On the Closing Date, the Purchaser shall pay to JP Morgan Chase, as agent to the Purchaser, the Seller and the Sellers’ Representative (the “Escrow Agent”), to the account designated by the Escrow Agent, the Escrow Amount, in accordance with the terms of Section 3.2 of this Agreement and the Escrow Agreement.  Excluding payments arising under Section 3.3 (including any failure to make such payments arising under Section 3.3), any payment that a Seller Party is obligated to make to any Purchaser Indemnified Party pursuant to this Article X (each, a “Claim”) shall be paid first, to the extent there are sufficient funds in the Escrow Account, from the Escrow Account.  On the date that is 18 months following the Closing Date (such date, the “Escrow Termination Date”), the Escrow Agent shall release the Escrow Amount plus all accrued interest thereon (to the extent not utilized to pay any Purchaser Indemnified Party for any Claim) to the Seller, except that the Escrow Agent shall retain an amount (up to the total amount then held by the Escrow Agent) equal to the amount of all Claims for indemnification under this Article X asserted in accordance with Section 10.3 prior to the Escrow Termination Date but not yet resolved (“Unresolved Claims”).  The Escrow Amount retained for Unresolved Claims shall be released by the Escrow Agent (to the extent not utilized to pay the Purchaser Indemnified Parties for any such 

73

claims resolved in favor of the Purchaser Indemnified Parties) upon their resolution in accordance with this Article X and the terms of the Escrow Agreement.  The Purchaser and the Sellers’ Representative shall jointly instruct the Escrow Agent in writing to release the funds from the Escrow Account in accordance with this Article X and the other terms of this Agreement.

Section 10.7 
    Payment of Claims.  The applicable Indemnifying Party shall pay any and all of such sums due and owing to the applicable Indemnified Party pursuant to this Article X by wire transfer of immediately available funds within five Business Days of the earlier of (a) a final adjudication which is either not subject to appeal or the time in which to appeal therefrom has expired and (b) the written agreement of the Purchaser and the Sellers’ Representative, in each case, establishing the applicable Indemnifying Party’s indemnification obligation hereunder.

Section 10.8 
    Exclusive Remedy.  The Parties agree that, excluding (a) any claim for injunctive or other equitable relief, (b) the rights of the Parties under Section 9.2, (c) any claim related to fraud or intentional and willful misconduct by any Party in connection with the transactions related to this Agreement or (d) for the avoidance of doubt, matters related to the Non-Competition Agreements, the indemnification provisions of this Article X are intended to provide the sole and exclusive remedy as to all claims either the Seller, on the one hand, or the Purchaser, on the other hand, may incur arising from or relating to this Agreement following the Closing.  Any Liability for indemnification under this Agreement shall be determined without duplication of recovery by reason of the state of facts giving rise to such Liability constitutes a breach of more than one representation, warranty, covenant or agreement.

Section 10.9 
    Fraud or Intentional and Willful Misconduct.  Any claim by a Party with respect to fraud or intentional and willful misconduct on the part of another Party shall not be subject to the limitations of this Article X, including the limitations of the Claims Period, the Basket, the Cap or the Surviving Obligations Cap, with respect to the liability of the Party committing the fraud or intentional and willful misconduct.  

Section 10.10 
    Tax Treatment of Indemnity Payments.  All indemnification payments made under this Agreement shall be treated by the Parties as an adjustment to the Total Consideration for Tax purposes, unless otherwise required by Law.

Section 10.11 
    [RESERVED].  

Section 10.12 
    Mitigation; Calculation of Losses.  Each Indemnified Party shall take commercially reasonable steps to mitigate and otherwise minimize the Seller Losses or Purchaser Losses (collectively, “Losses”), as applicable, upon and after becoming aware of any event which would give rise to any such Losses.  In no case shall Losses include (a) any punitive or speculative damages (except to the extent such excluded damages are part of a third party Claim as to which 

74

indemnification is being sought), or (b) fees and expenses of more than one counsel with respect to any indemnity Claim or Claims arising out of the same general allegations or circumstances.  The amount of any Losses for which indemnification is provided under this Article X shall be net of (i) any amounts recovered by the Indemnified Party pursuant to any indemnification by or indemnification agreement with any third party, and (ii) any insurance proceeds or other cash receipts or sources of reimbursement received from third parties as an offset against such Loss, net of any increase in premiums and reasonable costs of recovery including any deductible or retention. 

ARTICLE XI
     
MISCELLANEOUS PROVISIONS

Section 11.1 
    Notices.  All notices, communications and deliveries required or made hereunder must be made in writing signed by or on behalf of the Party making the same and shall be delivered personally or by a national overnight courier service or by registered or certified mail (return receipt requested) (with postage and other fees prepaid) or by email transmission (so long as a receipt of such email is requested and received) as follows:

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	To the Purchaser:
	If prior to December 31, 2016: 
Tea Leaf Acquisition Corp.  
13601 North Freeway, Suite 200 
Fort Worth, Texas 76177 
Attn:  Thomas J. Mattei, Jr. 
Email:  tmattei@farmerbros.com
If after December 31, 2016: 
Tea Leaf Acquisition Corp.  
1912 Farmer Brothers Drive 
Northlake, Texas 76226 
Attn:  Thomas J. Mattei, Jr. 
Email:  tmattei@farmerbros.com

	with a copy to:
	Wick, Phillips, Gould & Martin, LLP 
3131 McKinney Avenue, Suite 100 
Dallas, Texas 75204 
Attn: Robert Schroeder 
Email: rob.schroeder@wickphillips.com

	To Seller,  
any Party Stockholder, and the Sellers’ Representative:
	Daniel W. Schweiker
7255 E Las Palmaritas Dr
Scottsdale, AZ 85258-2741
Tel No: 602.791.4720
Fax No. :480.483.1193
Email Address: dschweiker@cox.net 

	with a copy to:
	Osborn Maledon, P.A.
2929 North Central Ave.
Twenty-First Floor
Phoenix, AZ 85012
Attention:  Thomas H. Curzon
 and Clark M. Porter
Tel No.:  602.640.9308 / 602.640.9374
Fax No.:  602-640-9050
Email Address:  tcurzon@omlaw.com / cporter@omlaw.com

or to such other representative or at such other address of a Party as such Party may furnish to the other Parties in writing.  Any such notice, communication or delivery shall be deemed given or made (a) on the date of delivery, if delivered in person, or (b) on the first Business Day following timely delivery to a national overnight courier service or (c) on the fifth Business Day following it being mailed by registered or certified mail or (d) upon receipt of email transmission with electronic confirmation of delivery.

Section 11.2 
    Schedules and Exhibits.  The Schedules and Exhibits are hereby incorporated into this Agreement and are hereby made a part hereof as if set out in full herein.

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Section 11.3 
    Binding Effect; Assignment.  This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.  Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned, directly or indirectly, including by operation of law, by any Party without the prior written consent of the other Parties; provided, however, that the Purchaser may, without the consent of the Seller Parties but only to the extent such assignment will not frustrate or materially reduce the probability of achieving the Earn-Out Condition set forth in Section 3.4, (a) assign any or all of its rights and interests hereunder to one or more of its Affiliates, (b) designate one or more of its Affiliates to perform its obligations hereunder (in which case, the designor nonetheless shall remain responsible for the performance of all of its obligations hereunder), (c) assign this Agreement to its lenders for collateral security purposes and (d) assign this Agreement to a subsequent purchaser of all or a substantial portion of the Purchaser or the Purchased Assets.  Any assignment in contravention of this provision shall be null and void ab initio.

Section 11.4 
    Amendment; Modification.  This Agreement may be amended, modified or supplemented at any time only by written agreement of the Parties.

Section 11.5 
    Governing Law.  This Agreement shall be governed by and construed in accordance with the Laws of the State of Texas (regardless of the Laws that might otherwise govern under applicable principles of conflicts of laws thereof) as to all matters, including matters of validity, construction, effect, performance and remedies.

Section 11.6 
    Captions.  The titles, captions and table of contents contained herein are inserted herein only as a matter of convenience and for reference and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision hereof.

Section 11.7 
    Dispute Resolution; Arbitration.  Except for any rights that any Party may have to apply to a court of competent jurisdiction for specific performance or injunctive relief, all Legal Disputes shall be submitted solely and exclusively to final and binding arbitration before a single, neutral arbitrator before the American Arbitration Association (“AAA”), in accordance with the AAA’s prevailing National Rules for the Resolution of Commercial Disputes.  Such arbitration shall proceed in Dallas, Texas, and the demand for arbitration shall be filed with the AAA only after the initiating Party provides the other Party with at least thirty (30) days’ advance notice of the contemplated demand.  Judgment upon the award rendered by the arbitrator may be entered in any court of competent jurisdiction.  The initiating Party shall advance the arbitration filing fee, and all other AAA administrative fees shall be shared equally by the Parties to such a dispute, subject to apportionment by the arbitrator in the award.

Section 11.8 
    Ancillary Proceedings.  Any Party may bring a suit, action or special proceeding for the purpose of compelling a party to arbitrate, seeking temporary or preliminary injunctive relief 

77

in aid of and pending arbitration hereunder, and/or enforcing an arbitration award.  EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF COURTS LOCATED IN DALLAS COUNTY IN THE STATE OF TEXAS FOR THE PURPOSE OF ANY JUDICIAL PROCEEDING BROUGHT IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION 11.8.  The Parties acknowledge that the forum(s) designated by this Section 11.8 have a reasonable relation to this Agreement, and to the Parties’ relationship with one another.  The Parties hereby waive, to the fullest extent permitted by applicable Law, any objection which they now or hereafter may have to personal jurisdiction or to the laying of venue of any such ancillary suit, action or proceeding brought in any court referred to in this Section 11.8 and such Parties agree not to plead or claim the same.

Section 11.9 
    Waiver of Jury Trial.  EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT, ANY BILLS OF SALE, ANY ASSUMPTION AGREEMENTS OR ANY ASSIGNMENT OF LEASE IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY BILLS OF SALE, ASSUMPTION AGREEMENTS OR ASSIGNMENT OF LEASE OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL DISPUTE, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.9.

Section 11.10 
    Attorneys’ Fees.  In the event that any Party institutes any Action against the other Parties arising out of or relating to this Agreement, the prevailing Party in such Action shall be entitled to receive in addition to all other damages to which it may be entitled, the costs incurred by such Party in conducting the Action, including reasonable attorneys’ fees and expenses and court costs.

Section 11.11 
    Severability.  If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of Law or public policy, all other terms, conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to any Party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually 

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acceptable manner in order that the transactions contemplated by this Agreement be consummated as originally contemplated to the fullest extent possible.

Section 11.12 
    Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile or email transmission shall be as effective as delivery of a manually executed counterpart of this Agreement.

Section 11.13 
    Third-Party Beneficiary.  Nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give any Person other than the Parties, their successors or permitted assigns, and the Purchaser Indemnified Parties and Seller Indemnified Parties as provided in Article X, any rights, remedies, or Liabilities under or by reason of this Agreement, or result in such Person being deemed a third-party beneficiary of this Agreement.

Section 11.14 
    Waiver.  Any agreement on the part of a Party to any extension or waiver of any provision hereof shall be valid only if set forth in an instrument in writing signed on behalf of such Party.  A waiver by a Party of the performance of any covenant, agreement, obligation, condition, representation or warranty shall not be construed as a waiver of any other covenant, agreement, obligation, condition, representation or warranty.  A waiver by any Party of the performance of any act shall not constitute a waiver of the performance of any other act or an identical act required to be performed at a later time.

Section 11.15 
    Integration.  This Agreement and the documents executed pursuant hereto supersede all negotiations, agreements and understandings among the Parties with respect to the subject matter hereof (except for the Confidentiality Agreement, which the Parties agree will terminate pursuant to its terms or be caused to be terminated as of the Closing) and constitute the entire agreement among the Parties with respect thereto.

Section 11.16 
    Transaction Costs.  Except as otherwise provided herein, all costs and expenses, including fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the Party incurring such costs and expenses.

Section 11.17 
    Sellers’ Representative.
(a)
    The Seller Parties hereby irrevocably nominate, constitute and appoint Daniel W. Schweiker as the representative and the agent and true and lawful attorney-in-fact of the Seller Parties (the “Sellers’ Representative”), with full power of substitution, to act in the name, 

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place and stead of the Seller Parties for purposes of executing any documents and taking any actions that the Sellers’ Representative may, in its sole discretion, determine to be necessary, desirable or appropriate in all matters relating to or arising out of this Agreement, including in connection with (i) any adjustment to the Base Amount as contemplated by Section 3.2, (ii) any determination of the Final Working Capital pursuant to Section 3.3, (iii) any Tax matters as described in Section 6.11 or (iii) any claim for indemnification, compensation or reimbursement under Article X (the “Representative Matters”).  Daniel W. Schweiker hereby accepts his appointment as the representative and the agent and true and lawful attorney-in-fact of the Seller Parties.  Daniel W. Schweiker shall serve as Sellers’ Representative until the earlier of his death, incapacity, or his removal by the written action of a majority of the Party Stockholders.  Following the removal of Daniel W. Schweiker as Sellers’ Representative, or his inability to serve in such capacity, a replacement Sellers’ Representative shall be appointed by the written action of a majority of the Party Stockholders.
(b)
    Upon the Closing, the Seller Parties shall deliver to the Sellers’ Representative an amount equal to $40,000 (the “Representative’s Expense Fund”) to be held in trust to cover and reimburse the fees and expenses incurred by the Sellers’ Representative for his obligations in connection with this Agreement and the transactions contemplated herein.  Any balance of the Representative Expense Fund not incurred for such purposes shall be returned by the Sellers’ Representative to the Seller Parties.
(c)
    Each Seller Party grants to the Sellers’ Representative full authority to execute, deliver, acknowledge, certify and file on behalf of the Seller Parties (in the name of any or all of the Seller Parties or otherwise) any and all documents that the Sellers’ Representative may, in his sole discretion, determine to be necessary, desirable or appropriate, in such forms and containing such provisions as the Sellers’ Representative may, in its sole discretion, determine to be appropriate, in performing its duties as contemplated by Section 11.17(a).  Notwithstanding anything to the contrary contained in this Agreement, in any Seller Ancillary Document or in any Purchaser Ancillary Document executed in connection with the Acquisition and the transactions contemplated this Agreement, the Purchaser shall be entitled to deal exclusively with the Sellers’ Representative on all Representative Matters, and shall be entitled to rely conclusively (without further evidence of any kind whatsoever) on any document executed or purported to be executed on behalf of any Seller Party by the Sellers’ Representative with respect to any Representative Matters, and on any other action taken or purported to be taken on behalf of any Seller Party by the Sellers’ Representative with respect to any Representative Matters, as fully binding upon such Seller Party.
(d)
    The power of attorney granted in Section 11.17(a):  (i) is coupled with an interest and is irrevocable; (ii) may be delegated by the Sellers’ Representative; and (iii) shall survive the dissolution, death or incapacity of each of the Seller Parties.

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(e)
    All expenses incurred by the Sellers’ Representative in connection with the performance of his duties as the Sellers’ Representative shall be borne and paid exclusively by the Seller Parties.
(f)
    The Sellers’ Representative shall at all times act in his capacity as Sellers’ Representative in a manner that the Sellers’ Representative believes to be in the best interest of the Seller Parties.  The Sellers’ Representative shall not be liable to any person for any error of judgment, or any action taken, suffered or omitted to be taken under this Agreement, except in the case of its gross negligence, bad faith or willful misconduct.  The Sellers’ Representative may consult with legal counsel, independent public accountants and other experts selected by him.  Each Seller Party shall indemnify and hold harmless and reimburse the Sellers’ Representative from and against any and all liabilities, losses, damages, claims, costs or expenses suffered or incurred by the Sellers’ Representative arising out of or resulting from any action taken or omitted to be taken by the Sellers’ Representative under this Agreement, other than such liabilities, losses, damages, claims, costs or expenses arising out of or resulting from the Sellers’ Representative's gross negligence, bad faith or willful misconduct.
[Signature Page Follows]

IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the date first written above.
PURCHASER:
TEA LEAF ACQUISITION CORP.
By:    /s/ Isaac N. Johnston, Jr.         
Name:    Isaac N. Johnston, Jr. 
Title:    Chief Financial Officer

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SELLER:

CHINA MIST BRANDS, INC.

By:    /s/ Dan Schweiker         
Name:    Dan Schweiker 
Title:    Co-Chairman

PARTY STOCKHOLDERS:

The John Martinson and Suzanne Pickett Martinson Family Trust

By:    /s/ John S. Martinson    /s/ Suzanne Pickett Martinson 
Name:    John S. Martinson and Suzanne Pickett Martinson 
Title:    Trustees

The Daniel W Schweiker Family Revocable Trust

By:    /s/ Suzanne Schweiker  /s/ Dan Schweiker 
Name:    Suzanne Schweiker and Dan Schweiker 
Title:    Trustees

SELLERS’ REPRESENTATIVE:

/s/ Dan Schweiker                 
Daniel W. Schweiker

Solely for purposes of Article X:

/s/ Dan Schweiker                
Daniel W. Schweiker, individually

/s/ John S. Martinson                
John S. Martinson, individually

[Signature Page to Purchase Agreement]

[Signature Page to Purchase Agreement]

Exhibit A
Persons with Knowledge
Dan Schweiker
John Martinson
Kermit Peterson
Brian S. Locke

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