Document:

Agreement and Plan of Merger and Reorganization

 EXHIBIT 10.22 
  

 AGREEMENT AND PLAN OF MERGER AND REORGANIZATION 
  
 by and among 
  
 THE E.W. SCRIPPS COMPANY, 
  
 GREEN MONSTER ACQUISITION CORP., 
  
 SHOPZILLA, INC. 
  
 and 
  
 THE
SHAREHOLDERS’ REPRESENTATIVE 
 NAMED HEREIN 
  

  
 June 6, 2005 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Pages

	 ARTICLE I
	  	DEFINITIONS	  	1
			
	 Section 1.1
	  	 Definitions
	  	1
			
	 ARTICLE II
	  	THE MERGER	  	12
			
	 Section 2.1
	  	 The Merger
	  	12
	 Section 2.2
	  	 Effect of the Merger
	  	12
	 Section 2.3
	  	 Closing; Effective Time
	  	12
	 Section 2.4
	  	 Articles of Incorporation and Bylaws; Directors and Officers
	  	13
	 Section 2.5
	  	 Conversion of Shares
	  	13
	 Section 2.6
	  	 Company Option Plans
	  	16
	 Section 2.7
	  	 Cancellation of Shares; Closing of Transfer Books
	  	16
	 Section 2.8
	  	 Exchange of Certificates
	  	17
	 Section 2.9
	  	 Dissenting Shares
	  	18
	 Section 2.10
	  	 Further Action
	  	18
	 Section 2.11
	  	 Working Capital Adjustments; Escrow
	  	18
	 Section 2.12
	  	 Closing Payment Schedule
	  	20
			
	 ARTICLE III
	  	REPRESENTATIONS AND WARRANTIES OF THE COMPANY	  	21
			
	 Section 3.1
	  	 Organization and Good Standing
	  	21
	 Section 3.2
	  	 Authority; Binding Nature of Agreement; No Conflict
	  	22
	 Section 3.3
	  	 Capitalization
	  	23
	 Section 3.4
	  	 Financial Statements
	  	24
	 Section 3.5
	  	 Books and Records
	  	25
	 Section 3.6
	  	 Title to Assets
	  	25
	 Section 3.7
	  	 Condition and Sufficiency of Facilities
	  	25
	 Section 3.8
	  	 Accounts Receivable
	  	25
	 Section 3.9
	  	 Bank Accounts
	  	26
	 Section 3.10
	  	 No Undisclosed Liabilities
	  	26
	 Section 3.11
	  	 Taxes
	  	26
	 Section 3.12
	  	 Employee Benefits
	  	27
	 Section 3.13
	  	 Compliance; Governmental Authorizations
	  	31
	 Section 3.14
	  	 Legal Proceedings; Orders
	  	32
	 Section 3.15
	  	 Absence of Certain Changes and Events
	  	33
	 Section 3.16
	  	 Contracts; No Defaults
	  	34
	 Section 3.17
	  	 Insurance
	  	36
	 Section 3.18
	  	 Environmental Matters
	  	36
	 Section 3.19
	  	 Employees
	  	37
	 Section 3.20
	  	 Labor Relations
	  	37
	 Section 3.21
	  	 Intellectual Property
	  	38

  

 -i- 

					
	 Section 3.22
	  	 Certain Payments
	  	40
	 Section 3.23
	  	 FCC Licenses
	  	40
	 Section 3.24
	  	 Vote Required
	  	40
	 Section 3.25
	  	 Websites
	  	41
	 Section 3.26
	  	 Related Party Transactions
	  	41
	 Section 3.27
	  	 Vendor and Customer Relationships
	  	42
	 Section 3.28
	  	 Brokers or Finders
	  	42
	 Section 3.29
	  	 Loans to Employees and Directors
	  	42
	 Section 3.30
	  	 State Takeover Laws
	  	42
	 Section 3.31
	  	 Relationships with Certain Parties
	  	42
			
	 ARTICLE IV
	  	 REPRESENTATIONS AND WARRANTIES OF SHAREHOLDERS’
 REPRESENTATIVE
	  	43
			
	 Section 4.1
	  	 Capacity
	  	43
	 Section 4.2
	  	 No Conflict
	  	43
	 Section 4.3
	  	 Enforceability
	  	43
			
	 ARTICLE V
	  	 REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
	  	43
			
	 Section 5.1
	  	 Organization and Good Standing
	  	43
	 Section 5.2
	  	 Authority; No Conflict
	  	43
	 Section 5.3
	  	 Financial Capability
	  	44
	 Section 5.4
	  	 Certain Proceedings
	  	44
	 Section 5.5
	  	 Brokers or Finders
	  	44
	 Section 5.6
	  	 Merger Sub
	  	44
			
	 ARTICLE VI
	  	 COVENANTS OF THE COMPANY PRIOR TO CLOSING DATE
	  	44
			
	 Section 6.1
	  	 Access and Investigation
	  	44
	 Section 6.2
	  	 Operation of the Business
	  	45
	 Section 6.3
	  	 Forbearance
	  	45
	 Section 6.4
	  	 Notification
	  	47
	 Section 6.5
	  	 Reasonable Best Efforts
	  	47
	 Section 6.6
	  	 No Solicitation
	  	48
	 Section 6.7
	  	 Consent Solicitation Statement
	  	49
	 Section 6.8
	  	 Demands by Holders of Dissenting Shares
	  	49
	 Section 6.9
	  	 FIRPTA Matters
	  	49
			
	 ARTICLE VII
	  	 CERTAIN COVENANTS OF PARENT
	  	50
			
	 Section 7.1
	  	 Indemnification
	  	50
	 Section 7.2
	  	 Notification
	  	50
	 Section 7.3
	  	 Reasonable Best Efforts
	  	50
			
	 ARTICLE VIII
	  	 MISCELLANEOUS COVENANTS
	  	51
			
	 Section 8.1
	  	 Required Approvals of Governmental Bodies
	  	51

  

 -ii- 

					
	 Section 8.2
	  	 Tax Matters
	  	52
			
	 ARTICLE IX
	  	 CONDITIONS PRECEDENT TO OBLIGATIONS OF PARENT AND MERGER SUB
	  	53
			
	 Section 9.1
	  	 Accuracy of Representations
	  	54
	 Section 9.2
	  	 Performance of Covenants
	  	54
	 Section 9.3
	  	 Shareholder Approval
	  	54
	 Section 9.4
	  	 Additional Documents
	  	54
	 Section 9.5
	  	 No Material Adverse Change
	  	54
	 Section 9.6
	  	 No Prohibition
	  	55
	 Section 9.7
	  	 No Injunction
	  	55
	 Section 9.8
	  	 HSR Act
	  	55
	 Section 9.9
	  	 Opinion
	  	55
			
	 ARTICLE X
	  	 CONDITIONS PRECEDENT TO OBLIGATIONS OF THE COMPANY
	  	55
			
	 Section 10.1
	  	 Accuracy of Representations
	  	55
	 Section 10.2
	  	 Performance of Covenants
	  	55
	 Section 10.3
	  	 Additional Documents
	  	55
	 Section 10.4
	  	 HSR Act
	  	56
	 Section 10.5
	  	 Opinion
	  	56
	 Section 10.6
	  	 Shareholder Approval
	  	56
	 Section 10.7
	  	 No Prohibition
	  	56
	 Section 10.8
	  	 No Injunction
	  	56
			
	 ARTICLE XI
	  	 TERMINATION
	  	56
			
	 Section 11.1
	  	 Termination of Agreement
	  	56
	 Section 11.2
	  	 Effect of Termination
	  	58
			
	 ARTICLE XII
	  	 INDEMNIFICATION; ESCROW
	  	59
			
	 Section 12.1
	  	 Survival
	  	59
	 Section 12.2
	  	 Indemnification
	  	59
	 Section 12.3
	  	 Threshold; Ceiling
	  	61
	 Section 12.4
	  	 No Contribution
	  	61
	 Section 12.5
	  	 Defense of Third Party Claims
	  	61
	 Section 12.6
	  	 Duty to Mitigate
	  	62
	 Section 12.7
	  	 Exercise of Remedies by Indemnitees Other Than Parent
	  	62
	 Section 12.8
	  	 Indemnification Claims; Escrow Fund Arrangements
	  	62
	 Section 12.9
	  	 Knowledge
	  	65
	 Section 12.10
	  	 No Consequential Damages
	  	65
			
	 ARTICLE XIII
	  	 GENERAL PROVISIONS
	  	66
			
	 Section 13.1
	  	 Expenses
	  	66
	 Section 13.2
	  	 Public Announcements
	  	66

  

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	 Section 13.3
	  	 Confidentiality
	  	66
	 Section 13.4
	  	 Notices
	  	66
	 Section 13.5
	  	 Jurisdiction; Venue; Service Of Process
	  	68
	 Section 13.6
	  	 Further Assurances
	  	68
	 Section 13.7
	  	 Waiver
	  	68
	 Section 13.8
	  	 Entire Agreement and Modification
	  	68
	 Section 13.9
	  	 Schedules
	  	69
	 Section 13.10
	  	 Assignments and Successors
	  	69
	 Section 13.11
	  	 Severability
	  	69
	 Section 13.12
	  	 Section Headings; Construction
	  	69
	 Section 13.13
	  	 Governing Law
	  	69
	 Section 13.14
	  	 Counterparts
	  	69
	 Section 13.15
	  	 No Third Party Beneficiaries
	  	69
	 Section 13.16
	  	 Shareholders’ Representative; Escrow Fund Arrangements
	  	70
	 Section 13.17
	  	 Other Remedies; Specific Performance
	  	71
	 Section 13.18
	  	 Waiver of Jury Trial
	  	71
	 Section 13.19
	  	 Incorporation by Reference
	  	71
	 Section 13.20
	  	 Computation of Time
	  	72

  
 Annex

  
 Annex I –Working Capital Guidelines

  
 Schedule 
  
 ARTICLE III Disclosure Schedule – Delivered
Separately by the Company 
  
 Exhibits 
  

	
	 Exhibit A – Form of Escrow Agreement

	 Exhibit B-1 – Form of Opinion of Counsel to the Company

	 Exhibit B-2 – Form of Opinion of Company’s General Counsel

	 Exhibit C – Form of Opinion of Counsel to Parent

  

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 AGREEMENT AND PLAN OF MERGER AND REORGANIZATION 
  
 This Agreement and Plan of Merger and Reorganization
(“Agreement”) is made on June 6, 2005, by THE E.W. SCRIPPS COMPANY, an Ohio corporation (“Parent”), GREEN MONSTER ACQUISITION CORP., a California corporation (“Merger Sub”), SHOPZILLA, INC., a
California corporation (the “Company”), and Farhad Mohit as the Shareholders’ Representative (as defined herein). 
  
 RECITALS 
  
 A. Parent, Merger Sub and the Company intend to effect a merger of Merger Sub into the Company (the “Merger”) in accordance with this
Agreement and the California General Corporation Law (the “CGCL”). Upon consummation of the Merger, Merger Sub will cease to exist, and the Company will become a wholly owned subsidiary of Parent. 
  
 B. This Agreement has been approved by the respective boards of directors of
Parent, Merger Sub and the Company. 
  
 AGREEMENT

  
 The parties, intending to be legally bound, agree as
follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.1 Definitions. For purposes of this Agreement,
the following terms have the meanings specified in this Section: 
  
 “Accountants” is defined in Section 2.11(c). 
  
 “Acquisition Proposal” is defined in Section 6.6(b). 
  
 “Acquisition Transaction” means any transaction involving: (a) the sale, license, disposition or acquisition of all or a substantial
portion of the business or assets of the Company; (b) the issuance, disposition or acquisition of (i) any capital stock or other equity security of the Company (other than Company Common Stock issued to employees of the Company upon exercise of
Company Options in routine transactions in accordance with the Company’s past practices), (ii) any option, call, warrant or right (whether or not immediately exercisable) to acquire any capital stock or other equity security of the Company, or
(iii) any security, instrument or obligation that is or may become convertible into or exchangeable for any capital stock or other equity security of the Company; in each of clauses (i) through (iii), representing in the aggregate 1% or more of the
voting power of the Company; or (c) any merger, consolidation, share exchange, business combination, reorganization, recapitalization or similar transaction involving the Company, in each of clauses (a) through (c) other than the Contemplated
Transactions and other than any transactions by or involving the Company that are permitted under Section 6.3 or Section 6.6. 
  
 “Adware” is defined in Section 3.25(b). 

 “Affiliate” means, with respect to any Person, any other Person (i) that directly, or
indirectly through one or more intermediaries, controls or is controlled by or is under common control with such Person, (ii) that is a general partner, director, manager, trustee or principal officer of, or a limited partner owning more than 10%
of, or that serves in a similar capacity with respect to, such Person, or (iii) of which such Person is a general partner, director, manager, trustee or principal officer or a limited partner owning more than 10% of, or with respect to which such
Person serves in a similar capacity. For purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct or to cause the direction of the management or policies of the Person in question through
the ownership of voting securities or by contract or otherwise. 
  
 “Agreement” is defined in the first paragraph of this Agreement. 
  
 “Aggregate Escrow Cash Amount” is defined in Section 2.5(c). 
  
 “Aggregate Exercise Amount” is defined in Section 2.5(b). 
  
 “Aggregate Liquidation Preference” is defined in Section 2.5(b). 
  
 “Award Amount” is defined in Section 12.8(f).

  
 “Break-Up Fee” is defined in Section
11.1(h). 
  
 “Business Day” means any day
other than a Saturday or a Sunday, and any day other than a day that is a bank holiday in the State of California or the State of Ohio. 
  
 “CGCL” is defined in the Recitals. 
  
 “Claimed Amount” is defined in Section 12.8(a). 
  
 “Closing” is defined in Section 2.3. 
  
 “Closing Date” means the date as of which the Closing actually takes place. 
  
 “Closing Date Balance Sheet” means a consolidated balance
sheet of the Company and its Subsidiary (together with related notes and supporting schedules and work papers) as of the Closing Date, prepared in accordance with GAAP and on a basis consistent with the basis on which the audited Financial
Statements were prepared; provided, however, (i) amounts due to holders of unexercised and outstanding Company Options immediately prior to or at the Effective Time for the excess of the Preliminary Residual Share Amount over the Exercise Price per
share of such options shall not be included in the Closing Date Balance Sheet and (ii) amounts due to holders of shares of Company Preferred Stock outstanding immediately prior to or at the Effective Time (excluding any shares of Company Preferred
Stock converted into Common Stock prior to the Effective Time) shall not be included in the Closing Date Balance Sheet. 
  
 “Closing Date Option Holder” is defined in Section 2.12(a). 
  
 “Closing Date Shareholder” is defined in Section 2.12(a). 
  

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 “Closing Date Working Capital” is defined in Section 2.11(b). 
  
 “Closing Payment Schedule” is defined in Section
2.12(a). 
  
 “Company” is defined in the
first paragraph of this Agreement. 
  
 “Company
Articles” means the articles of incorporation of the Company. 
  
 “Company Board” means the Board of Directors of the Company. 
  
 “Company Board Recommendation” is defined in Section 6.7. 
  
 “Company Capital Stock” means Company Common Stock and Company Preferred Stock. 
  
 “Company Common Stock” means the common stock, no par value,
of the Company. 
  
 “Company IP” means the Owned
IP together with the Licensed IP. 
  
 “Company
Options” means any Contract to acquire shares of Company Common Stock from the Company, whether vested or unvested and whether exercisable or not exercisable. 
  
 “Company Option Plan” is defined in Section 3.3(b). 
  
 “Company Other Benefit Obligation” is defined in Section
3.12. 
  
 “Company Plan” is defined in
Section 3.12. 
  
 “Company Preferred
Stock” means the Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock. 
  
 “Company Registered IP” means federal, state and foreign: (a) patents, including applications therefor, (b) registered trademarks and
applications to register trademarks, including intent-to-use applications, (c) copyrights registrations and applications to register copyrights, and (d) registered mask works and applications to register mask works; owned by, or filed by or on
behalf of, or applied for, by the Company or its Subsidiary. 
  
 “Company Stock Certificate” is defined in Section 2.7(b). 
  
 “Confidential Information” means inventions, analytics, algorithms, formulae, schematics, technical drawings, ideas, know-how, trade secrets, processes, procedures, graphs, drawings, reports,
analyses, tools, engineering orders, databases, software, computer programs (whether in source code, object code or human readable form), program listings, new developments, and other proprietary information of the Company or its Subsidiary, however
recorded or stored, which are not generally known to the public and are not readily ascertainable by lawful and proper means. 
  
 “Consent” means any approval, consent, ratification, waiver, or other authorization (including any Governmental Authorization).

  
 “Consent Solicitation Statement” is defined
in Section 6.7. 
  

 - 3 - 

 “Contemplated Transactions” means all of the transactions and other matters contemplated
by this Agreement, including: (a) the Merger; (b) the performance by the Company, Parent and Merger Sub of their respective covenants and obligations under this Agreement; and (c) the solicitation and obtaining of the affirmative votes or written
consents of the shareholders of the Company approving the principal terms of this Agreement. 
  
 “Contested Amount” is defined in Section 12.8(b). 
  
 “Contract” means any agreement, contract, obligation, promise, or undertaking (whether written or oral and whether express or implied).

  
 “Damages” means any loss, damage, liability
(including any liability of Parent or the Surviving Corporation under Section 7.1), settlement, judgment, award, fine, penalty, fee (including reasonable attorneys’ fees, whether relating to a Third Party Claim or an action by an
Indemnitee to enforce its rights under this Agreement), cost (including out-of-pocket costs of investigation) or expense of any nature. 
  
 “Disclosure Schedule” is the Disclosure Schedule within which the Schedules contemplated by this Agreement shall be included, as
contemplated by Article III. 
  
 “Dispute
Period” is defined in Section 12.8(b). 
  
 “Dissenting Shares” is defined in Section 2.9(a). 
  
 “Effective Time” is defined in Section 2.3. 
  
 “Encumbrance” means any charge, claim, community property interest, condition, equitable interest, lien, option, pledge, security
interest, right of first refusal, or restriction of any kind, including any restriction on use, voting, transfer, receipt of income, or exercise of any other attribute of ownership. 
  
 “Entity” means any corporation (including any non-profit corporation), general partnership, limited
partnership, limited liability partnership, joint venture, estate, trust, company (including any limited liability company or joint stock company), firm or other enterprise, association, union, political party, organization or unincorporated entity.

  
 “Environment” means soil, land surface or
subsurface strata, surface waters (including navigable waters, streams, ponds, drainage basins, and wetlands), groundwater, drinking water supply, stream sediments, ambient air (including indoor air), plant and animal life, and any natural resource.

  
 “Environmental, Health, and Safety
Liabilities” means any cost, damages, liability or other obligation arising under Environmental Law or the provisions of Occupational Safety and Health Law governing Hazardous Materials and consisting of or relating to (a) any
environmental, health, or safety matters or conditions (including on-site or off-site contamination, and regulation of Hazardous Materials); (b) fines, penalties, judgments, awards, settlements, legal or administrative proceedings, damages, losses,
claims, demands and response, investigative, remedial, or inspection costs and expenses arising under Environmental Law or the provisions of Occupational Safety and Health Law governing Hazardous Materials; (c) financial responsibility under
Environmental Law or the provisions of Occupational Safety and Health Law governing Hazardous Materials for cleanup costs or corrective 

  

 - 4 - 

 
action, including any investigation, cleanup, removal, containment, or other remediation or response actions (“Cleanup”) required by
applicable Environmental Law or the provisions of Occupational Safety and Health Law governing Hazardous Materials (whether or not such Cleanup has been required or requested by any Governmental Body or other Person) and for any natural resource
damages; or (d) any other compliance, corrective, investigative, or remedial measures required under Environmental Law or the provisions of Occupational Safety and Health Law governing Hazardous Materials. The terms “removal,”
“remedial,” and “response action” include the types of activities covered by the U.S. Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §9601 et seq., as amended.

  
 “Environmental Law” means any Legal
Requirement in effect as of the date hereof or at any time during the existence of the Company that requires or relates to: (a) advising appropriate authorities, employees, and the public of intended or actual releases of pollutants or hazardous
substances or materials, violations of discharge limits, or other prohibitions and of the commencements of activities that would have significant impact on the Environment; (b) preventing or reducing to acceptable levels the release of pollutants or
hazardous substances or materials into the Environment; (c) reducing the quantities, preventing the release, or minimizing the hazardous characteristics of wastes that are generated; (d) cleaning up pollutants that have been released, preventing the
threat of release of pollutants, or paying the costs of such clean up or prevention; (e) making responsible parties pay private parties for damages done to their health or the Environment, or permitting self-appointed representatives of the public
interest to recover for injuries done to public assets; or (f) the use, storage, or disposal of Hazardous Materials. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974 or any successor law, and rules and regulations issued pursuant
thereto. 
  
 “ERISA Affiliate” is defined in
Section 3.12. 
  
 “Escrow Agent” means
LaSalle Bank National Association. 
  
 “Escrow
Agreement” means the Escrow Agreement to be entered into among Parent, the Shareholders’ Representative and the Escrow Agent on the Closing Date, substantially in the form of Exhibit A. 
  
 “Escrow Balance” is defined in Section 12.8(g).

  
 “Escrow Fund” means the escrow fund
established pursuant to the Escrow Agreement for the purpose of securing the indemnification and other rights of Parent and the other Indemnitees pursuant to Article XII. 
  
 “Escrow Participants” is defined in Section 12.8(g). 
  
 “Escrow Participation” is defined in Section 12.8(g).

  
 “Escrow Termination Date” is defined in
Section 12.1. 
  
 “Estimated Closing Date Balance
Sheet” means a consolidated balance sheet of the Company and its Subsidiary as of the Closing Date based on the Company’s good faith estimate of the projected 

  

 - 5 - 

 
assets and liabilities of the Company and its Subsidiary as of such date and prepared in accordance with GAAP and on a basis consistent with the
Company’s audited Financial Statements (but excluding footnotes); provided, however, (i) amounts due to holders of unexercised and outstanding Company Options immediately prior to or at the Effective Time for the excess of the Preliminary
Residual Share Amount over the Exercise Price per share of such options shall not be included in the Estimated Closing Date Balance Sheet and (ii) amounts due to holders of shares of Company Preferred Stock outstanding immediately prior to or at the
Effective Time (excluding any shares of Company Preferred Stock converted into Common Stock prior to the Effective Time) shall not be included in the Estimated Closing Date Balance Sheet. 
  
 “Estimated Working Capital” is defined in Section 2.11(a). 
  
 “Exercise Price” means the cash amount required to purchase
one share of Company Common Stock upon exercise of the Company Option to which such share relates. 
  
 “Existing Policy” is defined in Section 7.1(b). 
  
 “Facilities” means any real property, leaseholds, or other interests in real property currently or formerly
owned, occupied or operated by the Company or its Subsidiary and any buildings, structures, or equipment currently or formerly owned, leased, occupied or operated by the Company or its Subsidiary. 
  
 “FCC” means the Federal Communications Commission.

  
 “Final Order” means an Order of a
Governmental Body that is in full force and effect and with respect to which no appeal, request for stay, request for reconsideration or other request for review is pending; with respect to which the time for appeal, requesting a stay, requesting
reconsideration or requesting other review has expired; and with respect to which the time for the Governmental Body to set aside the order sua sponte has expired. 
  
 “Financial Statements” is defined in Section 3.4(a). 
  
 “Fully Diluted Company Share Number” is defined in
Section 2.5(b). 
  
 “GAAP” means generally
accepted United States accounting principles. 
  
 “Governmental Authorization” means any approval, consent, license, permit, waiver, or other authorization issued, granted, given, or otherwise made available by or under the authority of any Governmental Body or pursuant to
any Legal Requirement. 
  
 “Governmental Body”
means any: (a) nation, state, county, city, town, village, district, or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign, or other government; (c) governmental or quasi-governmental authority of any nature (including
any governmental agency, branch, department, official, or entity and any court or other tribunal); (d) multi-national governmental or quasi-governmental organization or body; or (e) body exercising, or entitled to exercise, any administrative,
executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature. 
  
 “HSR Act” is defined in Section 8.1(b). 
  

 - 6 - 

 “Hazardous Activity” means the distribution, generation, handling, importing,
management, manufacturing, processing, production, refinement, storage, transfer, transportation, treatment, or use of Hazardous Materials in, on, or under the Facilities or any part thereof or the Release about, or from the Facilities or any part
thereof into the Environment. 
  
 “Hazardous
Materials” means any waste or other substance that is listed, defined, designated, or classified as, hazardous, radioactive, or toxic or a pollutant or a contaminant under any Environmental Law, including any regulated mixture or solution
thereof. 
  
 “Indemnified Company Personnel” is
defined in Section 7.1(a). 
  
 “Indemnitees” means the following Persons: (a) Parent; (b) Parent’s current and future Affiliates (including the Surviving Corporation); (c) the respective Representatives of the Persons referred to in clauses
“(a)” and “(b)” above; and (d) the respective successors and assigns of the Persons referred to in clauses “(a),” “(b)” and “(c)” above; provided, however, that the Persons who were
shareholders of the Company prior to the Effective Time shall not be deemed to be “Indemnitees.” 
  
 “Intellectual Property” and “IP” mean all intellectual, industrial and/or proprietary rights, whether domestic or
foreign, in and to the following, without limitation: (a) all inventions (whether or not patentable and whether or not reduced to practice) and invention disclosures; (b) all patents and all patent applications, including, without limitation,
continuations, continuations-in-part, divisionals, provisionals, reexaminations, reissue applications and renewals; (c) all copyrights, whether registered or unregistered and all other rights corresponding thereto, and mask works and registrations
and applications therefor; (d) all trade names, trademarks, trade dress, service marks and domain names (including, without limitation, any word, symbol, product configuration, icon, logo and all goodwill associated therewith) along with
registrations therefor and applications for registration thereof; (e) all Confidential Information; and (f) all rights to sue or otherwise claim for past, present or future infringement or unauthorized use or disclosure of any of the assets,
properties or rights described in the foregoing clauses (a) – (e). 
  
 “IRC” means the Internal Revenue Code of 1986, as amended, or any successor law, and the regulations issued by the IRS pursuant thereto. 
  
 “IRS” means the U.S. Internal Revenue Service or any successor agency, and, to the extent relevant, the
U.S. Department of the Treasury. 
  
 An individual will be deemed
to have “Knowledge” of a particular fact or matter if he or she is actually aware of such fact or matter; provided that, except as otherwise provided herein, such individual’s Knowledge shall be based upon reasonable inquiry
consistent with his or her relevant title and responsibility. The Company will be deemed to have “Knowledge” of a particular fact or matter if any of Charles Davis, John Phelps, Brad Kates, Henri Asseily, Farhad Mohit or Stacey
Olliff, in their capacities as officers of the Company, has, or at any time had, Knowledge of such fact or matter in accordance with the preceding sentence. Parent will be deemed to have “Knowledge” of a particular fact or matter if
any employees of Parent with material involvement in the Contemplated Transactions (including the diligence performed by Parent on the Company prior to the date of this Agreement) has, or at any time had, Knowledge of such fact or matter in
accordance with the first sentence of this definition. 
  

 - 7 - 

 “Legal Requirement” means any Order, constitution, law, ordinance, principle of common
law, regulation, statute, or treaty of any Governmental Body. 
  
 “Letter of Transmittal” is defined in Section 2.8(b). 
  
 “Licensed IP” means all Intellectual Property used or held for use by the Company or its Subsidiary other than the Owned IP. 
  
 “Material Adverse Effect” or “Material Adverse Change” as to any Person means any change,
circumstance, or event that is materially adverse to the financial condition, business, assets, operating results, or operations of such Person and its Subsidiaries, taken as a whole, or the ability of such Person to consummate or perform the
Contemplated Transactions in accordance with the terms of this Agreement; provided, however, that in no event shall any of the following, either alone or in combination, be deemed to constitute, nor shall any of the following be taken into account
in determining whether there has been, a Material Adverse Effect or Material Adverse Change: (A) any change in any Legal Requirement (other than any Order binding on the applicable party or its Subsidiaries), (B) any change in GAAP or official
interpretations thereof, (C) any change resulting from or arising out of market, economic or political conditions in general or in the particular industries in which the applicable party or any of its Subsidiaries conducts business (including any
change arising out of acts of terrorism, or war, weather conditions or other force majeure events), unless such conditions disproportionately affect the applicable party and its Subsidiaries, taken as a whole, (D) any change resulting from or
arising out of the announcement of this Agreement, the consummation of the Merger or any action taken as required by this Agreement or at the written request of the other party or parties hereto or any action not taken in compliance with negative
covenants set forth in this Agreement, and (F) any change arising out of or resulting from any legal claim or Proceeding instituted by any shareholder of any party hereto arising out of or related to this Agreement, the Merger or any other
Contemplated Transaction. 
  
 “Maximum Premium”
is defined in Section 7.1(b). 
  
 “Merger”
is defined in the Recitals. 
  
 “Merger Sub” is
defined in the first paragraph of this Agreement. 
  
 “Minimum Closing Working Capital” means the sum of $500,000. 
  
 “Nondisclosure Agreement” means the BizRate.com Mutual Nondisclosure Agreement between Parent and BizRate.com dated September 14, 2004, as amended pursuant to Section 13.3. 
  
 “Non-Dissenting Shareholder” means each holder of shares of
Company Capital Stock (giving effect to Section 2.5(e) as applicable) that does not perfect such shareholder’s dissenters’ rights under the CGCL and is otherwise entitled to receive consideration pursuant to Section 2.5(a).

  
 “Notice of Indemnification Claim” is defined
in Section 12.8(a). 
  
 “Occupational Safety
and Health Law” means any Legal Requirement designed to provide safe and healthful working conditions and to reduce occupational safety and health hazards. 
  

 - 8 - 

 “Option Consideration” is defined in Section 2.6. 
  
 “Order” means any award, decree, decision, injunction,
judgment, order, ruling, subpoena or verdict entered, issued, made, or rendered by any court, administrative agency or other Governmental Body or by any arbitrator or arbitration panel. 
  
 “Ordinary Course of Business” means an action taken by a Person only if such action is consistent with the
past customs and practices of such Person and is taken in the ordinary course of such Person’s normal day-to-day operations. 
  
 “Organizational Documents” means (a) the articles or certificate of incorporation and bylaws or code of regulations of a corporation; or
(b) the articles of organization or certificate of formation or similar document and limited liability company agreement or operating agreement or similar document of a limited liability company; (c) any charter or similar document adopted or filed
in connection with the creation, formation, or organization of a Person; and (d) any amendment to any of the foregoing. 
  
 “Other Benefit Obligations” is defined in Section 3.12. 
  
 “Owned IP” means all Intellectual Property owned by the Company or its Subsidiary, or in which the Company
or its Subsidiary has an ownership interest, including but not limited to, the Company Registered IP. 
  
 “Parent” is defined in the first paragraph of this Agreement. 
  
 “Past Acquisition” is defined in Section 3.1(f). 
  
 “Payment Agent” is defined in Section 2.8(a).

  
 “Payment Fund” is defined in Section
2.8(a). 
  
 “PBGC” is defined in Section
3.12. 
  
 “Pension Plan” is defined in
Section 3.12. 
  
 “Person” means any
individual, Entity or Governmental Body. 
  
 “Personally
Identifiable Information” is defined in Section 3.25 (b). 
  
 “Plan” is defined in Section 3.12. 
  
 “Plan Sponsor” is defined in Section 3.12. 
  
 “Pre-Closing Period” means the period from the date of this Agreement through the Effective Time. 
  
 “Preliminary Residual Per Share Amount” is defined in
Section 2.5(b). 
  
 “Proceeding” means any
action, arbitration, audit, hearing, inquiry, examination, investigation, litigation, or suit or proceeding (whether civil, criminal, administrative, investigative, appellate or 

  

 - 9 - 

 
informal) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Body or any arbitrator or arbitration panel.

  
 “Proportionate Share” is defined in
Section 2.5(c). 
  
 “Public Software”
means any software that contains, or is derived in any manner (in whole or in part) from, any software that is distributed as free software, open source software (e.g., Linux) or similar licensing or distribution models, including software licensed
or distributed under any of the following licenses or distribution models, or licenses or distribution models similar to any of the following: (a) GNU’s General Public License (GPL) or Lesser/Library GPL (LGPL), (b) the Artistic License (e.g.,
PERL), (c) the Mozilla Public License, (d) the Netscape Public License, (e) the Sun Community Source License (SCSL), (f) the Sun Industry Standards License (SISL), (g) the BSD License, and (h) the Apache License. 
  
 “Qualified Plan” is defined in Section 3.12.

  
 “Record Date” means the record date for the
written consent or approval of the shareholders of the Company approving the principal terms of the Merger, which record date shall be the twentieth calendar day following the date of this Agreement. 
  
 “Related Party” is defined in Section 3.26.

  
 “Release” means any spilling, leaking,
emitting, discharging, depositing, escaping, leaching, dumping, or other releasing into the Environment, whether intentional or unintentional. 
  
 “Renegotiation Period” is defined in Section 11.1(h). 
  
 “Representative” means with respect to a particular Person, any director, officer, member, manager,
employee, agent, consultant, advisor, or other representative of such Person, including legal counsel, accountants, and financial advisors. 
  
 “Required Merger Shareholder Vote” is defined in Section 3.24(a). 
  
 “Response Notice” is defined in Section 12.8(b). 
  
 “Rules” is defined in Section 12.8(f). 
  
 “Series A Preferred Stock” is defined in Section 2.5.

  
 “Series B Preferred Stock” is defined in
Section 2.5. 
  
 “Series C Preferred
Stock” is defined in Section 2.5. 
  
 “Shareholders’ Representative” is defined in Section 13.16(a). 
  
 “Spyware” is defined in Section 3.25(b). 
  

 - 10 - 

 An Entity shall be deemed to be a “Subsidiary” of another Person if such Person directly
or indirectly owns or purports to own, beneficially or of record, (a) an amount of voting securities or other interests of such Entity that is sufficient to enable such Person to elect at least a majority of the members of such Entity’s board
of directors or other governing body, or (b) at least 50% of the outstanding equity or financial interests of such Entity. 
  
 “Superior Proposal” is defined in Section 6.6(b). 
  
 “Surviving Corporation” is defined in Section 2.1. 
  
 “Tax” means (a) any net income, alternative or add-on
minimum tax, gross income, gross receipts, sales, use, ad valorem, value added, franchise, profits, license, withholding on amounts paid to or by the Company or its Subsidiary, payroll, employment, excise, severance, stamp occupation,
premium, property, environmental or windfall profit tax, custom, duty, governmental fee, or other tax or other like assessment or charge of any kind whatsoever, together with any interest or any penalty, addition to tax or additional amount, imposed
by any Governmental Body responsible for the imposition of any such tax (domestic or foreign), (b) any liability of the Company or its Subsidiary for the payment of any amounts of the type described in clause (a) as a result of being a member of an
affiliated, consolidated, combined or unitary group for any period prior to the Closing, and (c) any liability of the Company or its Subsidiary for the payment of any amounts of the type described in clause (a) as a result of any obligation to
indemnify any other Person. 
  
 “Tax Return”
means any return (including any information return), report, statement, schedule, notice, form, or other document or information filed with or submitted to, or required to be filed with or submitted to, any Governmental Body in connection with the
determination, assessment, collection, or payment of any Tax or in connection with the administration, implementation, or enforcement of or compliance with any Legal Requirement relating to any Tax. 
  
 “Termination Date” is defined in Section 11.1(c).

  
 “Third Party Claim” is defined in Section
12.5. 
  
 “Third Party Intellectual Property
Rights” means Intellectual Property rights of a third party. 
  
 A claim, demand, Proceeding, dispute, or other matter will be deemed to have been “Threatened” if any written demand or statement has been made or any written notice has been given that a claim, demand, Proceeding, dispute,
or other matter will be asserted or filed. 
  
 “Transaction Expense” means any out-of-pocket fee, cost, expense, payment, expenditure, or obligation incurred by the Company or its Subsidiary prior to the date of this Agreement, during the Pre-Closing Period or at the
Effective Time that (a) relates directly or indirectly to (i) the Company’s involvement or participation in the investigation and review conducted by Parent and its Representatives, and any investigation or review conducted by other prospective
purchasers of all or a portion of the business of the Company, with respect to the business of the Company (and the furnishing of information to Parent and its Representatives and such other prospective purchasers and their Representatives in
connection with such investigation and review), (ii) the negotiation, preparation, review, execution, delivery or performance of this Agreement (including the Disclosure Schedule), the 

  

 - 11 - 

 
Consent Solicitation Statement or any certificate, opinion, Contract or other instrument or document delivered or to be delivered in connection with any of
the Contemplated Transactions, (iii) the preparation and submission of any filing or notice required to be made or given in connection with any of the Contemplated Transactions, and the obtaining of any Consent required to be obtained in connection
with any of the Contemplated Transactions, or (iv) the consummation of the Merger or any of the other Contemplated Transactions, or (b) is expected to become due or payable, in whole or in part as an obligation of the Surviving Corporation after the
Effective Time, as a result of the consummation of the Merger or any of the other Contemplated Transactions; provided, however, that “Transaction Expenses” shall not include any employee severance or other costs that are or may
become payable as a result of actions taken by Parent or Surviving Corporation after the Effective Time. 
  
 “Unresolved Escrow Claim” is defined in Section 12.8(g)(ii). 
  
 “Websites” is defined in Section 3.25. 
  
 “Welfare Plan” is defined in Section 3.12. 
  
 “Working Capital” means the consolidated working capital of
the Company and its Subsidiary as of the Closing Date determined from the books and records of the Company and its Subsidiary in accordance with GAAP, applied on a basis consistent with the basis on which the audited Financial Statements were
prepared, and in accordance with the Working Capital Guidelines set forth on Annex I. 
  
 ARTICLE II 
  
 THE MERGER

  
 Section 2.1 The Merger. Upon the
terms and subject to the conditions set forth in this Agreement, at the Effective Time (as defined in Section 2.3), Merger Sub shall be merged with and into the Company, and the separate existence of Merger Sub shall cease. The Company will
continue as the surviving corporation in the Merger (the “Surviving Corporation”). 
  
 Section 2.2 Effect of the Merger. The Merger shall have the effects set forth in this Agreement and in the applicable provisions of
the CGCL. 
  
 Section 2.3 Closing; Effective
Time. The consummation of the Merger (the “Closing”) will take place at the offices of the Company at 10:00 a.m. (local time) on the first Business Day immediately following the date on which the last of the conditions set forth
in Article IX and Article X is satisfied or waived (other than conditions that by their nature cannot be satisfied until the Closing Date, but subject to satisfaction or waiver of such conditions), or at such other time, date and place
as the parties may agree. Subject to the provisions of Article XI, failure to consummate the Closing on the date and time determined pursuant to this Section will not result in the termination of this Agreement and will not relieve any party
of any obligation under this Agreement. Subject to the provisions of this Agreement, an agreement of merger satisfying the applicable requirements of the CGCL and otherwise satisfactory in form and substance to Parent shall be duly executed by the
Company and Merger Sub and, concurrently with or as soon as practicable following the Closing, shall be delivered to the Secretary of State of the State of California for filing (together with the officers’ certificates required by the CGCL).
The Merger 

  

 - 12 - 

 
shall become effective at the time of such filing or at such later time specified in such filing (the “Effective Time”). 
  
 Section 2.4 Articles of Incorporation and Bylaws; Directors
and Officers. Unless otherwise determined by Parent prior to the Effective Time, at the Effective Time: 
  
 (a) the Articles of Incorporation of Merger Sub as in effect immediately prior to the Effective Time shall be the Articles of
Incorporation of the Surviving Corporation; provided, however, that Article I of the Articles of Incorporation of the Surviving Corporation shall be amended and restated to read as follows: “The name of this corporation is Shopzilla,
Inc.”; 
  
 (b) the Bylaws of Merger Sub, as
in effect immediately prior to the Effective Time, shall be the Bylaws of the Surviving Corporation until thereafter amended; provided, however, that the name of the Surviving Corporation shall be Shopzilla, Inc.; and 
  
 (c) the directors and officers of Merger Sub immediately
prior to the Effective Time shall be the directors and officers of the Surviving Corporation, to serve until their respective successors are duly elected or appointed and qualified. 
  
 Section 2.5 Conversion of Shares. 
  
 (a) Subject to the terms and conditions of this Agreement, at the Effective Time, by virtue of the Merger
and without any further action on the part of Parent, Merger Sub, the Company or any holder of any shares of the Company Capital Stock or any Company Options: 
  

(i) each share of Series A Preferred Stock, no par value, of the Company (“Series A Preferred Stock”) outstanding
immediately prior to the Effective Time (excluding any shares of Series A Preferred Stock converted into Company Common Stock prior to the Effective Time) shall be converted into the right to receive, in cash, $0.5377; 
  
 (ii) each share of Series B Preferred Stock, no par value,
of the Company (“Series B Preferred Stock”) outstanding immediately prior to the Effective Time (excluding any shares of Series B Preferred Stock converted into Company Common Stock prior to the Effective Time) shall be converted
into the right to receive, in cash, $4.3465; 
  
 (iii) each share of Series C Preferred Stock, no par value, of the Company (“Series C Preferred Stock”) outstanding immediately prior to the Effective Time (excluding any shares of Series C Preferred Stock converted into
Company Common Stock prior to the Effective Time) shall be converted into the right to receive, in cash, the sum of (x) $10.77 plus (y) the Preliminary Residual Per Share Amount (such amount in clause (y) to be reduced by the amount to be withheld
pursuant to Section 2.5(c)); 
  
 (iv) any
shares of Company Capital Stock owned by the Company, Parent, Merger Sub or any direct or indirect wholly owned Subsidiary of the Company, Parent or Merger Sub immediately prior to the Effective Time shall be canceled and retired and shall cease to
exist without payment of any consideration with respect thereto; 
  

 - 13 - 

 (v) each share of Company Common Stock outstanding immediately prior to the Effective
Time (other than shares of Company Capital Stock described in clause “(iv)” above) shall be converted into the right to receive an amount in cash equal to the Preliminary Residual Per Share Amount (calculated pursuant to Section
2.5(b)) (such amount to be reduced by the amount to be withheld pursuant to Section 2.5(c)); and 
  
 (vi) each share of the common stock, no par value, of Merger Sub outstanding immediately prior to the Effective Time shall be converted
into one share of common stock of the Surviving Corporation with the same rights, powers and privileges as the shares so converted and shall constitute the only outstanding shares of capital stock of the Surviving Corporation. 
  
 (b) The “Preliminary Residual Per Share
Amount” shall be calculated as follows: 
  
 $525,000,000 + A + B + C – D 
 E 
  

	 	A	= If the Estimated Working Capital (as estimated pursuant to Section 2.11(a)) exceeds the Minimum Closing Working Capital, then A shall be a positive number equal to such
excess; if such Estimated Working Capital equals the Minimum Closing Working Capital, then A shall be zero; and if such Estimated Working Capital is less than the Minimum Closing Working Capital, then A shall be a negative number equal to such
deficiency. 

  

	 	B	= The aggregate dollar amount, up to a maximum of $5,000,000, of all Transaction Expenses (as certified pursuant to Section 2.12(a)) paid in cash by the Company or its
Subsidiary prior to, and to be paid in cash by the Company or its Subsidiary at, the Effective Time; provided that the determination of such cash payments shall include the amounts of all drafts, checks and wire transfers issued on accounts of the
Company and its Subsidiary for such Transaction Expenses which remain outstanding and uncleared as of the Effective Time. 

  

	 	C	= The aggregate dollar amount that would have been received by the Company if all Company Options outstanding and unexercised as of the Effective Time had been exercised prior to
the Effective Time (the “Aggregate Exercise Amount”). 

  

	 	D	 = The sum of: (i) the product of (A) the aggregate number of shares of Series A Preferred Stock outstanding immediately prior to the Effective Time (excluding any
shares of Series A Preferred Stock converted into Company Common Stock prior to the Effective Time) multiplied by (B) $0.5377; plus (ii) the product of (A) the aggregate number of shares of Series B Preferred Stock outstanding immediately prior to
the Effective Time (excluding any shares of Series B Preferred Stock converted into Company Common Stock prior to the Effective Time) multiplied by (B) $4.3465; plus (iii) the product of (A) the aggregate number of shares of Series C Preferred Stock
outstanding immediately prior to the Effective Time (excluding any 

  

 - 14 - 

	 	 
shares of Series C Preferred Stock converted into Company Common Stock prior to the Effective Time) multiplied by (B) $10.77 (the “Aggregate
Liquidation Preference”). 

  

	 	E	= The sum of (i) the aggregate number of shares of Company Common Stock outstanding immediately prior to the Effective Time (including any such shares that are subject to a
repurchase option or risk of forfeiture under any restricted stock purchase agreement or other Contract and any such shares issuable in connection with the conversion of shares of Company Preferred Stock as to which conversion notices have been
given prior to the Effective Time), plus (ii) the aggregate number of shares of Company Common Stock purchasable under or otherwise subject to Company Options (whether vested or unvested) outstanding and unexercised immediately prior to the
Effective Time, plus (iii) the aggregate number of shares of Company Common Stock purchasable under or otherwise subject to warrants and other rights (other than Company Options) to acquire shares of Company Common Stock (whether or not immediately
exercisable) outstanding immediately prior to the Effective Time, plus (iv) the aggregate number of shares of Company Common Stock issuable upon the conversion of any convertible securities of the Company (other than shares of Company Preferred
Stock) outstanding immediately prior to the Effective Time, plus (v) the aggregate number of shares of Company Common Stock into which the aggregate number of shares of Series C Preferred Stock outstanding immediately prior to the Effective Time
(excluding any shares of Series C Preferred Stock converted into Company Common Stock prior to the Effective Time) are convertible (the “Fully Diluted Company Share Number”). 

  
 (c) On or immediately prior to the Closing Date, Parent
shall deliver the Aggregate Escrow Cash Amount to the Escrow Agent as a contribution to the Escrow Fund. The Aggregate Escrow Cash Amount shall be withheld from the consideration otherwise payable to the Non-Dissenting Shareholders pursuant to
Section 2.5(a)(iii)(y) and Section 2.5(a)(v) and the Closing Date Option Holders pursuant to Section 2.6, and such amount shall be withheld on a pro rata basis based on the respective Proportionate Shares of the Non-Dissenting
Shareholders and Closing Date Option Holders. The Escrow Fund shall be held by the Escrow Agent in accordance with the terms of this Agreement and the Escrow Agreement and shall be disbursed solely in accordance with the terms of this Agreement and
the Escrow Agreement. For purposes of this Agreement: 
  
 (i) the “Aggregate Escrow Cash Amount” shall be $26,250,000; and 
  
 (ii) the “Proportionate Share” of a Non-Dissenting Shareholder or a Closing Date Option Holder shall be the fraction
having a numerator equal to the total consideration payable to such Non-Dissenting Shareholder pursuant to Section 2.5(a)(iii)(y) and Section 2.5(a)(v) (disregarding amounts to be withheld pursuant to Section 2.5(c)) or such
Closing Date Option Holder pursuant to Section 2.6 (disregarding amounts to be withheld pursuant to Section 2.5(c)) and in each case having a denominator equal to the total of all consideration payable to all Non-Dissenting
Shareholders pursuant to Section 2.5(a)(iii)(y) and Section 2.5(a)(v) (disregarding amounts to be withheld pursuant to Section 2.5(c)) and all Closing Date Option Holders pursuant to Section 2.6 (disregarding amounts to be
withheld pursuant to Section 2.5(c)); and 
  

 - 15 - 

 (d) In the event that, subject to and in compliance with Section 6.3, the Company
declares, makes, effects or establishes a record date for a stock split, reverse stock split, stock dividend, recapitalization or similar transaction during the Pre-Closing Period, then the consideration payable in respect of shares of Company
Capital Stock pursuant to Section 2.5(a) shall be appropriately adjusted. 
  
 (e) If a holder of shares of Company Preferred Stock delivers an election to the Company in accordance with Section B(3) of Article
III of the Company Articles prior to the Effective Time, then, for purposes of this Agreement, the shares of Company Preferred Stock subject to such election shall be treated as if they had been converted into shares of Company Common Stock
pursuant to such Section B(3) of Article III prior to the Effective Time. The Company shall deliver to Parent accurate and complete copies of all such elections received by the Company. 
  
 Section 2.6 Company Option Plans. 
  
 (a) Subject to the terms and conditions of this Agreement,
at the Effective Time, by virtue of the Merger and without any further action on the part of Parent, Merger Sub, the Company or any holder of any shares of the Company Capital Stock or any Company Options, each Company Option that is outstanding and
unexercised immediately prior to or as of the Effective Time shall be cancelled and converted into the right to receive cash, without interest, from the Surviving Corporation in an amount (the “Option Consideration”) equal to the
product of (i) the number of shares of Company Common Stock subject to such Company Option (assuming full vesting of all Company Options) and (ii) the excess of the Preliminary Residual Per Share Amount (calculated pursuant to Section 2.5(b))
over the Exercise Price per share of such Company Option (such product to be reduced by amounts to be withheld pursuant to Section 2.5(c)). The Option Consideration shall be payable by the Payment Agent to each holder of a Company Option
promptly after the Effective Time, subject to applicable withholding of Taxes, as contemplated by Section 2.8. All unexercised Company Options as of the Effective Time that have an Exercise Price equal to or exceeding the Preliminary Residual
Per Share Amount shall be immediately cancelled and forfeited without any liability on the part of the Surviving Corporation or Parent. 
  
 (b) Immediately prior to the Effective Time, the Company’s repurchase option with respect to each share of restricted Common Stock
held by or issued or granted to any current or former employee, consultant or director that is outstanding immediately prior to the consummation of the Merger, whether granted under the Company Option Plan, or otherwise, shall immediately lapse.

  
 Section 2.7 Cancellation of Shares; Closing
of Transfer Books. 
  
 (a) At the Effective
Time, all shares of Company Capital Stock converted pursuant to Section 2.5(a) shall no longer be outstanding and shall automatically be cancelled and retired and shall cease to exist, and each holder of a certificate representing any such
shares immediately prior to the Effective Time shall cease to have any rights with respect thereto, except the right to receive the consideration provided for in Section 2.5(a), without interest. 
  
 (b) At the Effective Time, the stock transfer books of the
Company shall be closed with respect to all shares of Company Capital Stock outstanding immediately prior to the Effective Time. No further transfer of any such shares of Company Capital Stock shall be made on such stock transfer books after the
Effective Time. If, after the Effective Time, a valid certificate previously representing any 

  

 - 16 - 

 
shares of Company Capital Stock (a “Company Stock Certificate”) is presented to the Payment Agent, the Surviving Corporation or Parent, such
Company Stock Certificate shall be canceled and shall be exchanged as provided in Section 2.8. 
  
 Section 2.8 Exchange of Certificates. 
  
 (a) Promptly after the date of this Agreement but in any event prior to the Closing Date, Parent shall select a reputable bank or trust
company reasonably acceptable to the Company to act as payment agent in the Merger (the “Payment Agent”). Immediately prior to the Effective Time, Parent shall deposit with the Payment Agent a sufficient amount of cash to make
payments to the Non-Dissenting Shareholders in accordance with Section 2.5(a) and to the Closing Date Option Holders pursuant to Section 2.6 (in each case, excluding amounts to be withheld pursuant to Section 2.5(c)). The cash
amount so deposited with the Payment Agent is referred to collectively as the “Payment Fund.” 
  
 (b) Prior to the Closing, the Company will cause to be delivered to shareholders of the Company (i) a letter of transmittal containing
such provisions as Parent, Company and the Payment Agent may reasonably specify (a “Letter of Transmittal”), and (ii) instructions for use in effecting the surrender of Company Stock Certificates. After the surrender of a Company
Stock Certificate to the Payment Agent for exchange at or after the Effective Time, together with a duly executed Letter of Transmittal and such other documents as may be reasonably required by Parent or the Payment Agent, the holder of such Company
Stock Certificate shall be entitled to receive in exchange therefor the cash consideration that such holder has the right to receive pursuant to Section 2.5(a) (excluding any amounts to be withheld pursuant to Section 2.5(c)) and the
Company Stock Certificate so surrendered shall be canceled. Until surrendered as contemplated by this Section 2.8, each Company Stock Certificate shall be deemed, from and after the Effective Time, to represent only the right to receive,
after the surrender thereof, the consideration contemplated by this Article II. If any Company Stock Certificate shall have been lost, stolen or destroyed, Parent may, in its discretion and as a condition to the delivery of any consideration
payable in the Merger in respect of shares represented by such lost, stolen or destroyed Company Stock Certificate, require the owner of such lost, stolen or destroyed Company Stock Certificate to provide an appropriate affidavit of such loss, theft
or destruction, and if the amount of such consideration is more than $100,000, to deliver a bond (in such sum as Parent may reasonably direct) as indemnity against any claim that may be made against Parent, the Surviving Corporation or the Payment
Agent with respect to such lost, stolen or destroyed Company Stock Certificate. 
  
 (c) Any portion of the Payment Fund that remains undistributed to holders of Company Stock Certificates as of the date that is 180 days
after the Closing Date shall be delivered by Payment Agent to Parent upon demand, and any holders of Company Stock Certificates who have not theretofore surrendered their Company Stock Certificates in accordance with this Section 2.8 shall
thereafter look only to Parent for payment of any consideration payable to such holder in the Merger. 
  
 (d) Neither Parent nor the Surviving Corporation shall be liable to any holder or former holder of Company Capital Stock for any
consideration payable in the Merger that has been delivered to any public official in good faith pursuant to any applicable abandoned property law, escheat law or similar Legal Requirement. 
  

 - 17 - 

 Section 2.9 Dissenting Shares. 
  
 (a) Notwithstanding anything to the contrary contained in
this Agreement, shares of Company Capital Stock that are or become “dissenting shares” within the meaning of Section 1300(b) of the CGCL (“Dissenting Shares”) at or after the Effective Time shall not be converted into or
represent the right to receive the consideration specified in Section 2.5(a), but shall be entitled only to such rights as are granted by the CGCL to Dissenting Shares. 
  
 (b) If any Dissenting Shares shall lose their status as such (through failure to perfect or otherwise),
then, as of the later of the Effective Time or the date of loss of such status, such shares shall automatically be converted into and shall represent only the right to receive consideration in accordance with Section 2.5(a) (including giving
effect to the amounts to be withheld pursuant to Section 2.5(c)), without interest thereon, after the surrender of the Company Stock Certificate representing such shares. 
  
 (c) The Company shall give Parent: (i) prompt notice of any written demand received by the Company prior to
the Effective Time to require the Company to purchase shares of Company Common Stock pursuant to the CGCL, any withdrawal of any such demand and any other demand, notice or instrument delivered to the Company prior to the Effective Time pursuant to
the CGCL; and (ii) the opportunity to participate in all negotiations and Proceedings with respect to any such demand, notice or instrument. The Company shall not make any payment or settlement offer prior to the Effective Time with respect to any
such demand, notice or instrument unless Parent shall have consented in writing to such payment or settlement offer. 
  
 Section 2.10 Further Action. If, at any time after the Effective Time, any further action is necessary or desirable to carry out the
purposes of this Agreement or to vest the Surviving Corporation with full right, title and possession of and to all rights and property of Merger Sub and the Company, the officers and directors of the Surviving Corporation and Parent shall be fully
authorized to take such lawful and necessary action. 
  
 Section 2.11 Working Capital Adjustments; Escrow. 
  
 (a) The Company shall prepare and deliver to Parent at least five (5) Business Days prior to the Closing Date the Estimated Closing Date
Balance Sheet and a statement of the Company’s good faith estimate of the Working Capital of the Company (the “Estimated Working Capital”). 
  
 (b) Parent shall prepare and deliver to Shareholders’ Representative within ninety (90) calendar days
after the Effective Time a Closing Date Balance Sheet and a statement of the Working Capital of the Company (the “Closing Date Working Capital”), which shall (i) be accompanied by all information reasonably necessary to determine
the information contained in such Closing Date Balance Sheet and statements and such other information as may be reasonably requested by the Shareholders’ Representative and (ii) be duly certified by the Chief Financial Officer of Parent to be
true, correct and complete in all material respects as of the Closing Date. The Shareholders’ Representative will be afforded a reasonable opportunity to observe, and to consult with Parent’s accountants regarding, the procedures
undertaken by Parent’s accountants in connection with the preparation of such Closing Date Balance Sheet and statements. 
  

 - 18 - 

 (c) If Shareholders’ Representative does not notify Parent in writing within twenty
(20) Business Days after receipt of Parent’s statement of the Closing Date Working Capital that it disputes any of the information or calculations provided in Parent’s statement of the Closing Date Working Capital, Parent’s statement
of the Closing Date Working Capital shall be final and conclusive. If Shareholders’ Representative disagrees with any of the information or calculations provided by Parent in its statement of the Closing Date Working Capital, Shareholders’
Representative may, within twenty (20) Business Days after delivery of such statement to it, deliver a written notice to Parent stating in reasonable detail the existence and nature of such disagreement. Any such notice of disagreement shall specify
those items or amounts as to which Shareholders’ Representative disagrees. If such notice of disagreement shall be delivered, the parties shall use their reasonable best efforts to reach agreement on the disputed items or amounts within twenty
(20) Business Days after Parent’s receipt of such notice. If the parties are unable to reach agreement on the disputed items within such period, then the issues in dispute will be submitted to PricewaterhouseCoopers LLP, independent public
accountants (the “Accountants”), for review and resolution, with instructions to complete the review as promptly as practicable. Parent and Shareholders’ Representative each will furnish to the Accountants such workpapers and
other documents and information relating to the disputed issues as the Accountants may request and are available to that party or its Subsidiaries (or its independent public accountants), and will be afforded the opportunity to present to the
Accountants any material relating to the determination and to discuss the determination with the Accountants. The resolution of the Accountants shall be conclusive and binding on the parties and may be entered and enforced in any court of competent
jurisdiction. One-half of the fees and expenses charged by the Accountants shall be paid by Parent and the remaining one-half shall be paid from the Escrow Fund; and Parent and Shareholders’ Representative hereby agree to give joint written
instruments to the Escrow Agent for such disbursement. 
  
 (d) The Estimated Closing Date Balance Sheet and the related statement of the Estimated Working Capital, and the Closing Date Balance Sheet and the related statement of the Closing Date Working Capital, shall be prepared in accordance with
GAAP, and using the same accounting principles, practices and methodologies, consistently applied, that were used to prepare the December 31, 2004 Balance Sheet. Solely for purposes of determining the Estimated Working Capital and the Closing Date
Working Capital, the parties hereby agree to the Working Capital Guidelines set forth on Annex I. 
  
 (e) During its review period, the Shareholders’ Representative and his Representatives shall have access during regular business
hours and upon reasonable notice to all relevant books and records and employees of the Surviving Corporation to the extent he reasonably deems necessary to review matters and information related to the preparation of the Closing Date Balance Sheet
(and including without limitation any financial and other information relating to periods after the Closing Date that may be relevant to or helpful in the review of the Closing Date Balance Sheet and the calculation of the Closing Date Working
Capital) in a manner not unreasonably interfering with the business of the Surviving Corporation. 
  
 Within three (3) Business Days after the final determination of the Closing Date Working Capital pursuant to Section 2.11(c), if the Estimated Working Capital exceeds the Closing Date Working Capital (as
determined under Section 2.11(c), the amount of such excess shall be payable to Parent, and Parent and the Shareholders’ Representative shall jointly execute and deliver to the Escrow Agent a written notice instructing the Escrow Agent
to disburse such amounts from the Escrow Fund to Parent as soon 

  

 - 19 - 

 
as practicable, by wire transfer of immediately available funds to an account designated by Parent. Conversely, if the Estimated Working Capital is less than
the Closing Date Working Capital (as determined under Section 2.11(c)), Parent shall promptly deliver the amount of such deficiency to the Escrow Agent for placement into the Escrow Fund as soon as practicable, by wire transfer of immediately
available funds. 
  
 Section 2.12 Closing Payment
Schedule. 
  
 (a) Two (2) Business Days prior
to the Closing, the Company shall deliver to Parent a definitive closing payment schedule (the “Closing Payment Schedule”), duly certified by the Chief Financial Officer and the Secretary of the Company as accurately setting forth
(to the extent practicable as of such date): 
  
 (1) the Estimated Working Capital; 
  
 (2) the Transaction Expenses and their status as paid or accrued; 
  
 (3) the Aggregate Exercise Amount; 
  
 (4) the Aggregate Liquidation Preference; 
  
 (5) the Fully Diluted Company Share Number; 
  
 (6) the Preliminary Residual Per Share Amount; 
  
 (7) the name of each holder of record of outstanding shares of Company Capital Stock immediately prior to the Effective Time (after giving
effect to any exercises of Company Options prior to the Effective Time) (each, a “Closing Date Shareholder”); 
  
 (8) the number of shares of Company Capital Stock of each class and series held by each Closing Date Shareholder immediately prior to the
Effective Time; 
  
 (9) the number of Dissenting
Shares held by each Closing Date Shareholder; 
  
 (10) the cash amount, if any, to be withheld and contributed to the Escrow Fund on behalf of each Closing Date Shareholder pursuant to Section 2.5(c); 
  
 (11) the consideration that each Closing Date Shareholder is entitled to receive pursuant to Section
2.5(a) (both before and after deduction of the cash amounts to be withheld and contributed to the Escrow Fund on behalf of such Closing Date Shareholder pursuant to Section 2.5(c)); 
  
 (12) the name of each holder of outstanding and unexercised
Company Options immediately prior to the Effective Time (each, a “Closing Date Option Holder”); 
  
 (13) the number of shares of Company Common Stock issuable to each Closing Date Option Holder; 
  
 (14) the aggregate Exercise Price payable by each Closing
Date Option Holder; 
  

 - 20 - 

 (15) the cash amount, if any, to be withheld and contributed to the Escrow Fund on behalf
of each Closing Date Option Holder pursuant to Section 2.5(c); and 
  
 (16) the consideration that each Closing Date Option Holder is entitled to receive pursuant to Section 2.6 (both before and after deduction of the cash amounts to be withheld and contributed to the Escrow Fund
on behalf of such Closing Date Option Holder pursuant to Section 2.5(c)). 
  
 (b) Concurrent with delivery of the Closing Payment Schedule, the Company shall also deliver to Parent, in such detail as shall be
reasonably acceptable to Parent, all information on which the calculations reflected in the Closing Payment Schedule are based. 
  
 ARTICLE III 
  
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
  
 Except as set forth in the Schedules included in the Disclosure Schedule, the Company represents and warrants to Parent and Merger Sub as follows:

  
 Section 3.1 Organization and Good Standing.

  
 (a) The Company is a corporation duly
organized, validly existing, and in good standing under the laws of the State of California, with full corporate power and authority to own the assets that it purports to own and to perform all its obligations under this Agreement. The Company is
duly qualified to do business as a foreign corporation and is in good standing under the laws of each state or other jurisdiction in which either the ownership or use of the properties owned or used by it, or the nature of the activities conducted
by it, requires such qualification, except where the failure to be so qualified would not have a Material Adverse Effect on the Company. 
  
 (b) The Company has delivered to Parent copies of its Organizational Documents, as currently in effect. 
  
 (c) The Company has no Subsidiaries other than Shopzilla
(Europe) Limited, a corporation organized, validly existing, and in good standing under the laws of England and Wales, with full corporate power and authority to own the assets that it purports to own. The Company’s Subsidiary is duly qualified
to do business as a foreign corporation and is in good standing under the laws of each state, country, or other jurisdiction in which either the ownership or use of the properties owned or used by it, or the nature of the activities conducted by it,
requires such qualification, except where the failure to be so qualified would not have a Material Adverse Effect on the Company. The Company has delivered to Parent copies of its Subsidiary’s Organizational Documents, as currently in effect.

  
 (d) Neither the Company nor its Subsidiary is
a general partner of, or otherwise liable for any of the debts or other obligations of, any general partnership, limited partnership or any other Person. 
  
 (e) Neither the Company nor its Subsidiary has conducted any business under any fictitious name, assumed name, trade name or other name in
any jurisdiction, other than its current corporate name. 
  

 - 21 - 

 (f) Neither the Company nor its Subsidiary has at any time effected the acquisition of
all or a substantial portion of the securities, assets or business of any other Person (each a “Past Acquisition”). Neither the Company nor its Subsidiary has at any time directly or indirectly sold or otherwise disposed of (i) all
or a substantial portion of its business or assets, or (ii) all or a substantial portion of the capital stock or other securities of the Company’s Subsidiary. 
  
 Section 3.2 Authority; Binding Nature of Agreement; No Conflict. 
  
 (a) The Company has the corporate power and authority to
execute and deliver this Agreement and to perform its obligations hereunder. The execution and delivery of this Agreement and, subject to obtaining the Required Merger Shareholder Vote, the consummation of the Contemplated Transactions by the
Company have been duly and validly authorized by the Company. The Company Board (at a meeting duly called and held) has (i) unanimously determined that the Merger is in the best interests of the Company and its shareholders, (ii) unanimously
authorized and approved the execution, delivery and performance of this Agreement by the Company and unanimously approved the Merger and the other Contemplated Transactions, and (iii) unanimously recommended the approval of the principal terms of
the Merger by the holders of Company Capital Stock and directed that this Agreement and the Merger be submitted for consideration by the Company’s shareholders. This Agreement constitutes a legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, except as such enforceability may be limited by (A) laws of general application relating to bankruptcy or insolvency, or moratorium or other similar laws affecting or relating to
creditors’ rights generally, and (B) rules of law governing specific performance, injunctive relief and other equitable remedies, regardless of whether asserted in a Proceeding in equity or at law. 
  
 (b) Neither the execution and delivery of this Agreement nor
the consummation or performance of any of the Contemplated Transactions by the Company will, directly or indirectly (with or without notice or lapse of time): 
  

(i) subject to obtaining the Required Merger Shareholder Vote, contravene, conflict with, or result in a violation of (A) any provision
of the Organizational Documents of the Company, (B) any resolution adopted by the Company Board or the shareholders of the Company, or (C) any agreement or instrument pursuant to which any shares of Company Capital Stock or any securities (including
Company Options) exercisable for or convertible into shares of Company Capital Stock have been issued; 
  
 (ii) subject to obtaining the Required Merger Shareholder Vote and compliance with the requirements set forth in Section 3.2(c),
contravene, conflict with, or result in a violation of any Legal Requirement applicable to the Company or its Subsidiary; 
  
 (iii) contravene, conflict with, or result in a violation of any of the terms of, or give any Governmental Body the right to revoke,
withdraw, suspend, cancel, terminate or modify, any Governmental Authorization that is held by the Company or its Subsidiary or that otherwise relates to the business of, or any of the material assets owned or used by, the Company or its Subsidiary;

  
 (iv) cause the Company or its Subsidiary to
become subject to, or to become liable for the payment of, any Tax; 
  

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 (v) cause any of the assets owned or used by the Company or its Subsidiary to be
reassessed or revalued by any taxing authority or other Governmental Body; 
  
 (vi) contravene, conflict with, or result in a violation or breach of, in any material respect, any Contract to which the Company or its Subsidiary is bound; 
  
 (vii) result in the imposition or creation of any
Encumbrance upon or with respect to any of the material assets owned or used by the Company or its Subsidiary or any shares of Company Capital Stock or Company Options; or 
  
 (viii) contravene, conflict with, or result in a violation, breach, or acceleration of any provision of any
employment agreement between the Company or its Subsidiary and any employee, except for acceleration of vesting of Company Options pursuant to their terms. 
  
 (c) Neither the Company nor its Subsidiary is required to obtain any Consent from or give any notice to any Person in connection with the
execution and delivery of this Agreement or the consummation or performance of any of the Contemplated Transactions except for (i) the filing of the Articles of Merger with the Secretary of State of the State of California, (ii) applicable
requirements, if any, of U.S. federal securities laws and blue sky laws, (iii) such filings, authorizations, orders or approvals as may be required by the HSR Act, if any, (iv) approval of this Agreement, the Merger and the other Contemplated
Transactions, by the shareholders of the Company, and (vi) such instances in which the failure to obtain such Consent or give such notice would not, individually or in the aggregate, have a Material Adverse Effect on the Company. 
  
 Section 3.3 Capitalization. 
  
 (a) The authorized shares of Company Capital Stock consist
of the following: (i) 16,737,940 shares of Series A Preferred Stock, all of which are issued and outstanding as of the date of this Agreement; (ii) 11,000,000 shares of Series B Preferred Stock, 9,973,512 shares of which are issued and outstanding
as of the date of this Agreement; (iii) 6,500,000 shares of Series C Preferred Stock, 4,771,851 shares of which are issued and outstanding; and (iv) 115,762,060 shares of Company Common Stock, 46,616,955 shares of which are issued and outstanding as
of the date of this Agreement. The Company has separately provided to Parent a schedule which accurately and completely sets forth (i) the name of each holder of record of the issued and outstanding shares of Company Capital Stock as of the date of
this Agreement and (ii) the number of shares of Company Capital Stock of each class and series held by each such shareholder as of the date of this Agreement. 
  

(b) As of the date of this Agreement, (i) 6,922,770 shares of Company Common Stock are subject to issuance pursuant to outstanding
Company Options, and (ii) 2,055,992 shares of Company Common Stock are reserved for future option grants under the Company’s 1998 Stock Plan (the “Company Option Plan”). The Company has separately provided to Parent a schedule
which accurately and completely sets forth the following information as of the date of this Agreement: (i) the name of the holder of each outstanding Company Option; (ii) the Company Option Plan pursuant to which such Company Option was granted;
(iii) the number of shares of Company Common Stock subject to such Company Option, and the applicable Exercise Price per share of Company Common Stock; (iv) the vesting schedule applicable to such Company Option; (v) the expiration date of such
Company Option; and (vi) whether such option has been designated as an Incentive Stock Option (ISO). All outstanding 

  

 - 23 - 

 
options to acquire shares of Company Common Stock were granted pursuant to the terms of the Company Option Plan. The Company has delivered to Parent accurate
and complete copies of the Company Option Plan, and the forms of all stock option agreements evidencing any Company Options. 
  
 (c) To the Company’s Knowledge (without any inquiry), all issued and outstanding shares of Company Capital Stock are free and clear
of all Encumbrances. All issued and outstanding shares of Company Capital Stock are duly authorized, validly issued, fully paid and nonassessable, and were issued in conformity with all applicable state and federal securities laws. Except for all of
the issued and outstanding shares of Company Capital Stock, the Company has no other equity securities of any class issued, reserved for issuance, or outstanding. Except for the Company Options, there are no outstanding options, offers, warrants,
conversion rights, agreements, or other rights to subscribe for or to purchase securities from the Company. No shares of Company Capital Stock carry, and no shareholder of the Company has been granted, any preemptive rights. The Company is not
obligated under any agreement, arrangement or understanding to redeem or otherwise purchase any shares of Company Capital Stock or Company Options. Other than as contemplated by this Agreement, there are no Contracts to which the Company or any of
its Affiliates is bound relating to the issuance, sale or transfer of any Company Capital Stock. The Company neither owns, nor has a Contract to acquire, any equity or other securities of any Person or any direct or indirect equity or ownership
interest in any other business. 
  
 (d) The
authorized shares of capital stock of the Company’s Subsidiary consist of 1,000 shares of common stock, £1 par value, 1,000 shares of which are issued and outstanding (“Subsidiary Shares”). All of the Subsidiary Shares
are owned and held of record by the Company free and clear of all Encumbrances. All Subsidiary Shares are duly authorized, validly issued, fully paid and nonassessable, and were issued in conformity with all applicable Legal Requirements. Except for
the Subsidiary Shares, the Company’s Subsidiary has no other securities of any class or kind, issued, reserved for issuance or outstanding. There are no options, offers, warrants, conversion rights, Contracts or other rights to subscribe for or
to purchase shares of capital stock of any class or kind of the Company’s Subsidiary or any other equity, debt or other securities of any class or kind of the Company’s Subsidiary, issued, reserved for issuance or outstanding, nor are
there any Contracts to which the Company’s Subsidiary or any of its Affiliates is bound which otherwise relate to the issuance, sale or transfer of any capital stock of any class or kind of the Company’s Subsidiary or any other equity,
debt or other securities of any class or kind of the Company’s Subsidiary. The Company’s Subsidiary neither owns, nor has a Contract to acquire, any capital stock or other equity, debt or other securities of any Person or any direct or
indirect equity or ownership interest in any other business.  
  
 Section 3.4 Financial Statements. 
  
 (a) The Company has delivered to Parent the audited consolidated balance sheets of the Company and its Subsidiary as at December 31, 2002, December 31, 2003, and December 31, 2004, and the related consolidated
statements of operations, stockholders’ deficit and cash flows of the Company and its Subsidiary, including all notes thereto, for the fiscal years then ended, and the unaudited balance sheet as of March 31, 2005, and the related consolidated
statements of operations, stockholders’ deficit and cash flows of the Company and its Subsidiary for the three (3) months then ended, including all notes thereto (all such financial statements and notes are hereafter collectively referred to as
the “Financial Statements”). The Financial Statements fairly present in all material respects the financial position and the results of operations, changes in stockholders’ equity and cash flows as of the respective dates of
and for the periods then ended, all in accordance with GAAP consistently applied throughout 

  

 - 24 - 

	 	 
the periods covered, subject, in the case of interim financial statements, to normal recurring year-end adjustments (the effect of which will not,
individually or in the aggregate, be material), and the absence of notes. 

  
 (b) The Company maintains a system of internal accounting controls for itself and its Subsidiary that provide reasonable assurance that
(i) transactions are executed with management’s authorization; (ii) transactions are recorded as necessary to permit preparation of the financial statements of the Company and its Subsidiary in accordance with GAAP and to maintain
accountability for their respective assets; and (iii) access to the assets of the Company and its Subsidiary is permitted only in accordance with management’s authorization. 
  
 (c) There is no “off-balance sheet” transaction, arrangement or relationship between the Company
or its Subsidiary and any unconsolidated Person, including any structured finance, special purpose, or limited purpose Person. 
  
 (d) To the Company’s Knowledge (without any inquiry), there are no significant deficiencies or material weaknesses in either the
design or operation of internal controls of the Company that are reasonably likely to adversely affect the ability of the Company to record, process, summarize and report financial information in a materially accurate manner. With respect to periods
after January 1, 2002, the Company has no Knowledge of any fraud or suspected fraud involving any employee of the Company who has or had a role in the internal controls related to financial reporting. 
  
 Section 3.5 Books and Records. The books of account,
minute books, and stock record books of the Company and its Subsidiary, all of which have been made available to Parent, are complete and correct in all material respects and have been maintained in all material respects in accordance with
applicable Legal Requirements. The minute books of the Company and its Subsidiary contain records, accurate and complete in all material respects, of all meetings held of, and actions taken by, the respective boards of directors and shareholders of
the Company or its Subsidiary. 
  
 Section 3.6
Title to Assets. Neither the Company nor its Subsidiary has ever owned and neither currently owns any real property. The Company or its Subsidiary owns and has good title to all material personal property and other material assets (whether
tangible or intangible) reflected as owned in the most recent Financial Statements, in their books and records and in the Disclosure Schedule. All such personal property and assets of the Company and its Subsidiary are free and clear of all
Encumbrances, except (i) liens for Taxes not yet delinquent, (ii) liens for licenses granted to use Intellectual Property, and (iii) as would not materially impair the use of such personal property or assets by the Company or its Subsidiary in the
Ordinary Course of Business. 
  
 Section 3.7
Condition and Sufficiency of Facilities. The Facilities currently occupied, used or operated by the Company and its Subsidiary are, in all material respects, in reasonably serviceable operating condition and repair (ordinary wear and tear
excepted). 
  
 Section 3.8 Accounts
Receivable. All accounts receivable of the Company and its Subsidiary (collectively, the “Accounts Receivable”) represent valid obligations arising from bona fide sales actually made or services actually performed in the
Ordinary Course of Business. Schedule 3.8 contains a list, complete and accurate in all material respects, of all Accounts Receivable as of March 31, 2005, which list sets forth the aging of such Accounts Receivable. The Company’s
allowance for doubtful 

  

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accounts on its most recent Financial Statements is adequate and was calculated consistent with past custom and practice. 
  
 Section 3.9 Bank Accounts. Schedule 3.9 sets forth the
account number and names of authorized signatories with respect to each account maintained by or for the benefit of the Company and its Subsidiary at any bank or other financial institution. 
  
 Section 3.10 No Undisclosed Liabilities. Neither the
Company nor its Subsidiary has any liabilities of any nature (whether known or unknown and whether absolute, accrued, contingent, or otherwise) except for (i) liabilities reflected or reserved against in the consolidated balance sheet dated March
31, 2005, (ii) current liabilities incurred in the Ordinary Course of Business since March 31, 2005, or (iii) liabilities not required to be disclosed on a balance sheet in accordance with GAAP. 
  
 Section 3.11 Taxes. 
  
 (a) The Company and its Subsidiary have timely filed all Tax
Returns that they were required to file (taking into account all extensions). All such Tax Returns were correct and complete in all material respects. All Taxes due and owing (taking into account all extensions) by the Company or its Subsidiary
(whether or not shown on any Tax Return) have been timely paid. Neither the Company nor its Subsidiary currently is the beneficiary of any extension of time within which to file any Tax Return. No claim has ever been made in writing or reasonably
could be made by any Governmental Body in a jurisdiction where the Company or its Subsidiary does not file Tax Returns asserting that the Company or its Subsidiary is or may be subject to taxation by that jurisdiction. There are no Liens for Taxes
(other than Taxes not yet due and payable) upon any of the assets of Company or its Subsidiary. 
  
 (b) The Company and its Subsidiary have withheld and paid all Taxes required to have been withheld and paid in connection with any amounts
paid or owing to any employee, independent contractor, creditor, stockholder, or other Person. 
  
 (c) No foreign, federal, state, or local Tax Proceeding is pending or being conducted with respect to the Company or its Subsidiary. To
the Company’s Knowledge, neither the Company nor its Subsidiary has received from any Governmental Body having taxing authority (including jurisdictions where Company or its Subsidiary have not filed Tax Returns) any (i) notice indicating an
intent to open an audit or other review or Proceeding, (ii) request for information related to Tax matters, or (iii) written notice of deficiency or proposed adjustment for any amount of Tax proposed, asserted, or assessed by any Governmental Body
against the Company or its Subsidiary. The Company has made available to Parent correct and complete copies of all federal, state, local and foreign income Tax Returns, examination reports, and statements of deficiencies assessed against or agreed
to by the Company or its Subsidiary filed or received since December 31, 1997. 
  
 (d) Neither the Company nor its Subsidiary has waived any statute of limitations in respect of Taxes or agreed to any extension of time
with respect to a Tax assessment or deficiency the effect of which is to extend the statute of limitations or time with respect to which a Tax assessment or deficiency may be imposed or asserted to a date after the date hereof. The Company has
provided to Parent a list of all Tax Returns required to be filed by the Company or its Subsidiary on or before October 31, 2005. 
  

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 (e) Neither the Company nor its Subsidiary has been a United States real property holding
corporation within the meaning of IRC §897(c)(2) during the applicable period specified in IRC §897(c)(1)(A)(ii). The Company and its Subsidiary have disclosed on their federal income Tax Returns all positions taken therein that could give
rise to a substantial understatement of federal income Tax within the meaning of IRC §6662 and IRC §6662A. Neither the Company nor its Subsidiary is a party to or bound by any Tax allocation or sharing agreement. Neither the Company nor
its Subsidiary (A) has been a member of an “affiliated group” (as defined under the IRC §1504) filing a consolidated federal income Tax Return (other than a group the common parent of which was the Company) or (B) has any liability
for the Taxes of any Person (other than the Company or its Subsidiary) under Reg. §1.1502-6 (or any similar provision of state, local, or foreign law), as a transferee or successor, by Contract, or otherwise. Neither the Company nor its
Subsidiary has participated in or cooperated with an international boycott within the meaning of Section 999 of the Code or has been requested to do so in connection with any transaction or proposed transaction. 
  
 (f) Since December 31, 2004, neither the Company nor its
Subsidiary has incurred any liability for Taxes arising from extraordinary gains or losses, as that term is used in GAAP, outside the Ordinary Course of Business. 
  
 (g) Neither the Company nor its Subsidiary will 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) ending after the Closing Date as a result of any: 
  
 (i) change in method of accounting for a taxable period ending on or prior to the Closing Date; 
  
 (ii) “closing agreement” as described in IRC
§7121 (or any corresponding or similar provision of state, local or foreign income Tax law) executed on or prior to the Closing Date; 
  
 (iii) intercompany transaction to which the Company and its Subsidiary are parties; 
  
 (iv) installment sale or open transaction disposition made
on or prior to the Closing Date; 
  
 (v) prepaid
amount received on or prior to the Closing Date; or 
  
 (vi) lease made pursuant to IRC §168(f)(8). 
  
 (h) Neither the Company nor its Subsidiary has distributed stock of another Person, or has had its stock distributed by another Person, in a transaction that was purported or intended to be governed in whole or in
part by IRC §355 or IRC §361 within the past two years. 
  
 (i) The Company’s Subsidiary has not filed any elections to be treated other than as a taxable corporation. 
  
 Section 3.12 Employee Benefits. 
  
 (a) As used in this Section, the following terms have the following meanings: 
  
 “Company Other Benefit Obligation” means an
Other Benefit Obligation owed, adopted, or followed by the Company or an ERISA Affiliate, with respect to an employee. 
  

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 “Company Plan” means all Plans of which the Company or its Subsidiary is
or was a Plan Sponsor, or to which the Company or its Subsidiary otherwise contributes or has contributed, with respect to an employee. 
  
 “ERISA Affiliate” means, with respect to the Company or its Subsidiary, any other Person that, together with the Company
or its Subsidiary, would be treated as a single employer under IRC §414. 
  
 “Other Benefit Obligations” means all material obligations, arrangements, or customary practices, whether or not legally enforceable, written or oral to provide benefits, other than salary or wages,
as compensation for services rendered, to present or former directors, employees, or agents, other than obligations, arrangements, policies, procedures, programs, or practices that are Plans. Other Benefit Obligations include, by way of example,
consulting agreements under which the compensation paid does not depend upon the amount of service rendered, sabbatical policies, severance payment policies, practices or procedures and fringe benefits within the meaning of IRC §132.

  
 “PBGC” means the Pension
Benefit Guaranty Corporation, or any successor thereto. 
  
 “Pension Plan” has the meaning set forth in ERISA §3(2)(A). 
  
 “Plan” has the meaning set forth in ERISA §3(3). 
  
 “Plan Sponsor” has the meaning set forth in ERISA §3(16)(B). 
  
 “Qualified Plan” means any Company Plan
that meets or purports to meet the requirements of IRC §401(a). 
  
 “Welfare Plan” has the meaning set forth in ERISA §3(1). 
  
 (b) (i) Schedule 3.12(b)(i) contains a complete and accurate list of all Plans of which the Company or its Subsidiary is or has
been a Plan Sponsor, in which the Company or its Subsidiary participates or has participated, or to which the Company or its Subsidiary contributes or has contributed. None of the Company, its Subsidiary or any ERISA Affiliate has ever established,
maintained, or contributed to or otherwise participated in, or had an obligation to maintain, contribute to, or otherwise participate in, any voluntary employees’ benefit association under IRC §501(c)(9), Pension Plan subject to Title IV
of ERISA or multi-employer plan as defined in ERISA §3(37)(A). 
  
 (ii) Schedule 3.12(b)(ii) contains a complete and accurate list of all Company Other Benefit Obligations. 
  
 (iii) Neither the Company nor its Subsidiary has any liability for post-retirement benefits other than Pension Plans. 
  

 - 28 - 

 (iv) The financial cost of all obligations owed under any Company Plan or Company Other
Benefit Obligation as of March 31, 2005, is included in the balance sheet as of that date. 
  
 (c) The Company has made available to Parent copies, current as of the date hereof, of: 
  
 (i) all documents that set forth the terms of each Company
Plan, Company Other Benefit Obligation and of any related trust (or other funding vehicle), including (A) all plan descriptions and summary plan descriptions of Company Plans for which the Company or its Subsidiary is required to prepare, file, and
distribute plan descriptions and summary plan descriptions, and (B) all summaries and descriptions furnished to participants and beneficiaries regarding Company Plans and Company Other Benefit Obligations for which a plan description or summary plan
description is not required; 
  
 (ii) all
personnel, payroll, and employment manuals and policies of the Company and its Subsidiary; 
  
 (iii) any collective bargaining agreements pursuant to which contributions have been made or obligations incurred (including both pension
and welfare benefits) by the Company or its Subsidiary, and any and all collective bargaining agreements pursuant to which contributions are being made or obligations are owed by the Company or its Subsidiary; 
  
 (iv) a written description of any Company Plan or Company
Other Benefit Obligation that is not otherwise in writing; 
  
 (v) any insurance policies purchased by or to provide benefits under any Company Plan; 
  
 (vi) all Contracts with third party administrators, actuaries, investment managers, consultants, and other independent contractors that
relate to any Company Plan and Company Other Benefit Obligation; 
  
 (vii) any Form 5500 filed with respect to each Company Plan, including all schedules thereto and the opinions of independent accountants; 
  
 (viii) any notices with respect to the Company, its Subsidiary or their employees (whether current or former
employees) that were given by the Company, its Subsidiary or any ERISA Affiliate or any Company Plan to the IRS, PBGC, or any participant or beneficiary, pursuant to statute, including notices that are expressly mentioned elsewhere in this
Section 3.12; 
  
 (ix) any notices with
respect to the Company, its Subsidiary or their employees (whether current or former employees) that were given by the IRS, PBGC, or the Department of Labor to the Company, any ERISA Affiliate, or any Company Plan; and 
  
 (x) the most recent determination letter for each Qualified
Plan. 
  
 (d) (i) The Company and its Subsidiary
each has performed its obligations under all Company Plans and Company Other Benefit Obligations in all material respects. 
  

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 (ii) No statement, either written or oral, has been made by the Company or its Subsidiary
to any Person with regard to any Plan or Other Benefit Obligation that was not in accordance with the Plan or Other Benefit Obligation and that would reasonably be expected to result in any material liability for the Company. 
  
 (iii) The Company and its Subsidiary, with respect to all
Company Plans and the Company Other Benefits Obligations is, and each Company Plan and Company Other Benefit Obligation is, in material compliance with ERISA, the IRC, and other applicable Legal Requirements, including the provisions of such Legal
Requirements expressly mentioned in this Section 3.12, and with any applicable collective bargaining agreement. 
  
 (iv) No transaction prohibited by ERISA §406 and no “prohibited transaction” under IRC §4975(c) have occurred with
respect to any Company Plan with respect to which there is no statutory or regulatory exemption. 
  
 (v) Neither the Company nor its Subsidiary has any liability to the IRS with respect to any Company Plan, including any liability imposed
by Chapter 43 of the IRC. 
  
 (vi) All filings
required of the Company by ERISA and the IRC as to each Company Plan have been timely filed, and all notices and disclosures to participants required by either ERISA or the IRC have been timely provided. 
  
 (vii) All contributions and payments made or accrued with
respect to the Company or its Subsidiary for all Company Plans and Company Other Benefit Obligations are deductible under IRC §162 or §404. No income of any Plan for which the Company is Plan Sponsor is subject to Tax as unrelated business
taxable income. 
  
 (viii) Since December 31,
2004, there has been no establishment or amendment of any Plan for which the Company or its Subsidiary is Plan Sponsor or of any Company Other Benefit Obligation. 
  
 (ix) Other than claims for benefits submitted by participants or beneficiaries, no claim against, or
Proceeding involving, any Plan for which the Company or its Subsidiary is Plan Sponsor or any Company Other Benefit Obligation is pending or, to the Company’s Knowledge, Threatened. 
  
 (x) No Company Plan is a stock bonus plan within the meaning of IRC §401(a). 
  
 (xi) Each Qualified Plan for which the Company or its
Subsidiary is Plan Sponsor or with respect to which employees participate is qualified in form and operation under IRC §401(a); and each trust for each such Qualified Plan is exempt from federal income tax under IRC §501(a). To the
Company’s Knowledge, no event has occurred or circumstance exists that would reasonably be expected to give rise to disqualification or loss of tax-exempt status of any such Qualified Plan or trust. 
  

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 (xii) Except to the extent required under ERISA §601 et seq. and IRC
§4980B, the Company or its Subsidiary provides no health or welfare benefits for any retired or former employee and is not obligated to provide health or welfare benefits to any active employee following such employee’s retirement or other
termination of service. 
  
 (xiii) Each of the
Company and its Subsidiary has complied in all material respects with the provisions of ERISA §601 et seq. and IRC §4980B. 
  
 (xiv) Neither the Company nor its Subsidiary is a party to any Contract, plan, arrangement, or program that has resulted or could result,
separately or in the aggregate, in the treatment of any payment, benefit or acceleration of any payment or benefit as an “excess parachute payment” within the meaning of IRC §280G (or any corresponding provision of state, local or
foreign Tax law). No payment that is owed or may become due to any director, officer, employee, or agent of the Company or its Subsidiary will be non-deductible to the Company or its Subsidiary; nor will the Company or its Subsidiary be required to
“gross up” or otherwise compensate any such Person because of the imposition of any excise tax on a payment to such Person. 
  
 (xv) Except as otherwise provided in this Agreement, the consummation of the Contemplated Transactions will not result in the payment,
vesting, or acceleration of any benefit under any Company Plan or Company Other Benefit Obligation, nor will it trigger the payment of severance or termination pay to any employee or director under any Contract or policy, plan, procedure, or
practice. 
  
 (xvi) Each of the Company and its
Subsidiary is in compliance in all material respects with its obligations to its employees under the Health Insurance Portability and Accountability Act of 1996. 
  
 (xvii) Neither the Company nor its Subsidiary has any liability to any participant or beneficiary of any
Plan under Section 701 et seq. of ERISA. 
  
 Section 3.13 Compliance; Governmental Authorizations. 
  
 (a) Except for such matters that do not and would not, individually or in the aggregate, have a Material Adverse Effect on the Company:

  
 (i) each of the Company and its Subsidiary is
and at all times has complied with each Legal Requirement that is or was applicable to it or to the conduct or operation of its business or the ownership or use of any of its assets; 
  
 (ii) no event has occurred or circumstance exists that does or would (with or without notice or lapse of
time) (A) constitute or result in a violation by the Company or its Subsidiary of, or a failure on the part of the Company or its Subsidiary to comply with, any Legal Requirement, or (B) give rise to any obligation on the part of the Company or its
Subsidiary to undertake, or to bear all or any portion of the cost of, any remedial action of any nature; and 
  
 (iii) there is no Order of any Governmental Body outstanding or binding upon the Company or its Subsidiary or any of its properties or any
of its directors, officers or employees (in 

  

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their capacities as such for the Company) or, to the Knowledge of the Company, any of their other Representatives (in their capacities as such for the
Company or its Subsidiary). 
  
 (b) Each of the
Company and its Subsidiary owns, holds or possesses all Governmental Authorizations necessary to entitle it to own or lease, operate and use its assets and to carry on and conduct its business substantially as conducted as of the date of this
Agreement, and except for such matters that do not and would not, individually or in the aggregate, have a Material Adverse Effect on the Company: 
  
 (i) Each of the Company and its Subsidiary is in compliance with all of the terms and requirements of each such Governmental
Authorization; 
  
 (ii) no event has occurred or
circumstance exists that does or would (with or without notice or lapse of time) (A) constitute or result directly or indirectly in a violation of or a failure to comply with any term or requirement of any such Governmental Authorization, or (B)
result directly or indirectly in the revocation, withdrawal, suspension, cancellation, or termination of, or any modification to, any such Governmental Authorization; 
  
 (iii) Neither the Company nor its Subsidiary has received since January 1, 2003, any notice or other
communication (whether oral or written) from any Governmental Body or any other Person regarding (A) any actual, alleged, possible, or potential violation of or failure to comply with any term or requirement of any such Governmental Authorization,
or (B) any actual, proposed, possible, or potential revocation, withdrawal, suspension, cancellation, termination of, or modification to any such Governmental Authorization; and 
  
 (iv) all applications required to have been filed for the renewal or transfer of such Governmental
Authorizations, and all other filings required to have been made with respect to such Governmental Authorizations, have been duly made on a timely basis with the appropriate Governmental Bodies. 
  
 (c) Neither the Company’s nor its Subsidiary’s
business involves the use of two-way business radios or other radio communications equipment, any communications facilities, such as microwave or satellite links, that utilize radio frequencies, or any FCC-licensed or FCC-authorized communications
facilities. 
  

	Section	3.14 Legal Proceedings; Orders. 

  
 (a) No Proceeding has been commenced or, to the Knowledge of the Company, Threatened that relates to or may affect the business of, or any
of the assets owned or used by, the Company or its Subsidiary and that has had or would reasonably be expected to have a Material Adverse Effect on the Company. 
  
 (b) (i) There is no Order to which the Company or its Subsidiary, or any of the assets owned or used by the
Company or its Subsidiary, is subject. 
  
 (ii)
To the Company’s Knowledge (without any inquiry), no holder of Company Capital Stock or Company Options is subject to any Order that relates to the business of or 

  

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any of the assets owned or used by the Company or to Company Capital Stock or any Company Options. 
  
 (iii) To the Company’s Knowledge (without any inquiry),
no employee, director, or agent of the Company or its Subsidiary is subject to any Order that prohibits such Person from engaging in or continuing any conduct, activity, or practice relating to the business of the Company or its Subsidiary.

  
 (iv) Neither the Company nor its Subsidiary
has received since January 31, 2003, any written notice from any Governmental Body or any other Person regarding any actual, alleged, possible, or potential violation of, or failure to comply with, any material term or requirement of any Order to
which it, or any of the assets owned or used by it, is or has been subject. 
  
 Section 3.15 Absence of Certain Changes and Events. Since December 31, 2004, no Material Adverse Change has occurred with respect to the Company. Except as otherwise contemplated by this
Agreement, since December 31, 2004, (i) each of the Company and its Subsidiary has conducted its business only in the Ordinary Course of Business and (ii) there has not been any: 
  
 (a) payment or increase by the Company or its Subsidiary of any bonuses, salaries, or other compensation to
any director or officer (other than in the Ordinary Course of Business and except for those officers with respect to whom Company has provided to Parent the amount of any salary increases) or entry into any employment, severance, or similar Contract
with any employee, director or officer (other than in the Ordinary Course of Business); 
  
 (b) adoption of, or increase in the payments or benefits under, any profit sharing, bonus, deferred compensation, savings, insurance,
pension, retirement, or other employee benefit plan for or with any employees, other than in the Ordinary Course of Business; 
  
 (c) damage to or destruction or loss of any material asset or property owned or used by the Company or its Subsidiary, whether or not
covered by insurance; 
  
 (d) (i) termination of,
or receipt of notice of termination of (other than by its terms), any material Contract, or (ii) entry into any Contract or transaction involving a total remaining commitment by or to the Company or its Subsidiary of at least $50,000, other than in
the Ordinary Course of Business; 
  
 (e) sale,
lease, or other disposition of any material asset or property owned or used by the Company or its Subsidiary, or mortgage, pledge, or imposition of any Encumbrance on any material asset or property owned or used by the Company or its Subsidiary
(including but not limited to any Company IP), other than in the Ordinary Course of Business; 
  
 (f) cancellation or waiver of any claims or rights with a value to the Company or its Subsidiary in excess of $50,000; or 
  
 (g) change in accounting methods or practices, except for
any such change required by GAAP or applicable law. 
  

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 Section 3.16 Contracts; No Defaults. 
  
 (a) Schedule 3.16(a) contains a list, and the Company
has made available to Parent true and complete copies, of each of the following (excluding Contracts listed on Schedule 3.21(d)): 
  
 (i) each Contract involving the Company or its Subsidiary that involves performance of services or delivery of goods or materials by or to
the Company or its Subsidiary or expenditures or receipts of the Company or its Subsidiary, of an amount or value in excess of either $100,000 for the entire stated term of such Contract or $50,000 for the unexpired portion of the stated term of
such Contract; 
  
 (ii) each lease, rental or
occupancy agreement, installment and conditional sale agreement, and other Contract affecting the Company’s or its Subsidiary’s ownership of, leasing of, title to, use of, or any leasehold or other interest in, any real or personal
property (except personal property leases and installment and conditional sales agreements requiring aggregate payments of less than $100,000 for the entire stated term of such Contract or $50,000 for the unexpired portion of the stated term of such
Contract); 
  
 (iii) each joint venture,
partnership, and other Contract involving a sharing of profits, losses, costs, or liabilities by the Company or its Subsidiary with any other Person; 
  
 (iv) each Contract containing covenants that purport to restrict or limit the freedom of the Company or its Subsidiary to compete with any
Person; 
  
 (v) each power of attorney granted by
the Company or its Subsidiary that is currently effective and outstanding; 
  
 (vi) each Contract not otherwise described in this Section 3.16 under which the consequences of default or termination would be materially adverse to the Company; 
  
 (vii) each written warranty or guaranty with respect to
contractual performance extended by the Company or its Subsidiary other than in the Ordinary Course of Business; 
  
 (viii) each written Contract with any employee or independent contractor for personal services; 
  
 (ix) each collective bargaining agreement or other Contract
to which the Company or its Subsidiary is a party with any labor union; 
  
 (x) each Contract with each Person listed on Schedule 3.29; 
  
 (xi) each Contract containing agreements, rights, covenants, or obligations relating in any material respect to the cross-promotion of the
Company’s or its Subsidiary’s businesses with the business of any other Person; and 
  
 (xii) each material amendment, supplement, and modification in respect of any of the foregoing. 
  

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 (b) To the Company’s Knowledge (without any inquiry), no employee of the Company or
its Subsidiary is bound by any Contract that purports to materially and adversely limit the ability of such Person to (A) engage in or continue any conduct, activity, or practice relating to the business of the Company or its Subsidiary, or (B)
assign to the Company or its Subsidiary any rights to any invention, improvement, or discovery created by such Person in the scope of their employment with the Company or its Subsidiary. 
  
 (c) To the Company’s Knowledge (without any inquiry), each Contract listed in Schedule 3.16(a)
and Schedule 3.21(d) is in full force and effect and is valid and enforceable in accordance with its terms against the party(ies) thereto other than the Company or its Subsidiary, except as such enforceability may be limited by (i) laws of
general application relating to bankruptcy or insolvency, or moratorium or other similar laws affecting or relating to creditors’ rights generally, and (ii) rules of law governing specific performance, injunctive relief and other equitable
remedies, regardless of whether asserted in a Proceeding in equity or at law. 
  
 (d) Each of the Company and its Subsidiary is and has been in compliance in all material respects with all applicable terms and requirements of each Contract listed or required to be listed in Schedule 3.16(a)
or Schedule 3.21(d) to which it is a party, except as would not result in any material liability for the Company or its Subsidiary. Each other Person to each Contract listed or required to be listed in Schedule 3.16(a) or Schedule
3.21(d) is and has been, to the Company’s Knowledge (without any inquiry), in compliance in all material respects with all applicable terms and requirements of such Contract, except as would not result in any material liability for the
Company or its Subsidiary. 
  
 (e) Except for
such matters which have not had or which would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect on the Company: 
  

(i) no event has occurred or circumstance exists that (with or without notice or lapse of time) does or would contravene, conflict
with, or result in a violation or breach of, or gives or would give the Company or its Subsidiary or any other Person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel,
terminate, or modify, any Contract listed or required to be listed in Schedule 3.16(a) or Schedule 3.21(d); and 
  
 (ii) neither the Company nor its Subsidiary has given to or received in writing from any Person any notice or other communication
regarding any actual, alleged, possible, or potential violation or breach of, or default under, any Contract listed in Schedule 3.16(a) or Schedule 3.21(d). 
  
 (f) Neither the Company nor its Subsidiary has entered into any Contract with respect to which the
performance thereunder by the Company or its Subsidiary, acting alone or in connection with any other Person, or the payment or promise of any consideration thereunder, would violate any Legal Requirement. 
  
 (g) With respect to any Contract referenced in Section
3.16(a)(xi), neither the Company nor its Subsidiary has performed or received, or agreed to perform or receive, any material cross-promotion obligations or benefits not expressly included within the scope of such Contract. 
  

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 Section 3.17 Insurance.  
  
 (a) The Company has made available to Parent copies,
accurate in all material respects, of all policies of insurance to which the Company or its Subsidiary is a party or under which the Company or its Subsidiary, or any director or officer of the Company or its Subsidiary, is covered as of the date of
this Agreement. The Company has made available to Parent a summary of any pending applications for insurance, accurate in all material respects. 
  
 (b) Schedule 3.17(b) sets forth, by year, for the current policy year and each of the five preceding policy years a summary of the
loss experience under each policy that provides coverage to the Company or its Subsidiary and a statement describing each claim under an insurance policy for an amount in excess of $50,000. 
  
 (c) Except as set forth on Schedule 3.17(c):

  
 (i) All policies of insurance to which the
Company or its Subsidiary is a party or that provide coverage to the Company or its Subsidiary, or any director or officer of the Company or its Subsidiary (A) are, to the Company’s Knowledge (without any inquiry), valid, outstanding and
enforceable; (B) are, to the Company’s Knowledge, sufficient for compliance with all Legal Requirements and Contracts to which the Company or its Subsidiary is a party or by which it is bound; and (C) do not provide for any retrospective
premium adjustment or other experienced-based liability on the part of the Company or its Subsidiary. 
  
 (ii) The Company has no Knowledge of any refusal of coverage or any notice that a defense will be afforded with reservation of rights, or
any notice of cancellation or any other indication that any insurance policy is no longer in full force or effect or will not be renewed or that the issuer of any policy is not willing or able to perform its obligations thereunder. 
  
 (iii) All premiums due, and all obligations to be performed
by the Company or its Subsidiary, under each policy to which it is a party or that provides coverage to the Company or its Subsidiary or its business or any director or officer thereof, have been paid or performed. 
  
 (iv) The Company has given notice to the insurer of all
material claims of which it has Knowledge (without any inquiry) that may be insured thereby. 
  
 Section 3.18 Environmental Matters. 
  
 (a) Each of the Company and its Subsidiary is in compliance in all material respects with, and is not in violation in any material respect
of, any Environmental Law. Neither the Company nor its Subsidiary has received, nor to the Knowledge of the Company or its Subsidiary does it have any basis to expect, any Order, written notice, or other written communication from (i) any
Governmental Body or private citizen acting in the public interest, (ii) the current or prior owner or operator of any Facilities, or (iii) any third party, of any actual or potential violation of or failure to comply with any Environmental Law, or
of any obligation to undertake or bear any material cost of any Environmental, Health, and Safety Liabilities with respect to any of the Facilities or any other properties in which the Company or its Subsidiary has or had an interest, or with
respect to any property or Facility at which Hazardous 

  

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Materials were or are used or stored by the Company or its Subsidiary, or from which Hazardous Materials have been transported, treated, stored, handled,
transferred, disposed, recycled, or received. 
  
 (b) Neither the Company nor its Subsidiary has conducted any Hazardous Activity with respect to the Facilities or any other properties in which the Company or its Subsidiary has or had an interest that could reasonably be expected to result
in any material liability for the Company or its Subsidiary. 
  
 (c) Neither the Company nor its Subsidiary has released or disposed of any Hazardous Material on the Facilities or other properties in violation in any material respect of any Environmental Law, and each of the
Company and its Subsidiary has disposed of all wastes, including those containing Hazardous Materials, in compliance in all material respects with all Environmental Laws. 
  
 (d) The Company has made available to Parent copies of any reports, studies, analyses, tests, or monitoring
possessed or initiated by it pertaining to Hazardous Materials or Hazardous Activities in, on, or under the Facilities, or concerning compliance by the Company and its Subsidiary with Environmental Laws. 
  
 (e) Each of the Company and its Subsidiary is in compliance
in all material respects with all its obligations under all Contracts relating to the Facilities which require it to comply with Environmental Laws. 
  
 Section 3.19 Employees. 
  
 (a) The Company has separately provided to Parent a complete and accurate list, as of May 31, 2005, of the following information for each
employee of the Company and its Subsidiary, including each such employee on leave of absence or layoff status: name; job title; current compensation paid or payable and any change in compensation since December 31, 2004; accrued vacation and other
accrued leave; and hire date for purposes of computing vesting and eligibility to participate under any Company Plan or Other Benefit Obligation. 
  
 (b) At the date hereof, to the Company’s Knowledge, no officer or employee of the Company or its Subsidiary listed on Schedule
3.19(b) has given notice that he or she intends to terminate his or her position or employment with the Company or its Subsidiary. 
  
 Section 3.20 Labor Relations. Neither the Company nor its Subsidiary has ever been a party to any collective bargaining agreement or
similar labor Contract with a labor union. There has not been, and there is not presently pending or existing, or, to the Company’s Knowledge, Threatened, with respect to the Company or its Subsidiary, (a) any strike, slowdown, picketing, work
stoppage, or employee grievance process, or (b) any petition or application for certification or request for recognition of a labor union. There is no lockout of any employees by the Company or its Subsidiary, and no such action is contemplated by
the Company. Neither the Company nor its Subsidiary has ever engaged or been asked to engage in collective bargaining with any labor union. Neither the Company nor its Subsidiary is currently engaged in or obligated to engage in collective
bargaining with any labor union. 
  

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 Section 3.21 Intellectual Property. 
  
 (a) The Company IP constitutes (i) all the Intellectual
Property used in or necessary to the conduct of the businesses of the Company and its Subsidiary as currently conducted and (ii) all Intellectual Property developed or under license for use with respect to any business planned to be conducted by the
Company or its Subsidiary in the six months following the date hereof. The Company or its Subsidiary is the sole and exclusive owner of all right, title and interest in and to the Owned IP, free and clear of all Encumbrances other than licenses
granted to third Persons in the Ordinary Course of Business, none of which could reasonably be expected to impair the business of the Company or its Subsidiary. To the Knowledge of the Company, the Company has the rights to use or otherwise
commercially exploit its rights in the Licensed IP, to the extent such rights are used in or necessary to the conduct of the businesses of the Company and its Subsidiary as currently conducted and as under license with respect to any business
planned to be conducted in the six months following the date hereof. Without limiting the generality of the foregoing, the Company or its Subsidiary is the exclusive owner of all Company Registered IP in the jurisdictions where such Company
Registered IP is registered. 
  
 (b) Schedule
3.21(b) lists all Company Registered IP and the jurisdiction(s) in which each item of Company Registered IP is filed or registered, including the respective application or registration numbers and dates. Each item of Company Registered IP is in
material compliance with all formal Legal Requirements (including payment of filing, examination and maintenance fees and proofs of use) and, to the Company’s Knowledge, is valid. The Company has previously provided to Parent a list of any
actions that are required to be taken by the Company or its Subsidiary within one hundred eighty (180) days of the date hereof with respect to the Company Registered IP or the prosecution of applications or registrations relating thereto, including
the payment of any registration, maintenance or renewal fees or the filing of any response to United States Patent and Trademark Office or United States Copyright Office actions, documents, applications or certificates for the purposes of obtaining,
maintaining, perfecting or preserving or renewing any Company Registered IP. 
  
 (c) Neither the Company nor its Subsidiary has, to the Knowledge of the Company, permitted the rights of the Company or its Subsidiary in any Owned IP to lapse or enter the public domain. 
  
 (d) Schedule 3.21(d) lists (i) all material licenses,
sublicenses and other Contracts to which the Company or its Subsidiary is a party and pursuant to which any other Person is authorized to use or exercise any rights to the Owned IP, except for ad representation agreements, advertising agreements,
insertion orders and similar agreements, end user or customer license agreements, or other agreements where the only license is the right to use or display brand features or brand logos in some form of co-branded website application and (ii) all
licenses, sublicenses and other Contracts with respect to Owned IP or Third Party Intellectual Property Rights used by the Company or its Subsidiary, whether or not any royalty, residual or licensing fee is paid in connection therewith ((1) other
than software or subscriptions commercially available to any Person for a fee of no more than either $100,000 for the entire stated term of such Contract or $50,000 for the unexpired portion of the stated term of such Contract and (2) other than
such Contracts which are entered into the Ordinary Course of Business and do not have a material impact on the businesses or operations of the Company or its Subsidiary), including without limitation such licenses, sublicenses and other Contracts
with any current or former employee of the Company or its Subsidiary (other than standard form employee agreements, copies of which have been made available to Parent) and such Contracts relating to licenses involving search 

  

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services, algorithmic search technology or technology infrastructure. The Company has made available to Parent accurate and complete copies of all licenses,
sublicenses, and other Contracts identified on Schedule 3.21(d). 
  
 (e) Schedule 3.21(e) lists all Persons to whom the Company or its Subsidiary has delivered copies of or disclosed, or promised to deliver or disclose source code of any Company IP, whether pursuant to an escrow
arrangement or otherwise. 
  
 (f) No Person has
asserted in writing to the Company, or, to the Company’s Knowledge, Threatened to assert in a writing to the Company, any claims (i) contesting the right of the Company or of its Subsidiary to use, exercise, sell, license, transfer or dispose
of any Owned IP or to use or sublicense any Licensed IP in any manner or (ii) challenging the ownership, validity or enforceability of any Owned IP which, if adversely detained, individually or collectively would be reasonably expected to have a
materially adverse impact on the business or operations of the Company or its Subsidiary to which such Owned IP or Licensed IP relates. Neither the Company nor its Subsidiary has received any written non-infringement or invalidity opinion of counsel
regarding any Third Party Intellectual Property Rights. 
  
 (g) Neither the Company nor its Subsidiary is a party to any pending Proceeding alleging (i) infringement of any of the Owned IP by any Person or (ii) breach by any Person of any license, sublicense or other Contract
authorizing such other Person to use the Company IP. Neither the Company nor its Subsidiary has entered into any Contract granting another Person the right to bring infringement actions with respect to, or otherwise to enforce rights with respect
to, any of the Owned IP. 
  
 (h) To the extent
that any Owned IP or Company IP identified as Owned IP has been developed or created independently or jointly by any Person other than the Company or its Subsidiary, such other Person has delivered to the Company or its Subsidiary a duly executed
and, to the Knowledge of the Company, valid written assignment granting exclusive ownership of all Third Party Intellectual Property Rights of such Person in the developed work to the Company or its Subsidiary. 
  
 (i) No Public Software forms part of the Owned IP or was or
is used in connection with the development of any Owned IP. No products or services of the Company or its Subsidiary are or have been distributed in such a way as to trigger any obligations to distribute the Owned IP under any Public Software
licenses, whether in object or source code form. 
  
 (j) The conduct and operation of the businesses of the Company and its Subsidiary as currently conducted and operated, to the Knowledge of the Company, do not infringe or misappropriate any Third Party Intellectual Property Rights, and, to
the Knowledge of the Company, neither the Company nor its Subsidiary has received written notice from any other Person alleging the foregoing. 
  
 (k) Upon the consummation of the Contemplated Transactions, the Surviving Corporation with respect to the Company and the Company’s
Subsidiary with respect to itself will have the right to exercise all of the rights of the Company or its Subsidiary under all Contracts referred to in this Section 3.21 to which the Company or its Subsidiary is a party to the same extent the
Company or its Subsidiary would have been entitled to exercise such rights had the Contemplated Transactions not occurred and without the payment of any additional amounts or consideration other than ongoing fees, royalties or payments which the
Company or its Subsidiary would otherwise be required to pay. The 

  

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consummation of the Contemplated Transactions will not violate nor result in the breach, modification, cancellation, termination, suspension of, or
acceleration or increase of any payments or royalties with respect to any Contracts relating to any Company IP. None of the execution, delivery, performance or consummation of this Agreement or the Contemplated Transactions, by operation of law or
otherwise, will result in the grant to any third party of any right to or with respect to any material Company IP. 
  
 (l) The Company and its Subsidiary have taken such commercially reasonable steps as would be consistent with reasonable and customary
industry standards to protect and preserve the confidentiality of all Confidential Information. Without limiting the foregoing, the Company and its Subsidiary have and enforce a policy requiring each employee and consultant (including but not
limited to joint developers, beta testers, and independent designers) of the Company or its Subsidiary to execute a proprietary rights and confidentiality agreement substantially in the form provided to Parent, and all current and former employees
and consultants of the Company and its Subsidiary have executed such an agreement, or a form of agreement substantially similar to the form provided to Parent, except for instances in which there would not reasonably be expected to be a material
harm or injury to the Company or its Subsidiary. 
  
 Section 3.22 Certain Payments. Neither the Company or its Subsidiary, nor any director or officer of the Company or its Subsidiary, nor any Affiliate of the Company or its Subsidiary, nor, to the Company’s
Knowledge, any shareholder, agent, employee or other Person associated with or acting for or on behalf of the Company or its Subsidiary, has directly or indirectly (a) made any contribution, gift, bribe, rebate, payoff, influence payment, kickback,
or other payment to any Person, private or public, regardless of form, whether in money, property, or services (i) to obtain favorable treatment in securing business for the Company or its Subsidiary, (ii) to pay for favorable treatment for business
secured for the Company or its Subsidiary, (iii) to obtain special concessions or for special concessions already obtained, for or in respect of the Company or its Subsidiary, or (iv) in violation of any Legal Requirement applicable to the Company
or its Subsidiary, or (b) established or maintained any fund or asset of the Company or its Subsidiary that has not been recorded in the books and records of the Company or its Subsidiary. 
  
 Section 3.23 FCC Licenses. Neither the Company nor its
Subsidiary holds any authorizations, licenses or permits issued by the FCC. 
  
 Section 3.24 Vote Required. 
  
 (a) The affirmative vote of the holders of (i) a majority of the shares of Company Common Stock outstanding on the Record Date voting
together as a single class, (ii) a majority of the shares of Company Preferred Stock outstanding on the Record Date voting together as a single class (on an as-if-converted to Common Stock basis), and (iii) a majority of the shares of Company
Capital Stock outstanding on the Record Date voting together as a single class (on an as-if-converted to Common Stock basis) (the votes referred to in clauses (i) – (iii) of this sentence being referred to collectively as the “Required
Merger Shareholder Vote”), is the only vote of the holders of any class or series of the Company’s capital stock necessary to approve the principal terms of the Merger and the other Contemplated Transactions. 
  
 (b) When delivered to the Company’s shareholders, the
Consent Solicitation Statement (i) will comply with all applicable Legal Requirements, (ii) will not contain any untrue statement of a 

  

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material fact, and (ii) will not omit to state any material fact necessary in order to make the information contained in the Consent Solicitation Statement
(in the light of the circumstances under which such information was provided) not misleading. 
  
 Section 3.25 Websites. 
  
 (a) Schedule 3.25 sets forth a true, accurate and complete list of all domain names for websites that are owned by the Company and its Subsidiary (the “Websites”). With respect to each Website,
the Company or its Subsidiary: (i) possesses all legal rights to the exclusive use of the domain names with respect thereto; (ii) to the Knowledge of the Company and based on the Company’s current traffic forecasts for its Websites, presently
has adequate computer and personnel resources to help ensure that no service outages will occur due to insufficient data-storage, memory, server or other related reasons and to accommodate anticipated increases in traffic levels; and (iii) take
commercially reasonable steps to protect the confidentiality, integrity and security of their software, databases, systems, networks and Websites and all information stored or contained therein or transmitted thereby from unauthorized or improper
access, modification, transmittal or use. 
  
 (b)
Neither the Company nor its Subsidiary distributes Spyware or Adware in connection with the businesses they conduct. “Spyware” means any software that covertly gathers information regarding user online activity through the
user’s Internet connection (i.e., without notice that such information may be gathered), whether or not such software is bundled as a hidden component of a toolbar or like application, other than information: (i) reasonably gathered in
connection with services or information provided by the Company or its Subsidiary to such users, or (ii) that is not associated with Personally Identifiable Information. “Personally Identifiable Information” means data that
identifies or locates a particular person, including but not limited to name, address, telephone number, electronic mail address, social security number, bank account number or credit card number; provided, however that data shall not be Personally
Identifiable Information for purposes of this Agreement if the Company and its Subsidiary (x) do not intentionally collect or intentionally receive any such data and (y) do not become aware of the identity or location of, or identify or locate, a
particular person as a result of any receipt of such data. “Adware” means any software that causes advertising to pop-up as a new window (over or under) on the user’s computer based on the user’s online activity (other
than advertisements that the Company or its Subsidiary serves to visitors to their respective Websites while those visitors are visiting or exiting such Websites) or which is used to distribute Spyware. 
  
 (c) Without limiting the generality of this Section
3.25(c), the Company and its Subsidiary (i) have taken commercially reasonable steps to prevent the violation by the Company or its Subsidiary of the rights of any Person or Entity with respect to Personally Identifiable Information provided
under any applicable Legal Requirements including, without limitation, rights respecting (x) privacy generally, (y) the obtaining, storing, using, sharing or transmitting of Personally Identifiable Information of any type, whether via electronic
means or otherwise, and (z) Spyware and Adware; and (ii) comply with the Company’s and its Subsidiary’s published privacy policies. 
  
 Section 3.26 Related Party Transactions. (a) No Related Party has any direct or indirect interest in any material asset used in or
otherwise relating to the business of the Company or its Subsidiary; (b) no Related Party is indebted to the Company or its Subsidiary; (c) no Related Party has any direct or indirect financial interest in any material Contract, transaction or
business dealing involving the Company or its Subsidiary; and (d) no Related Party has any claim or right against the Company 

  

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(other than rights as a shareholder or under Company Options, and rights to receive compensation for services performed as an employee or director of the
Company) or its Subsidiary. (For purposes hereof, each of the following shall be deemed to be a “Related Party”: (i) each holder of more than 2.5% of the outstanding Company Capital Stock as of the date hereof, and each Person who
is a general partner or officer or director or controlling shareholder of any such 2.5% or greater shareholder of the Company; (ii) each individual who is an officer or director of the Company or its Subsidiary; (iii) each member of the immediate
family of each of the individuals referred to in clauses “(i)” and “(ii)” above; and (iv) any trust or other Entity (other than the Company) in which any one of the Persons referred to in clauses “(i)”, “(ii)”
and “(iii)” above holds (or in which more than one of such Persons collectively hold), beneficially or otherwise, a material voting, proprietary or equity interest.) 
  
 Section 3.27 Vendor and Customer Relationships. To the Company’s Knowledge, the relationships of
the Company and its Subsidiary with their vendors and customers are good commercial working relationships, and neither the Company nor its Subsidiary is engaged in any dispute with any vendor or customer, which dispute has had or would reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect on the Company. 
  
 Section 3.28 Brokers or Finders. Other than J.P. Morgan Securities Inc., neither the Company or its Subsidiary nor any of their officers or directors has employed any investment banker, broker or
finder or incurred any liability for any banker’s, broker’s, or finder’s fees or commissions payable by or on behalf of the Company or its Subsidiary in connection with the Contemplated Transactions. 
  
 Section 3.29 Loans to Employees and Directors.
Schedule 3.29 sets forth a true, accurate and complete list of all loans and extensions of credit by the Company or its Subsidiary to or for any shareholder, director or employee of the Company or its Subsidiary or any member of the immediate
family of any such Person or any trust or other entity in which (other than the Company) any one of the Persons referred to above holds (or in which more than one of such Persons collectively hold), beneficially or otherwise, a material voting,
proprietary or equity interest. 
  
 Section 3.30
State Takeover Laws. No “fair price,” “moratorium,” “control share acquisition” or other anti-takeover statute is applicable to the Contemplated Transactions. 
  
 Section 3.31 Relationships with Certain Parties. From
December 31, 2004 to the date of this Agreement, there has not been any material adverse change in the business relationships of the Company or its Subsidiary with any Person that accounted for more than 5% of the Company’s revenues during such
period. Neither the Company nor its Subsidiary has received, prior to the date hereof, written notice (which remains unresolved) of any such other Person’s: (i) intention to breach, terminate, or materially alter any Contract between it and the
Company or its Subsidiary, or (ii) early termination of, or a request for a concession by, the Company or its Subsidiary with respect to any such Contract, or (iii) belief that the Company or its Subsidiary is not in material compliance with any
such Contract. 
  

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 ARTICLE IV 
  

REPRESENTATIONS AND WARRANTIES OF SHAREHOLDERS’ REPRESENTATIVE 
  
 The Shareholders’ Representative represents and warrants to Parent, Merger Sub and the Company as follows: 

 
 Section 4.1 Capacity. The Shareholders’
Representative has the right and capacity to execute and deliver this Agreement and to perform his obligations hereunder. 
  
 Section 4.2 No Conflict. Neither the execution and delivery of this Agreement nor the consummation or performance of any of the
obligations hereunder or under the Escrow Agreement by the Shareholders’ Representative will, directly or indirectly (with or without notice or lapse of time), contravene, conflict with, or result in a violation of or breach of any provision
of, any Contract to which the Shareholders’ Representative is bound. 
  
 Section 4.3 Enforceability. This Agreement constitutes a legal, valid and binding obligation of the Shareholders’ Representative enforceable against the Shareholders’ Representative in
accordance with its terms, except as such enforceability may be limited by (i) laws of general application relating to bankruptcy or insolvency, or moratorium or other similar laws affecting or relating to creditors’ rights generally, and (ii)
rules of law governing specific performance, injunctive relief and other equitable remedies, regardless of whether asserted in a Proceeding in equity or at law. 
  

ARTICLE V 
  
 REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB 
  
 Parent and Merger Sub represent and warrant to the Company as follows: 
  
 Section 5.1 Organization and Good Standing. Each of Parent and Merger Sub is a corporation duly
incorporated, validly existing and in good standing under the laws of the jurisdiction of its incorporation. Each of Parent and Merger Sub has full corporate power and authority to execute and deliver this Agreement and to perform its obligations
under this Agreement. 
  
 Section 5.2 Authority;
No Conflict. 
  
 (a) Execution and delivery
of this Agreement and the consummation of the Contemplated Transactions by Parent and Merger Sub have been duly and validly authorized by any necessary action on the part of Parent and Merger Sub. This Agreement has been duly and validly executed
and delivered on behalf of each of Parent and Merger Sub by an authorized officer thereof. This Agreement constitutes a legal, valid, and binding obligation of each of Parent and Merger Sub, enforceable against each of Parent and Merger Sub in
accordance with its terms, except as enforcement may be limited by (i) laws of general application relating to bankruptcy or insolvency, or moratorium or other similar laws affecting or relating to creditors’ rights generally, and (ii) rules of
law governing specific performance, injunctive relief and other equitable remedies, regardless of whether asserted in a Proceeding in equity or at law. 
  

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 (b) Neither the execution and delivery of this Agreement by Parent or Merger Sub nor the
consummation or performance of any of the Contemplated Transactions by Parent or Merger Sub will contravene, conflict with, or result in a violation or breach of: 
  
 (i) any provision of Parent’s or Merger Sub’s Organizational Documents; 
  
 (ii) any resolution adopted by the directors or shareholders
of Parent or Merger Sub; 
  
 (iii) any Legal
Requirement or Order to which Parent or Merger Sub may be subject; or 
  
 (iv) any material Contract to which Parent or Merger Sub is a party or by which Parent or Merger Sub may be bound. 
  
 (c) Neither Parent nor Merger Sub is or will be required to obtain any Consent from any Person in connection with the execution and
delivery of this Agreement or the consummation or performance of any of the Contemplated Transactions. 
  
 Section 5.3 Financial Capability. Parent has adequate financial resources to pay all amounts required to be paid and to perform all
obligations required to be performed by it under this Agreement. 
  
 Section 5.4 Certain Proceedings. There is no pending Proceeding that has been commenced against either Parent or Merger Sub and that challenges, or would have the effect of preventing, delaying, making illegal, or
otherwise interfering with, any of the Contemplated Transactions. To Parent’s Knowledge, no such Proceeding has been Threatened. 
  
 Section 5.5 Brokers or Finders. Other than Allen & Co., LLC, neither Parent nor Merger Sub nor any of their officers or directors
has employed any investment banker, broker or finder or incurred any liability for any banker’s, broker’s, or finder’s fees or commissions payable by or on behalf of Parent in connection with the Contemplated Transactions. 

 
 Section 5.6 Merger Sub. Merger Sub was formed solely
for the purpose of engaging in the Contemplated Transactions. Except for obligations or liabilities incurred in connection with its incorporation or organization and the Contemplated Transactions and except for this Agreement and any other
agreements or arrangements contemplated by this Agreement, Merger Sub does not have, directly or indirectly, any obligations or liabilities and has not, directly or indirectly, engaged in any business activities of any type or kind whatsoever or
entered into any Contracts with any Person. Parent owns all of the issued and outstanding shares of capital stock of Merger Sub. 
  
 ARTICLE VI 
  
 COVENANTS OF THE COMPANY PRIOR TO CLOSING DATE 
  
 Section 6.1 Access and Investigation. During the Pre-Closing Period, the Company shall, and shall cause its Representatives to,
provide Parent and Parent’s Representatives, during reasonable business hours, with reasonable access to the Representatives, personnel and assets of the Company and 

  

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its Subsidiary and to all existing books, records, Tax Returns, work papers, Contracts and other documents and information of or pertaining to the Company
and its Subsidiary and such additional financial, operating and other data and information of or pertaining to the Company as Parent and its Representatives may reasonably request; provided, however, that in exercising Parent’s access
rights under this Section 6.1, Parent and its Representatives shall not be permitted to interfere unreasonably with the conduct of the business of the Company. The Company shall provide Parent and its Representatives with copies of such data,
documents and other information as may be reasonable in the circumstances. Without limiting the generality of the previous two sentences, (i) promptly following the preparation thereof, the Company shall deliver to Parent (A) a consolidated balance
sheet of the Company and its Subsidiary as of the last day of each calendar month during the Pre-Closing Period, and (B) a consolidated statement of operations of the Company and its Subsidiary for such calendar month and for the period from January
1, 2005 through the end of such calendar month, and (ii) during the Pre-Closing Period, the Company shall, and shall cause its Representatives to, permit Parent’s senior officers to meet with the controller and other officers of the Company
responsible for the Company’s financial statements and internal controls to discuss such matters as Parent may reasonably deem necessary or appropriate for Parent to satisfy its obligations under applicable Legal Requirements. 
  
 Section 6.2 Operation of the Business. Between the date
of this Agreement and the earlier of the Closing and the termination of this Agreement, the Company shall and shall cause its Subsidiary to: 
  
 (a) conduct its business only in the Ordinary Course of Business; and 
  
 (b) use its reasonable best efforts to preserve intact its current business organization, keep available the
services of its current officers, employees, and agents, and maintain satisfactory relations and goodwill with vendors, customers, landlords, creditors, employees, agents, advertisers, licensors, vendors and others having business relationships with
it. 
  
 Section 6.3 Forbearance. Commencing
upon execution of this Agreement and continuing through to the earlier of the Closing and the termination of this Agreement, except as contemplated by this Agreement, the Company shall not, nor shall it permit its Subsidiary to, without the prior
written consent of Parent: 
  
 (a) incur any
indebtedness for borrowed money; assume, guarantee, endorse or otherwise as an accommodation become responsible for the obligations of any other Person; or make any loan or advance to any Person, in each case except in the Ordinary Course of
Business; 
  
 (b) adjust, split, combine or
reclassify any capital stock; 
  
 (c) make,
declare or pay any dividend, or make any other distribution on, or directly or indirectly redeem, purchase or otherwise acquire or encumber, any shares of its capital stock or any securities or obligations convertible (whether currently convertible
or convertible only after the passage of time or the occurrence of certain events) into or exchangeable for any shares of its capital stock; 
  
 (d) issue any shares of capital stock, except pursuant to exercise of any Company Option or conversion of any Company Preferred Stock, or
issue any options, rights or other securities convertible into shares of capital stock of the Company except for options to purchase shares of Company Common Stock offered to employees or prospective employees in the Ordinary Course of 

  

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Business and representing in the aggregate less than 1% of the outstanding shares of Company Common Stock of the Company; 
  
 (e) sell, transfer, mortgage, encumber or otherwise dispose
of any of its lines of business or any of its properties or assets to any Person other than in the Ordinary Course of Business and in aggregate amount not to exceed $100,000; or cancel or release any indebtedness owed to it by any Person or any
claims held by it with respect to any Person, except pursuant to Contracts in force at the date thereof or, in the case of cancellation or release of indebtedness, as a result of debt collections; 
  
 (f) purchase any stock, securities, property or assets of
any Person other than in the Ordinary Course of Business and in aggregate amount not to exceed $100,000; 
  
 (g) establish, adopt, amend or terminate any Company Plan or Company Other Benefit Obligation, or amend in any material respect the terms
of any outstanding Company Option; 
  
 (h) (i)
establish, or increase compensation or benefits provided under, or make any payment not required by, any retention, bonus, incentive, insurance, severance, termination, change of control, deferred compensation, pension, retirement, profit sharing,
stock option (including, without limitation, the granting of stock options, stock appreciation rights, performance awards, restricted stock awards or similar instruments), stock purchase or other employee benefit plan, program, policy or agreement
or arrangement; (ii) otherwise increase or accelerate the vesting or payment of the compensation payable or the benefits provided or to become payable or provided to any of its current or former directors, officers, employees or consultants, or
otherwise pay any amounts not due such individual; (iii) enter into any new or amend any existing employment or consulting agreement with any director, officer, employee, consultant or service provider or retain the services of such person; or (iv)
establish, adopt or enter into any collective bargaining agreement, except in each of clauses (i) and (iii), in the Ordinary Course of Business, or as may be required to comply with any applicable Legal Requirement or existing Contract; 

 
 (i) settle any material claim or Proceeding other than
for the ordinary course collections for accounts receivable due and payable; 
  
 (j) amend or permit the adoption of any amendment to its Organizational Documents, or effect or become a party to any Acquisition Transaction (subject to Section 6.6, Section 11.1(h) and Section
11.2), recapitalization, reclassification of shares, stock split, reverse stock split or similar transaction; 
  
 (k) enter into any Contract with any of its shareholders in their capacity as such; 
  
 (l) take any action that is intended or would reasonably be
expected to result in any of its representations and warranties set forth in this Agreement being or becoming untrue such that the condition set forth in Section 9.1 shall be incapable of satisfaction; 
  
 (m) other than in the Ordinary Course of Business, sell,
assign, transfer, license, sublicense or enter into any license agreement with respect to any Company IP, or buy or enter into any license agreement with respect to any Third Party Intellectual Property Rights; 
  

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 (n) enter into any “non-compete” Contract or any similar Contract that would
materially restrict any of its businesses; 
  
 (o) (subject to Section 6.6, Section 11.1(h) and Section 11.2) adopt a plan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization; 
  
 (p) implement or adopt any change in its accounting
principles, practices or methods or its internal controls, other than as consistent with or as may be required by law, GAAP, regulatory guidelines or applicable Legal Requirements, implement or adopt any change in the cash management, accounts
receivable collection or accounts payable practices of the Company, or make any change in its working capital practices generally or take or omit to take any action with the intent or effect of artificially inflating the Closing Working Capital
including, but not limited to, accelerating the collection of, or permitting the prepayment of, any receivable, converting any non-cash assets to cash or cash equivalents, or deferring or delaying payments of any kind; 
  
 (q) settle or compromise any liability for Taxes, file any
amended Tax Return, file any Tax Return in a materially inconsistent manner with past practice (except as otherwise required by law), or make any Tax election other than in the Ordinary Course of Business; 
  
 (r) enter into any new, or amend or otherwise alter any
current, transaction or Contract with any of its Affiliates; 
  
 (s) subject to Section 6.6(b) and Article XI, enter into any Contract or transaction, amend or alter any existing Contract or transaction or take or fail to take any action which, individually or
collectively, would reasonably be expected to result in any material diminution in the value of the businesses of the Company and its Subsidiary to Parent and its Subsidiaries after giving effect to the Merger and the consummation of the other
Contemplated Transactions; or 
  
 (t) agree to
take, make any commitment to take, or permit to be adopted any resolutions of its board of directors or shareholders in support of, any of the actions prohibited by this Section 6.3. 
  
 Section 6.4 Notification. During the Pre-Closing Period,
the Company shall promptly notify Parent in writing if it becomes aware of any fact or condition that causes or constitutes a breach of any of its representations and warranties as of the date of this Agreement, or if it becomes aware of the
occurrence after the date of this Agreement of any fact or condition that would (except as expressly contemplated by this Agreement) cause or constitute a breach of any such representation or warranty had such representation or warranty been made as
of the time of occurrence or discovery of such fact or condition. During the same period, the Company shall promptly notify Parent of the occurrence of any breach of any of its covenants in this Article VI or in Article VIII or of the
occurrence of any event that would reasonably be expected to make the satisfaction of the conditions in Article IX unlikely. 
  
 Section 6.5 Reasonable Best Efforts. During the Pre-Closing Period, the Company shall use its reasonable best efforts to cause the
conditions in Article IX to be satisfied. 
  

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 Section 6.6 No Solicitation. 
  
 (a) Subject to Section 6.6(b), during the Pre-Closing
Period, the Company shall not directly or indirectly: (a) solicit, knowingly facilitate or knowingly encourage the initiation of any inquiry, proposal or offer from any Person (other than Parent) relating to a possible Acquisition Transaction; (b)
participate in any discussions or negotiations or enter into any agreement with, or provide any non-public information to, any Person (other than Parent) relating to or in connection with a possible Acquisition Transaction; or (c) accept any
proposal or offer from any Person (other than Parent) relating to a possible Acquisition Transaction. Upon execution of this Agreement the Company shall immediately cease and cause to be terminated any existing direct or indirect discussions with
any Person (other than Parent) that relate to any possible Acquisition Transaction. The Company shall promptly (and in no event later than 24 hours after receipt thereof) notify Parent orally and in writing of any proposal or offer relating to a
possible Acquisition Transaction (including the identity of the Person making or submitting such proposal or offer, and the terms thereof (including a copy of any written proposal or offer)) that is received by the Company or any Representative of
the Company during the Pre-Closing Period. 
  
 (b) Notwithstanding anything to the contrary set forth in this Agreement, in the event that the Company shall receive a bona fide written proposal for an Acquisition Transaction after the date of this Agreement and prior to receipt of the
Required Merger Shareholder Vote that did not result from a breach of Section 6.6(a) (each an “Acquisition Proposal”), the Company shall be permitted (i) to engage in discussions and negotiations with, and provide nonpublic
information or data to, the Person making the Acquisition Proposal or (ii) recommend approval of the Acquisition Proposal to the shareholders of the Company or withdraw or modify in any adverse manner the Company Board Recommendation, if and only to
the extent that, (A) in any case as is referred to in clauses (i) and (ii), the Company has entered into a nondisclosure agreement with the Person making the Acquisition Proposal having provisions that are no less favorable to the Company and no
less restrictive on such Person than those contained in the Nondisclosure Agreement, (B) the Company Board has determined in good faith (after consultation with its outside legal counsel) that the Acquisition Proposal, if accepted, (x) in the case
of clause (i) above, would more likely than not constitute a Superior Proposal (as hereinafter defined), (y) in the case of clause (ii) above, if consummated, would constitute a Superior Proposal, (z) in the case of clauses (i) and (ii) above, that
the failure to engage in discussions and negotiations with respect to such Acquisition Proposal would reasonably be expected to constitute a breach of its fiduciary duties to the Company’s shareholders under applicable Legal Requirements, and
(C) the Company has provided to Parent three (3) Business Days’ prior written notice that the Company Board intends to take such action, specifying the material terms and conditions of such Superior Proposal and identifying the Person or
Persons making such Superior Proposal. For purposes of this Agreement, “Superior Proposal” means any Acquisition Proposal that the Company Board determines in good faith (after (i) consultation with its financial advisor and (ii)
taking into account all of the terms and conditions of the Acquisition Proposal and this Agreement, including (A) any counterproposal by Parent pursuant to Section 11.1(h), (B) the likelihood that the transactions contemplated by the
Acquisition Proposal will close in a timely manner, and (C) the extent to which the financing for the transactions contemplated by the Acquisition Proposal, to the extent required, is committed or is capable of being obtained on the terms proposed)
is more favorable to the Company’s shareholders than the Merger or any counterproposal pursuant to Section 11.1(h). 
  

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 Section 6.7 Consent Solicitation Statement. The Company shall deliver a consent
solicitation statement accurately describing this Agreement, the Merger, the other Contemplated Transactions and the provisions of Chapter 13 of the CGCL, and setting forth the fair market value of each class and series of Company Capital Stock as
of the day prior to the date of this Agreement (excluding any appreciation or depreciation in connection with this Agreement, the Merger or the other Contemplated Transactions) as determined by the Company Board (the “Consent Solicitation
Statement”) to its shareholders, for the purpose of (a) informing them of approval of the Merger by the Company Board and their right to dissent pursuant to Chapter 13 of the CGCL, and (b) soliciting their written consent to the principal
terms of the Merger and the Contemplated Transactions. The Consent Solicitation Statement shall be delivered to shareholders of the Company within five (5) calendar days of the date hereof and shall be delivered on or within two (2) calendar days
following the Record Date to any shareholder of the Company of record on the Record Date that has not received the Consent Solicitation Statement prior to the Record Date. Subject to the fiduciary duties of the Company Board and Section
6.6(b), the Consent Solicitation Statement shall include a statement to the effect that the Company Board unanimously recommends that the Company’s shareholders execute written consents approving the principal terms of the Merger (the
“Company Board Recommendation”). Subject in each case to the provisions of Section 6.6 and the fiduciary duties of the Company Board, the unanimous recommendation of the Company Board that the shareholders of the Company
approve the principal terms of the Merger shall not be withdrawn or modified in a manner adverse to Parent, and no resolution by the Company Board or any committee thereof to withdraw or modify such recommendation in a manner adverse to Parent shall
be adopted or proposed. The Company shall provide Parent and its Representatives with a reasonable opportunity to review and comment on the Consent Solicitation Statement prior to any dissemination thereof to the Company’s shareholders. The
Company shall provide Parent with a copy of the Consent Solicitation Statement on the date of delivery thereof to its shareholders and shall also provide Parent with copies of all written consents of the Company’s shareholders. The Company
shall solicit written consents as provided in this Section 6.7 for the 30-day period commencing on the beginning date of the period provided under Chapter 13 of the CGCL for the exercise and perfection of dissenters’ rights by holders of
shares of Company Capital Stock. 
  
 Section 6.8
Demands by Holders of Dissenting Shares. The Company shall promptly notify Parent of any demands it receives within the period provided for the exercise and perfection of dissenters’ rights under Chapter 13 of the CGCL from any holders
of shares of Company Capital Stock and the Company shall provide Parent with a copy of each such demand. 
  
 Section 6.9 FIRPTA Matters. At the Closing, the Company shall deliver to Parent a statement (in such form as may be reasonably
requested by counsel to Parent) conforming to the requirements of Section 1.897 — 2(h)(1)(i) of the Treasury Regulations under the IRC, duly executed by an authorized officer of the Company as of the Closing Date. 
  

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 ARTICLE VII 
  
 CERTAIN COVENANTS OF PARENT 
  

Section 7.1 Indemnification. 
  
 (a) Parent agrees that all rights to indemnification existing as of the date of this Agreement in favor of those persons who are or were
directors and officers of the Company (the “Indemnified Company Personnel”) for acts or omissions occurring prior to the Effective Time, as provided in the Company’s Organizational Documents, shall survive the Merger and shall
continue in full force and effect in accordance with their terms, and Parent shall cause the Surviving Corporation to fulfill and honor such obligations to the maximum extent permitted by applicable Legal Requirements. Parent agrees that, from and
after the Effective Time, Parent shall guaranty the obligations of the Company as in effect as of the date of this Agreement in respect of indemnification and advancement of expenses for the benefit of the Indemnified Company Personnel, including as
set forth in the Company’s Organizational Documents. 
  
 (b) From the Effective Time until the sixth (6th) anniversary of the Effective Time, Parent shall maintain in effect, for the benefit of the Indemnified Company Personnel with respect to acts or omissions occurring on
or prior to the Effective Time, the existing policy of directors’ and officers’ liability insurance maintained by the Company as of the date of this Agreement (the “Existing Policy”); provided, however, that (i) Parent may
substitute for the Existing Policy a policy or policies of not less favorable coverage; (ii) Parent may self-insure the risk of loss; provided, however, that Parent must provide the Indemnified Company Personnel with indemnification terms and
procedures (including advancement of expenses) at least as favorable as provided pursuant to Article SEVENTH of Parent’s Amended and Restated Articles of Incorporation as of the date of this Agreement, and provided further, that Parent’s
right to self-insure the risk of loss shall be subject to Parent’s maintaining an Investment Grade credit rating according to both Moody’s Investors Service and Standard & Poor’s Rating Services; and (iii) Parent shall not be
required to pay annual premiums for the Existing Policy (or for any substitute policies) in excess of 200% of the annual premium payable under the Existing Policy as of the date of this Agreement (the “Maximum Premium”) and, in the
event any future annual premiums for the Existing Policy (or any substitute policies) exceed the Maximum Premium, Parent shall be entitled to reduce the amount of coverage of the Existing Policy (or any substitute policies) to the amount of coverage
that can be obtained for a premium equal to the Maximum Premium. 
  
 Section 7.2 Notification. During the Pre-Closing Period, Parent shall promptly notify the Company in writing if it becomes aware of any fact or condition that causes or constitutes a breach of any of its
representations and warranties as of the date of this Agreement, or if it becomes aware of the occurrence after the date of this Agreement of any fact or condition that would (except as expressly contemplated by this Agreement) cause or constitute a
breach of any such representation or warranty had such representation or warranty been made as of the time of occurrence or discovery of such fact or condition. During the same period, Parent shall promptly notify the Company of the occurrence of
any breach of any of its covenants in this Article VII or in Article VIII or of the occurrence of any event that would reasonably be expected to make the satisfaction of the conditions in Article X unlikely. 
  
 Section 7.3 Reasonable Best Efforts. During the
Pre-Closing Period, Parent shall use its reasonable best efforts to cause the conditions in Article X to be satisfied. 
  

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 ARTICLE VIII 
  
 MISCELLANEOUS COVENANTS 
  
 Section 8.1 Required Approvals of Governmental Bodies. 
  
 (a) Parent and the Company shall promptly make all registrations, filings and submissions with all
Governmental Bodies required to be made or effected by them pursuant to all applicable Legal Requirements with respect to this Agreement and the Contemplated Transactions. During the Pre-Closing Period, Parent and the Company shall cooperate with
each other with respect to all filings that the other elects to make or is required by Legal Requirements to make in connection with the Contemplated Transactions. 
  
 (b) Without limiting the generality of Section 8.1(a), the Company and Parent shall promptly (but not
later than ten (10) calendar days after the date hereof) make and effect all registrations, filings and submissions required to be made or effected pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR
Act”) and all other applicable Legal Requirements with respect to this Agreement and the Contemplated Transactions in order to obtain the expiration of any applicable waiting period under any such Legal Requirements or any antitrust
clearance or similar clearance required to be obtained from the Federal Trade Commission, the Antitrust Division of the Department of Justice, any state attorney general, any foreign competition authority or any other Governmental Body in connection
with the Contemplated Transactions. Each of the Company and Parent shall bear one-half of the cost of such HSR Act or other filing. 
  
 (c) The Company and Parent shall (i) promptly provide all information requested by any state or federal Governmental Body in connection
with this Agreement and the Contemplated Transactions, and (ii) promptly take all actions and steps necessary to obtain the expiration of any applicable waiting period or any antitrust clearance or similar clearance required to be obtained from the
Federal Trade Commission, the Antitrust Division of the Department of Justice, any state attorney general, any foreign competition authority or any other governmental entity in connection with the Contemplated Transactions. The actions required to
be taken pursuant to this Section 8.1 in order to obtain required expirations or antitrust clearances will include using reasonable efforts to avoid or set aside any preliminary or permanent injunction or other Order but do not include making
arrangements for the disposition of particular assets and making arrangements to hold such assets separate pending their disposition. 
  
 (d) Without limiting any other provision of this Section 8.1, each party hereto shall (i) give the other parties prompt notice of
the commencement of any Proceeding by or before any Governmental Body with respect to this Agreement or any of the Contemplated Transactions, (ii) keep the other parties informed as to the status of any such Proceeding, and (c) promptly inform the
other parties of any communication to or from the Federal Trade Commission, the Antitrust Division of the Department of Justice, or any other Governmental Body regarding this Agreement or the Contemplated Transactions. 
  

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 Section 8.2 Tax Matters. 
  
 (a) Parent shall prepare or cause to be prepared and file or
cause to be filed all Tax Returns for the Company and its Subsidiary that are filed after the Closing Date.  
  
 (b) Parent shall provide draft copies of Tax Returns for any period beginning before the Closing Date to the Shareholders’
Representative at least fifteen (15) days prior to the due date (taking into account extensions thereof) for the timely filing of any such Tax Return. Such Tax Return will be prepared reasonably taking into account the Company’s or its
Subsidiary’s past practices and shall be provided to Shareholders’ Representative for review. If the Shareholders’ Representative objects to any Tax Return, the Shareholders’ Representative must notify Parent within five (5) days
after receiving copies of such Tax Returns. Parent and the Shareholders’ Representative shall then in good faith endeavor to resolve any dispute prior to filing such Tax Return. If the dispute cannot be resolved, the Accountants shall be
retained to resolve such dispute. The determination of the Accountants shall be binding, final and non-appealable and if the Tax Return that was the subject of such dispute was filed inconsistent with such determination, such Tax Return shall be
promptly amended to conform with such determination. The principles of Section 2.11(c) with respect to cooperation and the payment of the fees and expenses of the Accountants shall apply. Notwithstanding anything in this Agreement to the
contrary, Parent shall pay or cause to be paid any Taxes taken into account as a liability in the determination of the Estimated Working Capital or Closing Date Working Capital and shall remit such amount to the relevant tax authority and together
with the Indemnitees shall have no recourse to the Escrow Fund in respect of such Taxes. The parties hereto shall, to the extent permitted under applicable law, treat for all Tax purposes the Closing Date as the last day of the taxable year or
period of the Company and its Subsidiary. 
  
 (c)
Notwithstanding any other provision of this Agreement to the contrary, the Indemnitees shall have no recourse to the Escrow Fund with respect to Taxes resulting from actions (other than actions in connection with the Tax Returns for the Company or
the Subsidiary that are filed after the Closing Date with respect to periods beginning prior to the Closing Date, but excluding Tax Returns filed prior to the Closing Date which are amended after the Closing Date) of Parent, the Company, its
Subsidiary, or any Indemnitee on or after the Closing Date that has the effect of increasing Taxes in respect of periods for which an Indemnitee may otherwise have recourse to the Escrow Fund. Without the prior written consent of the
Shareholders’ Representative, no Tax Return relating to a period for which an Indemnitee may have recourse to the Escrow Fund may be amended. Notwithstanding any other provision of this Agreement to the contrary, neither parent, the Company,
its Subsidiaries, nor any Indemnitee shall take, or allow to be taken, any action to contact a taxing authority regarding any Tax reporting position of the Company or its Subsidiary in respect of a period for which an Indemnitee may have recourse to
the Escrow Fund the effect of which is to accelerate the making of any claim, the commencement of any audit or other inquiry by a taxing authority or the payment of (or increase in the amount of) any Taxes for any such period. If Parent, the
Company, its Subsidiaries, or any Indemnitee takes, or causes to be taken, any such action, the indemnity provided in Article XII shall be void with respect to any associated payment of (or increase in) any Taxes. Notwithstanding any other
provision of this Agreement to the contrary, the Indemnitees shall have no recourse to the Escrow Fund with respect to Taxes relating to the absence or loss, in each case in whole or in part, of any Tax attribute, except if, and only to the extent
that, the net operating loss (NOL) carry-forward of the Company or its Subsidiary as shown on the audited 2004 Financial Statements is materially inaccurate. For this purpose, the 

  

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amount of the NOL carry-forward shall not be deemed materially inaccurate as the result of (i) reductions in the amount of the NOL carry-forward due to the
use thereof by the Company or its Subsidiary after December 31, 2004, or (ii) any limitations on its use relating to the Contemplated Transactions. 
  
 (d) All Tax allocation, indemnity or sharing agreements to which the Company or its Subsidiary is a party shall not be of further effect
with respect to the Company or its Subsidiary following the Closing. 
  
 (e) Parent (for itself and the Surviving Corporation and its Subsidiary) and the Shareholders’ Representative shall cooperate fully, as and to the extent reasonably requested by the other party, in connection
with any Proceeding with respect to Taxes. Such cooperation shall include the retention and (upon the Shareholders’ Representative’s request) the provision of records and information that are reasonably relevant to any such Proceeding.
Parent agrees to cause the Surviving Corporation (i) to retain all books and records with respect to Tax matters pertinent to the Company and its Subsidiary relating to any taxable period beginning before the Closing Date until the expiration of the
statute of limitations (and any extensions thereof) of the respective taxable periods, and to abide by all record retention agreements entered into with any taxing authority, and (ii) to give the Shareholders’ Representative reasonable written
notice prior to transferring, destroying or discarding any such books and records and, if the Shareholders’ Representative so requests, Parent shall cause the Surviving Corporation and its Subsidiary to allow the Shareholders’
Representative to take possession of such books and records. 
  
 (f) Parent and the Shareholders’ Representative agree, upon request, to use or cause the Surviving Corporation to use its reasonable efforts to obtain any certificate or other document from any Governmental Body
or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including, but not limited to, with respect to the transactions contemplated hereby). 
  
 (g) Without the prior written consent of Parent, neither the
Company nor its Subsidiary (prior to the Effective Time) shall make or change any election, 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 the Company or its Subsidiary, 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 the Company or its
Subsidiary, or take any other similar action relating to the filing of any Tax Return or the payment of any Tax, if such election, adoption, change, amendment, agreement, settlement, surrender, consent or other action would have the effect of
increasing the Tax liability of the Company or its Subsidiary for any period ending after the Effective Time or decreasing any Tax attribute of the Company or its Subsidiary existing at the Effective Time. 
  
 ARTICLE IX 
  
 CONDITIONS PRECEDENT TO OBLIGATIONS OF PARENT AND MERGER SUB

  
 The obligations of Parent and Merger Sub to effect the
Merger and to take the other actions required to be taken by them at the Closing are subject to the satisfaction, at or prior to the Closing, of 

  

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each of the following conditions (any of which may be waived by Parent and Merger Sub, in whole or in part): 
  
 Section 9.1 Accuracy of Representations. Each of the
representations and warranties of the Company in this Agreement (i) if specifically qualified by materiality, shall be true and complete as so qualified and (ii) if not qualified by materiality, shall be true and complete in all material respects,
in each such case on and as of the date of this Agreement and as of the Closing Date, with the same effect as if then made (except where any such representation or warranty is as of a specific earlier date, in which event it shall remain true and
complete (as qualified) as of such earlier date), except with respect to both clauses (i) and (ii) for any failure to be so true (without giving effect to any limitation as to “materiality” or “Material Adverse Effect” set forth
therein) that has not had, does not have, and is not reasonably expected to have, individually or in the aggregate, a Material Adverse Effect on the Company. 
  
 Section 9.2 Performance of Covenants. Each of the covenants and obligations that the Company is required to perform or to comply with
pursuant to this Agreement at or prior to the Closing must have been performed in all material respects and complied with in all material respects. 
  
 Section 9.3 Shareholder Approval. The principal terms of the Merger shall have been duly approved by the Required Merger Shareholder
Vote. 
  
 Section 9.4 Additional Documents.
Each of the following documents must have been delivered to Parent at or prior to the Closing and must be accurate and in full force and effect as of the Closing Date: 
  
 (a) the Escrow Agreement, executed by the Shareholders’ Representative and the Escrow Agent;

  
 (b) a certificate executed by the Company
certifying to Parent the due satisfaction of the conditions set forth in Section 9.1 (except that the accuracy of all such representations and warranties shall be certified giving full effect to any updates to the Disclosure Schedule that
were delivered to Parent by the Company pursuant to Section 6.4) and Section 9.2; 
  
 (c) copies of the resolutions of the Company Board authorizing the Company’s execution, delivery and performance of this Agreement
and its consummation of the Contemplated Transactions, certified as of the Closing Date by a duly authorized officer of the Company as true and correct; 
  
 (d) duly executed written resignations of all directors of the Company and its Subsidiary, effective as of the Effective Time; and

  
 (e) each document required to be delivered by
the Company pursuant to Sections 2.5(e), 2.12 and 6.9. 
  
 Section 9.5 No Material Adverse Change. Since the date of this Agreement, no Material Adverse Change shall have occurred or be reasonably likely to occur with respect to the Company. 

 

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 Section 9.6 No Prohibition. Neither the consummation nor the performance of any of
the Contemplated Transactions will, directly or indirectly (with or without notice or lapse of time), contravene, or conflict with, or result in a violation of, any material Legal Requirement or Order. 
  
 Section 9.7 No Injunction. There shall not be in effect
any Legal Requirement or any injunction or other Order that prevents or prohibits the Merger or the consummation of the Contemplated Transactions. 
  
 Section 9.8 HSR Act. The waiting period (and any extensions thereof) applicable to the Contemplated Transactions under the HSR Act
shall have been terminated or shall have expired. 
  
 Section 9.9 Opinion. The Company shall have furnished Parent with (a) the opinion, dated the Closing Date, of Skadden, Arps, Slate, Meagher & Flom LLP, in substantially the form attached hereto as Exhibit
B-1, subject to customary form, exceptions and assumptions and (b) the opinion, dated the Closing Date, of the Company’s General Counsel, in substantially the form attached hereto as Exhibit B-2, subject to customary form, exceptions
and assumptions. 
  
 ARTICLE X 
  
 CONDITIONS PRECEDENT TO OBLIGATIONS OF THE COMPANY 
  
 The obligation of the Company to effect the Merger and to take the other
actions required to be taken by the Company at the Closing is subject to the satisfaction, at or prior to the Closing, of each of the following conditions (any of which may be waived, in whole or in part, by the Company): 
  
 Section 10.1 Accuracy of Representations. All of the
representations and warranties of Parent and Merger Sub set forth in Article V (considered collectively) must have been accurate in all material respects as of the date of this Agreement and must be accurate in all material respects as of the
Closing Date as if made on the Closing Date. Notwithstanding the generality of the foregoing, this Section 10.1(a) shall not apply to the representations and warranties set forth in Section 5.3, which representation and warranty must
be accurate in all respects as of the Closing Date as if made on the Closing Date. 
  
 Section 10.2 Performance of Covenants. Each of the covenants and obligations that the Parent is required to perform or to comply with pursuant to this Agreement at or prior to the Closing (other
than Sections 2.5(c) and 2.8(a)) must have been performed in all material respects and complied with in all material respects. All of the covenants and obligations that the Parent is required to perform or to comply with pursuant to
Sections 2.5(c) and 2.8(a) must have been performed and complied with in all respects. 
  
 Section 10.3 Additional Documents. Each of the following documents must have been delivered to the Company at or prior to the Closing
and must be accurate and in full force and effect as of the Closing Date: 
  
 (a) the Escrow Agreement, executed by Parent and the Escrow Agent; 
  

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 (b) a certificate executed by each of Parent and Merger Sub certifying to the Company the
due satisfaction of the conditions set forth in Section 10.1 and Section 10.2; 
  
 (c) copies of the resolutions of the Board of Directors of Parent authorizing Parent’s execution, delivery and performance of this
Agreement and its consummation of the Contemplated Transactions, certified as of the Closing Date by a duly authorized officer of Parent as true and correct; and 
  
 (d) copies of the resolutions of the Board of Directors of Merger Sub authorizing Merger Sub’s
execution, delivery and performance of this Agreement and its consummation of the Contemplated Transactions, certified as of the Closing Date by a duly authorized officer of Merger Sub as true and correct. 
  
 Section 10.4 HSR Act. The waiting period (and any
extensions thereof) applicable to the Contemplated Transactions under the HSR Act shall have been terminated or shall have expired. 
  
 Section 10.5 Opinion. Parent shall have furnished the Company with the opinion, dated the Closing Date, of Baker & Hostetler LLP,
in substantially the form attached hereto as Exhibit C, subject to customary form, exceptions and assumptions. 
  
 Section 10.6 Shareholder Approval. The principal terms of the Merger and the adoption of this Agreement shall have been duly approved
by the Required Merger Shareholder Vote. 
  
 Section
10.7 No Prohibition. Neither the consummation nor the performance of any of the Contemplated Transactions will, directly or indirectly (with or without notice or lapse of time), contravene, or conflict with, or result in a violation
of, any material Legal Requirement or Order. 
  
 Section
10.8 No Injunction. There shall not be in effect any Legal Requirement or any injunction or other Order that prevents or prohibits the Merger or the consummation of the Contemplated Transactions. 
  
 ARTICLE XI 
  
 TERMINATION 
  
 Section 11.1 Termination of Agreement. This Agreement
may be terminated and the Contemplated Transactions abandoned at any time prior to the Closing Date notwithstanding receipt of the Required Merger Shareholder Vote: 
  
 (a) by mutual written consent of Parent and the Company duly authorized by their respective Boards of
Directors; 
  
 (b) by either Parent or the
Company if there is any Legal Requirement that makes consummation of the Contemplated Transactions illegal or otherwise prohibited or if consummation of the Contemplated Transactions would violate any Final Order of any Governmental Body having
competent jurisdiction (provided that the party seeking to terminate this Agreement pursuant to this 

  

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Section 11.1(b) shall have complied with its obligations under Section 6.5 or Section 7.3, as applicable, by using its reasonable best
efforts to have any such Final Order vacated or lifted); 
  
 (c) by either Parent or the Company on or after September 1, 2005, if the Closing shall not have been consummated on or before August 30, 2005 (the “Termination Date”); provided, however, that
such right to terminate this Agreement will not be available to any such party whose failure to perform in any material respect any obligation of such party under this Agreement when performance thereof was due is the cause of the delay; 

 
 (d) by either Parent or the Company if there shall have
occurred any Material Adverse Change with respect to the other or if there shall have occurred any change, circumstance or event that would reasonably be expected to have a Material Adverse Effect on the other; 
  
 (e) by the Company if the Required Merger Shareholder Vote
shall not have been obtained; 
  
 (f) by Parent
if (i) any representation or warranty of the Company contained in this Agreement shall be inaccurate or shall have been breached as of the date of this Agreement, or shall have become inaccurate or shall be breached as of a date subsequent to the
date of this Agreement (as if made on such subsequent date), such that the condition set forth in Section 9.1 would not be satisfied as of the time such representation or warranty shall have become inaccurate (assuming the Closing Date were
as of such time), or (ii) any of the covenants or obligations of the Company contained in this Agreement shall have been breached such that the condition set forth in Section 9.2 would not be satisfied as of the time of such breach (assuming
the Closing Date were as of such time); provided, however, that if an inaccuracy in or breach of any of the Company’s representations and warranties or a breach of a covenant or obligation by the Company is curable by the Company and the
Company is continuing to exercise all reasonable efforts to cure such inaccuracy or breach, then Parent may not terminate this Agreement under this Section 11.1(f) on account of such inaccuracy or breach until thirty (30) Business Days
subsequent to the date Parent notified the Company in writing of the existence of such inaccuracy or breach; 
  
 (g) by the Company if (i) any representation or warranty of Parent or Merger Sub contained in this Agreement shall be inaccurate or shall
have been breached as of the date of this Agreement, or shall have become inaccurate or shall be breached as of a date subsequent to the date of this Agreement (as if made on such subsequent date) such that the condition set forth in Section
10.1 would not be satisfied as of the time such representation or warranty shall have become inaccurate (assuming the Closing Date were as of such time), or (ii) any of the covenants or obligations of Parent or Merger Sub contained in this
Agreement shall have been breached such that the condition set forth in Section 10.2 would not be satisfied as of the time of such breach (assuming the Closing Date were as of such time); provided, however, that if an inaccuracy in any
of the representations and warranties of Parent or Merger Sub or a breach of a covenant or obligation by Parent or Merger Sub is curable by Parent or Merger Sub and Parent or Merger Sub is continuing to exercise all reasonable efforts to cure such
inaccuracy or breach, then the Company may not terminate this Agreement under this Section 11.1(g) on account of such inaccuracy or breach until thirty (30) Business Days subsequent to the date the Company notified Parent in writing of the
existence of such inaccuracy or breach; or 
  

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 (h) by the Company prior to its receipt of the Required Merger Shareholder Vote, if prior
to such time the Company Board shall approve a Superior Proposal; provided, however, that: 
  
 (i) the Company Board shall have authorized the Company, subject to complying with the terms of Section 6.6, to enter into a
binding written agreement, with respect to a Superior Proposal; 
  
 (ii) Parent shall not have made, within three (3) Business Days after its receipt of the Company’s written notification of its intention to enter into a binding agreement with respect to a Superior Proposal, an
offer that the Company Board determines, in good faith (after consultation with its financial advisor and independent outside legal counsel), is at least as favorable to the shareholders of the Company as the Superior Proposal with respect to
financial and other material terms; provided that, during the three (3) Business Days following the Company’s receipt of Parent’s aforesaid offer (the “Renegotiation Period”), the Company shall consider and discuss in good
faith with Parent all proposals submitted by Parent and, without limiting the foregoing, shall meet with, and cause its financial advisors and legal counsel from time to time as reasonably required by Parent to consider and discuss Parent’s
proposals with Parent and its advisors, attorneys and other Representatives; and provided, further, that the Company shall not enter into a binding agreement referred to in Section 11.1(h)(i) until at least the first calendar day following
the third Business Day after the beginning of the Renegotiation Period; and provided further that the Company shall notify Parent promptly if its intention to enter into the written agreement referred to in its notification pursuant to Section
11.1(h)(i) shall change at any time after giving such notification; and 
  
 (iii) in connection with such termination the Company has paid to Parent, in cash by wire transfer of immediately available funds, a non-refundable fee in the amount of $17,500,000 (the “Break-up
Fee”). 
  
 Section 11.2 Effect of
Termination. If this Agreement is terminated pursuant to either Section 11.1(e) at or after the time an Acquisition Transaction with a Person other than Parent has been announced to the shareholders of the Company or (ii) or Section
11.1(h), then the Company shall pay Parent the Break-Up Fee as set forth in Section 11.1(h) and, notwithstanding any other provision of this Agreement, the Break-up Fee will serve as the exclusive remedy to Parent under this Agreement and
the Company’s obligation to pay the Break-Up Fee shall survive termination of this Agreement. If this Agreement is terminated pursuant to any provision of Section 11.1 (other than Section 11.1(e) or Section 11.1(h)), all
further obligations of the parties under this Agreement will terminate, except that the obligations set forth in this Section 11.2 and in Section 13.1 and Section 13.3 will survive; provided, however, that if this Agreement is
terminated by a party because of any breach of the Agreement by any other party or because one or more of the conditions to the terminating party’s obligations under this Agreement is not satisfied as a result of any other party’s failure
to comply with obligations under this Agreement, the terminating party’s right to pursue all legal remedies will survive such termination unimpaired. 
  

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 ARTICLE XII 
  
 INDEMNIFICATION; ESCROW 
  
 Section 12.1 Survival. 
  
 (a) The representations and warranties of the Company (including the representations and warranties set forth in Article III, the
Disclosure Schedule and any updates to Article III or the Disclosure Schedule pursuant to Section 6.4 or Section 9.1 and the representations and warranties set forth or incorporated directly or indirectly in the Closing Payment
Schedule, in the certificate referred to in Section 9.4(b) or in any other certificate or document delivered by the Company pursuant to this Agreement) shall survive the Closing and continue in full force and effect until the 540th calendar day after the Closing Date (the “Escrow Termination Date”). Notwithstanding anything to the contrary
contained in this Agreement, if, at any time prior to the Escrow Termination Date any Indemnitee delivers to the Shareholders’ Representative a Notice of Indemnification Claim alleging the existence of an inaccuracy in or a breach of any of the
representations and warranties of the Company and asserting a claim for recovery under Section 12.2 based on such alleged inaccuracy or breach, then the claim asserted in such Notice of Indemnification Claim shall survive until such
time as such claim is fully and finally resolved. The representations and warranties of Parent and Merger Sub shall terminate and expire as of the Effective Time. 
  
 (b) The covenants and obligations of the Company shall survive the Closing Date and continue in full force
and effect until the Escrow Termination Date; provided, however, that if, at any time prior to the Escrow Termination Date, any Indemnitee delivers to the Shareholders’ Representative a Notice of Indemnification Claim alleging the
existence of a breach of any of the covenants or obligations of the Company and asserting a claim for recovery under Section 12.2 based on such alleged breach, then the claim asserted in such Notice of Indemnification Claim shall continue to
survive until such time as such claim is fully and finally resolved. The covenants and obligations of Parent and Merger Sub shall expire and be of no further force or effect at the Effective Time; provided, however, that the covenants and
obligations of Parent set forth in Sections 2.6, 2.11(b) – (f), 7.1(b), 12.5, 12.6 and 12.8 shall survive the Effective Time and shall expire upon the satisfaction of such covenants and obligations and
the covenants and obligations of Parent set forth in Sections 7.1(a) and 8.2 shall survive the Effective Time and continue in full force and effect until the expiration of the applicable statute of limitations. 
  
 Section 12.2 Indemnification. 
  
 (a) From and after the Effective Time (but subject to
Section 12.1), the Indemnitees shall be entitled to be held harmless and indemnified from the Escrow Fund (and solely out of the Escrow Fund) from and against, and shall be entitled to compensation and reimbursement from the Escrow Fund for,
any Damages that are directly or indirectly suffered or incurred by any of the Indemnitees or to which any of the Indemnitees may otherwise become subject (regardless of whether or not such Damages relate to any Third Party Claim) and that arise
from or as a result of, or are directly or indirectly connected with: 
  
 (i) any inaccuracy in or breach of any representation or warranty set forth in Article III or the Disclosure Schedule as of the date of this Agreement (without giving effect to any update pursuant to Section
6.4); 
  

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 (ii) any inaccuracy in or breach of any representation or warranty set forth in
Article III or the Disclosure Schedule as if such representation and warranty had been made on and as of the Closing Date (giving effect to any update pursuant to Section 6.4); 
  
 (iii) any inaccuracy in or breach of any certification,
representation or warranty set forth in the certificate referred to in Section 9.4(b) or in any other certificate or document delivered by the Company under this Agreement; or 
  
 (iv) any breach of any covenant or obligation of the Company;  
  
 (b) The parties acknowledge and agree that, if the Surviving
Corporation suffers, incurs or otherwise becomes subject to any Damages as a result of or in connection with any inaccuracy in or breach of any representation, warranty, covenant or obligation, then (without limiting any of the rights of the
Surviving Corporation as an Indemnitee) Parent shall also be deemed, by virtue of its ownership of the stock of the Surviving Corporation, to have incurred Damages as a result of and in connection with such inaccuracy or breach. 
  
 (c) If any Third Party Claim or other claim with respect to
which Parent or any other Indemnitee is entitled to be held harmless, indemnified, compensated or reimbursed pursuant to this Article XII is covered by insurance, Damages arising from or attributable to such claim shall be reduced by an
amount equal to the net insurance proceeds reasonably likely to be recovered by Parent or such other Indemnitee. 
  
 (d) If any Third Party Claim or other claim with respect to which Parent or any other Indemnitee is entitled to be held harmless,
indemnified, compensated or reimbursed pursuant to this Article XII shall result in a tax benefit to Parent or such other Indemnitee, the Damages arising from or attributable to such claim shall be reduced by an amount equal to the amount by
which Taxes payable (as determined on a present value basis using a discount rate of five percent (5%)) by such party or its Affiliate is reduced below the amount of Taxes that such party or its Affiliate would be required to pay but for the
incurrence of such Damages. 
  
 (e)
Notwithstanding anything in this Agreement to the contrary, neither Parent nor any other Indemnitee shall have any recourse to the Escrow Fund in respect of any liability to the extent such liability was included in the calculation of Working
Capital. 
  
 (f) From and after the Effective
Time (but subject to Section 12.1), Parent shall hold harmless and indemnify the Shareholders’ Representative and the Non-Dissenting Shareholders and Closing Date Option Holders from and against any Damages that are directly or
indirectly suffered or incurred by any such holders or to which such holders may become subject and that arise from or as a result of or are directly or indirectly connected with any breach of the covenants and obligations of Parent in Sections
2.6, 2.11(b)-(f), 7.1, 12.5, 12.6 or 12.8. 
  

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 Section 12.3 Threshold; Ceiling. 
  
 (a) Except in the case of fraud, the Indemnitees shall not
be entitled to recover any Damages pursuant to Section 12.2 for any matter until such time as the total amount of all Damages (including the Damages arising in connection with such matter and all other Damages arising from any other matters
of the type referred to in Section 12.2) that have been directly or indirectly suffered or incurred by any one or more of the Indemnitees, or to which any one or more of the Indemnitees has or have otherwise become subject, exceeds $5.25
million in the aggregate. At such time as the cumulative amount of such Damages exceeds $5.25 million in the aggregate, the Indemnitees shall be entitled to recover only the portion of such Damages exceeding $5.25 million. 
  
 (b) The parties to this Agreement hereby agree that the
exclusive remedy for any breach of a representation or warranty, covenant or agreement contained in this Agreement shall be the indemnification provisions set out in this Article XII; provided, however, that nothing in this
Section 12.3 shall prohibit any party from seeking specific performance or injunctive relief against any other party in respect of a breach by such other party of any covenant hereunder. The parties further agree that the sole recourse for
indemnification claims by the Indemnitees shall be recovery of funds from the Escrow Fund in accordance with the terms of this Agreement and the Escrow Agreement. 
  
 Section 12.4 No Contribution. No Non-Dissenting Shareholder shall have any right of contribution, right
of indemnity or other right or remedy against Parent or against the Surviving Corporation in connection with any indemnification obligation or any other liability to which such Non-Dissenting Shareholder may become subject under or in connection
with this Agreement or any of the Contemplated Transactions. 
  
 Section 12.5 Defense of Third Party Claims. In the event of the assertion or commencement by any Person of any claim or Proceeding (whether against the Surviving Corporation, against Parent or against any other Person)
with respect to which any Indemnitee may be entitled to be held harmless, indemnified, compensated or reimbursed pursuant to this Article XII (a “Third Party Claim”), (a) Parent shall notify the Shareholders’
Representative, promptly after Parent receives notice of such Third Party Claim, of the nature of such Third Party Claim and the amount of damages claimed by the Person who asserted or commenced such Third Party Claim (it being understood that any
failure by Parent to so promptly notify the Shareholders’ Representative shall have no effect on an Indemnitee’s ability to recover Damages pursuant to this Article XII, except to the extent that the defense of such Third Party
Claim is materially prejudiced by such failure), and (b) the Indemnitee shall deliver to the Shareholders’ Representative, promptly after the Indemnitee’s receipt thereof, copies of all notices and documents (including court papers)
received by the Indemnitee relating to a Third Party Claim. The Shareholders’ Representative shall be entitled to assume and control the defense of such Third Party Claim, using funds from the Escrow Fund, and through counsel of its choice
(unless such claim is covered by insurance which mandates insurance company selection of such counsel) if it gives written notice of its intention to do so to the Indemnitee within thirty (30) days of the receipt of such notice from the Indemnitee
in which case the Indemnitee shall not be entitled to recover from the Escrow Fund any fees of counsel or any other expenses with respect to the defense of such Third Party Claim; provided, however, that if the Indemnitee reasonably determines based
upon written advice of counsel that a conflict of interest exists that would make it inappropriate for the same counsel to represent both the Indemnitee and the Shareholders’ Representative, then the Indemnitee shall be entitled to retain its
own counsel at the expense of the Escrow Fund; provided, further, that the Indemnitee shall not in such event be entitled to obtain from the Escrow Fund fees and expenses of more than one firm of separate counsel 

  

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in connection with any Third Party Claim in the same jurisdiction, in addition to any local counsel. In the event that the Shareholders’ Representative
exercises the right to undertake any such defense against such Third Party Claim as provided above, the Indemnitee shall cooperate with the Indemnifying Party in such defense and make available to the Shareholders’ Representative, out of funds
from the Escrow Fund, the Shareholders’ Representative’s expense, all witnesses, pertinent records, materials and information in the Indemnitee’s possession or under the Indemnitee’s control relating thereto as is reasonably
required by the Shareholders’ Representative. Similarly, in the event the Indemnitee is, directly or indirectly, conducting the defense against any such Third Party Claim, the Shareholders’ Representative shall cooperate with the
Indemnitee in such defense and make available to the Indemnitee, out of funds from the Escrow Fund all expenses, all such witnesses, records, materials and information in the Shareholders’ Representative’s possession or under the
Shareholders’ Representative’s control relating thereto as is reasonably required by the Indemnitee. No compromise or settlement of such Third Party Claim may be effected by either the Indemnitee or the Shareholders’ Representative
without the other party’s consent (which shall not be unreasonably withheld or delayed) unless (i) there is no finding or admission of any violation of law and no effect on any other claims that may be made against such other party and (ii)
each Indemnitee that is party to such claim is released from liability with respect to such claim. A claim for indemnification for any matter not including a Third Party Claim shall be asserted by written notice to the party from whom
indemnification is sought. 
  
 Section 12.6 Duty
to Mitigate. Parent and any other Indemnitee shall use commercially reasonable efforts to mitigate or otherwise reduce the amount of any Damages that it incurs in connection with any matter with respect to which it is entitled to be held
harmless, indemnified, compensated or reimbursed pursuant to this Article XII, including taking commercially reasonable measures to attempt to recover any insurance proceeds available to offset such Damages under insurance policies maintained
by Parent or the Surviving Corporation or any other Indemnitee. 
  
 Section 12.7 Exercise of Remedies by Indemnitees Other Than Parent. No Indemnitee (other than Parent or any successor thereto or assign thereof) shall be permitted to assert any indemnification claim or exercise any
other remedy under this Agreement unless Parent (or any successor thereto or assign thereof) shall have consented to the assertion of such indemnification claim or the exercise of such other remedy. 
  
 Section 12.8 Indemnification Claims; Escrow Fund
Arrangements. 
  
 (a) Any Indemnitee seeking
to be held harmless, indemnified, compensated or reimbursed pursuant to this Article XII shall deliver a notice to the Shareholders’ Representative and the Escrow Agent (any such notice being referred to as a “Notice of
Indemnification Claim,” and the claim for indemnification, compensation and reimbursement described in such Notice of Indemnification Claim being referred to as an “indemnification claim”). Each Notice of Indemnification
Claim shall (i) state that the Indemnitee giving such Notice of Indemnification Claim believes that there is or has been an inaccuracy in or breach of a representation, warranty, covenant or obligation contained in this Agreement or that such
Indemnitee is otherwise entitled to be held harmless, indemnified, compensated or reimbursed under this Article XII, (ii) contain a brief description of the circumstances supporting such Indemnitee’s belief that there is or has been such
an inaccuracy or breach or that such Indemnitee is otherwise entitled to be held harmless, indemnified, compensated or reimbursed, and (iii) contain a good faith, non-binding, preliminary estimate of the aggregate dollar amount of actual and
potential Damages that have arisen and may arise as a result of the inaccuracy or breach or other matter referred to in such 

  

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Notice of Indemnification Claim (the amount of such estimate, as it may be modified by such Indemnitee in good faith from time to time, being referred to as
the “Claimed Amount”). 

  
 (b) During the 60-day period commencing upon the delivery by an Indemnitee to the Shareholders’ Representative and the Escrow Agent of a Notice of Indemnification Claim (the “Dispute Period”),
the Shareholders’ Representative may deliver to the Indemnitee and the Escrow Agent a written response (the “Response Notice”) in which the Shareholders’ Representative: (i) agrees that the full Claimed Amount is owed to
the Indemnitee; (ii) agrees that part (but not all) of the Claimed Amount (the “Agreed Amount”) is owed to the Indemnitee; or (iii) asserts that no part of the Claimed Amount is owed to the Indemnitee. Any part of the Claimed Amount
that is not agreed by the Shareholders’ Representative to be owed to the Indemnitee pursuant to the Response Notice (or the entire Claimed Amount, if the Shareholders’ Representative asserts in the Response Notice that no part of the
Claimed Amount is owed to the Indemnitee) shall be referred to as the “Contested Amount” (it being understood that the Contested Amount shall be modified from time to time to reflect any good faith modifications by the Indemnitee to
the Claimed Amount). If a Response Notice is not received by the Indemnitee prior to the expiration of the Dispute Period, then the Shareholders’ Representative shall be conclusively and irrevocably deemed to have agreed that the full Claimed
Amount set forth in the Notice of Indemnification Claim is owed to the Indemnitee. 
  
 (c) If (i) the Shareholders’ Representative delivers a Response Notice to the Indemnitee during the Dispute Period agreeing that the
full Claimed Amount is owed to the Indemnitee, or (ii) the Shareholders’ Representative does not deliver a Response Notice to the Indemnitee during the Dispute Period, then Parent and the Shareholders’ Representative shall jointly execute
and deliver to the Escrow Agent, within three (3) Business Days following the earlier of the delivery of such Response Notice or the expiration of the Dispute Period, a written notice instructing the Escrow Agent to disburse the full Claimed Amount
set forth in the Notice of Indemnification Claim to the Indemnitee from the Escrow Fund. 
  
 (d) If the Shareholders’ Representative delivers a Response Notice to the Indemnitee during the Dispute Period agreeing that less
than the full Claimed Amount is owed to the Indemnitee, then Parent and the Shareholders’ Representative shall jointly execute and deliver to the Escrow Agent, within three (3) Business Days following the delivery of such Response Notice, a
written notice instructing the Escrow Agent to disburse the Agreed Amount to the Indemnitee from the Escrow Fund. 
  
 (e) If the Shareholders’ Representative delivers a Response Notice to the Indemnitee during the Dispute Period indicating that there
is a Contested Amount, then the Shareholders’ Representative and the Indemnitee shall attempt to resolve the dispute relating to the Contested Amount. If the Indemnitee and the Shareholders’ Representative resolve such dispute, then a
settlement agreement shall be signed by the Indemnitee and the Shareholders’ Representative. Parent and the Shareholders’ Representative shall jointly execute and deliver to the Escrow Agent, within three (3) Business Days following the
execution of such settlement agreement, a written notice instructing the Escrow Agent to disburse the amount specified in such settlement agreement to the Indemnitee from the Escrow Fund. 
  
 (f) If there is a dispute between the Shareholders’
Representative and the Indemnitee relating to a Contested Amount and no settlement agreement is reached despite negotiations between the parties pursuant to Section 12.8(e) during the 30-day period commencing upon the delivery of the Response
Notice to the Indemnitee, then either Parent or the Shareholders’ Representative may, by 

  

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written notice to the other, submit such dispute to binding arbitration in the County of Los Angeles, California in accordance with the JAMS Comprehensive
Arbitration Rules & Procedures in effect on the date of the execution of this Agreement (the “Rules”); provided, however, that if the amount of the Damages relating to the disputed indemnification claim is at issue in
pending litigation with a third party, arbitration shall not be commenced until such amount is determined by a judgment or settlement agreement or if both parties agree to arbitration. Arbitration will be conducted by one arbitrator mutually
selected by Parent and the Shareholders’ Representative; provided, however, that if Parent and the Shareholders’ Representative fail to mutually select an arbitrator within fifteen (15) Business Days after such dispute is submitted
to arbitration, then either Parent or the Shareholders’ Representative can request that JAMS select the arbitrator in accordance with the Rules. The parties agree to use commercially reasonable efforts to cause the arbitration hearing to be
conducted within 75 days after the appointment of the arbitrator, and to use commercially reasonable efforts to cause the decision of the arbitrator to be furnished within fifteen (15) Business Days after the conclusion of the arbitration hearing.
The arbitrator’s authority shall be confined to determining: (i) whether the Indemnitee is entitled to recover the Contested Amount (or a portion thereof), and the portion of the Contested Amount the Indemnitee is entitled to recover; and (ii)
whether the Indemnitee is the prevailing party as hereinafter provided. The final decision of the arbitrator shall include the dollar amount of the award to the Indemnitee, if any (the “Award Amount”) and the findings of fact and
conclusions of law on which it is based, shall be furnished to the Shareholders’ Representative, the Indemnitee and the Escrow Agent in writing and shall constitute a conclusive determination of the issues in question, binding upon the
Shareholders’ Representative and the Indemnitee. If the Indemnitee is determined by the arbitrator to be the prevailing party, then the Award Amount shall be increased by the amount of the reasonable expenses in connection with the arbitration
(including attorneys’ fees, administrative fees and any portion of the arbitrator’s fees and expenses) paid and payable by the Indemnitee in connection with the arbitration. If the Indemnitee is determined by the arbitrator not to be the
prevailing party and the arbitrator determines that the Shareholders’ Representative is the prevailing party, then any Award Amount shall be reduced by the amount of the reasonable expenses (including attorneys’ fees, administrative fees
and any portion of the arbitrator’s fees and expenses) paid and payable by the Shareholders’ Representative in connection with the arbitration; and if no amount is awarded to the Indemnitee, or the Shareholders’ Representative’s
reasonable expenses exceed the Award Amount, the Indemnitee shall reimburse the Shareholders’ Representative for his reasonable expenses (including attorneys’ fees, administrative fees and any portion of the arbitrator’s fees and
expenses) paid and payable by the Shareholders’ Representative in connection with the arbitration. Judgment upon any award rendered by the arbitrator may be entered in any court having jurisdiction. Parent and the Shareholders’
Representative shall jointly execute and deliver to the Escrow Agent, within three (3) Business Days following the receipt of the final decision of the arbitrator setting forth the Award Amount, a written notice instructing the Escrow Agent to
disburse the Award Amount to the Indemnitee from the Escrow Fund. 

  
 (g) The Escrow Fund shall be disbursed to the Escrow Participants as follows: 
  
 (i) If the amount held in the Escrow Fund (the
“Escrow Balance”) as of the Escrow Termination Date exceeds the aggregate amount of the Contested Amounts (including the entire Claimed Amount with respect to each indemnification claim as to which the Dispute Period has not yet
expired and no Response Notice has been delivered) associated with all Unresolved Escrow Claims as of the Escrow Termination Date, then within three (3) Business Days thereafter Parent and 

  

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the Shareholders’ Representative shall jointly execute and deliver to the Escrow Agent a written notice instructing the Escrow Agent to disburse to the
Escrow Participants from the Escrow Fund, in accordance with Section 12.8(h), an amount equal to the amount by which the Escrow Balance as of the Escrow Termination Date exceeds the sum of such Contested Amounts (including any such Claimed
Amounts). 

  
 (ii) Following
the Escrow Termination Date, if an indemnification claim that had not, prior to that date, been finally resolved and paid in accordance with this Section 12.8 (an “Unresolved Escrow Claim”) is finally resolved, Parent and the
Shareholders’ Representative shall jointly execute and deliver to the Escrow Agent, within three (3) Business Days after the final resolution of such Unresolved Escrow Claim and the payment from the Escrow Fund of all amounts, if any, owing to
the Indemnitee that asserted such Unresolved Escrow Claim, a written notice instructing the Escrow Agent to disburse to the Escrow Participants from the Escrow Fund an amount equal to the amount by which the Escrow Balance as of the date of the
disbursement exceeds the aggregate amount of the Contested Amounts (including the entire Claimed Amount with respect to each indemnification claim as to which the Dispute Period has not yet expired and no Response Notice has been delivered), if any,
determined to be owing pursuant to this Section 12.8(g)(ii), in connection with the Unresolved Escrow Claims. 
  
 (iii) For purposes of this Section 12.8, the “Escrow Participants” shall be the Non-Dissenting Shareholders
pursuant to Section 2.5(a)(iii)(y) and Section 2.5(a)(v) and the Closing Date Option Holders. 
  
 (iv) Each disbursement from the Escrow Fund to be made to the Escrow Participants shall be made on a pro rata basis based on the Escrow
Participants’ respective Escrow Participation. An Escrow Participant’s “Escrow Participation” shall be the percentage corresponding to the fraction having a numerator equal to the amount contributed to the Escrow Fund
pursuant to Section 2.5(c) on behalf of such Escrow Participant and having a denominator equal to the Aggregate Escrow Cash Amount. 
  
 Section 12.9 Knowledge. No Person shall be liable for, and no Indemnitee shall be entitled to indemnification under this Agreement
for, any Damages resulting from any event relating to the breach of a representation or warranty if any Indemnitee had Knowledge on or before the Closing Date of such event. Each Indemnitee shall be deemed to have waived in full any breach of any of
the Company’s representations and warranties of which such Indemnitee has such Knowledge on or before the Closing Date. 
  
 Section 12.10 No Consequential Damages. Notwithstanding anything to the contrary in this Agreement, no Person shall be liable to or
otherwise responsible for consequential, incidental or punitive damages or for diminution in value or lost profits. 
  

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 ARTICLE XIII 
  
 GENERAL PROVISIONS 
  
 Section 13.1 Expenses. Except as otherwise expressly provided in this Agreement, including Section 2.5(b), each party will
bear such party’s respective expenses incurred in connection with the preparation, execution, and performance of this Agreement and the Contemplated Transactions, including all fees and expenses of such party’s Representatives. In the
event of termination of this Agreement, the obligation of each party to pay such party’s own expenses will be subject to any rights of such party arising from a breach of this Agreement by any other party. 
  
 Section 13.2 Public Announcements. The parties shall
issue a joint press release (and individual press releases that have been approved by the other party) upon execution of this Agreement and upon the Closing. Except as otherwise required by law, neither party shall make any other disclosure
regarding the Contemplated Transactions without giving the other party the reasonable opportunity to comment on such disclosure. The Company and Parent will consult with each other concerning the means by which the Company’s employees,
customers, and suppliers and others having dealings with the Company will be informed of the Contemplated Transactions. Except as may be required by applicable Legal Requirement (provided that the Company shall give Parent reasonable advance notice
of such disclosure), in no event will the Company provide a copy of this Agreement to any other Person (other than Representatives who have a need to know) without the prior written consent of Parent. 
  
 Section 13.3 Confidentiality. The parties shall continue
to be bound by the Nondisclosure Agreement; provided that the parties hereby amend the Nondisclosure Agreement by deleting paragraph 7 thereof in its entirety, which paragraph 7 shall be of no further force or effect, and substituting in its place
the provisions of Sections 13.4, 13.5, 13.10, 13.11, 13.13 and 13.18 as paragraphs 7 through 12 as if they were fully set forth therein with all references to “this Agreement” being deemed
to be references to the Nondisclosure Agreement. 
  
 Section 13.4 Notices. All notices, consents, waivers, and other communications under this Agreement must be in writing and will be deemed to have been duly given when (a) delivered by hand (with written confirmation of
receipt), (b) sent by telecopier, (c) mailed by certified mail, return receipt requested, or (d) when received by the addressee, if sent by a nationally recognized overnight delivery service, in each case to the appropriate addresses and telecopier
numbers hereinafter set forth (or to such other addresses and telecopier numbers as a party may designate by notice to the other parties): 
  
 The Company: 
  
 SHOPZILLA, INC. 
 12200 W. Olympic
Boulevard, Suite 300 
 Los Angeles, CA 90064 
 Attn: Stacey Olliff, Esq., General Counsel 
 Facsimile No.: (310) 903-4290 
  

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 with a copy to: 
  

SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP 
 300 South Grand Avenue 
 Suite 3400 
 Los Angeles, California 90071 
 Attn: Brian J.
McCarthy, Esq. 
           Damon R. Fisher, Esq. 
 Facsimile No.: (213) 687-5600 
  
 Parent and Merger Sub: 
  
 THE E.W. SCRIPPS COMPANY 
 312 Walnut
Street 
 28th Floor 
 Cincinnati, Ohio 45202 
 Attn: Tim Peterman, Vice President Corporate Development 
 Facsimile No.: (513) 977-3024 
  
 and 
  
 THE E.W. SCRIPPS COMPANY 
 312 Walnut Street 
 28th Floor 
 Cincinnati, Ohio 45202 
 Attn: A.B. Cruz, Senior Vice President and General Counsel 
 Facsimile No.: (513) 977-3729 
  
 with a copy to: 
  
 BAKER & HOSTETLER LLP

 312 Walnut Street 
 Suite
3200 
 Cincinnati, Ohio 45202 
 Attn: William Appleton, Esq. 
 Facsimile No.: (513) 929-0303 
  

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 Shareholders’ Representative: 
  
 FARHAD MOHIT, as Agent 
 c/o Shopzilla, Inc. 
 12200 W. Olympic Boulevard, Suite 300 
 Los Angeles, CA 90064 
 Facsimile No.: (310)
903-4101 
  
 with a copy to: 
  
 SHOPZILLA, INC. 
 12200 W. Olympic Boulevard, Suite 300 
 Los
Angeles, CA 90064 
 Attn: Stacey Olliff, Esq., General Counsel 
 Facsimile No.: (310) 903-4290 
  
 Section 13.5 Jurisdiction; Venue; Service Of Process. Any Proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement (except as otherwise provided in Section 2.11 or in
Article XII) may be brought or otherwise commenced against any of the parties in any state or federal court of the United States or any state having jurisdiction. Process in any Proceeding referred to in the preceding sentence may be served
on any party anywhere in the world. 
  
 Section 13.6
Further Assurances. Each party agrees (a) to furnish to each other party such further information, (b) to execute and deliver to each other party such other documents, and (c) to do such other acts and things, all as each other party
reasonably requests for the purpose of carrying out the intent of this Agreement and the documents referred to in this Agreement. 
  
 Section 13.7 Waiver. The parties’ rights and remedies are cumulative and not alternative. A party’s failure or delay in
exercising any right, power, or privilege under this Agreement or the documents referred to in this Agreement will not operate as a waiver of such right, power, or privilege, and no single or partial exercise of any such right, power, or privilege
will preclude any other or further exercise of such right, power, or privilege or the exercise of any other right, power, or privilege. To the maximum extent permitted by applicable law: (a) no claim or right arising out of this Agreement or the
documents referred to in this Agreement can be discharged by one party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by the other party or parties, as applicable; (b) no waiver given by a party will
be applicable except in the specific instance for which it is given; and (c) no notice to or demand on one party will be deemed to be a waiver of any obligation of such party or of the right of the party giving such notice or demand to take further
action without notice or demand as provided in this Agreement or the documents referred to in this Agreement. 
  
 Section 13.8 Entire Agreement and Modification. This Agreement, together with the Annexes, Exhibits, Schedules and the Nondisclosure
Agreement, supersedes all prior agreements between the parties with respect to its subject matter and constitutes a complete and exclusive statement of the terms of the agreement between the parties with respect to its subject matter. This Agreement
may not be amended except by a written agreement executed by the parties. 
  

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 Section 13.9 Schedules. 
  
 (a) The information set forth in each of the Schedules shall
be deemed to provide the information contemplated by, or otherwise qualify, the representations and warranties of the Company set forth in the corresponding Section of this Agreement and any other Section of Article III so long as the
applicability of the disclosure to such other Schedules is apparent from the disclosure set forth in the Schedule in question or the Contract, document or instrument listed or described, and any information disclosed. 
  
 (b) The Schedules include descriptions of some Contracts
which may not meet the threshold requirements for disclosure that are set forth in this Agreement. The inclusion of such Contracts does not mean that all Contracts to which Company is a party are included in the Schedules or that such Contracts are
deemed to be material. Similarly, the Schedules may include certain information that does not meet the minimum standards of materiality requiring disclosure thereunder. The inclusion of such information does not mean that all information contained
therein is deemed to be material. 
  
 Section 13.10
Assignments and Successors. This Agreement shall not be assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent of the other parties. Subject to the preceding sentence, this Agreement
will be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns. 
  
 Section 13.11 Severability. If any provision of this Agreement is held invalid or unenforceable by any court of competent
jurisdiction, the other provisions of this Agreement will remain in full force and effect and the application of such provision to other Persons or circumstances will be interpreted so as reasonably to effect the intent of the parties hereto. Any
provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable. 
  
 Section 13.12 Section Headings; Construction. The headings of Articles and Sections in this Agreement
are provided for convenience only and will not affect its construction or interpretation. All references to “Article”, “Articles”, “Section” or “Sections” refer to the corresponding Article, Articles, Section
or Sections (or sub-Section or sub-Sections) of this Agreement. All words used in this Agreement will be construed to be of such gender or number as the circumstances require. Unless otherwise expressly provided, the word “including” does
not limit the preceding words or terms. 
  
 Section
13.13 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of California, regardless of the laws that might otherwise govern under applicable principles of conflicts of law.

  
 Section 13.14 Counterparts. This
Agreement may be executed in two or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. 
  
 Section 13.15 No Third Party Beneficiaries. This
Agreement is not intended to confer upon any Person other than the parties hereto and their respective successors and permitted assigns any rights or remedies hereunder. Notwithstanding the preceding sentence, after the Effective Time, (a) the
Non-Dissenting Shareholders and Closing Date Option Holders shall be third party beneficiaries of Parent’s 

  

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and the Surviving Corporation’s covenants and obligations pursuant to Sections 2.6, 2.11(b) – (f), 12.5, 12.6
and 12.8, provided that such third party beneficiary rights and remedies may be exercised only by the Shareholders’ Representative on their behalf pursuant to the terms of this Agreement, (b) the Indemnified Company Personnel shall be
third party beneficiaries of the covenants and obligations Parent and the Surviving Corporation set forth in Section 7.1, and (c) the Indemnitees (other than Parent or the Surviving Corporation) shall be third party beneficiaries under
Article XII. 
  
 Section 13.16
Shareholders’ Representative; Escrow Fund Arrangements. 
  
 (a) The Non-Dissenting Shareholders, by virtue of the approval of the principal terms of the Merger, hereby irrevocably nominate, constitute and appoint Farhad Mohit as the agent, agent for service of process and true
and lawful attorney-in-fact of the Non-Dissenting Shareholders (the “Shareholders’ Representative”), with full power of substitution, to act in the name, place and stead of the Non-Dissenting Shareholders with respect to this
Agreement and the Escrow Agreement and the taking by the Shareholders’ Representative of any and all actions and the making of any decisions required or permitted to be taken or made by the Shareholders’ Representative under this Agreement
or the Escrow Agreement including the exercise of the power: (i) to execute, deliver, acknowledge, certify and file (in the name of any or all of the Non-Dissenting Shareholders or otherwise) any and all documents and to take any and all actions
that the Shareholders’ Representative may, in his sole discretion, determine to be necessary, desirable or appropriate in connection with any matter covered in Section 2.11 or any indemnification claim under Article XII or under
the Escrow Agreement (including negotiating, entering into compromises or settlements of and demanding arbitration with respect to any such matters covered in Section 2.11 or any indemnification claim); and (ii) to give and receive notices
and communications under this Agreement and the Escrow Agreement. Farhad Mohit hereby accepts his appointment as the Shareholders’ Representative. 
  
 (b) The power of attorney granted in this Section 13.16: (i) is coupled with an interest and is irrevocable; (ii) may be delegated
by the Shareholders’ Representative; and (iii) shall survive the death or incapacity of each of the Non-Dissenting Shareholders. 
  
 (c) Notwithstanding anything to the contrary contained in this Agreement or the Escrow Agreement, each Indemnitee shall be entitled to
deal exclusively with the Shareholders’ Representative on all matters relating to Section 2.11, Article XII and the Escrow Agreement, 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 Non-Dissenting Shareholder by the Shareholders’ Representative, and on any other action taken or purported to be taken on behalf of any Non-Dissenting Shareholder by the
Shareholders’ Representative, as fully binding upon such Non-Dissenting Shareholder. 
  
 (d) The Shareholders’ Representative may at any time designate a replacement Shareholders’ Representative and the Non-Dissenting
Shareholders, by virtue of the approval of the principal terms of the Merger, hereby consent to such replacement Shareholders’ Representative. The Shareholders’ Representative may be changed by Escrow Participants whose Escrow
Participations total more than 50% from time to time upon not less than 10 days’ prior written notice to Parent and the Escrow Agent. If the Shareholders’ Representative shall die, become disabled or otherwise be unable to fulfill his
responsibilities as representative of the Non-Dissenting Shareholders, then the Non-Dissenting Shareholders shall, by “majority vote” within 30 days after such death or disability, appoint a successor 

  

 - 70 - 

 
representative and, promptly thereafter, shall notify Parent of the identity of such successor. Any such successor shall become the “Shareholders’
Representative” for purposes of this Agreement. If for any reason there is no Shareholders’ Representative at any time, all references herein to the Shareholders’ Representative shall be deemed to refer to the Non-Dissenting
Shareholders. 
  
 (e) No bond shall be required
of the Shareholders’ Representative and the Shareholders’ Representative shall receive no compensation for his services. The Shareholders’ Representative shall not be liable to any Non-Dissenting Shareholder for any act done or
omitted hereunder as Shareholders’ Representative while acting in good faith and in the exercise of his reasonable business judgment with respect to any matter arising out of or in connection with the acceptance or administration of his duties
hereunder (it being understood that any act done or omitted pursuant to the advice of counsel shall be conclusive evidence of such good faith). The Shareholders’ Representative shall be entitled to be indemnified out of the Escrow Fund for any
loss, liability or expense incurred without gross negligence or bad faith on the part of the Shareholders’ Representative with respect to any matter arising out of or in connection with the acceptance or administration of his duties hereunder.
The Shareholders’ Representative shall be entitled to recover any out-of-pocket costs and expenses reasonably incurred by the Shareholders’ Representative in good faith and in connection with actions taken by the Shareholders’
Representative pursuant to this Agreement and the Escrow Agreement (including the hiring of legal counsel and the incurring of legal fees and costs) from the Escrow Fund. The Shareholders’ Representative shall keep reasonably detailed records
of the costs and expenses for which he seeks reimbursement from the Escrow Fund. 
  
 (f) The Escrow Agreement will provide that, if at any time while funds remain in the Escrow Fund, the Shareholders’ Representative
delivers written instructions signed solely by him to the Escrow Agent to disburse funds therefrom as contemplated by Section 13.16(e), the Escrow Agent shall make the requested disbursement in the manner so instructed. 
  
 Section 13.17 Other Remedies; Specific Performance.
Except as otherwise provided in this Agreement, any and all remedies expressly conferred upon any party by the terms of this Agreement will be deemed cumulative with and not exclusive of any other remedy conferred by this Agreement, or by law or
equity upon such party, and the exercise by any party of any one remedy will not preclude the exercise of any other remedy. The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement were
not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties hereto shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce
specifically the terms and provisions hereof in any court of the United States or any state having jurisdiction, this being in addition to any other remedy to which they are entitled at law or in equity. 
  
 Section 13.18 Waiver of Jury Trial. Each of the parties
irrevocably waives any and all rights to trial by jury in any Proceeding between the parties arising out of or relating to this Agreement and the Contemplated Transactions. 
  
 Section 13.19 Incorporation by Reference. All references made in this Agreement to any Section,
Article, Annex, Exhibit or Schedule which is not otherwise expressly indicated to be a reference to another document shall be deemed to be a reference to a Section, Article, an Annex, Exhibit or Schedule to this Agreement. All such Annexes, Exhibits
and Schedules are incorporated in and made part of this Agreement by reference. 
  

 - 71 - 

 Section 13.20 Computation of Time. If the day on which any delivery or performance
is due under this Agreement is not a Business Day, the time for satisfaction of such delivery or performance shall be extended without any action on the part of any party to the next succeeding Business Day. 
  
 [Signatures of the parties intentionally appear on the next page.]

  

 - 72 - 

 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date first
written above. 
  

			
	THE E.W. SCRIPPS COMPANY
		
	By: 	 	 
	 	 	Richard A. Boehne, Executive Vice President
		
	By: 	 	 
	 	 	Joseph G. NeCastro, Senior Vice President and Chief Financial Officer
	
	GREEN MONSTER ACQUISITION CORP.
		
	By: 	 	 
	 	 	Joseph G. NeCastro, Senior Vice President and Chief Financial Officer
		
	By: 	 	 
	 	 	 Anatolio B. Cruz III, Vice President and
 General
Counsel

	
	SHOPZILLA, INC.
		
	By: 	 	 
	 	 	 Charles M. Davis, Chief Executive Officer

		
	By: 	 	 
	 	 	 Bradley Kates, Chief Financial Officer

	
	 
	 Farhad Mohit, as the Shareholders’ Representative

  
 [Signature Page
to Agreement and Plan of Merger and Reorganization]Indenture

 Exhibit 4.1 
  
 EXECUTION COPY 

  
 COMMONWEALTH TELEPHONE ENTERPRISES, INC. 
  
 To 
  
 The Bank of New York, 
 as Trustee 
  

  
 INDENTURE 
  
 Dated as of 
  
 August 3, 2005 
  

  
 2005 Series A 31⁄4% Convertible Notes due 2023 
  

 TABLE OF CONTENTS 
  

					
	 	 	 	  	PAGE

	ARTICLE 1
	DEFINITIONS
			
	Section 1.01.	 	Definitions	  	1
	
	ARTICLE 2
	ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF
NOTES
			
	Section 2.01.	 	Designation Amount And Issue Of Notes	  	9
	Section 2.02.	 	Form of Notes	  	9
	Section 2.03.	 	Date And Denomination Of Notes; Payments Of Interest	  	10
	Section 2.04.	 	Execution of Notes	  	12
	Section 2.05.	 	Exchange and Registration of Transfer of Notes	  	12
	Section 2.06.	 	Mutilated, Destroyed, Lost or Stolen Notes	  	15
	Section 2.07.	 	Temporary Notes	  	16
	Section 2.08.	 	Cancellation of Notes	  	17
	Section 2.09.	 	CUSIP Numbers	  	17
	
	ARTICLE 3
	REDEMPTION AND REPURCHASE OF NOTES
			
	Section 3.01.	 	Redemption of Notes	  	17
	Section 3.02.	 	Notice of Optional Redemption; Selection of Notes	  	17
	Section 3.03.	 	Payment of Notes Called For Redemption by the Company	  	19
	Section 3.04.	 	Conversion Arrangement on Call for Redemption	  	20
	Section 3.05.	 	Repurchase at Option of Holders Upon a Designated Event	  	21
	Section 3.06.	 	Repurchase of Notes by the Company at Option of the Holder	  	24
	Section 3.07.	 	Company Repurchase Notice	  	25
	Section 3.08.	 	Effect of Repurchase Notice	  	26
	Section 3.09.	 	Deposit of Repurchase Price	  	27
	Section 3.10.	 	Notes Repurchased in Part	  	27
	Section 3.11.	 	Repayment to the Company	  	27
	
	ARTICLE 4
	CONTINGENT INTEREST
			
	Section 4.01.	 	Contingent Interest	  	28
	Section 4.02.	 	Payment of Contingent Interest	  	28
	Section 4.03.	 	Contingent Interest Notification	  	28

					
	ARTICLE 5
	PARTICULAR COVENANTS OF THE COMPANY
			
	Section 5.01.	 	Payment of Principal and Interest	  	28
	Section 5.02.	 	Maintenance of Office or Agency	  	29
	Section 5.03.	 	Appointments to Fill Vacancies in Trustee’s Office	  	29
	Section 5.04.	 	Provisions as to Paying Agent	  	29
	Section 5.05.	 	Existence	  	30
	Section 5.06.	 	Maintenance of Properties	  	31
	Section 5.07.	 	Payment of Taxes and Other Claims	  	31
	Section 5.08.	 	[Intentionally Omitted]	  	31
	Section 5.09.	 	Stay, Extension and Usury Laws	  	31
	Section 5.10.	 	Compliance Certificate	  	31
	Section 5.11.	 	[Intentionally Omitted]	  	32
	Section 5.12.	 	Contingent Debt Tax Treatment	  	32
	Section 5.13.	 	Calculation of Original Issue Discount	  	32
	
	ARTICLE 6
	NOTEHOLDERS’ LISTS AND REPORTS BY THE COMPANY
AND THE TRUSTEE
			
	Section 6.01.	 	Noteholders’ Lists	  	32
	Section 6.02.	 	Preservation And Disclosure Of Lists	  	33
	Section 6.03.	 	Reports By Trustee	  	33
	Section 6.04.	 	Reports by Company	  	33
	
	ARTICLE 7
	REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON AN
EVENT OF DEFAULT
			
	Section 7.01.	 	Events Of Default	  	34
	Section 7.02.	 	Payments of Notes on Default; Suit Therefor	  	36
	Section 7.03.	 	Application of Monies Collected By Trustee	  	37
	Section 7.04.	 	Proceedings by Noteholder	  	38
	Section 7.05.	 	Proceedings By Trustee	  	39
	Section 7.06.	 	Remedies Cumulative And Continuing	  	39
	Section 7.07.	 	Direction of Proceedings and Waiver of Defaults By Majority of Noteholders	  	39
	Section 7.08.	 	Notice of Defaults	  	40
	Section 7.09.	 	Undertaking To Pay Costs	  	40
	
	ARTICLE 8
	THE TRUSTEE
			
	Section 8.01.	 	Duties and Responsibilities of Trustee	  	40
	Section 8.02.	 	Reliance on Documents, Opinions, Etc	  	42
	Section 8.03.	 	No Responsibility For Recitals, Etc	  	43

  

 ii 

					
	Section 8.04.	 	Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes	  	43
	Section 8.05.	 	Monies to Be Held in Trust	  	43
	Section 8.06.	 	Compensation and Expenses of Trustee	  	43
	Section 8.07.	 	Officers’ Certificate As Evidence	  	44
	Section 8.08.	 	Conflicting Interests of Trustee	  	44
	Section 8.09.	 	Eligibility of Trustee	  	44
	Section 8.10.	 	Resignation or Removal of Trustee.	  	45
	Section 8.11.	 	Acceptance by Successor Trustee	  	46
	Section 8.12.	 	Succession By Merger	  	47
	Section 8.13.	 	Preferential Collection of Claims	  	47
	Section 8.14.	 	Trustee’s Application For Instructions From The Company	  	47
	
	ARTICLE 9
	THE NOTEHOLDERS
			
	Section 9.01.	 	Action By Noteholders	  	48
	Section 9.02.	 	Proof of Execution by Noteholders	  	48
	Section 9.03.	 	Who Are Deemed Absolute Owners	  	48
	Section 9.04.	 	Company-owned Notes Disregarded	  	49
	Section 9.05.	 	Revocation Of Consents, Future Holders Bound	  	49
	
	ARTICLE 10
	MEETINGS OF NOTEHOLDERS
			
	Section 10.01.	 	Purpose Of Meetings	  	49
	Section 10.02.	 	Call Of Meetings By Trustee	  	50
	Section 10.03.	 	Call Of Meetings By Company Or Noteholders	  	50
	Section 10.04.	 	Qualifications For Voting	  	50
	Section 10.05.	 	Regulations	  	50
	Section 10.06.	 	Voting	  	51
	Section 10.07.	 	No Delay Of Rights By Meeting	  	52
	
	ARTICLE 11
	SUPPLEMENTAL INDENTURES
			
	Section 11.01.	 	Supplemental Indentures Without Consent of Noteholders	  	52
	Section 11.02.	 	Supplemental Indenture With Consent Of Noteholders	  	53
	Section 11.03.	 	Effect Of Supplemental Indenture	  	54
	Section 11.04.	 	Notation On Notes	  	54
	Section 11.05.	 	Evidence Of Compliance Of Supplemental Indenture To Be Furnished To Trustee	  	55

  

 iii 

					
	ARTICLE 12
	CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE
			
	Section 12.01.	 	Company May Consolidate On Certain Terms	  	55
	Section 12.02.	 	Successor To Be Substituted	  	55
	Section 12.03.	 	Opinion Of Counsel To Be Given To Trustee	  	56
	
	ARTICLE 13
	SATISFACTION AND DISCHARGE OF INDENTURE
			
	Section 13.01.	 	Discharge Of Indenture	  	56
	Section 13.02.	 	Deposited Monies To Be Held In Trust By Trustee	  	57
	Section 13.03.	 	Paying Agent To Repay Monies Held	  	57
	Section 13.04.	 	Return Of Unclaimed Monies	  	57
	Section 13.05.	 	Reinstatement	  	57
	
	ARTICLE 14
	IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND
DIRECTORS
			
	Section 14.01.	 	Indenture And Notes Solely Corporate Obligations	  	58
	
	ARTICLE 15
	CONVERSION OF NOTES
			
	Section 15.01.	 	Right To Convert	  	58
	 Section 15.02.
	 	 Exercise Of Conversion Privilege; Issuance Of Common Stock On Conversion; No Adjustment For Interest Or Dividends
	  	61
	Section 15.03.	 	Settlement Upon Conversion	  	63
	Section 15.04.	 	Cash Payments in Lieu of Fractional Shares	  	65
	Section 15.05.	 	Conversion Rate	  	65
	Section 15.06.	 	Adjustment Of Conversion Rate	  	65
	Section 15.07.	 	Effect Of Reclassification, Consolidation, Merger or Sale	  	75
	Section 15.08.	 	Taxes On Shares Issued	  	77
	Section 15.09.	 	 Reservation of Shares, Shares to Be Fully Paid; Compliance With Governmental Requirements; Listing of Common Stock
	  	77
	Section 15.10.	 	Responsibility Of Trustee	  	78
	Section 15.11.	 	Notice To Holders Prior To Certain Actions	  	78
	Section 15.12.	 	Shareholder Rights Plans	  	79
	
	ARTICLE 16
	MISCELLANEOUS PROVISIONS
			
	Section 16.01.	 	Provisions Binding On Company’s Successors	  	80
	Section 16.02.	 	Official Acts By Successor Corporation	  	80
	Section 16.03.	 	Addresses For Notices, Etc	  	80
	Section 16.04.	 	Governing Law	  	80
	Section 16.05.	 	Evidence Of Compliance With Conditions Precedent, Certificates To Trustee	  	80
	Section 16.06.	 	Legal Holidays	  	81

  

 iv 

					
	Section 16.07.	  	Trust Indenture Act	  	81
	Section 16.08.	  	No Security Interest Created	  	81
	Section 16.09.	  	Benefits Of Indenture	  	81
	Section 16.10.	  	Table Of Contents, Headings, Etc	  	82
	Section 16.11.	  	Authenticating Agent	  	82
	Section 16.12.	  	Execution In Counterparts	  	83
	Section 16.13.	  	Severability	  	83
			
	Exhibit A	  	Form of Note	  	A-1

  

 v 

 INDENTURE 
  

INDENTURE dated as of August 3, 2005, between Commonwealth Telephone Enterprises, Inc., a Pennsylvania corporation (hereinafter called the
“Company”), having its principal office at 100 CTE Drive, Dallas, Pennsylvania 18612-9774 and The Bank of New York, a New York banking corporation, as trustee hereunder (hereinafter called the “Trustee”).

  
 WITNESSETH: 
  
 WHEREAS, for its lawful corporate purposes, the Company has duly authorized
the issue of its 2005 Series A 31⁄4% Convertible Notes due 2023 (hereinafter called the “Notes”), in an aggregate principal amount not to exceed $300,000,000 and, to provide the terms and conditions upon which the Notes are to be
authenticated, issued and delivered, the Company has duly authorized the execution and delivery of this Indenture; and 
  
 WHEREAS, the Notes, the certificate of authentication to be borne by the Notes, a form of assignment, a form of Designated Event repurchase notice, a form
of repurchase notice and a form of conversion notice to be borne by the Notes are to be substantially in the forms hereinafter provided for; and 
  
 WHEREAS, all acts and things necessary to make the Notes, when executed by the Company and authenticated and delivered by the Trustee or a duly authorized
authenticating agent, as in this Indenture provided, the valid, binding and legal obligations of the Company, and to constitute this Indenture a valid agreement according to its terms, have been done and performed, and the execution of this
Indenture and the issue hereunder of the Notes have in all respects been duly authorized, 
  
 NOW, THEREFORE, THIS INDENTURE WITNESSETH: 
  
 That in order to declare the terms and conditions upon which the Notes are, and are to be, authenticated, issued and delivered, and in consideration of the premises and of the purchase and acceptance of the Notes by
the holders thereof, the Company covenants and agrees with the Trustee for the equal and proportionate benefit of the respective holders from time to time of the Notes (except as otherwise provided below), as follows: 
  
 ARTICLE 1 
 DEFINITIONS 
  
 Section 1.01. Definitions. The terms defined in this Section 1.01 (except as herein otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture and of any indenture
supplemental hereto shall have the respective meanings specified in this Section 1.01. All other terms used in this Indenture that are defined in the Trust Indenture Act or which are by reference therein defined in the Securities Act (except as
herein otherwise expressly provided or unless the context 

 
otherwise requires) shall have the meanings assigned to such terms in the Trust Indenture Act and in the Securities Act as in force at the date of the
execution of this Indenture. The words “herein”, “hereof”, “hereunder” and words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other Subdivision.
The terms defined in this Article include the plural as well as the singular. 
  
 “Adjustment Event” has the meaning specified in Section 15.06(l). 
  
 “Agent Members” has the meaning specified in Section 2.05(b). 
  
 “Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled
by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control”, when used with respect to any specified Person means the power to direct or cause the direction of the
management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to
the foregoing. 
  
 “Board of Directors” means the
Board of Directors of the Company or a committee of such Board duly authorized to act for it hereunder. 
  
 “Business Day” means any day except a Saturday, Sunday or legal holiday on which banking institutions in The City of New York are
authorized or obligated by law, regulation or executive order to close. 
  
 “Cash Settlement Averaging Period” means, in respect of any Conversion Date or other settlement of the Conversion Obligation that the Company has elected to satisfy partly or wholly in cash pursuant to Section 15.03, the
twenty consecutive Trading Day period: 
  
 (i)
ending on the second Trading Day preceding any date fixed for the redemption of the Notes, with respect to Conversion Notices received after the related Notice Date; 
  
 (ii) ending on the second Trading Day preceding July 15, 2023, with respect to conversion notices received
during the period beginning on, and including, the Final Notice Date and ending one Trading Day preceding July 15, 2023; and 
  
 (iii) beginning on the Trading Day following the final Trading Day of the Conversion Retraction Period, in all other cases. 
  
 “Closing Sale Price” of the shares of Common Stock, or any
other security for which a closing sale price must be determined, on any date means the closing per share (or per unit of such security) sale price (or if no closing sale price is reported, the average of the closing bid and ask prices or, if more
than one in either case, the average of the average closing bid and the average closing ask prices) on such date as reported in composite transactions for the principal United States national or regional securities 

  

 2 

 
exchange on which shares of Common Stock (or such security) are traded or, if the shares of Common Stock (or such security) are not listed on a United States
national or regional securities exchange, as reported by the Nasdaq National Market System or by the National Quotation Bureau Incorporated. In the absence of such quotations, the Company shall be entitled to determine the Closing Sale Price on the
basis it considers appropriate and such determination shall be conclusive. 
  
 “Commission” means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at any time after the execution of this Indenture such Commission is
not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time. 
  
 “Common Stock” means any stock of any class of the Company which has no preference in respect of dividends or of amounts payable in the
event of any voluntary or involuntary liquidation, dissolution or winding up of the Company and which is not subject to redemption by the Company. Subject to the provisions of Section 15.07, however, shares issuable on conversion of Notes shall
include only shares of the class designated as common stock of the Company at the date of this Indenture (namely, the Common Stock, par value $1.00) or shares of any class or classes resulting from any reclassification or reclassifications thereof
and which have no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company and which are not subject to redemption by the Company; provided
that if at any time there shall be more than one such resulting class, the shares of each such class then so issuable on conversion shall be substantially in the proportion which the total number of shares of such class resulting from all such
reclassifications bears to the total number of shares of all such classes resulting from all such reclassifications. 
  
 “Company” means the corporation named as the “Company” in the first paragraph of this Indenture, and, subject to the
provisions of Article 12 and Section 15.07, shall include its successors and assigns. 
  
 “Company Repurchase Notice” has the meaning specified in Section 3.07(b). 
  
 “Company Repurchase Notice Date” has the meaning specified in Section 3.07(b). 
  
 “Contingent Interest” has the meaning specified in Section
4.01. 
  
 “Conversion Date” has the meaning
specified in Section 15.02. 
  
 “Conversion
Notice” has the meaning specified in Section 15.02. 
  
 “Conversion Obligation” has the meaning specified in Section 15.03(a). 
  
 “Conversion Price” as of any day will equal $1,000 divided by the Conversion Rate as of such date. 
  

 3 

 “Conversion Rate” has the meaning specified in Section 15.05. 
  
 “Conversion Retraction Period” has the meaning specified in
Section 15.03(b). 
  
 “Conversion Value” has the
meaning specified in Section 15.03(b). 
  
 “Corporate
Trust Office” or other similar term, means the designated office of the Trustee at which at any particular time its corporate trust business as it relates to this Indenture shall be administered, which office is, at the date as of which
this Indenture is dated, located at 101 Barclay Street, 8 West, New York, New York 10286. 
  
 “Current Market Price” has the meaning specified in Section 15.06(h). 
  
 “Custodian” means The Bank of New York, as custodian with respect to the Notes in global form, or any successor entity thereto.

  
 “Daily Conversion Value Amount” means, for
each Trading Day during any Cash Settlement Averaging Period and for each $1,000 principal amount of Notes, the amount equal to (x) the product of (1) the Closing Sale Price of the Common Stock on such Trading Day multiplied by (2) the Conversion
Rate in effect on such Trading Day, divided by (y) 20. 
  
 “Daily Share Amount” means, for each Trading Day during any Cash Settlement Averaging Period and for each $1,000 principal amount of Notes, a number of shares of Common Stock (but in no event less than zero) determined by
the following formula: 
  

					
	Conversion Rate in effect
on such Trading Day	 	x	    	(100% – Y%)
	20

  
 where Y% is equal to (i) in the case
where the Settlement Method Election Notice sets forth a Specified Percentage pursuant to Section 15.03(b)(iii)(A)(2), such Specified Percentage or (ii) in the case where the Settlement Method Election Notice sets forth a Specified Dollar Amount
pursuant to Section 15.03(b)(iii)(A)(1), a percentage equal to (x) the result of (A) such Specified Dollar Amount divided by (B) the Conversion Value multiplied by (y) 100. 
  
 The Daily Share Amount for any Trading Day during any Cash Settlement Averaging Period shall be subject to adjustment by the
Company in the event that an event requiring an adjustment to the Conversion Rate occurs subsequent to such Trading Day but prior to the date that the Daily Share Amount for such Trading Day is delivered to holders pursuant to Section 15.03.

  
 “Default” means any event that is, or after
notice or passage of time, or both, would be, an Event of Default. 
  
 “Defaulted Interest” has the meaning specified in Section 2.03. 
  

 4 

 “Depositary” means, the clearing agency registered under the Exchange Act that is
designated to act as the Depositary for the Global Notes. The Depository Trust Company shall be the initial Depositary, until a successor shall have been appointed and become such pursuant to the applicable provisions of this Indenture, and
thereafter, “Depositary” shall mean or include such successor. 
  
 “Designated Event” shall mean any Fundamental Change or a Termination of Trading. 
  
 “Designated Event Expiration Time” has the meaning specified in Section 3.05(b). 
  
 “Designated Event Notice” has the meaning specified in
Section 3.05(b). 
  
 “Designated Event Repurchase
Date” has the meaning specified in Section 3.05(a). 
  
 “Determination Date” has the meaning specified in Section 15.06(l). 
  
 “Event of Default” means any event specified in Section 7.01 as an Event of Default. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, as in effect
from time to time. 
  
 “Exchange Property” has
the meaning specified in Section 15.07(b). 
  
 “Exchange
Property Value” has the meaning specified in Section 15.07(c). 
  
 “Ex-Dividend Time” means, with respect to any distribution on shares of Common Stock, the first date on which the shares of Common Stock trade regular way on the principal securities market on which the shares of Common
Stock are then traded without the right to receive such distribution. 
  
 “Expiration Time” has the meaning specified in Section 15.06(f). 
  
 “Fair Market Value” has the meaning specified in Section 15.06(h). 
  
 “Final Notice Date” has the meaning specified in Section 15.03(c). 
  
 “Fiscal Quarter” means, with respect to the Company, the first, second, third and fourth quarter of any
fiscal year ending on March 31, June 30, September 30 and December 31, respectively. 
  
 “Fundamental Change” means the occurrence of any transaction or event (whether by means of an exchange offer, liquidation, tender offer, consolidation, merger, combination, reclassification,
recapitalization or otherwise) in connection with which all or substantially all of the Common Stock shall be exchanged for, converted into, acquired 

  

 5 

 
for or constitutes solely the right to receive, consideration which is not all or substantially all common stock that is (or, upon consummation of or
immediately following such transaction or event, which will be) listed on a United States national securities exchange or approved (or, upon consummation of or immediately following such transaction or event, which will be approved) for quotation on
the Nasdaq National Market or any similar United States system of automated dissemination of quotations of securities prices. 
  
 “Global Note” has the meaning specified in Section 2.02. 
  
 “Indenture” means this instrument as originally executed or, if amended or supplemented as herein provided,
as so amended or supplemented. 
  
 “Interest”
means, when used with reference to the Notes, any interest payable under the terms of the Notes, including Contingent Interest, if any. 
  
 “Measurement Period” has the meaning specified in Section 15.01. 
  
 “Non-electing share” has the meaning specified in Section 15.07. 
  
 “Note” or “Notes” means any Note or Notes,
as the case may be, authenticated and delivered under this Indenture, including any Global Note. 
  
 “Noteholder” or “holder” as applied to any Note, or other similar terms (but excluding the term “Beneficial
Holder”), means any Person in whose name at the time a particular Note is registered on the Note Registrar’s books. 
  
 “Note Register” has the meaning specified in Section 2.05. 
  
 “Note Registrar” has the meaning specified in Section 2.05. 
  
 “Notice Date” means the date of mailing of the notice of
redemption pursuant to Section 3.02. 
  
 “Offer Expiration
Time” has the meaning specified in Section 15.06(g). 
  
 “Offeror Purchased Shares” has the meaning specified in Section 15.06(g). 
  
 “Officers’ Certificate”, when used with respect to the Company, means a certificate signed by the Chairman of the Board, the Chief
Executive Officer, the President or any Vice President (whether or not designated by a number or numbers or word or words added before or after the title “Vice President”) and the Treasurer or any Assistant Treasurer, or the Secretary or
Assistant Secretary of the Company. 
  
 “Opinion of
Counsel” means an opinion in writing signed by legal counsel, who may be an employee of or counsel to the Company. 
  

 6 

 “Outstanding”, when used with reference to Notes and subject to the provisions of
Section 9.04, means, as of any particular time, all Notes authenticated and delivered by the Trustee under this Indenture, except: 
  
 (i) Notes theretofore canceled by the Trustee or delivered to the Trustee for cancellation; 
  
 (ii) Notes, or portions thereof, (i) for the redemption of
which monies in the necessary amount shall have been deposited in trust with the Trustee or with any paying agent (other than the Company) or (ii) which shall have been otherwise discharged in accordance with Article 13; 
  
 (iii) Notes in lieu of which, or in substitution for which,
other Notes shall have been authenticated and delivered pursuant to the terms of Section 2.06; and 
  
 (iv) Notes converted into Common Stock pursuant to Article 15 and Notes deemed not outstanding pursuant to Article 3. 
  
 “Person” means a corporation, an association, a partnership,
a limited liability company, an individual, a joint venture, a joint stock company, a trust, an unincorporated organization or a government or an agency or a political subdivision thereof. 
  
 “Predecessor Note” of any particular Note means every
previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note, and, for the purposes of this definition, any Note authenticated and delivered under Section 2.06 in exchange for a mutilated Note or in lieu of a
lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated lost, destroyed or stolen Note that it replaces. 
  
 “Purchased Shares” has the meaning specified in Section 15.05(f). 
  
 “Record Date” has the meaning specified in Section 15.05(h). 
  
 “Repurchase Date” has the meaning specified in Section 3.06.

  
 “Repurchase Notice” has the meaning specified
in Section 3.06. 
  
 “Responsible Officer” shall
mean, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee with direct responsibility for the administration of this Indenture and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of such person’s knowledge of any familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture. 
  
 “Securities” has the meaning specified in Section 15.06(d).

  

 7 

 “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder, as in effect from time to time. 
  
 “Settlement Method Election Notice” has the meaning specified in Section 15.03(b). 
  
 “Settlement Method Notice Period” has the meaning specified in Section 15.03(b). 
  
 “Significant Subsidiary” means, as of any date of
determination, a Subsidiary of the Company that would constitute a “significant subsidiary” as such term is defined under Rule 1-02(w) of Regulation S-X of the Commission as in effect on the date of this Indenture. 
  
 “Specified Dollar Amount” has the meaning specified in
Section 15.03(b). 
  
 “Specified Percentage” has
the meaning specified in Section 15.03(b). 
  
 “Subsidiary” means, with respect to any Person, (i) any corporation, association or other business entity of which more than 50% of the total voting power of shares of capital stock or other equity interest entitled
(without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other subsidiaries of that
Person (or a combination thereof) and (ii) any partnership (a) the sole general partner or managing general partner of which is such Person or a subsidiary of such Person or (b) the only general partners of which are such Person or of one or more
subsidiaries of such Person (or any combination thereof). 
  
 “Tax Original Issue Discount” means the amount of ordinary interest income on a Note that must be accrued as original issue discount for United States federal income tax purposes pursuant to United States Treasury
Regulation section 1.1275-4 or any successor provision. 
  
 “Termination of Trading” will be deemed to have occurred if the Common Stock (or other common stock into which the Notes are then convertible) is neither listed for trading on a United States national securities exchange
nor approved for trading on the Nasdaq National Market. 
  
 “Trading Day” has the meaning specified in Section 15.06(h). 
  
 “Trading Price” means, on any date, the average of the secondary market bid quotations per $1,000 principal amount of Notes obtained by the Trustee for $10,000,000 principal amount of Notes at
approximately 3:30 p.m., New York City time, on such date from three independent nationally recognized securities dealers selected by the Company; provided that if at least three such bids cannot reasonably be obtained by the Trustee, but two
bids are obtained, then the average of the two such bids shall be used, and if only one such bid can reasonably be obtained by the Trustee, one bid shall be used; provided further that if the Trustee cannot reasonably obtain at least one bid
for $10,000,000 

  

 8 

 
principal amount of Notes from a nationally recognized securities dealer, then the Trading Price per $1,000 principal amount of Notes on such date shall be
deemed to be less than 98% of the product of (a) the number of shares of Common Stock issuable upon conversion of $1,000 principal amount of Notes and (b) the Closing Sale Price of the Common Stock on such date. 
  
 “Trigger Event” has the meaning specified in Section
15.06(d). 
  
 “Trust Indenture Act” means the
Trust Indenture Act of 1939, as amended, as it was in force at the date of this Indenture, except as provided in Sections 11.03 and 15.07; provided that if the Trust Indenture Act of 1939 is amended after the date hereof, the term
“Trust Indenture Act” shall mean, to the extent required by such amendment, the Trust Indenture Act of 1939 as so amended. 
  
 “Trustee” means The Bank of New York and its successors and any corporation resulting from or surviving any consolidation or merger to
which it or its successors may be a party and any successor trustee at the time serving as successor trustee hereunder. 
  
 ARTICLE 2 
 ISSUE,
DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES 
  
 Section 2.01. Designation Amount And Issue Of Notes. The Notes shall be designated as “2005 Series A 31⁄4%
Convertible Notes due 2023”. Notes not to exceed the aggregate principal amount of $300,000,000 (except pursuant to Sections 2.05, 2.06, 3.03, 3.05, 3.06, 3.10 and 15.02 hereof) upon the execution of this Indenture, or from time to time
thereafter, may be executed by the Company and delivered to the Trustee for authentication, and the Trustee shall thereupon authenticate and deliver said Notes to or upon the written order of the Company, signed by its Chairman of the Board, Chief
Executive Officer, President or any Vice President (whether or not designated by a number or numbers or word or words added before or after the title “Vice President”), the Treasurer or any Assistant Treasurer or the Secretary or Assistant
Secretary, without any further action by the Company hereunder. 
  
 Section 2.02. Form of Notes. The Notes and the Trustee’s certificate of authentication to be borne by such Notes shall be substantially in the form set forth in Exhibit A. The terms and provisions contained in the form of Note
attached as Exhibit A hereto shall constitute, and are hereby expressly made, a part of this Indenture and, to the extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and
provisions and to be bound thereby. 
  
 Any of the Notes may have
such letters, numbers or other marks of identification and such notations, legends, endorsements or changes as the officers executing the same may approve (execution thereof to be conclusive evidence of such approval) and as are not inconsistent
with the provisions of this Indenture, or as may be required by the Custodian, the Depositary or by the National Association of Securities Dealers, Inc. as may be required to comply with any applicable law or with any rule or regulation made 

  

 9 

 
pursuant thereto or with any rule or regulation of any securities exchange or automated quotation system on which the Notes may be listed, or to conform to
usage, or to indicate any special limitations or restrictions to which any particular Notes are subject. 
  
 So long as the Notes are eligible for book-entry settlement with the Depositary, or unless otherwise required by law, or otherwise contemplated by Section
2.05(a), all of the Notes will be represented by one or more Notes in global form registered in the name of the Depositary or the nominee of the Depositary (a “Global Note”). The transfer and exchange of beneficial interests in any
such Global Note shall be effected through the Depositary in accordance with this Indenture and the applicable procedures of the Depositary. Except as provided in Section 2.05(a), beneficial owners of a Global Note shall not be entitled to have
certificates registered in their names, will not receive or be entitled to receive physical delivery of certificates in definitive form and will not be considered holders of such Global Note. 
  
 Any Global Note shall represent such of the outstanding Notes as shall be
specified therein and shall provide that it shall represent the aggregate amount of outstanding Notes from time to time endorsed thereon and that the aggregate amount of outstanding Notes represented thereby may from time to time be increased or
reduced to reflect redemptions, repurchases, conversions, transfers or exchanges permitted hereby. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the amount of outstanding Notes represented thereby shall be
made by the Trustee or the Custodian, at the direction of the Trustee, in such manner and upon instructions given by the holder of such Notes in accordance with this Indenture. Payment of principal of and Interest on any Global Note shall be made to
the holder of such Note. 
  
 Section 2.03. Date And
Denomination Of Notes; Payments Of Interest. The Notes shall be issuable in registered form without coupons in denominations of $1,000 principal amount and integral multiples thereof. Each Note shall be dated the date of its authentication and
shall bear Interest from the date specified on the face of the form of Note attached as Exhibit A hereto. Interest on the Notes shall be computed on the basis of a 360-day year comprised of twelve 30-day months. 
  
 The Person in whose name any Note (or its Predecessor Note) is registered on
the Note Register at the close of business on any record date with respect to any interest payment date shall be entitled to receive the Interest payable on such interest payment date, except that the Interest payable upon redemption or repurchase
will be payable to the Person to whom principal is payable pursuant to such redemption or repurchase (unless the redemption date or the repurchase date, as the case may be, falls after a record date and on or prior to the corresponding interest
payment date, in which case accrued and unpaid Interest to, but excluding, such redemption date or repurchase date shall be payable on such interest payment date to the holders of such Notes registered as such on the applicable record date).

  
 Interest shall be payable at the office of the Company
maintained by the Company for such purposes in the Borough of Manhattan, City of New York, which shall initially be an office or agency of the Trustee. The Company shall pay Interest (i) on any Notes in 

  

 10 

 
certificated form by check mailed to the address of the Person entitled thereto as it appears in the Note Register (or upon written notice, by wire transfer
in immediately available funds, if such Person is entitled to Interest on aggregate principal in excess of $2 million) or (ii) on any Global Note by wire transfer of immediately available funds to the account of the Depositary or its nominee. The
term “record date” with respect to any interest payment date shall mean the January 1 or July 1 preceding the applicable January 15 or July 15 interest payment date, respectively. 
  
 Any Interest on any Note which is payable, but is not punctually paid or duly
provided for, on any January 15 or July 15 (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Noteholder on the relevant record date by virtue of his having been such Noteholder, and such Defaulted
Interest shall be paid by the Company, at its election in each case, as provided in clause (1) or (2) below: 
  
 (1) The Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Notes (or their respective Predecessor Notes) are
registered at the close of business on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be
paid on each Note and the date of the proposed payment (which shall be not less than twenty-five (25) days after the receipt by the Trustee of such notice, unless the Trustee shall consent to an earlier date), and at the same time the Company shall
deposit with the Trustee an amount of money equal to the aggregate amount to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit on or prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special record date for the payment of such Defaulted Interest which shall be
not more than fifteen (15) days and not less than ten (10) days prior to the date of the proposed payment, and not less than ten (10) days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the
Company of such special record date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor to be mailed, first-class postage prepaid, to each
holder at his address as it appears in the Note Register, not less than ten (10) days prior to such special record date. Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been so mailed, such
Defaulted Interest shall be paid to the Persons in whose names the Notes (or their respective Predecessor Notes) are registered at the close of business on such special record date and shall no longer be payable pursuant to the following clause (2)
of this Section 2.03. 
  
 (2) The Company may make payment of any
Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange or automated quotation system on which the Notes may be listed or designated for issuance, and upon such notice as may be required by
such exchange or automated quotation system, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee. 
  

 11 

 Section 2.04. Execution of Notes. The Notes shall be signed in the name and on behalf of the
Company by the manual or facsimile signature of its Chairman of the Board, Chief Executive Officer, President or any Vice President (whether or not designated by a number or numbers or word or words added before or after the title “Vice
President”) and attested by the manual or facsimile signature of its Secretary or any of its Assistant Secretaries or its Treasurer or any of its Assistant Treasurers (which may be printed, engraved or otherwise reproduced thereon, by facsimile
or otherwise). Only such Notes as shall bear thereon a certificate of authentication substantially in the form set forth on the form of Note attached as Exhibit A hereto, manually executed by the Trustee (or an authenticating agent appointed by the
Trustee as provided by Section 16.11), shall be entitled to the benefits of this Indenture or be valid or obligatory for any purpose. Such certificate by the Trustee (or such an authenticating agent) upon any Note executed by the Company shall be
conclusive evidence that the Note so authenticated has been duly authenticated and delivered hereunder and that the holder is entitled to the benefits of this Indenture. 
  
 In case any officer of the Company who shall have signed any of the Notes shall cease to be such officer before the Notes so
signed shall have been authenticated and delivered by the Trustee, or disposed of by the Company, such Notes nevertheless may be authenticated and delivered or disposed of as though the person who signed such Notes had not ceased to be such officer
of the Company, and any Note may be signed on behalf of the Company by such persons as, at the actual date of the execution of such Note, shall be the proper officers of the Company, although at the date of the execution of this Indenture any such
person was not such an officer. 
  
 Section 2.05. Exchange and
Registration of Transfer of Notes. 
  
 (a) The Company shall
cause to be kept at the Corporate Trust Office a register (the register maintained in such office and in any other office or agency of the Company designated pursuant to Section 5.02 being herein sometimes collectively referred to as the
“Note Register”) in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of Notes and of transfers of Notes. The Note Register shall be in written form or in any form
capable of being converted into written form within a reasonably prompt period of time. The Trustee is hereby appointed “Note Registrar” for the purpose of registering Notes and transfers of Notes as herein provided. The Company may
appoint one or more co-registrars in accordance with Section 5.02. 
  
 Upon surrender for registration of transfer of any Note to the Note Registrar or any co-registrar, and satisfaction of the requirements for such transfer set forth in this Section 2.05, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or transferees, one or more new Notes of any authorized denominations and of a like aggregate principal amount and bearing such restrictive legends as may be required by this
Indenture. 
  
 Notes may be exchanged for other Notes of any
authorized denominations and of a like aggregate principal amount, upon surrender of the Notes to be exchanged at any such office or agency maintained by the Company pursuant to Section 5.02. Whenever any Notes are so surrendered for exchange, the
Company shall execute, and the Trustee shall authenticate and deliver, the Notes which the Noteholder making the exchange is entitled to receive bearing registration numbers not contemporaneously outstanding. 
  

 12 

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

  

 13 

 
the Notes represented by Global Notes. Any Global Note exchanged pursuant to clause (A) or (B) above shall be so exchanged in whole and not in part and any
Global Note exchanged pursuant to clause (C) above may be exchanged in whole or from time to time in part as directed by the Company. Any Note issued in exchange for a Global Note or any portion thereof shall be a Global Note; provided that
any such Note so issued that is registered in the name of a Person other than the Depositary or a nominee thereof shall not be a Global Note. 
  
 (iii) Securities issued in exchange for a Global Note or any portion thereof pursuant to clause (ii) above shall be issued in definitive,
fully registered form, without interest coupons, shall have an aggregate principal amount equal to that of such Global Note or portion thereof to be so exchanged, shall be registered in such names and be in such authorized denominations as the
Depositary shall designate and shall bear any legends required hereunder. Any Global Note to be exchanged in whole shall be surrendered by the Depositary to the Trustee, as Note Registrar. With regard to any Global Note to be exchanged in part,
either such Global Note shall be so surrendered for exchange or, if the Trustee is acting as Custodian for the Depositary or its nominee with respect to such Global Note, the principal amount thereof shall be reduced, by an amount equal to the
portion thereof to be so exchanged, by means of an appropriate adjustment made on the records of the Trustee. Upon any such surrender or adjustment, the Trustee shall authenticate and make available for delivery the Note issuable on such exchange to
or upon the written order of the Depositary or an authorized representative thereof. 
  
 (iv) In the event of the occurrence of any of the events specified in clause (ii) above, the Company will promptly make available to the
Trustee a reasonable supply of certificated Notes in definitive, fully registered form, without interest coupons. 
  
 (v) Neither any members of, or participants in, the Depositary (“Agent Members”) nor any other Persons on whose behalf
Agent Members may act shall have any rights under this Indenture with respect to any Global Note registered in the name of the Depositary or any nominee thereof, and the Depositary or such nominee, as the case may be, may be treated by the Company,
the Trustee and any agent of the Company or the Trustee as the absolute owner and holder of such Global Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the
Company or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depositary or such nominee, as the case may be, or impair, as between the Depositary, its Agent Members and any other Person on
whose behalf an Agent Member may act, the operation of customary practices of such Persons governing the exercise of the rights of a holder of any Note. 
  
 (vi) At such time as all interests in a Global Note have been redeemed, repurchased, converted, canceled or exchanged for Notes in
certificated form, 

  

 14 

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

 15 

 Following receipt by the Trustee or such authenticating agent, as the case may be, of satisfactory
security or indemnity and evidence, as described in the preceding paragraph, the Trustee or such authenticating agent may authenticate any such substituted Note and make available for delivery such Note. Upon the issuance of any substituted Note,
the Company may require the payment by the holder of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in relation thereto and any other expenses connected therewith. In case any Note which has matured or
is about to mature or has been called for redemption or has been tendered for repurchase upon a Designated Event (and not withdrawn) or has been surrendered for repurchase on a Repurchase Date (and not withdrawn) or is to be converted into Common
Stock, cash or a combination of cash and Common Stock shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a substitute Note, pay or authorize the payment of or convert or authorize the conversion of the same
(without surrender thereof except in the case of a mutilated Note), as the case may be, if the applicant for such payment or conversion shall furnish to the Company, to the Trustee and, if applicable, to such authenticating agent such security or
indemnity as may be required by them to save each of them harmless for any loss, liability, cost or expense caused by or in connection with such substitution, and, in every case of destruction, loss or theft, the applicant shall also furnish to the
Company, the Trustee and, if applicable, any paying agent or conversion agent evidence to their satisfaction of the destruction, loss or theft of such Note and of the ownership thereof. 
  
 Every substitute Note issued pursuant to the provisions of this Section 2.06 by virtue of the fact that any Note is
destroyed, lost or stolen shall constitute an additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Note shall be found at any time, and shall be entitled to all the benefits of (but shall be subject to all
the limitations set forth in) this Indenture equally and proportionately with any and all other Notes duly issued hereunder. To the extent permitted by law, all Notes shall be held and owned upon the express condition that the foregoing provisions
are exclusive with respect to the replacement or payment or conversion or redemption or repurchase of mutilated, destroyed, lost or stolen Notes and shall preclude any and all other rights or remedies notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment or conversion or redemption or repurchase of negotiable instruments or other securities without their surrender. 
  
 Section 2.07. Temporary Notes. Pending the preparation of Notes in
certificated form, the Company may execute and the Trustee or an authenticating agent appointed by the Trustee shall, upon the written request of the Company, authenticate and deliver temporary Notes (printed or lithographed). Temporary Notes shall
be issuable in any authorized denomination, and substantially in the form of the Notes in certificated form, but with such omissions, insertions and variations as may be appropriate for temporary Notes, all as may be determined by the Company. Every
such temporary Note shall be executed by the Company and authenticated by the Trustee or such authenticating agent upon the same conditions and in substantially the same manner, and with the same effect, as the Notes in certificated form. Without
unreasonable delay, the Company will execute and deliver to the Trustee or such authenticating agent Notes in certificated form and thereupon any or all temporary Notes may be surrendered in exchange therefor, at each 

  

 16 

 
office or agency maintained by the Company pursuant to Section 5.02 and the Trustee or such authenticating agent shall authenticate and make available for
delivery in exchange for such temporary Notes an equal aggregate principal amount of Notes in certificated form. Such exchange shall be made by the Company at its own expense and without any charge therefor. Until so exchanged, the temporary Notes
shall in all respects be entitled to the same benefits and subject to the same limitations under this Indenture as Notes in certificated form authenticated and delivered hereunder. 
  
 Section 2.08. Cancellation of Notes. All Notes surrendered for the purpose of payment, redemption, repurchase,
conversion, exchange or registration of transfer shall, if surrendered to the Company or any paying agent or any Note Registrar or any conversion agent, be surrendered to the Trustee and promptly canceled by it, or, if surrendered to the Trustee,
shall be promptly canceled by it, and no Notes shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture. The Trustee shall dispose of such canceled Notes in accordance with its customary procedures. If
the Company shall acquire any of the Notes, such acquisition shall not operate as a redemption, repurchase or satisfaction of the indebtedness represented by such Notes unless and until the same are delivered to the Trustee for cancellation.

  
 Section 2.09. CUSIP Numbers. The Company in issuing the
Notes may use CUSIP numbers (if then generally in use), and, if so, the Trustee shall use CUSIP numbers in notices of redemption or repurchases as a convenience to Noteholders; provided that any such notice may state that no representation is made
as to the correctness of such numbers either as printed on the Notes or as contained in any notice of a redemption or a repurchase and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption
or repurchase shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee of any change in the CUSIP numbers. 
  
 ARTICLE 3 
 REDEMPTION AND REPURCHASE OF NOTES 
  
 Section 3.01. Redemption of Notes. The Company may not redeem any Notes prior to July 18, 2008. At any time on or after July 18, 2008 and prior to
maturity, the Notes may be redeemed at the option of the Company, in whole or in part, upon notice as set forth in Section 3.02, at a cash redemption price equal to 100% of the principal amount of the Notes being redeemed, together with accrued and
unpaid Interest, if any, to, but excluding, the date fixed for redemption; provided that if the redemption date falls after a record date and on or prior the corresponding interest payment date, then accrued and unpaid Interest, if any, to, but
excluding, the date fixed for redemption shall be paid on such interest payment date to the holders of record of such Notes on the applicable record date instead of the holders surrendering such Notes for redemption on such date. 
  
 Section 3.02. Notice of Optional Redemption; Selection of Notes. In
case the Company shall desire to exercise the right to redeem all or, as the case may be, any part of the Notes pursuant to Section 3.01, it shall fix a date for redemption and it or, at its 

  

 17 

 
written request received by the Trustee not fewer than forty-five (45) days prior (or such shorter period of time as may be acceptable to the Trustee) to the
date fixed for redemption, the Trustee in the name of and at the expense of the Company, shall mail or cause to be mailed a notice of such redemption not fewer than thirty (30) nor more than sixty (60) days prior to the redemption date to each
holder of Notes so to be redeemed as a whole or in part at its last address as the same appears on the Note Register; provided that if the Company shall give such notice, it shall also give written notice of the redemption date to the Trustee. Such
mailing shall be by first class mail. The notice, if mailed in the manner herein provided, shall be conclusively presumed to have been duly given, whether or not the holder receives such notice. In any case, failure to give such notice by mail or
any defect in the notice to the holder of any Note designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Note. Concurrently with the mailing of any such notice of redemption,
the Company shall issue a press release announcing such redemption, the form and content of which press release shall be determined by the Company in its sole discretion. The failure to issue any such press release or any defect therein shall not
affect the validity of the redemption notice or any of the proceedings for the redemption of any Note called for redemption. 
  
 Each such notice of redemption shall specify the aggregate principal amount of Notes to be redeemed, the CUSIP number or numbers of the Notes being
redeemed, the date fixed for redemption (which shall be a Business Day), the redemption price at which Notes are to be redeemed, the place or places of payment, that payment will be made upon presentation and surrender of such Notes, that Interest
accrued to the date fixed for redemption will be paid as specified in said notice, and that on and after said date Interest thereon or on the portion thereof to be redeemed will cease to accrue. Such notice shall also state the current Conversion
Rate and the date on which the right to convert such Notes or portions thereof into Common Stock will expire. If fewer than all the Notes are to be redeemed, the notice of redemption shall identify the Notes to be redeemed (including CUSIP numbers,
if any). In case any Note is to be redeemed in part only, the notice of redemption shall state the portion of the principal amount thereof to be redeemed and shall state that, on and after the redemption date, upon surrender of such Note, a new Note
or Notes in principal amount equal to the unredeemed portion thereof will be issued. 
  
 On or prior to the redemption date specified in the notice of redemption given as provided in this Section 3.02, the Company will deposit with the Trustee or with one or more paying agents (or, if the Company is
acting as its own paying agent, set aside, segregate and hold in trust as provided in Section 5.04) an amount of money in immediately available funds sufficient to redeem on the redemption date all the Notes (or portions thereof) so called for
redemption (other than those theretofore surrendered for conversion into Common Stock) at the appropriate redemption price, together with accrued Interest to, but excluding, the redemption date; provided that if such payment is made on the
redemption date it must be received by the Trustee or paying agent, as the case may be, by 10:00 a.m. New York City time on such date. The Company shall be entitled to retain any interest, yield or gain on amounts deposited with the Trustee or any
paying agent pursuant to this Section 3.02 in excess of amounts required hereunder to pay 

  

 18 

 
the redemption price and accrued Interest to, but excluding, the redemption date. If any Note called for redemption is converted pursuant hereto prior to
such redemption date, any money deposited with the Trustee or any paying agent or so segregated and held in trust for the redemption of such Note shall be paid to the Company upon its written request, or, if then held by the Company, shall be
discharged from such trust. Whenever any Notes are to be redeemed, the Company will give the Trustee written notice in the form of an Officers’ Certificate not fewer than forty-five (45) days (or such shorter period of time as may be acceptable
to the Trustee) prior to the redemption date as to the aggregate principal amount of Notes to be redeemed. 
  
 If less than all of the outstanding Notes are to be redeemed, the Trustee shall select the Notes or portions thereof of the Global Note or the Notes in
certificated form to be redeemed (in principal amounts of $1,000 or multiples thereof) by lot, on a pro rata basis or by another method the Trustee deems fair and appropriate. If any Note selected for partial redemption is submitted for conversion
in part after such selection, the portion of such Note submitted for conversion shall be deemed (so far as may be possible) to be the portion to be selected for redemption. The Notes (or portions thereof) so selected shall be deemed duly selected
for redemption for all purposes hereof, notwithstanding that any such Note is submitted for conversion in part before the mailing of the notice of redemption. 
  

Upon any redemption of less than all of the outstanding Notes, the Company and the Trustee may (but need not), solely for purposes of determining the
pro rata allocation among such Notes as are unconverted and outstanding at the time of redemption, treat as outstanding any Notes surrendered for conversion during the period of fifteen (15) days next preceding the mailing of a notice of redemption
and may (but need not) treat as outstanding any Note authenticated and delivered during such period in exchange for the unconverted portion of any Note converted in part during such period. 
  
 Section 3.03. Payment of Notes Called For Redemption by the Company.
If notice of redemption has been given as provided in Section 3.02, the Notes or portion of Notes with respect to which such notice has been given shall, unless converted into Common Stock, cash or a combination of cash and Common Stock pursuant to
the terms hereof, become due and payable on the date fixed for redemption and at the place or places stated in such notice at the applicable redemption price, together with Interest accrued to (but excluding) the redemption date, and on and after
said date (unless the Company shall default in the payment of such Notes at the redemption price, together with Interest accrued to said date) Interest on the Notes or portion of Notes so called for redemption shall cease to accrue and, after the
close of business on the Business Day immediately preceding the redemption date (unless the Company shall default in the payment of such Notes at the redemption price, together with Interest accrued to said date) such Notes shall cease to be
convertible into Common Stock and, except as provided in Section 8.05 and Section 13.04, to be entitled to any benefit or security under this Indenture, and the holders thereof shall have no right in respect of such Notes except the right to receive
the redemption price thereof and unpaid Interest to (but excluding) the redemption date. On presentation and surrender of such Notes at a place of payment in said notice specified, the said Notes or the specified portions thereof shall be paid and

  

 19 

 
redeemed by the Company at the applicable redemption price, together with Interest accrued thereon to, but excluding, the redemption date; provided that if
the redemption date falls after a record date and on or prior the corresponding interest payment date, then accrued and unpaid Interest, if any, to, but excluding, the date fixed for redemption shall be paid on such interest payment date to the
holders of record of such Notes on the applicable record date instead of the holders surrendering such Notes for redemption on such date. 
  
 Upon presentation of any Note redeemed in part only, the Company shall execute and the Trustee shall authenticate and make available for delivery to the
holder thereof, at the expense of the Company, a new Note or Notes, of authorized denominations, in principal amount equal to the unredeemed portion of the Notes so presented. 
  
 Notwithstanding the foregoing, the Trustee shall not redeem any Notes or mail any notice of redemption during the
continuance of a default in payment of Interest on the Notes. If any Note called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid or duly provided for, bear interest from the redemption date
at a rate equal to 1% per annum plus the rate borne by the Note and such Note shall remain convertible into Common Stock until the principal and Interest shall have been paid or duly provided for. 
  
 Section 3.04. Conversion Arrangement on Call for Redemption. In
connection with any redemption of Notes, the Company may arrange for the purchase and conversion of any Notes by an agreement with one or more investment banks or other purchasers to purchase such Notes by paying to the Trustee in trust for the
Noteholders, on or before the date fixed for redemption, an amount not less than the applicable redemption price, together with Interest accrued to, but excluding, the date fixed for redemption, of such Notes. Notwithstanding anything to the
contrary contained in this Article 3, the obligation of the Company to pay the redemption price of such Notes, together with Interest accrued to, but excluding, the date fixed for redemption, shall be deemed to be satisfied and discharged to the
extent such amount is so paid by such purchasers. If such an agreement is entered into, a copy of which will be filed with the Trustee prior to the date fixed for redemption, any Notes not duly surrendered for conversion by the holders thereof may,
at the option of the Company, be deemed, to the fullest extent permitted by law, acquired by such purchasers from such holders and (notwithstanding anything to the contrary contained in Article 15) surrendered by such purchasers for conversion, all
as of immediately prior to the close of business on the date fixed for redemption (and the right to convert any such Notes shall be extended through such time), subject to payment of the above amount as aforesaid. At the direction of the Company,
the Trustee shall hold and dispose of any such amount paid to it in the same manner as it would monies deposited with it by the Company for the redemption of Notes. Without the Trustee’s prior written consent, no arrangement between the Company
and such purchasers for the purchase and conversion of any Notes shall increase or otherwise affect any of the powers, duties, responsibilities or obligations of the Trustee as set forth in this Indenture. 
  

 20 

 Section 3.05. Repurchase at Option of Holders Upon a Designated Event. (a) If there shall occur a
Designated Event at any time prior to maturity of the Notes, then each Noteholder shall have the right, at such holder’s option, to require the Company to repurchase all of such holder’s Notes, or any portion thereof that is a multiple of
$1,000 principal amount, on the date (the “Designated Event Repurchase Date”) specified by the Company that is thirty (30) days after the date of the Designated Event Notice (as defined in Section 3.05(b)) of such Designated Event
at a cash repurchase price equal to 100% of the principal amount thereof, together with accrued Interest, if any, to, but excluding, the Designated Event Repurchase Date; provided that if such Designated Event Repurchase Date falls after a record
date and on or prior the corresponding interest payment date, then accrued and unpaid Interest, if any, to, but excluding the Designated Event Repurchase Date shall be paid on such interest payment date to the holders of record of the Notes on the
applicable record date instead of the holders surrendering the Notes for repurchase on such date. Repurchases of Notes under this Section 3.05 shall be made, at the option of the holder thereof, upon: 
  
 (i) delivery to the Trustee (or other paying agent appointed
by the Company) by a holder of a duly completed notice (the “Designated Event Repurchase Notice”) in the form set forth on the reverse of the Note prior to the close of business on the Designated Event Repurchase Date; and

  
 (ii) delivery or book-entry transfer of the
Notes to the Trustee (or other paying agent appointed by the Company) at any time after delivery of the Designated Event Repurchase Notice (together with all necessary endorsements) at the Corporate Trust Office of the Trustee (or other paying agent
appointed by the Company) in the Borough of Manhattan as provided in Section 5.02, such delivery being a condition to receipt by the holder of the repurchase price therefor; provided that such repurchase price shall be so paid pursuant to
this Section 3.05 only if the Note so delivered to the Trustee (or other paying agent appointed by the Company) shall conform in all respects to the description thereof in the related Designated Event Repurchase Notice. 
  
 The Company shall purchase from the holder thereof, pursuant to this Section
3.05, a portion of a Note, if the principal amount of such portion is $1,000 or a whole multiple of $1,000. Provisions of this Indenture that apply to the purchase of all of a Note also apply to the purchase of such portion of such Note. 

 
 Any purchase by the Company contemplated pursuant to the provisions of
this Section 3.05 shall be consummated by the delivery of the consideration to be received by the holder promptly following the later of the Designated Event Repurchase Date and the time of the book-entry transfer or delivery of the Note.

  
 Notwithstanding anything herein to the contrary, any holder
delivering to the Trustee (or other paying agent appointed by the Company) the Designated Event Repurchase Notice contemplated by this Section 3.05 shall have the right to withdraw such Designated Event Repurchase Notice at any time prior to the
close of business on the Designated Event Repurchase Date by delivery of a written notice of withdrawal to the Trustee (or other paying agent appointed by the Company) in accordance with Section 3.05(c) below. 
  

 21 

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

 22 

 (ii) the principal amount of the Note with respect to which such notice of withdrawal is
being submitted, and 
  
 (iii) the principal
amount, if any, of such Note which remains subject to the original Designated Event Repurchase Notice and which has been or will be delivered for purchase by the Company. 
  
 (d) On or prior to the Designated Event Repurchase Date, the Company will deposit with the Trustee (or other paying agent
appointed by the Company or if the Company is acting as its own paying agent, set aside, segregate and hold in trust as provided in Section 5.04) an amount of money sufficient to repurchase on the Designated Event Repurchase Date all the Notes to be
repurchased on such date at the appropriate repurchase price, together with accrued Interest to, but excluding, the Designated Event Repurchase Date; provided that if such payment is made on the Designated Event Repurchase Date it must be
received by the Trustee or paying agent, as the case may be, by 10:00 a.m. New York City time, on such date. Subject to receipt of funds and/or Notes by the Trustee (or other paying agent appointed by the Company), payment for Notes surrendered for
repurchase (and not withdrawn) prior to the Designated Event Expiration Time will be made promptly (but in no event more than five (5) Business Days) following the later of (x) the Designated Event Repurchase Date with respect to such Note
(provided the holder has satisfied the conditions in Section 3.05) and (y) the time of delivery of such Note to the Trustee (or other paying agent appointed by the Company) by the holder thereof in the manner required by Section 3.05) by
mailing checks for the amount payable to the holders of such Notes entitled thereto as they shall appear in the Note Register. 
  
 If the Trustee (or other paying agent appointed by the Company) holds money sufficient to repurchase on the Designated Event Repurchase Date all the Notes
or portions thereof that are to be purchased as of the Designated Event Repurchase Date, then on or after the Designated Event Repurchase Date (i) the Notes will cease to be outstanding, (ii) Interest on the Notes will cease to accrue, and (iii) all
other rights of the holders of such Notes will terminate, whether or not book-entry transfer of the Notes has been made or the Notes have been delivered to the Trustee or paying agent, other than the right to receive the repurchase price upon
delivery of the Notes. 
  
 (e) In the case of a reclassification,
change, consolidation, merger, combination, sale or conveyance to which Section 15.07 applies, in which the Common Stock of the Company is changed or exchanged as a result into the right to receive stock, securities or other property or assets
(including cash), which includes shares of Common Stock of the Company or shares of common stock of another Person that are, or upon issuance will be, traded on a United States national securities exchange or approved for trading on an established
automated over-the-counter trading market in the United States 

  

 23 

 
and such shares constitute at the time such change or exchange becomes effective in excess of 50% of the aggregate Fair Market Value of such stock,
securities or other property or assets (including cash) (as determined by the Company, which determination shall be conclusive and binding), then the Person formed by such consolidation or resulting from such merger or which acquires such assets, as
the case may be, shall execute and deliver to the Trustee a supplemental indenture (accompanied by an Opinion of Counsel that such supplemental indenture complies with the Trust Indenture Act as in force at the date of execution of such supplemental
indenture) modifying the provisions of this Indenture relating to the right of holders of the Notes to cause the Company to repurchase the Notes following a Designated Event, including without limitation the applicable provisions of this Section
3.05 and the definitions of Common Stock and Designated Event, as appropriate, as determined in good faith by the Company (which determination shall be conclusive and binding), to make such provisions apply to such other Person if different from the
Company and the common stock issued by such Person (in lieu of the Company and the Common Stock of the Company). 
  
 (f) The Company will comply with the provisions of Rule 13e-4 and any other tender offer rules under the Exchange Act (including, without limitation,
filing a Schedule TO or other schedule) to the extent then applicable in connection with the repurchase rights of the holders of Notes in the event of a Designated Event. 
  
 Section 3.06. Repurchase of Notes by the Company at Option of the Holder. Unless the Company has elected to redeem
all of the Notes in accordance with Section 3.01, Notes shall be purchased by the Company pursuant to the terms of the Notes at the option of the holder on July 15 of 2008, 2013 and 2018 (each a “Repurchase Date”), for cash, at a
repurchase price of 100% of the principal amount, plus any accrued and unpaid Interest to, but excluding, the Repurchase Date, subject to the provisions of Section 3.07(a); provided that no Notes may be repurchased by the Company pursuant to this
Section 3.06 if the principal amount of the Notes has been accelerated and such acceleration has not been rescinded on or prior to the Repurchase Date. Repurchases of Notes under this Section 3.06 shall be made, at the option of the holder thereof,
upon: 
  
 (a) delivery to the Trustee (or other paying agent
appointed by the Company) by a holder of a duly completed notice (the “Repurchase Notice”) in the form set forth on the reverse of the Note during the period beginning at any time from the opening of business on the date that is 20
Business Days prior to the Repurchase Date until the close of business on the date that is two Business Days prior to the Repurchase Date; and 
  
 (b) delivery or book-entry transfer of the Notes to the Trustee (or other paying agent appointed by the Company) at any time after delivery of the
Repurchase Notice (together with all necessary endorsements) at the Corporate Trust Office of the Trustee (or other paying agent appointed by the Company) in the Borough of Manhattan as provided in Section 5.02, such delivery being a condition to
receipt by the holder of the repurchase price therefor; provided that such repurchase price shall be so paid pursuant to this Section 3.06 only if the Note so delivered to the Trustee (or other paying agent appointed by the Company) shall
conform in all respects to the description thereof in the related Repurchase Notice. 
  

 24 

 The Company shall purchase from the holder thereof, pursuant to this Section 3.06, a portion of a Note,
if the principal amount of such portion is $1,000 or a whole multiple of $1,000. Provisions of this Indenture that apply to the purchase of all of a Note also apply to the purchase of such portion of such Note. 
  
 Any purchase by the Company contemplated pursuant to the provisions of this
Section 3.06 shall be consummated by the delivery of the consideration to be received by the holder promptly following the later of the Repurchase Date and the time of the book-entry transfer or delivery of the Note. 
  
 Notwithstanding anything herein to the contrary, any holder delivering to the
Trustee (or other paying agent appointed by the Company) a Repurchase Notice contemplated by this Section 3.06 shall have the right to withdraw such Repurchase Notice at any time prior to the close of business on the Repurchase Date by delivery of a
written notice of withdrawal to the Trustee (or other paying agent appointed by the Company) in accordance with Section 3.08. 
  
 The Trustee (or other paying agent appointed by the Company) shall promptly notify the Company of the receipt by it of any Repurchase Notice or written
notice of withdrawal thereof. 
  
 Section 3.07. Company
Repurchase Notice. 
  
 (a) The Notes to be repurchased on any
Repurchase Date pursuant to Section 3.06 will be paid for in cash. 
  
 Unless the Company has elected to redeem all of the Notes in accordance with Section 3.01, at least three Business Days before the Company Repurchase Notice Date, the Company shall deliver an Officers’ Certificate to the Trustee
specifying: 
  
 (i) the information required by
Section 3.07(b) in the Company Repurchase Notice, and 
  
 (ii) whether the Company desires the Trustee to give the Company Repurchase Notice required by Section 3.07(b). 
  
 (b) Unless the Company has elected to redeem all of the Notes in accordance with Section 3.01, in connection with any repurchase of Notes, the Company
shall, no less than 20 Business Days prior to the Repurchase Date (the “Company Repurchase Notice Date”), give notice to holders at their addresses shown in the Note Register setting forth information specified in this Section
3.07(b) (the “Company Repurchase Notice”). The Company will also give notice to beneficial owners as required by applicable law. 
  
 The Company Repurchase Notice shall: 
  
 (1) state the repurchase price and the Repurchase Date to which the Company Repurchase Notice relates; 
  

 25 

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

 26 

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

 27 

 ARTICLE 4 
 CONTINGENT INTEREST 
  
 Section 4.01. Contingent Interest. Beginning with the six-month interest period commencing July 15, 2008, the Company will pay contingent interest (“Contingent Interest”) to the Noteholders for
any six month interest period if the Trading Price for each of the five Trading Days immediately preceding the first day of the applicable six-month interest period equals or exceeds 120% of the principal amount of the Notes. For any six-month
interest period when Contingent Interest is payable, the Contingent Interest payable on each $1,000 principal amount of Note shall equal 0.25% of the average Trading Price for $1,000 principal amount of Notes during the five Trading Day measuring
period immediately preceding the first day of applicable six-month interest period used to determine whether Contingent Interest must be paid. 
  
 The Trustee’s sole responsibility pursuant to this Section 4.01 hereof shall be to obtain the Trading Price of the Notes for each of the five Trading
Days immediately preceding the first day of the applicable six-month interest period and to provide such information to the Company. The Company shall determine whether holders are entitled to receive Contingent Interest, and if so, provide notice
pursuant to Section 4.03. Notwithstanding any term contained in this Indenture or any other document to the contrary, the Trustee shall have no responsibilities, duties or obligations for or with respect to (i) determining whether the Company must
pay Contingent Interest or (ii) determining the amount of Contingent Interest, if any, payable by the Company. 
  
 Section 4.02. Payment of Contingent Interest. Contingent Interest for any six-month interest period shall be paid on the applicable interest
payment date to the Person in whose name any Note (or its Predecessor Note) is registered on the Note Register at the corresponding record date. Contingent Interest due under this Article 4 shall be treated for all purposes of this Indenture like
any other interest accruing on the Notes. 
  
 Section 4.03.
Contingent Interest Notification. By the first Business Day of a six-month interest period for which Contingent Interest will be paid, the Company will disseminate a press release through Dow Jones & Company, Inc. or Bloomberg Business
News stating that Contingent Interest will be paid on the Notes and identifying such six month interest period as the six month interest period for which such Contingent Interest will be paid. 
  
 ARTICLE 5 
 PARTICULAR COVENANTS OF THE COMPANY 
  
 Section 5.01. Payment of Principal and Interest. The Company covenants and agrees that it will duly and punctually
pay or cause to be paid the principal of (including the redemption price upon redemption or the repurchase price upon repurchase, in each case pursuant to Article 3) and Interest, on each of the Notes at the places, at the respective times and in
the manner provided herein and in the Notes. 
  

 28 

 Section 5.02. Maintenance of Office or Agency. The Company will maintain an office or agency in
the Borough of Manhattan, The City of New York, where the Notes may be surrendered for registration of transfer or exchange or for presentation for payment or for conversion, redemption or repurchase and where notices and demands to or upon the
Company in respect of the Notes and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency not designated or appointed by the Trustee. If at
any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office or
the corporate trust office of the Trustee in The Borough of Manhattan which office is located at 101 Barclay Street, Fl. 8W, New York, New York 10286. 
  
 The Company may also from time to time designate co-registrars and one or more offices or agencies where the Notes may be presented or surrendered for any
or all such purposes and may from time to time rescind such designations. The Company will give prompt written notice of any such designation or rescission and of any change in the location of any such other office or agency. 
  
 The Company hereby initially designates the Trustee as paying agent, Note
Registrar, Custodian and conversion agent and each of the Corporate Trust Office and the office of agency of the Trustee in The Borough of Manhattan, shall be considered as one such office or agency of the Company for each of the aforesaid purposes.

  
 So long as the Trustee is the Note Registrar, the Trustee
agrees to mail, or cause to be mailed, the notices set forth in Section 8.10(a) and the third paragraph of Section 8.11. If co-registrars have been appointed in accordance with this Section, the Trustee shall mail such notices only to the Company
and the holders of Notes it can identify from its records. 
  
 Section 5.03. Appointments to Fill Vacancies in Trustee’s Office. The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 8.10, a Trustee, so that
there shall at all times be a Trustee hereunder. 
  
 Section 5.04.
Provisions as to Paying Agent. (a) If the Company shall appoint a paying agent other than the Trustee, or if the Trustee shall appoint such a paying agent, the Company will cause such paying agent to execute and deliver to the Trustee an
instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section 5.04: 
  
 (1) that it will hold all sums held by it as such agent for the payment of the principal of or Interest on the Notes (whether such sums
have been paid to it by the Company or by any other obligor on the Notes) in trust for the benefit of the holders of the Notes; 
  

 29 

 (2) that it will give the Trustee notice of any failure by the Company (or by any other
obligor on the Notes) to make any payment of the principal of or Interest on the Notes when the same shall be due and payable; and 
  
 (3) that at any time during the continuance of an Event of Default, upon request of the Trustee, it will forthwith pay to the Trustee all
sums so held in trust. 
  
 The Company shall, on or before each
due date of the principal or Interest on the Notes, deposit with the paying agent a sum (in funds which are immediately available on the due date for such payment) sufficient to pay such principal or Interest, and (unless such paying agent is the
Trustee) the Company will promptly notify the Trustee of any failure to take such action; provided that if such deposit is made on the due date, such deposit shall be received by the paying agent by 10:00 a.m. New York City time, on such
date. 
  
 (b) If the Company shall act as its own paying agent, it
will, on or before each due date of the principal of or Interest on the Notes, set aside, segregate and hold in trust for the benefit of the holders of the Notes a sum sufficient to pay such principal or Interest so becoming due and will promptly
notify the Trustee of any failure to take such action and of any failure by the Company (or any other obligor under the Notes) to make any payment of the principal of or Interest on the Notes when the same shall become due and payable. 

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

 30 

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

  
 Section 5.08. [Intentionally Omitted] 
  
 Section 5.09. Stay, Extension and Usury Laws. The Company covenants
(to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the
Company from paying all or any portion of the principal of or Interest on the Notes as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Indenture and the
Company (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
  
 Section 5.10. Compliance Certificate. The Company shall deliver to the Trustee, within one hundred twenty (120) days after the end of each fiscal
year of the Company, a certificate signed by either the principal executive officer, principal financial officer or principal accounting officer of the Company, stating whether or not to the best knowledge of the signer thereof the Company is in
default in the performance and observance of any of the terms, provisions and conditions of this Indenture (without 

  

 31 

 
regard to any period of grace or requirement of notice provided hereunder) and, if the Company shall be in default, specifying all such defaults and the
nature and the status thereof of which the signer may have knowledge. 
  
 The Company will deliver to the Trustee, forthwith upon becoming aware of (i) any default in the performance or observance of any covenant, agreement or condition contained in this Indenture, or (ii) any Event of Default, an Officers’
Certificate specifying with particularity such Default or Event of Default and further stating what action the Company has taken, is taking or proposes to take with respect thereto. 
  
 Any notice required to be given under this Section 5.10 shall be delivered to a Responsible Officer of the Trustee at its
Corporate Trust Office. 
  
 Section 5.11. [Intentionally Omitted]

  
 Section 5.12. Contingent Debt Tax Treatment. The
Company agrees, and by acceptance of a beneficial interest in a Note each holder and any beneficial owner of a Note shall be deemed to have agreed to treat the Note as indebtedness of the Company for United States federal income tax purposes that is
subject to Treasury Regulation Section 1.1275-4 or any successor provision (the “contingent payment regulations”) and to be bound (in the absence of an administrative determination or judicial ruling to the contrary) by the Company’s
determination of the comparable yield and the projected payment schedule within the meaning of the contingent payment regulations. A holder of Notes may obtain the issue price, amount of Tax Original Issue Discount, issue date, yield to maturity,
comparable yield and projected payment schedule for the Notes, determined by the Company pursuant to the contingent payment regulations, by submitting a written request for it to the Company at the following address: Commonwealth Telephone
Enterprises, Inc., 100 CTE Drive, Dallas, Pennsylvania, 18612-9774, Attention: Senior Vice President, Investor Relations. 
  
 Section 5.13. Calculation of Original Issue Discount. The Company shall file with the Trustee promptly at the end of each calendar year (i) a
written notice specifying the amount of Tax Original Issue Discount (including daily rates and accrual periods) accrued on outstanding Notes as of the end of such year and (ii) such other specific information relating to such Tax Original Issue
Discount as may then be required under the Internal Revenue Code of 1986, as amended from time to time, or the Treasury regulations promulgated thereunder. 
  
 ARTICLE 6 
 NOTEHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE 
  
 Section 6.01. Noteholders’ Lists. The Company covenants and
agrees that it will furnish or cause to be furnished to the Trustee, semiannually, not more than fifteen (15) days after each January 1 and July 1 in each year beginning with January 1, 2004, and at such other times as the Trustee may request in
writing, within thirty (30) days after receipt by the Company of any such request (or such lesser time as the Trustee may 

  

 32 

 
reasonably request in order to enable it to timely provide any notice to be provided by it hereunder), a list in such form as the Trustee may reasonably
require of the names and addresses of the holders of Notes as of a date not more than fifteen (15) days (or such other date as the Trustee may reasonably request in order to so provide any such notices) prior to the time such information is
furnished, except that no such list need be furnished by the Company to the Trustee so long as the Trustee is acting as the sole Note Registrar. 
  
 Section 6.02. Preservation And Disclosure Of Lists. (a) The Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the holders of Notes contained in the most recent list furnished to it as provided in Section 6.01 or maintained by the Trustee in its capacity as Note Registrar or co-registrar in respect of the Notes,
if so acting. The Trustee may destroy any list furnished to it as provided in Section 6.01 upon receipt of a new list so furnished. 
  
 (b) The rights of Noteholders to communicate with other holders of Notes with respect to their rights under this Indenture or under the Notes, and the
corresponding rights and duties of the Trustee, shall be as provided by the Trust Indenture Act. 
  
 (c) Every Noteholder, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any agent of
either of them shall be held accountable by reason of any disclosure of information as to names and addresses of holders of Notes made pursuant to the Trust Indenture Act. 
  
 Section 6.03. Reports By Trustee. (a) Within sixty (60) days after May 15 of each year commencing with the year 2006,
the Trustee shall transmit to holders of Notes such reports dated as of May 15 of the year in which such reports are made concerning the Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture Act at the times
and in the manner provided pursuant thereto. In the event that no events have occurred under the applicable sections of the Trust Indenture Act the Trustee shall be under no duty or obligation to provide such reports. 
  
 (b) A copy of such report shall, at the time of such transmission to holders
of Notes, be filed by the Trustee with each stock exchange and automated quotation system upon which the Notes are listed (if applicable) and with the Company. The Company will promptly notify the Trustee in writing when the Notes are listed on any
stock exchange or automated quotation system or delisted therefrom. 
  
 Section 6.04. Reports by Company. The Company shall file with the Trustee (and the Commission if at any time after the Indenture becomes qualified under the Trust Indenture Act), and transmit to holders of Notes, such information,
documents and other reports and such summaries thereof, as may be required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant to such Act, whether or not the Notes are governed by such Act; provided that any such
information, documents or reports required to be filed with the Commission pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the Trustee within fifteen (15) days after the same is so required to be filed with the Commission.
Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of 

  

 33 

 
such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on an Officers’ Certificates). 
  
 ARTICLE 7 
 REMEDIES
OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT 
  
 Section 7.01. Events Of Default. In case one or more of the following
Events of Default (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body) shall have occurred and be continuing: 
  
 (a) default in the payment of any installment of Interest upon any of the Notes as and when the same shall become due and payable, and continuance of such default for a period of thirty (30) days; or 
  
 (b) default in the payment of the principal of any of the Notes as and when
the same shall become due and payable either at maturity or in connection with any redemption, repurchase or otherwise, in each case pursuant to Article 3; or 
  

(c) default in the Company’s obligation to provide a Designated Event Notice upon a Designated Event as provided in Section 3.05; or 

 
 (d) failure on the part of the Company duly to observe or perform any
other of the covenants or agreements on the part of the Company in the Notes or in this Indenture (other than a covenant or agreement a default in whose performance or whose breach is elsewhere in this Section 7.01 specifically dealt with) continued
for a period of sixty (60) days after the date on which written notice of such failure, requiring the Company to remedy the same, shall have been given to the Company by the Trustee, or the Company and a Responsible Officer of the Trustee by the
holders of at least twenty-five percent (25%) in aggregate principal amount of the Notes at the time outstanding determined in accordance with Section 9.04; or 
  

(e) the Company shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to the Company or
its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company or any substantial part of the property of
the Company, or shall consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against the Company, or shall make a general assignment for the benefit of
creditors, or shall fail generally to pay its debts as they become due; or 
  

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 (f) an involuntary case or other proceeding shall be commenced against the Company seeking liquidation,
reorganization or other relief with respect to the Company or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar
official of the Company or any substantial part of the property of the Company, and such involuntary case or other proceeding shall remain undismissed and unstayed for a period of sixty (60) consecutive days; 
  
 then, and in each and every such case (other than an Event of Default specified in Section
7.01(e) or 7.01(f)), unless the principal of all of the Notes shall have already become due and payable, either the Trustee or the holders of not less than twenty-five percent (25%) in aggregate principal amount of the Notes then outstanding
hereunder determined in accordance with Section 9.04, by notice in writing to the Company (and to the Trustee if given by Noteholders), may declare the principal of on all the Notes and the Interest accrued thereon to be due and payable immediately,
and upon any such declaration the same shall become and shall be immediately due and payable, anything in this Indenture or in the Notes contained to the contrary notwithstanding. If an Event of Default specified in Section 7.01(e) or 7.01(f)
occurs, the principal of all the Notes and the Interest accrued thereon shall be immediately and automatically due and payable without necessity of further action. This provision, however, is subject to the conditions that if, at any time after the
principal of the Notes shall have been so declared due and payable, and before any judgment or decree for the payment of the monies due shall have been obtained or entered as hereinafter provided, the Company shall pay or shall deposit with the
Trustee a sum sufficient to pay all matured installments of Interest upon all Notes and the principal of any and all Notes which shall have become due otherwise than by acceleration (with interest on overdue installments of Interest (to the extent
that payment of such interest is enforceable under applicable law) and on such principal at the rate borne by the Notes, to the date of such payment or deposit) and amounts due to the Trustee pursuant to Section 8.06, and if any and all defaults
under this Indenture, other than the nonpayment of principal of and accrued Interest on Notes which shall have become due by acceleration, shall have been cured or waived pursuant to Section 7.07, then and in every such case the holders of a
majority in aggregate principal amount of the Notes then outstanding, by written notice to the Company and to the Trustee, may waive all Defaults or Events of Default and rescind and annul such declaration and its consequences; but no such waiver or
rescission and annulment shall extend to or shall affect any subsequent Default or Event of Default, or shall impair any right consequent thereon. The Company shall notify in writing a Responsible Officer of the Trustee, promptly upon becoming aware
thereof, of any Event of Default. 
  
 In case the Trustee shall
have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned because of such waiver or rescission and annulment or for any other reason or shall have been determined adversely to the
Trustee, then and in every such case the Company, the holders of Notes, and the Trustee shall be restored respectively to their several positions and rights hereunder, and all rights, remedies and powers of the Company, the holders of Notes, and the
Trustee shall continue as though no such proceeding had been taken. 
  

 35 

 Section 7.02. Payments of Notes on Default; Suit Therefor. The Company covenants that (a) in case
default shall be made in the payment of any installment of Interest upon any of the Notes as and when the same shall become due and payable, and such default shall have continued for a period of thirty (30) days, or (b) in case default shall be made
in the payment of the principal of any of the Notes as and when the same shall have become due and payable, whether at maturity of the Notes or in connection with any redemption, by or under this Indenture declaration or otherwise, then, upon demand
of the Trustee, the Company will pay to the Trustee, for the benefit of the holders of the Notes, the whole amount that then shall have become due and payable on all such Notes for principal or Interest, as the case may be, with interest upon the
overdue principal and (to the extent that payment of such interest is enforceable under applicable law) upon the overdue installments of Interest at the rate borne by the Notes, plus 1% and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including reasonable compensation to the Trustee, its agents, attorneys and counsel, and all other amounts due the Trustee under Section 8.06. Until such demand by the Trustee, the Company
may pay the principal of and Interest on the Notes to the registered holders, whether or not the Notes are overdue. 
  
 In case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be
entitled and empowered to institute any actions or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or
final decree against the Company or any other obligor on the Notes and collect in the manner provided by law out of the property of the Company or any other obligor on the Notes wherever situated the monies adjudged or decreed to be payable.

  
 In case there shall be pending proceedings for the bankruptcy
or for the reorganization of the Company or any other obligor on the Notes under Title 11 of the United States Code, or any other applicable law, or in case a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or
similar official shall have been appointed for or taken possession of the Company or such other obligor, the property of the Company or such other obligor, or in the case of any other judicial proceedings relative to the Company or such other
obligor upon the Notes, or to the creditors or property of the Company or such other obligor, the Trustee, irrespective of whether the principal of the Notes shall then be due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand pursuant to the provisions of this Section 7.02, shall be entitled and empowered, by intervention in such proceedings or otherwise, to file and prove a claim or claims for the whole
amount of principal and Interest owing and unpaid in respect of the Notes, and, in case of any judicial proceedings, to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the
Trustee and of the Noteholders allowed in such judicial proceedings relative to the Company or any other obligor on the Notes, its or their creditors, or its or their property, and to collect and receive any monies or other property payable or
deliverable on any such claims, and to distribute the same after the deduction of any amounts due the Trustee under Section 8.06, and to take any other action with respect to such claims, including participating as a 

  

 36 

 
member of any official committee of creditors, as it reasonably deems necessary or advisable, and, unless prohibited by law or applicable regulations, and
any receiver, assignee or trustee in bankruptcy or reorganization, liquidator, custodian or similar official is hereby authorized by each of the Noteholders to make such payments to the Trustee, and, in the event that the Trustee shall consent to
the making of such payments directly to the Noteholders, to pay to the Trustee any amount due it for reasonable compensation, expenses, advances and disbursements, including counsel fees and expenses incurred by it up to the date of such
distribution. To the extent that such payment of reasonable compensation, expenses, advances and disbursements out of the estate in any such proceedings shall be denied for any reason, payment of the same shall be secured by a lien on, and shall be
paid out of, any and all distributions, dividends, monies, securities and other property which the holders of the Notes may be entitled to receive in such proceedings, whether in liquidation or under any plan of reorganization or arrangement or
otherwise. 
  
 All rights of action and of asserting claims under
this Indenture, or under any of the Notes, may be enforced by the Trustee without the possession of any of the Notes, or the production thereof at any trial or other proceeding relative thereto, and any such suit or proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel,
be for the ratable benefit of the holders of the Notes. 
  
 In any
proceedings brought by the Trustee (and in any proceedings involving the interpretation of any provision of this Indenture to which the Trustee shall be a party) the Trustee shall be held to represent all the holders of the Notes, and it shall not
be necessary to make any holders of the Notes parties to any such proceedings. 
  
 Section 7.03. Application of Monies Collected By Trustee. Any monies collected by the Trustee pursuant to this Article 7 shall be applied in the order following, 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 under Section 8.06; 
  
 SECOND: In case the principal of the outstanding Notes shall not have become
due and be unpaid, to the payment of Interest on the Notes in default in the order of the maturity of the installments of such Interest, with interest (to the extent that such interest has been collected by the Trustee) upon the overdue installments
of Interest at the rate borne by the Notes, such payments to be made ratably to the Persons entitled thereto; 
  
 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
then owing and unpaid upon the Notes for principal and Interest, with Interest on the overdue principal and (to the extent that such Interest has been collected by the Trustee) upon overdue installments of Interest at the rate borne by the Notes,
and in case such monies 

  

 37 

 
shall be insufficient to pay in full the whole amounts so due and unpaid upon the Notes, then to the payment of such principal and Interest without
preference or priority of principal over Interest, or of Interest over principal or of any installment of Interest over any other installment of Interest, or of any Note over any other Note, ratably to the aggregate of such principal and accrued and
unpaid Interest; and 
  
 FOURTH: To the payment of the remainder,
if any, to the Company. 
  
 Section 7.04. Proceedings by
Noteholder. No holder of any Note shall have any right by virtue of or by reference to any provision of this Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture, or for the
appointment of a receiver, trustee, liquidator, custodian or other similar official, or for any other remedy hereunder, unless such holder previously shall have given to the Trustee written notice of an Event of Default and of the continuance
thereof, as hereinbefore provided, and unless also the holders of not less than twenty-five percent (25%) in aggregate principal amount of the Notes then outstanding shall have made written request upon the Trustee to institute such action, suit or
proceeding in its own name as Trustee hereunder and shall have offered to the Trustee such reasonable security or indemnity as it may require against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee for sixty
(60) days after its receipt of such notice, request and offer of indemnity, shall have neglected or refused to institute any such action, suit or proceeding and no direction inconsistent with such written request shall have been given to the Trustee
pursuant to Section 7.07; it being understood and intended, and being expressly covenanted by the taker and holder of every Note with every other taker and holder and the Trustee, that no one or more holders of Notes shall have any right in any
manner whatever by virtue of or by reference to any provision of this Indenture to affect, disturb or prejudice the rights of any other holder of Notes, or to obtain or seek to obtain priority over or preference to any other such holder, or to
enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all holders of Notes (except as otherwise provided herein). For the protection and enforcement of this Section 7.04 each
and every Noteholder and the Trustee shall be entitled to such relief as can be given either at law or in equity. 
  
 Notwithstanding any other provision of this Indenture and any provision of any Note, the right of any holder of any Note to receive payment of the
principal of (including the redemption price upon redemption pursuant to Article 7), and accrued Interest on such Note, on or after the respective due dates expressed in such Note or in the event of redemption, or to institute suit for the
enforcement of any such payment on or after such respective dates against the Company shall not be impaired or affected without the consent of such holder. 
  
 Anything in this Indenture or the Notes to the contrary notwithstanding, the holder of any Note, without the consent of either the Trustee or the holder
of any other Note, in its own behalf and for its own benefit, may enforce, and may institute and maintain any proceeding suitable to enforce, its rights of conversion as provided herein. 
  

 38 

 Section 7.05. Proceedings By Trustee. In case of an Event of Default, the Trustee may, in its
discretion, proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as are necessary to protect and enforce any of such rights, either by suit in equity or by action at law or by proceeding
in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in
the Trustee by this Indenture or by law. 
  
 Section 7.06.
Remedies Cumulative And Continuing. Except as provided in Section 2.06, all powers and remedies given by this Article 7 to the Trustee or to the Noteholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any
thereof or of any other powers and remedies available to the Trustee or the holders of the Notes, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture, and no
delay or omission of the Trustee or of any holder of any of the Notes to exercise any right or power accruing upon any Default or Event of Default occurring and continuing as aforesaid shall impair any such right or power, or shall be construed to
be a waiver of any such default or any acquiescence therein, and, subject to the provisions of Section 7.04, every power and remedy given by this Article 7 or by law to the Trustee or to the Noteholders may be exercised from time to time, and as
often as shall be deemed expedient, by the Trustee or by the Noteholders. 
  
 Section 7.07. Direction of Proceedings and Waiver of Defaults By Majority of Noteholders. The holders of a majority in aggregate principal amount of the Notes at the time outstanding determined in accordance
with Section 9.04 shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee; provided that (a) such direction shall not be
in conflict with any rule of law or with this Indenture, (b) the Trustee may take any other action which is not inconsistent with such direction, (c) the Trustee may decline to take any action that would benefit some Noteholder to the detriment of
other Noteholders and (d) the Trustee may decline to take any action that would involve the Trustee in personal liability. The holders of a majority in aggregate principal amount of the Notes at the time outstanding determined in accordance with
Section 9.04 may, on behalf of the holders of all of the Notes, waive any past Default or Event of Default hereunder and its consequences except (i) a default in the payment of Interest on, or the principal of, the Notes, (ii) a failure by the
Company to convert any Notes into cash, Common Stock or a combination of cash and Common Stock, (iii) a default in the payment of the redemption price pursuant to Article 3, (iv) a default in the payment of the repurchase price pursuant to Article 3
or (v) a default in respect of a covenant or provisions hereof which under Article 11 cannot be modified or amended without the consent of the holders of each or all Notes then outstanding or affected thereby. Upon any such waiver, the Company, the
Trustee and the holders of the Notes shall be restored to their former positions and rights hereunder; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon. Whenever any
Default or Event of Default hereunder shall have been waived as permitted by this Section 7.07, said Default or Event of Default shall for 

  

 39 

 
all purposes of the Notes and this Indenture be deemed to have been cured and to be not continuing; but no such waiver shall extend to any subsequent or
other Default or Event of Default or impair any right consequent thereon. 
  
 Section 7.08. Notice of Defaults. The Trustee shall, within ninety (90) days after a Responsible Officer of the Trustee has actual knowledge of the occurrence of a default, mail to all Noteholders, as the names
and addresses of such holders appear upon the Note Register, notice of all defaults known to a Responsible Officer, unless such defaults shall have been cured or waived before the giving of such notice; provided that except in the case of default in
the payment of the principal of or Interest on any of the Notes, the Trustee shall be protected in withholding such notice if and so long as a trust committee of directors and/or Responsible Officers of the Trustee in good faith determines that the
withholding of such notice is in the interests of the Noteholders. 
  
 Section 7.09. Undertaking To Pay Costs. All parties to this Indenture agree, and each holder of any Note by his acceptance thereof shall be deemed to have agreed, that any court may, in its discretion, require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit and that such
court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party
litigant; provided that the provisions of this Section 7.09 (to the extent permitted by law) shall not apply to any suit instituted by the Trustee, to any suit instituted by any Noteholder, or group of Noteholders, holding in the aggregate more than
ten percent in principal amount of the Notes at the time outstanding determined in accordance with Section 9.04, or to any suit instituted by any Noteholder for the enforcement of the payment of the principal of or Interest on any Note on or after
the due date expressed in such Note or to any suit for the enforcement of the right to convert any Note in accordance with the provisions of Article 15. 
  
 ARTICLE 8 
 THE
TRUSTEE 
  
 Section 8.01. Duties and
Responsibilities of Trustee. The Trustee, prior to the occurrence of an Event of Default and after the curing of all Events of Default which may have occurred, undertakes to perform such duties and only such duties as are specifically set forth
in this Indenture. In case an Event of Default has occurred (which has not been cured or waived), the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise,
as a prudent person would exercise or use under the circumstances in the conduct of his own affairs. 
  

 40 

 No provision of this Indenture shall be construed to relieve the Trustee from liability for its own
negligent action, its own negligent failure to act or its own willful misconduct, except that: 
  
 (a) prior to the occurrence of an Event of Default and after the curing or waiving of all Events of Default which may have occurred: 
  
 (i) the duties and obligations of the Trustee shall be determined solely by the express provisions of this
Indenture and the Trust Indenture Act, and the Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture and no implied covenants, duties or obligations shall be read into
this Indenture and the Trust Indenture Act against the Trustee; and 
  
 (ii) in the absence of bad faith and willful misconduct on the part of the Trustee, the Trustee may conclusively rely as to the truth of the statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but, in the case of any such certificates or opinions which by any provisions hereof are specifically required to be furnished to the Trustee,
the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture but need not confirm or investigate the accuracy of mathematical calculations or other facts states therein;

  
 (b) the Trustee shall not be liable for any error of judgment
made in good faith by a Responsible Officer or Officers of the Trustee, unless the Trustee was negligent in ascertaining the pertinent facts; 
  
 (c) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the written direction
of the holders of not less than a majority in principal amount of the Notes at the time outstanding determined as provided in Section 9.04 relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred upon the Trustee, under this Indenture; 
  
 (d) whether or not therein provided, every provision of this Indenture relating to the conduct or affecting the liability of, or affording protection to, the Trustee shall be subject to the provisions of this Section;

  
 (e) the Trustee shall not be liable in respect of any payment
(as to the correctness of amount, entitlement to receive or any other matters relating to payment) or notice effected by the Company or any paying agent or any records maintained by any co-registrar with respect to the Notes; 
  
 (f) if any party fails to deliver a notice relating to an event the fact of
which, pursuant to this Indenture, requires notice to be sent to the Trustee, the Trustee may conclusively rely on its failure to receive such notice as reason to act as if no such event occurred; and 
  
 (g) the Trustee shall not be deemed to have knowledge of any Event of Default
hereunder unless it shall have been notified in writing of such Event of Default by the Company or the holders of at least 10% in aggregate principal amount of the Notes. 
  

 41 

 None of the provisions contained in this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if there is reasonable ground for believing that the repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it. 
  
 Section 8.02. Reliance on Documents, Opinions, Etc. Except as otherwise provided in Section 8.01: 
  
 (a) the Trustee may conclusively rely and shall be protected in acting upon any resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, bond, debenture, note, coupon or other paper or document (whether in its original or facsimile form) believed by it in good faith to be genuine and to have been signed or presented by the proper party or parties; 

 
 (b) any request, direction, order or demand of the Company mentioned
herein shall be sufficiently evidenced by an Officers’ Certificate (unless other evidence in respect thereof be herein specifically prescribed); and any resolution of the Board of Directors may be evidenced to the Trustee by a copy thereof
certified by the Secretary or an Assistant Secretary of the Company; 
  
 (c) the Trustee may consult with counsel of its own selection and any advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or omitted by it hereunder in good faith and in
accordance with such advice or Opinion of Counsel; 
  
 (d) the
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Noteholders pursuant to the provisions of this Indenture, unless such Noteholders shall have
offered to the Trustee reasonable security or indemnity satisfactory to it against the costs, expenses and liabilities which may be incurred therein or thereby; 
  

(e) the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or document, but the Trustee may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine
to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney at the expense of the Company and shall incur no liability of any kind by reason of
such inquiry or investigation; 
  
 (f) the Trustee may execute any
of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed by it
with due care hereunder; 
  

 42 

 (g) the Trustee shall not be liable for any action taken, suffered or omitted to be taken by it in good
faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture; 
  
 (h) the rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder; 
  

(i) the Trustee may request that the Company deliver an Officers’ Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person authorized to sign an Officers’ Certificate, including any person specified as so authorized in any such
certificate previously delivered and not superseded; and 
  
 (j)
any permissive right or authority granted to the Trustee shall not be construed as a mandatory duty. 
  
 (k) in no event shall the Trustee be responsible or liable for indirect, special or consequential loss or damage of any kind whatsoever (including, but
not limited to, loss of profit). 
  
 Section 8.03. No
Responsibility For Recitals, Etc. The recitals contained herein and in the Notes (except in the Trustee’s certificate of authentication) shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the
correctness of the same. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Notes. The Trustee shall not be accountable for the use or application by the Company of any Notes or the proceeds of any
Notes authenticated and delivered by the Trustee in conformity with the provisions of this Indenture. 
  
 Section 8.04. Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes. The Trustee, any paying agent, any conversion agent or Note
Registrar, in its individual or any other capacity, may become the owner or pledgee of Notes with the same rights it would have if it were not Trustee, paying agent, conversion agent or Note Registrar. 
  
 Section 8.05. Monies to Be Held in Trust. Subject to the provisions of
Section 13.04, all monies received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received. Money held by the Trustee in trust hereunder need not be segregated from other funds
except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as may be agreed in writing from time to time by the Company and the Trustee. 
  
 Section 8.06. Compensation and Expenses of Trustee. The Company
covenants and agrees to pay to the Trustee from time to time, and the Trustee shall be entitled to, 

  

 43 

 
such compensation for all services rendered by it hereunder in any capacity (which shall not be limited by any provision of law in regard to the compensation
of a trustee of an express trust) as mutually agreed to from time to time in writing between the Company and the Trustee, and the Company will pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances
reasonably incurred or made by the Trustee in accordance with any of the provisions of this Indenture (including the reasonable compensation and the expenses and disbursements of its counsel and of all Persons not regularly in its employ) except any
such expense, disbursement or advance as shall be determined to have been caused by its own negligence or willful misconduct. The Company also covenants to indemnify the Trustee and any predecessor Trustee (or any officer, director or employee of
the Trustee), in any capacity under this Indenture and its agents and any authenticating agent for, and to hold them harmless against, any and all loss, liability, damage, claim or expense including taxes (other than taxes based on the income of the
Trustee) incurred without negligence or willful misconduct on the part of the Trustee or such officers, directors, employees and agent or authenticating agent, as the case may be, and arising out of or in connection with the acceptance or
administration of this trust or in any other capacity hereunder, including the costs and expenses of defending themselves against any claim (whether asserted by the Company, any holder or any other Person) of liability in the premises. The
obligations of the Company under this Section 8.06 to compensate or indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances shall be secured by a lien prior to that of the Notes upon all property and funds
held or collected by the Trustee as such, except funds held in trust for the benefit of the holders of particular Notes. The obligation of the Company under this Section shall survive the satisfaction and discharge of this Indenture. 
  
 When the Trustee and its agents and any authenticating agent incur expenses
or render services after an Event of Default specified in Section 7.01(e) or (f) with respect to the Company occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any bankruptcy,
insolvency or similar laws. 
  
 Section 8.07. Officers’
Certificate As Evidence. Except as otherwise provided in Section 8.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or
omitting any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of bad faith or willful misconduct on the part of the Trustee, be deemed to be conclusively proved and
established by an Officers’ Certificate delivered to the Trustee. 
  
 Section 8.08. Conflicting Interests of Trustee. If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall (i) eliminate such interest within 90 days, (ii) apply to the
Commission for permission to continue as trustee or (iii) resign, in each case to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture. 
  
 Section 8.09. Eligibility of Trustee. There shall at all times be a
Trustee hereunder which shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at least $50,000,000 (or if such 

  

 44 

 
Person is a member of a bank holding company system, its bank holding company shall have a combined capital and surplus of at least $50,000,000). If such
Person publishes reports of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority, then for the purposes of this Section the combined capital and surplus of such Person shall be deemed to be
its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 8.09, it shall resign immediately in the
manner and with the effect hereinafter specified in this Article. 
  
 Section 8.10. Resignation or Removal of Trustee. 
  
 (a) The Trustee may at any time resign by giving written notice of such resignation to the Company and to the holders of Notes. Upon receiving such notice of resignation, the Company shall promptly appoint a successor trustee by written
instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor trustee. If no successor trustee shall have been so appointed and have
accepted appointment sixty (60) days after the mailing of such notice of resignation to the Noteholders, the resigning Trustee may, upon ten (10) Business Days’ notice to the Company and the Noteholders, petition, at the expense of the Company,
any court of competent jurisdiction for the appointment of a successor trustee, or, if any Noteholder who has been a bona fide holder of a Note or Notes for at least six (6) months may, subject to the provisions of Section 7.09, on behalf of himself
and all others similarly situated, petition any such court for the appointment of a successor trustee. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee. 
  
 (b) In case at any time any of the following shall occur: 
  
 (i) the Trustee shall fail to comply with Section 8.08 after
written request therefor by the Company or by any Noteholder who has been a bona fide holder of a Note or Notes for at least six (6) months; or 
  
 (ii) the Trustee shall cease to be eligible in accordance with the provisions of Section 8.09 and shall fail to resign after written
request therefor by the Company or by any such Noteholder; or 
  
 (iii) the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public officer shall take charge or control
of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation; 
  
 then, in any such case, the Company may remove the Trustee and appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be
delivered to the Trustee so removed and one copy to the successor trustee, or, subject to the provisions of Section 7.09, any Noteholder who 

  

 45 

 
has been a bona fide holder of a Note or Notes for at least six (6) months may, on behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee; provided that if no successor Trustee shall have been appointed and have accepted appointment sixty (60) days after either the Company or the
Noteholders has removed the Trustee, or the Trustee resigns, the Trustee so removed may petition, at the expense of the Company, any court of competent jurisdiction for an appointment of a successor trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee. 
  
 (c) The holders of a majority in aggregate principal amount of the Notes at the time outstanding may at any time remove the Trustee and nominate a
successor trustee which shall be deemed appointed as successor trustee unless, within ten (10) days after notice to the Company of such nomination, the Company objects thereto, in which case the Trustee so removed or any Noteholder, or if such
Trustee so removed or any Noteholder fails to act, the Company, upon the terms and conditions and otherwise as in Section 8.10(a) provided, may petition any court of competent jurisdiction for an appointment of a successor trustee. 
  
 (d) Any resignation or removal of the Trustee and appointment of a successor
trustee pursuant to any of the provisions of this Section 8.10 shall become effective upon acceptance of appointment by the successor trustee as provided in Section 8.11. 
  
 (e) Notwithstanding the replacement of the Trustee pursuant to this Section, the Company’s obligations under Section
8.06 shall continue for the benefit of the retiring Trustee. 
  
 Section 8.11. Acceptance by Successor Trustee. Any successor trustee appointed as provided in Section 8.10 shall execute, acknowledge and deliver to the Company and to its predecessor trustee an instrument accepting such appointment
hereunder, and thereupon the resignation or removal of the predecessor trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, duties and obligations of
its predecessor hereunder, with like effect as if originally named as trustee herein; but, nevertheless, on the written request of the Company or of the successor trustee, the trustee ceasing to act shall, upon payment of any amount then due it
pursuant to the provisions of Section 8.06, execute and deliver an instrument transferring to such successor trustee all the rights and powers of the trustee so ceasing to act. Upon request of any such successor trustee, the Company shall execute
any and all instruments in writing for more fully and certainly vesting in and confirming to such successor trustee all such rights and powers. Any trustee ceasing to act shall, nevertheless, retain a lien upon all property and funds held or
collected by such trustee as such, except for funds held in trust for the benefit of holders of particular Notes, to secure any amounts then due it pursuant to the provisions of Section 8.06. 
  
 No successor trustee shall accept appointment as provided in this Section
8.11 unless, at the time of such acceptance, such successor trustee shall be qualified under the provisions of Section 8.08 and be eligible under the provisions of Section 8.09. 
  

 46 

 Upon acceptance of appointment by a successor trustee as provided in this Section 8.11, the Company (or
the former trustee, at the written direction of the Company) shall mail or cause to be mailed notice of the succession of such trustee hereunder to the holders of Notes at their addresses as they shall appear on the Note Register. If the Company
fails to mail such notice within ten (10) days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be mailed at the expense of the Company. 
  
 Section 8.12. Succession By Merger. Any corporation into which the
Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all of
the corporate trust business of the Trustee (including any trust created by this Indenture), shall be the successor to the Trustee hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto,
provided that in the case of any corporation succeeding to all or substantially all of the corporate trust business of the Trustee, such corporation shall be qualified under the provisions of Section 8.08 and eligible under the provisions of Section
8.09. 
  
 In case at the time such successor to the Trustee shall
succeed to the trusts created by this Indenture, any of the Notes shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor trustee or authenticating agent
appointed by such predecessor trustee, and deliver such Notes so authenticated; and in case at that time any of the Notes shall not have been authenticated, any successor to the Trustee or any authenticating agent appointed by such successor trustee
may authenticate such Notes in the name of the successor trustee; and in all such cases such certificates shall have the full force that is provided in the Notes or in this Indenture; provided that the right to adopt the certificate of
authentication of any predecessor Trustee or authenticate Notes in the name of any predecessor Trustee shall apply only to its successor or successors by merger, conversion or consolidation. 
  
 Section 8.13. Preferential Collection of Claims. If and when the
Trustee shall be or become a creditor of the Company (or any other obligor upon the Notes), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of the claims against the Company (or any such other
obligor). 
  
 Section 8.14. Trustee’s Application For
Instructions From The Company. Any application by the Trustee for written instructions from the Company (other than with regard to any action proposed to be taken or omitted to be taken by the Trustee that affects the rights of the holders of
the Notes under this Indenture) may, at the option of the Trustee, set forth in writing any action proposed to be taken or omitted by the Trustee under this Indenture and the date on and/or after which such action shall be taken or such omission
shall be effective. The Trustee shall not be liable for any action taken by, or omission of, the Trustee in accordance with a proposal included in such application on or after the date specified in such application (which date shall not be less than
three (3) Business Days after the date any officer of the Company actually receives such 

  

 47 

 
application, unless any such officer shall have consented in writing to any earlier date) unless prior to taking any such action (or the effective date in
the case of an omission), the Trustee shall have received written instructions in response to such application specifying the action to be taken or omitted. 
  
 ARTICLE 9 
 THE
NOTEHOLDERS 
  
 Section 9.01. Action By
Noteholders. Whenever in this Indenture it is provided that the holders of a specified percentage in aggregate principal amount of the Notes may take any action (including the making of any demand or request, the giving of any notice, consent or
waiver or the taking of any other action), the fact that at the time of taking any such action, the holders of such specified percentage have joined therein may be evidenced (a) by any instrument or any number of instruments of similar tenor
executed by Noteholders in person or by agent or proxy appointed in writing, or (b) by the record of the holders of Notes voting in favor thereof at any meeting of Noteholders duly called and held in accordance with the provisions of Article 10, or
(c) by a combination of such instrument or instruments and any such record of such a meeting of Noteholders. Whenever the Company or the Trustee solicits the taking of any action by the holders of the Notes, the Company or the Trustee may fix in
advance of such solicitation, a date as the record date for determining holders entitled to take such action. The record date shall be not more than fifteen (15) days prior to the date of commencement of solicitation of such action. 
  
 Section 9.02. Proof of Execution by Noteholders. Subject to the
provisions of Sections 8.01, 8.02 and 10.05, proof of the execution of any instrument by a Noteholder or its agent or proxy shall be sufficient if made in accordance with such reasonable rules and regulations as may be prescribed by the Trustee or
in such manner as shall be satisfactory to the Trustee. The holding of Notes shall be proved by the registry of such Notes or by a certificate of the Note Registrar. 
  
 The record of any Noteholders’ meeting shall be proved in the manner provided in Section 10.06. 
  
 Section 9.03. Who Are Deemed Absolute Owners. The Company, the
Trustee, any paying agent, any conversion agent and any Note Registrar may deem the Person in whose name such Note shall be registered upon the Note Register to be, and may treat it as, the absolute owner of such Note (whether or not such Note shall
be overdue and notwithstanding any notation of ownership or other writing thereon made by any Person other than the Company or any Note Registrar) for the purpose of receiving payment of or on account of the principal of and Interest on such Note,
for conversion of such Note and for all other purposes; and neither the Company nor the Trustee nor any paying agent nor any conversion agent nor any Note Registrar shall be affected by any notice to the contrary. All such payments so made to any
holder for the time being, or upon his order, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for monies payable upon any such Note. 
  

 48 

 Section 9.04. Company-owned Notes Disregarded. In determining whether the holders of the requisite
aggregate principal amount of Notes have concurred in any direction, consent, waiver or other action under this Indenture, Notes which are owned by the Company or any other obligor on the Notes or any Affiliate of the Company or any other obligor on
the Notes shall be disregarded and deemed not to be outstanding for the purpose of any such determination; provided that for the purposes of determining whether the Trustee shall be protected in relying on any such direction, consent, waiver or
other action, only Notes which a Responsible Officer actually knows are so owned shall be so disregarded. Notes so owned which have been pledged in good faith may be regarded as outstanding for the purposes of this Section 9.04 if the pledgee shall
establish to the satisfaction of the Trustee the pledgee’s right to vote such Notes and that the pledgee is not the Company, any other obligor on the Notes or any Affiliate of the Company or any such other obligor. In the case of a dispute as
to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee. Upon request of the Trustee, the Company shall furnish to the Trustee promptly an Officers’ Certificate listing and identifying
all Notes, if any, known by the Company to be owned or held by or for the account of any of the above described Persons, and, subject to Section 8.01, the Trustee shall be entitled to accept such Officers’ Certificate as conclusive evidence of
the facts therein set forth and of the fact that all Notes not listed therein are outstanding for the purpose of any such determination. 
  
 Section 9.05. Revocation Of Consents, Future Holders Bound. At any time prior to (but not after) the evidencing to the Trustee, as provided in
Section 9.01, of the taking of any action by the holders of the percentage in aggregate principal amount of the Notes specified in this Indenture in connection with such action, any holder of a Note which is shown by the evidence to be included in
the Notes the holders of which have consented to such action may, by filing written notice with the Trustee at its Corporate Trust Office and upon proof of holding as provided in Section 9.02, revoke such action so far as concerns such Note. Except
as aforesaid, any such action taken by the holder of any Note shall be conclusive and binding upon such holder and upon all future holders and owners of such Note and of any Notes issued in exchange or substitution therefor, irrespective of whether
any notation in regard thereto is made upon such Note or any Note issued in exchange or substitution therefor. 
  
 ARTICLE 10 
 MEETINGS OF NOTEHOLDERS

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

 49 

 (2) to remove the Trustee and nominate a successor trustee pursuant to the provisions of
Article 8; 
  
 (3) to consent to the execution of
an indenture or indentures supplemental hereto pursuant to the provisions of Section 11.02; or 
  
 (4) to take any other action authorized to be taken by or on behalf of the holders of any specified aggregate principal amount of the
Notes under any other provision of this Indenture or under applicable law. 
  
 Section 10.02. Call Of Meetings By Trustee. The Trustee may at any time call a meeting of Noteholders to take any action specified in Section 10.01, to be held at such time and at such place as the Trustee
shall determine. Notice of every meeting of the Noteholders, setting forth the time and 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 9.01,
shall be mailed to holders of Notes at their addresses as they shall appear on the Note Register. Such notice shall also be mailed to the Company. Such notices shall be mailed not less than twenty (20) nor more than ninety (90) days prior to the
date fixed for the meeting. 
  
 Any meeting of Noteholders shall
be valid without notice if the holders of all Notes then outstanding are present in person or by proxy or if notice is waived before or after the meeting by the holders of all Notes outstanding, and if the Company and the Trustee are either present
by duly authorized representatives or have, before or after the meeting, waived notice. 
  
 Section 10.03. Call Of Meetings By Company Or Noteholders. In case at any time the Company, pursuant to a resolution of its Board of Directors, or the holders of at least ten percent (10%) in aggregate
principal amount of the Notes then outstanding, shall have requested the Trustee to call a meeting of Noteholders, by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have
mailed the notice of such meeting within twenty (20) days after receipt of such request, then the Company or such Noteholders may determine the time and the place for such meeting and may call such meeting to take any action authorized in Section
10.01, by mailing notice thereof as provided in Section 10.02. 
  
 Section 10.04. Qualifications For Voting. To be entitled to vote at any meeting of Noteholders a person shall (a) be a holder of one or more Notes on the record date pertaining to such meeting or (b) be a person appointed by an
instrument in writing as proxy by a holder of one or more Notes on the record date pertaining to such meeting. The only persons who shall be entitled to be present or to speak at any meeting of Noteholders shall be the persons entitled to vote at
such meeting and their counsel and any representatives of the Trustee and its counsel and any representatives of the Company and its counsel. 
  
 Section 10.05. Regulations. Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem
advisable 

  

 50 

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

 51 

 Section 10.07. No Delay Of Rights By Meeting. Nothing contained in this Article 10 shall be deemed
or construed to authorize or permit, by reason of any call of a meeting of Noteholders or any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in the exercise of any right or rights conferred upon or
reserved to the Trustee or to the Noteholders under any of the provisions of this Indenture or of the Notes. 
  
 ARTICLE 11 
 SUPPLEMENTAL INDENTURES 
  
 Section 11.01. Supplemental Indentures Without Consent of Noteholders.
The Company, when authorized by the resolutions of the Board of Directors, and the Trustee may, from time to time, and at any time enter into an indenture or indentures supplemental hereto for one or more of the following purposes: 
  
 (a) make provision with respect to the conversion rights of the holders of
Notes pursuant to the requirements of Section 15.07 and the repurchase obligations of the Company pursuant to the requirements of Section 3.05(e); 
  
 (b) to convey, transfer, assign, mortgage or pledge to the Trustee as security for the Notes, any property or assets; 
  
 (c) to evidence the succession of another Person to the Company, or
successive successions, and the assumption by the successor Person of the covenants, agreements and obligations of the Company pursuant to Article 12; 
  
 (d) to add to the covenants of the Company such further covenants, restrictions or conditions as the Board of Directors and the Trustee shall consider to
be for the benefit of the holders of Notes, and to make the occurrence, or the occurrence and continuance, of a default in any such additional covenants, restrictions or conditions a default or an Event of Default permitting the enforcement of all
or any of the several remedies provided in this Indenture as herein set forth; provided that in respect of any such additional covenant, restriction or condition, such supplemental indenture may provide for a particular period of grace after
default (which period may be shorter or longer than that allowed in the case of other defaults) or may provide for an immediate enforcement upon such default or may limit the remedies available to the Trustee upon such default; 
  
 (e) to provide for the issuance under this Indenture of Notes in coupon form
(including Notes registrable as to principal only) and to provide for exchangeability of such Notes with the Notes issued hereunder in fully registered form and to make all appropriate changes for such purpose; 
  
 (f) to cure any ambiguity or to correct or supplement any provision contained
herein or in any supplemental indenture that may be defective or inconsistent with any other provision contained herein or in any supplemental indenture, or to make such other provisions in regard to matters or questions arising under this Indenture
that shall not materially adversely affect the interests of the holders of the Notes; 
  

 52 

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

  

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upon conversion subject to the terms set forth herein, including Section 15.03 and 15.07, in each case, without the consent of the holder of each Note so
affected, or modify any of the provisions of this Section 11.02 or Section 7.07, except to increase any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the holder of
each Note so affected, or change any obligation of the Company to maintain an office or agency in the places and for the purposes set forth in Section 5.02 or reduce the quorum or voting requirements set forth in Article 10 or (ii) reduce the
aforesaid percentage of Notes, the holders of which are required to consent to any such supplemental indenture, without the consent of the holders of all Notes then outstanding. 
  
 Upon the written request of the Company, accompanied by a copy of the resolutions of the Board of Directors certified by its
Secretary or Assistant Secretary authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of Noteholders as aforesaid, the Trustee shall join with the Company in the execution of
such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into
such supplemental indenture. 
  
 It shall not be necessary for the
consent of the Noteholders under this Section 11.02 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof. 
  
 Section 11.03. Effect Of Supplemental Indenture. Any supplemental
indenture executed pursuant to the provisions of this Article 11 shall comply with the Trust Indenture Act, as then in effect, provided that this Section 11.03 shall not require such supplemental indenture or the Trustee to be qualified under the
Trust Indenture Act prior to the time such qualification is in fact required under the terms of the Trust Indenture Act or the Indenture has been qualified under the Trust Indenture Act, nor shall it constitute any admission or acknowledgment by any
party to such supplemental indenture that any such qualification is required prior to the time such qualification is in fact required under the terms of the Trust Indenture Act or the Indenture has been qualified under the Trust Indenture Act. Upon
the execution of any supplemental indenture pursuant to the provisions of this Article 11, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitation of rights, obligations, duties
and immunities under this Indenture of the Trustee, the Company and the holders of Notes shall thereafter be determined, exercised and enforced hereunder, subject in all respects to such modifications and amendments and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes. 
  
 Section 11.04. Notation On Notes. Notes authenticated and delivered after the execution of any supplemental indenture pursuant to the provisions of
this Article 11 may bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company or the Trustee shall so determine, new Notes so modified as to conform, in the opinion of the Trustee
and the Board of Directors, to any 

  

 54 

 
modification of this Indenture contained in any such supplemental indenture may, at the Company’s expense, be prepared and executed by the Company,
authenticated by the Trustee (or an authenticating agent duly appointed by the Trustee pursuant to Section 16.11) and delivered in exchange for the Notes then outstanding, upon surrender of such Notes then outstanding. 
  
 Section 11.05. Evidence Of Compliance Of Supplemental Indenture To Be
Furnished To Trustee. Prior to entering into any supplemental indenture, the Trustee shall be provided with an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant hereto
complies with the requirements of this Article 11 and is otherwise authorized or permitted by this Indenture. 
  
 ARTICLE 12 
 CONSOLIDATION, MERGER, SALE,
CONVEYANCE AND LEASE 
  
 Section 12.01. Company May Consolidate On Certain Terms. Subject to the provisions of Section 12.02, the Company shall not consolidate or merge with or into any other Person or Persons (whether or not affiliated with the Company),
nor shall the Company or its successor or successors be a party or parties to successive consolidations or mergers, nor shall the Company sell, convey, transfer or lease the property and assets of the Company substantially as an entirety, to any
other Person (whether or not affiliated with the Company), unless: (i) the Company is the surviving Person, or the resulting, surviving or transferee Person is a corporation organized and existing under the laws of the United States of America, any
state thereof or the District of Columbia; (ii) upon any such consolidation, merger, sale, conveyance, transfer or lease, the due and punctual payment of the principal of and Interest on all of the Notes, according to their tenor and the due and
punctual performance and observance of all of the covenants and conditions of this Indenture to be performed by the Company, shall be expressly assumed, by supplemental indenture satisfactory in form and substance to the Trustee, executed and
delivered to the Trustee by the Person (if other than the Company and other than a Person who is a successor to the Company’s obligations hereunder and under the Note by operation of law) formed by such consolidation, or into which the Company
shall have been merged, or by the Person that shall have acquired or leased such property, and such supplemental indenture shall provide for the applicable conversion rights set forth in Section 15.07; and (iii) immediately after giving effect to
the transaction described above, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have happened and be continuing. 
  
 Section 12.02. Successor To Be Substituted. In case of any such consolidation, merger, sale, conveyance, transfer or
lease and upon the assumption by the successor Person, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the due and punctual payment of the principal of and Interest on all of the Notes and
the due and punctual performance of all of the covenants and conditions of this Indenture to be performed by the Company, such successor Person shall succeed to and be substituted for the Company, with the same effect as if it had been named herein
as the party of this first part. Such successor Person thereupon may cause 

  

 55 

 
to be signed, and may issue either in its own name or in the name of Commonwealth Telephone Enterprises, Inc. any or all of the Notes, issuable hereunder
that theretofore shall not have been signed by the Company and delivered to the Trustee; and, upon the order of such successor Person instead of the Company and subject to all the terms, conditions and limitations in this Indenture prescribed, the
Trustee shall authenticate and shall deliver, or cause to be authenticated and delivered, any Notes that previously shall have been signed and delivered by the officers of the Company to the Trustee for authentication, and any Notes that such
successor Person thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the Notes so issued shall in all respects have the same legal rank and benefit under this Indenture as the Notes theretofore or thereafter issued
in accordance with the terms of this Indenture as though all of such Notes had been issued at the date of the execution hereof. In the event of any such consolidation, merger, sale, conveyance, transfer or lease, the Person named as the
“Company” in the first paragraph of this Indenture or any successor that shall thereafter have become such in the manner prescribed in this Article 12 may be dissolved, wound up and liquidated at any time thereafter and such Person
shall be released from its liabilities as obligor and maker of the Notes and from its obligations under this Indenture. 
  
 In case of any such consolidation, merger, sale, conveyance, transfer or lease, such changes in phraseology and form (but not in substance) may be made in
the Notes thereafter to be issued as may be appropriate. 
  
 Section 12.03. Opinion Of Counsel To Be Given To Trustee. The Trustee shall receive an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any such consolidation, merger, sale, conveyance, transfer or
lease and any such assumption complies with the provisions of this Article 12. 
  
 ARTICLE 13 
 SATISFACTION AND DISCHARGE OF
INDENTURE 
  
 Section 13.01. Discharge Of
Indenture. When (a) the Company shall deliver to the Trustee for cancellation all Notes theretofore authenticated (other than any Notes that have been destroyed, lost or stolen and in lieu of or in substitution for which other Notes shall have
been authenticated and delivered) and not theretofore canceled, or (b) all the Notes not theretofore canceled or delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one
year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and the Company shall deposit with the Trustee, in trust, funds sufficient to pay at maturity or upon
redemption of all of the Notes (other than any Notes that shall have been mutilated, destroyed, lost or stolen and in lieu of or in substitution for which other Notes shall have been authenticated and delivered) not theretofore canceled or delivered
to the Trustee for cancellation, including principal and Interest due or to become due to such date of maturity or redemption date, as the case may be, accompanied by a verification report, as to the sufficiency of the deposited amount, from an
independent certified accountant or other financial professional satisfactory to the Trustee, and if the Company shall also pay or cause to be 

  

 56 

 
paid all other sums payable hereunder by the Company, then this Indenture shall cease to be of further effect (except as to (i) remaining rights of
registration of transfer, substitution and exchange and conversion of Notes, (ii) rights hereunder of Noteholders to receive payments of principal of and Interest on, the Notes and the other rights, duties and obligations of Noteholders, as
beneficiaries hereof with respect to the amounts, if any, so deposited with the Trustee and (iii) the rights, obligations and immunities of the Trustee hereunder), and the Trustee, on written demand of the Company accompanied by an Officers’
Certificate and an Opinion of Counsel as required by Section 16.05 and at the cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of and discharging this Indenture; the Company, however, hereby agrees to
reimburse the Trustee for any costs or expenses thereafter reasonably and properly incurred by the Trustee and to compensate the Trustee for any services thereafter reasonably and properly rendered by the Trustee in connection with this Indenture or
the Notes. 
  
 Section 13.02. Deposited Monies To Be Held In
Trust By Trustee. Subject to Section 13.04, all monies deposited with the Trustee pursuant to Section 13.01, shall be held in trust for the sole benefit of the Noteholders, and such monies shall be applied by the Trustee to the payment, either
directly or through any paying agent (including the Company if acting as its own paying agent), to the holders of the particular Notes for the payment or redemption of which such monies have been deposited with the Trustee, of all sums due and to
become due thereon for principal and Interest. 
  
 Section 13.03.
Paying Agent To Repay Monies Held. Upon the satisfaction and discharge of this Indenture, all monies then held by any paying agent of the Notes (other than the Trustee) shall, upon written request of the Company, be repaid to it or paid to
the Trustee, and thereupon such paying agent shall be released from all further liability with respect to such monies. 
  
 Section 13.04. Return Of Unclaimed Monies. Subject to the requirements of applicable law, any monies deposited with or paid to the Trustee for
payment of the principal or Interest on Notes and not applied but remaining unclaimed by the holders of Notes for two years after the date upon which the principal of or Interest on such Notes, as the case may be, shall have become due and payable,
shall be repaid to the Company by the Trustee on demand and all liability of the Trustee shall thereupon cease with respect to such monies; and the holder of any of the Notes shall thereafter look only to the Company for any payment that such holder
may be entitled to collect unless an applicable abandoned property law designates another Person. 
  
 Section 13.05. Reinstatement. If the Trustee or the paying agent is unable to apply any money in accordance with Section 13.02 by reason of any
order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had
occurred pursuant to Section 13.01 until such time as the Trustee or the paying agent is permitted to apply all such money in accordance with Section 13.02; provided that if the Company makes any payment of Interest on or principal of any Note
following the reinstatement of its obligations, the Company shall be subrogated to the rights of the holders of such Notes to receive such payment from the money held by the Trustee or paying agent. 
  

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 ARTICLE 14 
 IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS 
  
 Section 14.01. Indenture And Notes Solely Corporate Obligations. No
recourse for the payment of the principal of or Interest on any Note, or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in this Indenture or in any
supplemental indenture or in any Note, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, employee, agent, officer, director or subsidiary, as such, past, present or future, of the
Company or of any successor corporation, either directly or through the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that all such liability is hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issue of the Notes. 
  
 ARTICLE 15 
 CONVERSION OF NOTES 
  
 Section 15.01. Right To Convert. (a) Subject to and upon compliance with the provisions of this Indenture, prior to the close of business on the
Business Day immediately preceding July 15, 2023, the holder of any Note shall have the right, at such holder’s option, to convert the principal amount of the Note, or any portion of such principal amount which is a multiple of $1,000, into
fully paid and non-assessable shares of Common Stock (as such shares shall then be constituted) at the Conversion Rate in effect at such time, subject to the Company’s right to elect to deliver cash or a combination of cash and Common Stock in
lieu of Common Stock pursuant to Section 15.03, by surrender of the Note so to be converted in whole or in part, together with any required funds, under the circumstances described in this Section 15.01 and in the manner provided in Section 15.02.
The Notes shall be convertible only upon the occurrence of one of the following events: 
  
 (i) during any Fiscal Quarter (and only during such Fiscal Quarters) commencing after June 30, 2005, if the Closing Sale Price of the
Common Stock exceeds 120% of the then-effective Conversion Price for at least 20 Trading Days in the 30 consecutive Trading Day period ending on the last Trading Day of the immediately preceding Fiscal Quarter (it being understood for purposes of
this Section 15.01(a)(i) that the Conversion Price in effect at the close of business on each of the 30 consecutive Trading Days should be used); 
  
 (ii) during the five Business Day period immediately following any five consecutive Trading Day period (the “Measurement
Period”) in which the 

  

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Trading Price per $1,000 principal amount of the Notes for each day of such Measurement Period was less than 98% of the product of the Closing Sale Price of
the Common Stock and the number of shares of Common Stock issuable upon conversion of $1,000 principal amount of the Notes; provided that no conversion pursuant to this clause (ii) may be made after July 15, 2018, if on any Trading Day during
the Measurement Period, the Closing Sale Price is more than 100%, but less than 120% of the Conversion Price on such Trading Day. 
  
 (iii) if such Note has been called for redemption, at any time on or after the date the notice of redemption has been given until the
close of business on the second Business Day immediately preceding the redemption date; or 
  
 (iv) as provided in Section (b) of this Section 15.01. 
  
 The Trustee (or other conversion agent appointed by the Company) shall, on behalf of the Company, determine on a daily basis
during the time period specified in Section 15.01(a)(i) whether the Notes shall be convertible as a result of the occurrence of an event specified in clause (i) above and, if the Notes shall be so convertible, the Trustee (or other conversion agent
appointed by the Company) shall promptly deliver to the Company and the Trustee (if the Trustee is not the conversion agent) written notice thereof. Whenever the Notes shall become convertible pursuant to this Section 15.01, the Company or, at the
Company’s request, the Trustee in the name and at the expense of the Company, shall notify the holders of the event triggering such convertibility in the manner provided in Section 16.03, and the Company shall also publicly announce such
information and publish it on the Company’s web site. Any notice so given shall be conclusively presumed to have been duly given, whether or not the holder receives such notice. 
  
 The Trustee (or other conversion agent appointed by the Company) shall have no obligation to determine the Trading Price
under this Section 15.01 unless the Company has requested such a determination; and the Company shall have no obligation to make such request unless a holder provides it with reasonable evidence that the Trading Price per $1,000 principal amount of
Notes would be less than 98% of the product of the Closing Sale Price of the Common Stock and the number of shares of Common Stock issuable upon conversion of $1,000 principal amount of Notes. If such evidence is provided, the Company shall instruct
the Trustee (or other conversion agent) to determine the Trading Price of the Notes beginning on the next Trading Day and on each successive Trading Day until the Trading Price per $1,000 principal amount of Notes is greater than or equal to 98% of
the product of the Closing Sale Price of the Common Stock and the number of shares issuable upon conversion of $1,000 principal amount of the Notes; provided that the Trustee shall be under no duty or obligation to make the calculations
described in Section 15.01(a)(ii) hereof or to determine whether the Notes are convertible pursuant to such section. For the avoidance of doubt, the Company shall make the calculations described in Section 15.01(a)(ii), using the Trading Price
provided by the Trustee. 
  

 59 

 The Trustee shall be entitled at its sole discretion to consult with the Company and to request the
assistance of the Company in connection with the Trustee’s duties and obligations pursuant to Section 15.01(a)(i) and Section 15.01(a)(ii) hereof (including without limitation the calculation or determination of the Conversion Price, the
Closing Sale Price and the Trading Price), and the Company agrees, if requested by the Trustee, to cooperate with, and provide assistance to, the Trustee in carrying out its duties under this Section 15.01; provided that nothing herein shall
be construed to relieve the Trustee of its duties pursuant to Section 15.01(a)(i) and Section 15.01(a)(ii) hereof. 
  
 (b) In addition, if: 
  
 (i) (A) the Company distributes to all holders of its Common Stock rights or warrants entitling them (for a period expiring within 45 days
of the record date for the determination of the stockholders entitled to receive such distribution) to subscribe for or purchase shares of Common Stock, at a price per share less than the average of the Closing Sale Price of the Common Stock for the
ten Trading Days immediately preceding, but not including, the date such distribution is first publicly announced by the Company, or (B) the Company distributes to all holders of its Common Stock, cash or other assets, debt securities or rights to
purchase its securities, where the Fair Market Value of such distribution per share of Common Stock exceeds 5% of the Closing Sale Price of the Common Stock on the Trading Day immediately preceding the date such distribution is first publicly
announced by the Company, then, in either case, the Notes may be surrendered for conversion at any time on and after the date that the Company gives notice to the holders of such distribution, which shall be not less than 20 days prior to the Record
Date for such distribution, until the earlier of the close of business on the fourth Business Day immediately preceding, but not including, the Record Date or the date the Company publicly announces that such distribution will not take place;
provided that neither any adjustment to the Conversion Price will be made if the holder will otherwise participate in such distribution without conversion nor will a holder of a Note have the ability to convert pursuant to this Section 15.01(b);
or 
  
 (ii) the Company consolidates with or
merges with or into another Person or is a party to a binding share exchange or conveys, transfers, sells, leases or otherwise disposes of all or substantially all of its properties and assets in each case pursuant to which the Company’s Common
Stock is converted into cash, securities or other property, then the Notes may be surrendered for conversion at any time from and after the date fifteen (15) days prior to the anticipated effective date of the transaction and ending on and including
the date fifteen (15) days after the consummation of the transaction. If such transaction constitutes a Designated Event, the Notes may be surrendered for conversion until the corresponding Designated Event Purchase Date. In such an event, a holder
of Notes may elect to exercise its option to require the Company to repurchase all or a portion of such holder’s Notes pursuant to Section 3.05. The Board of Directors shall determine the anticipated effective date of the transaction, and such
determination shall be conclusive and binding on the 

  

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holders and shall be publicly announced by the Company and posted on its web site not later than two Business Days prior to such 15th day. If Notes are not surrendered pursuant to this paragraph for conversion, on the date that is 16 days from the effective
date of the transaction, the right to convert the Notes into Common Stock shall be modified as set forth in Section 15.07. 
  
 (c) A Note in respect of which a holder is electing to exercise its option to require the Company to repurchase such holder’s Notes upon a Designated
Event pursuant to Section 3.05, or at the option of the holder pursuant to Section 3.06, may be converted only if such holder withdraws its election in accordance with Section 3.05(c) or Section 3.08, respectively. A holder of Notes is not entitled
to any rights of a holder of Common Stock until such holder has converted his Notes to Common Stock, subject to the Company’s right to settle the related Conversion Obligation partly or wholly in cash pursuant to Section 15.03, and only to the
extent such Notes are deemed to have been converted to Common Stock under this Article 15. 
  
 Section 15.02. Exercise Of Conversion Privilege; Issuance Of Common Stock On Conversion; No Adjustment For Interest Or Dividends. In order to exercise the conversion privilege with respect to any Note in
certificated form, the Company must receive at the office or agency of the Company maintained for that purpose or, at the option of such holder, the Corporate Trust Office, such Note with the original or facsimile of the form entitled
“Conversion Notice” on the reverse thereof, duly completed and manually signed, together with such Notes duly endorsed for transfer, accompanied by the funds, if any, required by the penultimate paragraph of this Section 15.02. Such
notice shall also state the name or names (with address or addresses) in which the certificate or certificates for shares of Common Stock which shall be issuable on such conversion shall be issued, subject to the Company’s right to settle the
related Conversion Obligation partly or wholly in cash pursuant to Section 15.03, and shall be accompanied by transfer or similar taxes, if required pursuant to Section 15.08. 
  
 In order to exercise the conversion privilege with respect to any interest in a Global Note, the beneficial holder must
complete, or cause to be completed, the appropriate instruction form for conversion pursuant to the Depositary’s book-entry conversion program, deliver, or cause to be delivered, by book-entry delivery an interest in such Global Note, furnish
appropriate endorsements and transfer documents if required by the Company or the Trustee or conversion agent, and pay the funds, if any, required by this Section 15.02 and any transfer taxes if required pursuant to Section 15.08. 
  
 Following satisfaction of the requirements for conversion set forth above,
subject to compliance with any restrictions on transfer if shares issuable on conversion are to be issued in a name other than that of the Noteholder (as if such transfer were a transfer of the Note or Notes (or portion thereof) so converted), the
Company shall issue and shall deliver to such Noteholder at the office or agency maintained by the Company for such purpose pursuant to Section 5.02, a certificate or certificates for the number of full shares of Common Stock, if any, issuable upon
the conversion of such Note or portion thereof as determined by the Company in accordance with the provisions of this Article 15 and a check or cash in respect of any portion of the Conversion Value to be paid in cash 

  

 61 

 
determined in accordance with Section 15.03 and any fractional interest in respect of a share of Common Stock arising upon such conversion, calculated by the
Company as provided in Section 15.04. In case any Note of a denomination greater than $1,000 shall be surrendered for partial conversion, and subject to Section 2.03, the Company shall execute and the Trustee shall authenticate and deliver to the
holder of the Note so surrendered, without charge to him, a new Note or Notes in authorized denominations in an aggregate principal amount equal to the unconverted portion of the surrendered Note. 
  
 Each conversion shall be deemed to have been effected as to any such Note (or
portion thereof) on the date (the “Conversion Date”) on which the requirements set forth above in this Section 15.02 have been satisfied as to such Note (or portion thereof), and the Person in whose name any certificate or
certificates for shares of Common Stock shall be issuable, if any, upon such conversion shall be deemed to have become on said date the holder of record of the shares represented thereby; provided that any such surrender on any date when the
stock transfer books of the Company shall be closed shall constitute the Person in whose name the certificates are to be issued as the record holder thereof for all purposes on the next succeeding day on which such stock transfer books are open, but
such conversion shall be at the Conversion Rate in effect on the date upon which such Note shall be surrendered. 
  
 Any Note or portion thereof surrendered for conversion during the period from the close of business on the record date for any interest payment date to
the close of business on the Business Day preceding the following interest payment date shall be accompanied by payment, in immediately available funds or other funds acceptable to the Company, of an amount equal to the Interest otherwise payable on
such interest payment date on the principal amount being converted; provided that no such payment need be made (1) if the Company has specified a redemption date that is after a record date and on or prior to the next interest payment date,
(2) if the Company has specified a Designated Event Repurchase Date that is after a record date and on or prior to the next interest payment date or (3) to the extent of any overdue Interest, if any overdue Interest exists at the time of conversion
with respect to such Note. Except as provided above in this Section 15.02, no payment or other adjustment shall be made for Interest accrued on any Note converted or for dividends on any shares issued upon the conversion of such Note as provided in
this Article 15. 
  
 Upon the conversion of an interest in a
Global Note, the Trustee (or other conversion agent appointed by the Company), or the Custodian at the direction of the Trustee (or other conversion agent appointed by the Company), shall make a notation on such Global Note as to the reduction in
the principal amount represented thereby. The Company shall notify the Trustee in writing of any conversions of Notes effected through any conversion agent other than the Trustee. 
  
 Upon the conversion of a Note, that portion of the accrued but unpaid Interest, including accrued Contingent Interest, if
any, to the Conversion Date, with respect to the converted Note shall not be cancelled, extinguished or forfeited, but rather shall be deemed to be paid in full to the holder thereof through delivery of the Common Stock, cash or combination of cash
and Common Stock (together with the cash payment, if any 

  

 62 

 
in lieu of fractional shares) in exchange for the Note being converted pursuant to the provisions hereof; and the Fair Market Value of such shares of Common
Stock, cash or combination of cash and Common Stock (together with any such cash payment in lieu of fractional shares) shall be treated as issued, to the extent thereof, first in exchange for and in satisfaction of our obligation to pay the
principal amount of the converted Note, the accrued but unpaid Interest, including Contingent Interest, if any, through the Conversion Date and the balance, if any, of such Fair Market Value of such Common Stock, cash or combination of cash and
Common Stock (and any such cash payment) shall be treated as issued in exchange for and in satisfaction of the right to convert the Note being converted pursuant to the provisions hereof. 
  
 The Company agrees, and by acceptance of a beneficial interest in a Note each holder and any beneficial owner of a Note
shall be deemed to have agreed to treat, for United States federal income tax purposes, the Fair Market Value of the Common Stock, cash or combination of cash and Common Stock received upon a conversion of the Note (together with any cash payment in
lieu of fractional shares) as a contingent payment on the Note for purposes of Treasury Regulation Section 1.1275-4 or any successor provision. 
  
 Section 15.03. Settlement Upon Conversion. (a) The Company may satisfy all or any portion of the Company’s obligation to deliver shares of
Common Stock upon conversion of Notes (the “Conversion Obligation”) in cash or in any combination of cash and shares of Common Stock selected by the Company, in accordance with clause (b) and (c) of this Section 15.03. 

 
 (b) If the Company chooses to satisfy all or any portion of the Conversion
Obligation in cash pursuant to clause (a) of this Section 15.03, the Company will notify the holder through the Trustee of the method chosen by the Company to satisfy the Conversion Obligation (such notice, the “Settlement Method Election
Notice”) at any time on or before the date that is two Trading Days following the Conversion Date (the “Settlement Method Notice Period”). If the Company timely elects to pay cash (other than cash in lieu of fractional
shares) for any portion of the shares of Common Stock otherwise issuable to such holder, the Conversion Notice may be retracted by the holder at any time during the two Trading Day period (the “Conversion Retraction Period”)
beginning on the Trading Day after the final day of the Settlement Method Notice Period; provided that no such retraction can be made (and a Conversion Notice shall be irrevocable) if (x) the Conversion Date occurs during the period beginning
on, and including, any Notice Date and ending on, and including, the redemption date specified in the related notice of redemption or (y) the Conversion Date occurs during the period beginning twenty-five scheduled Trading Days preceding the
maturity date and ending one Trading Day preceding the maturity date. Settlement amounts will be computed as follows: 
  
 (i) If the Company elects to satisfy the entire Conversion Obligation in shares of Common Stock, the Company will deliver to holders
surrendering Notes for conversion a number of shares of Common Stock equal to (1) the number of $1,000 principal amount of Notes surrendered for conversion by such holder multiplied by (2) the Conversion Rate (provided that the Company will deliver
cash in lieu of fractional shares in accordance with Section 15.04); 
  

 63 

 (ii) If the Company elects to satisfy the entire Conversion Obligation in cash, the
Company will deliver to holders surrendering Notes for conversion cash in an amount equal to the sum of the Daily Conversion Value Amounts for each of the Trading Days in the relevant Cash Settlement Averaging Period (such sum, the
“Conversion Value”); and 
  
 (iii) If the Company elects to satisfy in cash a fixed portion of the Conversion Obligation other than the entire obligation, or a percentage of the Conversion Obligation other than 100%, the Company will deliver to holders surrendering
Notes for conversion: 
  

	 	(A)	an amount in cash equal to either (1) the dollar amount per $1,000 principal amount of Notes to be converted that is specified in the Settlement Method Election Notice (the
“Specified Dollar Amount”) or (2) the percentage (other than 100%) of the Conversion Obligation specified in the Settlement Method Election Notice (the “Specified Percentage”) multiplied by the amount of cash that
would be payable pursuant to Section 15.03(b)(ii); and 

  

	 	(B)	a number of whole shares of Common Stock per $1,000 principal amount of Notes to be converted equal to the sum of the Daily Share Amounts for each of the Trading Days in the
relevant Cash Settlement Averaging Period (provided that the Company will deliver cash in lieu of fractional shares in accordance with Section 15.04). 

  
 Settlement pursuant to Section 15.03(a)(i) above will occur as soon as practicable after the third Trading Day following the Conversion
Date, and settlement pursuant to Sections 15.03(a)(ii) and 15.03(a)(iii) will occur on the third Trading Day following the final Trading Day of the relevant Cash Settlement Averaging Period. 
  
 (c) Notwithstanding the procedures set forth in Section 15.03(b), in the
event that a Conversion Date occurs on or following the twenty-fifth scheduled Trading Day prior to July 15, 2023 (the “Final Notice Date”) or during the period beginning on, and including, any Notice Date and ending on, and
including, the redemption date specified in the related notice of redemption, the Company will not be required to send individual Settlement Method Election Notices. Instead, if the Company chooses to satisfy all or any portion of the Conversion
Obligation in cash with respect to Conversion Dates occurring on or after the Final Notice Date or with respect to Conversion Dates occurring during the period beginning on, and including, any Notice Date and ending on, and including, the redemption
date specified in the related notice of redemption, the Company must send a single Settlement Method Election Notice to the Trustee on the Final Notice Date with respect to any Conversion Dates occurring on or after the Final Notice Date or 

  

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on any Notice Date with respect to any Conversion Dates occurring during the period beginning on, and including, such Notice Date and ending on and
including, the redemption date specified in the related notice of redemption. Settlement amounts will be computed in the same manner as set forth under Section 15.03(b) above. 
  
 (d) A Conversion Notice may be withdrawn by means of a written notice of withdrawal delivered to the office of the Trustee
(or other paying agent appointed by the Company) in accordance with the Settlement Method Election Notice at any time prior to the close of business of the final day of the Conversion Retraction Period, specifying: 
  
 (i) the certificate number, if any, of the Note in respect
of which such notice of withdrawal is being submitted, or the appropriate Depositary information if the Note in respect of which such notice of withdrawal is being submitted is represented by a Global Note, 
  
 (ii) the principal amount of the Note, in integral multiples
of $1,000, with respect to which such notice of withdrawal is being submitted, and 
  
 (iii) the principal amount, if any, of such Note which remains subject to conversion in accordance with such Settlement Method Election
Notice and which has been or will be surrendered for conversion. 
  
 Section 15.04. Cash Payments in Lieu of Fractional Shares. No fractional shares of Common Stock or scrip certificates representing fractional shares shall be issued upon conversion of Notes. If more than one Note shall be surrendered
for conversion at one time by the same holder, the number of full shares, if any, that shall be issuable upon conversion shall be computed on the basis of the aggregate principal amount of the Notes (or specified portions thereof to the extent
permitted hereby) so surrendered. If any fractional share of stock would be issuable upon the conversion of any Note or Notes, the Company shall make an adjustment and payment therefor in cash at the current market price thereof to the holder of
Notes. The current market price of a share of Common Stock shall be the Closing Sale Price of the Common Stock on the last Trading Day immediately preceding the Conversion Date. 
  
 Section 15.05. Conversion Rate. Each $1,000 principal amount of the Notes shall be convertible at a rate specified in
the form of Note (herein called the “Conversion Rate”) attached as Exhibit A hereto, subject to adjustment as provided in this Article 15. 
  
 Section 15.06. Adjustment Of Conversion Rate. The Conversion Rate shall be adjusted from time to time by the Company as follows: 
  
 (a) In case the Company shall hereafter pay a dividend or make a
distribution to all holders of the outstanding Common Stock in shares of Common Stock, the Conversion Rate shall be increased so that the same shall equal the rate determined by multiplying the Conversion Rate in effect at the opening of business on
the date following the date fixed for the determination of stockholders entitled to receive such dividend or other distribution by a fraction, 
  

 65 

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

  

 66 

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

 67 

 (ii) the denominator of which shall be the Current Market Price on such Record Date less
the Fair Market Value (as determined by the Board of Directors, whose determination shall be conclusive, and described in a resolution of the Board of Directors) on the Record Date of the portion of the Securities so distributed applicable to one
share of Common Stock, 
  
 such adjustment to become effective immediately prior
to the opening of business on the day following such Record Date; provided that if the then Fair Market Value (as so determined) of the portion of the Securities so distributed applicable to one share of Common Stock is equal to or greater
than the Current Market Price on the Record Date, in lieu of the foregoing adjustment, adequate provision shall be made so that each Noteholder shall have the right to receive upon conversion the amount of Securities such holder would have received
had such holder converted each Note on the Record Date. If such dividend or distribution is not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such dividend or distribution had
not been declared. If the Board of Directors determines the Fair Market Value of any distribution for purposes of this Section 15.06(d) by reference to the actual or when issued trading market for any securities, it must in doing so consider the
prices in such market over the same period used in computing the Current Market Price on the applicable Record Date. Notwithstanding the foregoing, if the Securities distributed by the Company to all holders of its Common Stock consist of capital
stock of, or similar equity interests in, a Subsidiary or other business unit, the Conversion Rate shall be increased so that the same shall be equal to the rate determined by multiplying the Conversion Rate in effect on the Record Date with respect
to such distribution by a fraction, 
  
 (i) the
numerator of which shall be the sum of (A) the average of the Closing Sale Prices of the Common Stock for the ten (10) Trading Days commencing on and including the fifth Trading Day after the Ex-Dividend Time plus (B) the Fair Market Value of the
securities distributed in respect of each share of Common Stock for which this Section 15.06(d) applies and shall equal the number of securities distributed in respect of each share of Common Stock multiplied by the average of the closing sale
prices of those securities distributed (where such closing sale prices are available) for the ten (10) Trading Days commencing on and including the fifth Trading Day after the Ex-Dividend Time; and 
  
 (ii) the denominator of which shall be the average of the
Closing Sale Prices of the Common Stock for the ten (10) Trading Days commencing on and including the fifth Trading Day after the Ex-Dividend Time, 
  
 such adjustment to become effective immediately prior to the opening of business on the day following such Record Date; provided that the Company may in lieu of
the foregoing adjustment make adequate provision so that each Noteholder shall have the right to receive upon conversion the amount of Securities such holder would have received had such holder converted each Note on the Record Date with respect to
such distribution. 
  

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 Rights or warrants distributed by the Company to all holders of Common Stock entitling the holders
thereof to subscribe for or purchase shares of the Company’s capital stock (either initially or under certain circumstances), which rights or warrants, until the occurrence of a specified event or events (“Trigger Event”): (i)
are deemed to be transferred with such shares of Common Stock; (ii) are not exercisable; and (iii) are also issued in respect of future issuances of Common Stock, shall be deemed not to have been distributed for purposes of this Section 15.06 (and
no adjustment to the Conversion Rate under this Section 15.06 will be required) until the occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to have been distributed and an appropriate adjustment (if any is
required) to the Conversion Rate shall be made under this Section 15.06(d). If any such right or warrant, including any such existing rights or warrants distributed prior to the date of this Indenture, are subject to events, upon the occurrence of
which such rights or warrants become exercisable to purchase different securities, evidences of indebtedness or other assets, then the date of the occurrence of any and each such event shall be deemed to be the date of distribution and record date
with respect to new rights or warrants with such rights (and a termination or expiration of the existing rights or warrants without exercise by any of the holders thereof). In addition, in the event of any distribution (or deemed distribution) of
rights or warrants, or any Trigger Event or other event (of the type described in the preceding sentence) with respect thereto that was counted for purposes of calculating a distribution amount for which an adjustment to the Conversion Rate under
this Section 15.06 was made, (1) in the case of any such rights or warrants that shall all have been redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be readjusted upon such final redemption or repurchase to
give effect to such distribution or Trigger Event, as the case may be, as though it were a cash distribution, equal to the per share redemption or repurchase price received by a holder or holders of Common Stock with respect to such rights or
warrants (assuming such holder had retained such rights or warrants), made to all holders of Common Stock as of the date of such redemption or repurchase, and (2) in the case of such rights or warrants that shall have expired or been terminated
without exercise by any holders thereof, the Conversion Rate shall be readjusted as if such rights and warrants had not been issued. 
  
 No adjustment of the Conversion Rate shall be made pursuant to this Section 15.06(d) in respect of rights or warrants distributed or deemed distributed on
any Trigger Event to the extent that such rights or warrants are actually distributed, or reserved by the Company for distribution to holders of Notes upon conversion by such holders of Notes to Common Stock. 
  
 For purposes of this Section 15.06(d) and Section 15.06(a) and (b), any
dividend or distribution to which this Section 15.06(d) is applicable that also includes shares of Common Stock, or rights or warrants to subscribe for or purchase shares of Common Stock (or both), shall be deemed instead to be (1) a dividend or
distribution of the evidences of indebtedness, assets or shares of capital stock other than such shares of Common Stock or rights or warrants (and any Conversion Rate adjustment required by this Section 15.06(d) with respect to such dividend or
distribution shall then be made) immediately followed by (2) a dividend or distribution of such shares of Common Stock or such rights or warrants (and any further Conversion Rate adjustment required by 

  

 69 

 
Sections 15.06(a) and 15.06(b) with respect to such dividend or distribution shall then be made), except (A) the Record Date of such dividend or distribution
shall be substituted as “the date fixed for the determination of stockholders entitled to receive such dividend or other distribution”, “the date fixed for the determination of stockholders entitled to receive such rights or
warrants” and “the date fixed for such determination” within the meaning of Section 15.06(a) and 15.06(b) and (B) any shares of Common Stock included in such dividend or distribution shall not be deemed “outstanding at the close
of business on the date fixed for such determination” within the meaning of Section 15.06(a). 
  
 (e) In case the Company shall, by dividend or otherwise, distribute to all holders of its Common Stock cash (excluding any dividend or distribution in
connection with the liquidation, dissolution or winding up of the Company, whether voluntary or involuntary), then, in such case, the Conversion Rate shall be increased so that the same shall equal the rate determined by multiplying the Conversion
Rate in effect immediately prior to the close of business on the Record Date for such dividend or distribution by a fraction, 
  
 (i) the numerator of which shall be the Current Market Price on such Record Date; and 
  
 (ii) the denominator of which shall be the Current Market
Price on such Record Date less the amount of cash so distributed applicable to one share of Common Stock, 
  
 such adjustment to be effective immediately prior to the opening of business on the day following the Record Date; provided that if the portion of the cash so distributed applicable to one share of Common Stock is
equal to or greater than the Current Market Price on the Record Date, in lieu of the foregoing adjustment, adequate provision shall be made so that each Noteholder shall have the right to receive upon conversion the amount of cash such holder would
have received had such holder converted each Note on the Record Date. If such dividend or distribution is not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such dividend or
distribution had not been declared. 
  
 (f) In case a tender or
exchange offer made by the Company or any Subsidiary for all or any portion of the Common Stock shall expire and such tender or exchange offer (as amended upon the expiration thereof) shall require the payment to stockholders of consideration per
share of Common Stock having a Fair Market Value (as determined by the Board of Directors, whose determination shall be conclusive and described in a resolution of the Board of Directors) that as of the last time (the “Expiration
Time”) tenders or exchanges may be made pursuant to such tender or exchange offer (as it may be amended) exceeds the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, the Conversion Rate
shall be increased so that the same shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior to the Expiration Time by a fraction, 
  

 70 

 (i) the numerator of which shall be the sum of (x) the Fair Market Value (determined as
aforesaid) of the aggregate consideration payable to stockholders based on the acceptance (up to any maximum specified in the terms of the tender or exchange offer) of all shares validly tendered or exchanged and not withdrawn as of the Expiration
Time (the shares deemed so accepted up to any such maximum, being referred to as the “Purchased Shares”) and (y) the product of the number of shares of Common Stock outstanding (less any Purchased Shares) at the Expiration Time and
the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, and 
  
 (ii) the denominator of which shall be the number of shares of Common Stock outstanding (including any tendered or exchanged shares) at
the Expiration Time multiplied by the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, 
  
 such adjustment to become effective immediately prior to the opening of business on the day following the Expiration Time. If the Company is obligated to purchase shares
pursuant to any such tender or exchange offer, but the Company is permanently prevented by applicable law from effecting any such purchases or all such purchases are rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate
that would then be in effect if such tender or exchange offer had not been made. 
  
 (g) In case of a payment in respect of a tender or exchange offer made by a Person other than the Company or any Subsidiary for an amount that increases such offeror’s ownership of Common Stock to more than
twenty-five percent (25%) of the Common Stock outstanding at such time and shall involve the payment by such Person of consideration per share of Common Stock having a Fair Market Value (as determined by the Board of Directors, whose determination
shall be conclusive, and described in a resolution of the Board of Directors) that as of the last time (the “Offer Expiration Time”) tenders or exchanges may be made pursuant to such tender or exchange offer (as it shall have been
amended) exceeds the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Offer Expiration Time, and in which, as of the Offer Expiration Time the Board of Directors is not recommending rejection of the offer, the
Conversion Rate shall be increased so that the same shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior to the Offer Expiration Time by a fraction, 
  
 (i) the numerator of which shall be the sum of (x) the Fair
Market Value (determined as aforesaid) of the aggregate consideration payable to stockholders based on the acceptance (up to any maximum specified in the terms of the tender or exchange offer) of all shares validly tendered or exchanged and not
withdrawn as of the Offer Expiration Time (the shares deemed so accepted, up to any such maximum, being referred to as the “Offeror Purchased Shares”) and (y) the product of the number of shares of Common Stock outstanding (less any
Offeror Purchased Shares) at the Offer Expiration Time and the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Offer Expiration Time, and 
  

 71 

 (ii) the denominator of which shall be the number of shares of Common Stock outstanding
(including any tendered or exchanged shares) at the Offer Expiration Time multiplied by the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Offer Expiration Time, 
  
 such adjustment to become effective immediately prior to the opening of business on the day
following the Offer Expiration Time. If such Person is obligated to purchase shares pursuant to any such tender or exchange offer, but such Person is permanently prevented by applicable law from effecting any such purchases or all such purchases are
rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such tender or exchange offer had not been made. Notwithstanding the foregoing, the adjustment described in this Section 15.06(g) shall
not be made if, as of the Offer Expiration Time, the offering documents with respect to such offer disclose a plan or intention to cause the Company to engage in any transaction described in Article 12. 
  
 (h) For purposes of this Section 15.06, the following terms shall have the
meaning indicated: 
  
 (i) “Current
Market Price” shall mean the average of the daily Closing Sale Prices per share of Common Stock for the ten consecutive Trading Days ending on the earlier of such date of determination and the day before the “ex” date with
respect to the issuance, distribution, subdivision or combination requiring such computation immediately prior to the date in question. For purpose of this paragraph, the term “ex” date, (1) when used with respect to any issuance or
distribution, means the first date on which the Common Stock trades, regular way, on the relevant exchange or in the relevant market from which the Closing Sale Price was obtained without the right to receive such issuance or distribution, and (2)
when used with respect to any subdivision or combination of shares of Common Stock, means the first date on which the Common Stock trades, regular way, on such exchange or in such market after the time at which such subdivision or combination
becomes effective. 
  
 If another issuance, distribution,
subdivision or combination to which Section 15.06 applies occurs during the period applicable for calculating “Current Market Price” pursuant to the definition in the preceding paragraph, “Current Market Price”
shall be calculated for such period in a manner determined by the Board of Directors to reflect the impact of such issuance, distribution, subdivision or combination on the Closing Sale Price of the Common Stock during such period. 
  
 (ii) “Fair Market Value” shall mean the
amount which a willing buyer would pay a willing seller in an arm’s-length transaction. 
  
 (iii) “Record Date” shall mean, with respect to any dividend, distribution or other transaction or event in which the
holders of Common Stock have the right to receive any cash, securities or other property or in which the Common Stock (or other applicable security) is exchanged for or converted into any combination of cash, securities or other property, the date
fixed for 

  

 72 

 
determination of stockholders entitled to receive such cash, securities or other property (whether such date is fixed by the Board of Directors or by
statute, contract or otherwise). 
  
 (iv)
“Trading Day” shall mean (x) if the applicable security is quoted on the Nasdaq National Market, a day on which trades may be made thereon or (y) if the applicable security is listed or admitted for trading on the American Stock
Exchange, New York Stock Exchange or another national securities exchange, a day on which the American Stock Exchange, New York Stock Exchange or another national securities exchange is open for business or (z) if the applicable security is not so
listed, admitted for trading or quoted, any day other than a Saturday or Sunday or a day on which banking institutions in the State of New York are authorized or obligated by law or executive order to close. 
  
 (i) The Company may make such increases in the Conversion Rate, in addition
to those required by Section 15.06(a), (b), (c), (d), (e), (f) or (g) as the Board of Directors considers to be advisable to avoid or diminish any income tax to holders of Common Stock or rights to purchase Common Stock resulting from any dividend
or distribution of stock (or rights to acquire stock) or from any event treated as such for income tax purposes. 
  
 To the extent permitted by applicable law and Nasdaq Marketplace rules, the Company from time to time may increase the Conversion Rate by any amount for
any period of time if the period is at least twenty (20) days, the increase is irrevocable during the period and the Board of Directors shall have made a determination that such increase would be in the best interests of the Company, which
determination shall be conclusive. Whenever the Conversion Rate is increased pursuant to the preceding sentence, the Company shall mail to holders of record of the Notes a notice of the increase at least fifteen (15) days prior to the date the
increased Conversion Rate takes effect, and such notice shall state the increased Conversion Rate and the period during which it will be in effect. 
  
 (j) No adjustment in the Conversion Rate shall be required unless such adjustment would require an increase or decrease of at least one percent (1%) in
such rate; provided that any adjustments that by reason of this Section 15.06(j) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Article 15 shall be made by the
Company and shall be made to the nearest cent or to the nearest one-ten thousandth (1/10,000) of a share, as the case may be. No adjustment need be made for rights to purchase Common Stock pursuant to a Company plan for reinvestment of dividends or
interest or for any issuance of Common Stock or convertible or exchangeable securities or rights to purchase Common Stock or convertible or exchangeable securities. To the extent the Notes become convertible into cash, assets, property or securities
(other than capital stock of the Company), no adjustment need be made thereafter as to the cash, assets, property or such securities. Interest will not accrue on any cash into which the Notes are convertible. 
  

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 (k) Whenever the Conversion Rate is adjusted as herein provided, the Company shall promptly file with the
Trustee and any conversion agent other than the Trustee an Officers’ 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 Officers’ Certificate, the Trustee shall not be deemed to have knowledge of any adjustment of the Conversion Rate and may assume that the last Conversion Rate of which it has knowledge is still in
effect. Promptly after delivery of such certificate, the Company shall prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted Conversion Rate and the date on which each adjustment becomes effective and shall mail such
notice of such adjustment of the Conversion Rate to the holder of each Note at his last address appearing on the Note Register provided for in Section 2.05 of this Indenture, within twenty (20) days after execution thereof. Failure to deliver such
notice shall not affect the legality or validity of any such adjustment. 
  
 (l) In any case in which this Section 15.06 provides that an adjustment shall become effective immediately after (1) a record date or Record Date for an event, (2) the date fixed for the determination of stockholders
entitled to receive a dividend or distribution pursuant to Section 15.06(a), (3) a date fixed for the determination of stockholders entitled to receive rights or warrants pursuant to Section 15.06(b), or (4) the Expiration Time for any tender or
exchange offer pursuant to Section 15.06(f) or (g), (each a “Determination Date”), the Company may elect to defer until the occurrence of the applicable Adjustment Event (as hereinafter defined) (x) issuing to the holder of any Note
converted after such Determination Date and before the occurrence of such Adjustment Event, the additional shares of Common Stock or other securities issuable upon such conversion by reason of the adjustment required by such Adjustment Event over
and above the Common Stock issuable upon such conversion before giving effect to such adjustment and (y) paying to such holder any amount in cash in lieu of any fraction pursuant to Section 15.04. For purposes of this Section 15.06(l), the term
“Adjustment Event” shall mean: 
  
 (i) in any case referred to in clause (1) hereof, the occurrence of such event, 
  
 (ii) in any case referred to in clause (2) hereof, the date any such dividend or distribution is paid or made, 
  
 (iii) in any case referred to in clause (3) hereof, the date
of expiration of such rights or warrants, and 
  
 (iv) in any case referred to in clause (4) hereof, the date a sale or exchange of Common Stock pursuant to such tender or exchange offer is consummated and becomes irrevocable. 
  
 (m) For purposes of this Section 15.06, the number of shares of Common Stock at any time outstanding shall not include
shares held in the treasury of the Company but shall include shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock. The Company will not pay any dividend or make any distribution on shares of Common
Stock held in the treasury of the Company. 
  

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 Section 15.07. Effect Of Reclassification, Consolidation, Merger or Sale. If any of the following
events occur, namely (i) any reclassification or change of the outstanding shares of Common Stock (other than a subdivision or combination to which Section 15.06(c) applies), (ii) any consolidation, merger or combination of the Company with another
Person as a result of which holders of Common Stock shall be entitled to receive stock, other securities or other property or assets (including cash) with respect to or in exchange for such Common Stock, or (iii) any sale or conveyance of all or
substantially all of the properties and assets of the Company to any other Person as a result of which holders of Common Stock shall be entitled to receive stock, other securities or other property or assets (including cash) with respect to or in
exchange for such Common Stock, then: 
  
 (a) The Company or the
successor or purchasing corporation, as the case may be, shall execute with the Trustee a supplemental indenture (which shall comply with the Trust Indenture Act as in force at the date of execution of such supplemental indenture if such
supplemental indenture is then required to so comply) providing for the conversion and settlement of the Notes as set forth in this Indenture. Such supplemental indenture shall provide for adjustments which shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Article. If, in the case of any such reclassification, change, consolidation, merger, combination, sale or conveyance, the Exchange Property includes shares of stock or other securities and assets
of a corporation other than the successor or purchasing corporation, as the case may be, in such reclassification, change, consolidation, merger, combination, sale or conveyance, then such supplemental indenture shall also be executed by such other
corporation and shall contain such additional provisions to protect the interests of the holders of the Notes as the Board of Directors shall reasonably consider necessary by reason of the foregoing, including to the extent required by the Board of
Directors and practicable the provisions providing for the repurchase rights set forth in Article 3 herein. 
  
 (b) Notwithstanding the provisions of Section 15.03, and subject to the provisions of Section 15.01, on and after the effective date of such
reclassification, change, consolidation merger, combination, sale or conveyance, each $1,000 principal amount Note shall be convertible, subject to the Company’s right to settle the related Conversion Obligation in cash as set forth in this
Section 15.07, into the kind and amount of shares of stock and other securities or property or assets (including cash) or any combination thereof received upon such reclassification, change, consolidation, merger, combination, sale or conveyance by
a holder of Common Stock holding, immediately prior to the transaction, a number of shares of Common Stock equal to the Conversion Rate immediately prior to such transaction (the “Exchange Property”), assuming such holder of Common
Stock did not exercise his rights of election, if any, as to the kind or amount of securities, cash or other property receivable upon such reclassification, change, consolidation, merger, combination, sale or conveyance (provided that, if the kind
or amount of securities, cash or other property receivable upon such reclassification, change, consolidation, merger, combination, sale or conveyance is not the same for each share of 

  

 75 

 
Common Stock in respect of which such rights of election shall not have been exercised (“non-electing share”), then for the purposes of this
Section 15.07 the kind and amount of securities, cash or other property receivable upon such reclassification, change, consolidation, merger, combination, sale or conveyance for each non-electing share shall be deemed to be the kind and amount so
receivable per share by a plurality of the non-electing shares). Such supplemental indenture shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Article 15. 
  
 The Company shall cause notice of the execution of such supplemental
indenture to be mailed to each holder of Notes, at its address appearing on the Note Register provided for in Section 2.05 of this Indenture, within twenty (20) days after execution thereof. Failure to deliver such notice shall not affect the
legality or validity of such supplemental indenture. 
  
 (c) With
respect to Notes tendered for conversion that the Company has elected, pursuant to Section 15.03, to settle the related Conversion Obligation partly or wholly in cash, the Conversion Value in respect of any Notes tendered for conversion on or after
the second Trading Day immediately preceding the effective date of any such transaction shall be calculated as set forth under Section 15.03(b)(ii) (such calculation, the “Exchange Property Value”), except that the related Cash
Settlement Averaging Period shall begin on the later of (A) the first Trading Day of the related Cash Settlement Averaging Period without giving effect to this clause and (B) the effective date of such transaction. For the purpose of determining the
value of any Exchange Property: 
  
 (i) Any
shares of common stock of the successor or purchasing corporation or any other corporation that are included in the Exchange Property shall be valued as set forth in Section 15.03 using the procedures set forth in the definition of “Closing
Sale Price” in Section 1.01; and 
  
 (ii)
Any other property (other than cash) included in the Exchange Property shall be valued in good faith by the Board of Directors or by a New York Stock Exchange member firm selected by the Board of Directors. 
  
 (d) The Company shall satisfy its Conversion Obligation to holders of Notes
so converted as follows: 
  
 (i) If the Company
elects to satisfy the related Conversion Obligation entirely in Exchange Property, the Company will deliver the aggregate amount of Exchange Property for all Notes so converted; 
  
 (ii) If the Company elects to satisfy the entire Conversion Obligation in cash, the Company will deliver in
an amount in cash equal to the related aggregate Exchange Property Value; and 
  
 (iii) If the Company elects to satisfy in cash a fixed portion of the Conversion Obligation (other than the entire obligation) or a percentage of the Conversion Obligation (other than 100%), the Company will deliver
cash and an 

  

 76 

 
amount of Exchange Property calculated as set forth in Section 15.03(b)(iii) as if references therein and in the definition of Daily Share Amount to
Conversion Value were to Exchange Property Value and references to “shares of Common Stock” were to Exchange Property, except that the Daily Share Amount shall be calculated for the same twenty consecutive period used to calculate the
Exchange Property Value and shall be based on the Exchange Property per $1,000 principal amount Note in lieu of the Conversion Rate. 
  
 (e) The above provisions of this Section shall similarly apply to successive reclassifications, changes, consolidations, mergers, combinations, sales and
conveyances. 
  
 If this Section 15.07 applies to any event or
occurrence, Section 15.06 shall not apply. 
  
 Section 15.08.
Taxes On Shares Issued. The issue of stock certificates on conversions of Notes shall be made without charge to the converting Noteholder for any documentary, stamp or similar issue or transfer tax in respect of the issue thereof. The Company
shall not, however, be required to pay any such tax which may be payable in respect of any transfer involved in the issue and delivery of stock in any name other than that of the holder of any Note converted, and the Company shall not be required to
issue or deliver any such stock certificate unless and until the Person or Persons requesting the issue thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been
paid. 
  
 Section 15.09. Reservation of Shares, Shares to Be
Fully Paid; Compliance With Governmental Requirements; Listing of Common Stock. The Company shall provide, free from preemptive rights, out of its authorized but unissued shares or shares held in treasury, sufficient shares of Common Stock to
provide for the conversion of the Notes from time to time as such Notes are presented for conversion. 
  
 Before taking any action which would cause an adjustment increasing the Conversion Rate to an amount that would cause the Conversion Price to be reduced
below the then par value, if any, of the shares of Common Stock issuable upon conversion of the Notes, the Company will take all corporate action which may, in the opinion of its counsel, be necessary in order that the Company may validly and
legally issue shares of such Common Stock at such adjusted Conversion Rate. 
  
 The Company covenants that all shares of Common Stock which may be issued upon conversion of Notes will upon issue be fully paid and non-assessable by the Company and free from all taxes, liens and charges with
respect to the issue thereof. 
  
 The Company covenants that, if
any shares of Common Stock to be provided for the purpose of conversion of Notes hereunder require registration with or approval of any governmental authority under any federal or state law before such shares may be validly issued upon conversion,
the Company will in good faith and as expeditiously as possible, to the extent then permitted by the rules and interpretations of the Commission (or any successor thereto), endeavor to secure such registration or approval, as the case may be.

  

 77 

 The Company further covenants that, if at any time the Common Stock shall be listed on the Nasdaq
National Market or any other national securities exchange or automated quotation system, the Company will, if permitted by the rules of such exchange or automated quotation system, list and keep listed, so long as the Common Stock shall be so listed
on such exchange or automated quotation system, all Common Stock issuable upon conversion of the Notes; provided that if the rules of such exchange or automated quotation system permit the Company to defer the listing of such Common Stock
until the first conversion of the Notes into Common Stock in accordance with the provisions of this Indenture, the Company covenants to list such Common Stock issuable upon conversion of the Notes in accordance with the requirements of such exchange
or automated quotation system at such time. 
  
 Section 15.10.
Responsibility Of Trustee. The Trustee and any other conversion agent shall not at any time be under any duty or responsibility to any holder of Notes to determine the Conversion Rate or whether any facts exist which may require any
adjustment of the Conversion Rate, or with respect to the nature or extent or calculation of any such adjustment when made, or with respect to the method employed, or herein or in any supplemental indenture provided to be employed, in making the
same. The Trustee and any other conversion agent shall not be accountable with respect to the validity or value (or the kind or amount) of any shares of Common Stock, or of any securities or property, which may at any time be issued or delivered
upon the conversion of any Note; and the Trustee and any other conversion agent make no representations with respect thereto. Neither the Trustee nor any conversion agent shall be responsible for any failure of the Company to issue, transfer or
deliver any shares of Common Stock or stock certificates or other securities or property or cash upon the surrender of any Note for the purpose of conversion or to comply with any of the duties, responsibilities or covenants of the Company contained
in this Article 15. Without limiting the generality of the foregoing, neither the Trustee nor any conversion agent shall be under any responsibility to determine the correctness of any provisions contained in any supplemental indenture entered into
pursuant to Section 15.07 relating either to the kind or amount of shares of stock or securities or property (including cash) receivable by Noteholders upon the conversion of their Notes pursuant to the Company’s election rights in Section
15.03 or after any event referred to in such Section 15.07 or to any adjustment to be made with respect thereto, but, subject to the provisions of Section 8.01, may accept as conclusive evidence of the correctness of any such provisions, and shall
be protected in relying upon, the Officers’ Certificate (which the Company shall be obligated to file with the Trustee prior to the execution of any such supplemental indenture) with respect thereto. 
  
 Section 15.11. Notice To Holders Prior To Certain Actions. In case:

  
 (a) the Company shall declare a dividend (or any other
distribution) on its Common Stock that would require an adjustment in the Conversion Rate pursuant to Section 15.06; or 
  

 78 

 (b) the Company shall authorize the granting to the holders of all or substantially all of its Common
Stock of rights or warrants to subscribe for or purchase any share of any class or any other rights or warrants; or 
  
 (c) of any reclassification or reorganization of the Common Stock of the Company (other than a subdivision or combination of its outstanding Common Stock,
or a change in par value, or from par value to no par value, or from no par value to par value), or of any consolidation or merger to which the Company is a party and for which approval of any stockholders of the Company is required, or of the sale
or transfer of all or substantially all of the assets of the Company; or 
  
 (d) of the voluntary or involuntary dissolution, liquidation or winding up of the Company; 
  
 the Company shall cause to be filed with the Trustee and to be mailed to each holder of Notes at his address appearing on the Note Register provided for in Section 2.05
of this Indenture, as promptly as possible but in any event at least ten (10) days prior to the applicable date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution or
rights or warrants, or, if a record is not to be taken, the date as of which the holders of Common Stock of record to be entitled to such dividend, distribution or rights are to be determined, or (y) the date on which such reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation or winding up is expected to become effective or occur, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their Common Stock
for securities or other property deliverable upon such reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding up. Failure to give such notice, or any defect therein, shall not affect the legality or validity of
such dividend, distribution, reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding up. 
  
 Section 15.12. Shareholder Rights Plans. Each share of Common Stock issued upon conversion of Notes pursuant to this Article 15 shall be entitled
to receive the appropriate number of rights, if any, and the certificates representing the Common Stock issued upon such conversion shall bear such legends, if any, in each case as may be provided by the terms of any shareholder rights plan adopted
by the Company, as the same may be amended from time to time. If at the time of conversion, however, the rights have separated from the shares of Common Stock in accordance with the provisions of the applicable shareholder rights agreement so that
the holders of the Notes would not be entitled to receive any rights in respect of Common Stock issuable upon conversion of the Notes, the conversion rate will be adjusted in accordance with Section 15.06(d) treating all rights previously issued as
Securities for purposes of such adjustment, subject to readjustment in the event of the expiration, termination or redemption of the rights. 
  

 79 

 ARTICLE 16 
 MISCELLANEOUS PROVISIONS 
  
 Section 16.01. Provisions Binding On Company’s Successors. All the covenants, stipulations, promises and agreements by the Company contained in this Indenture shall bind its successors and assigns whether
so expressed or not. 
  
 Section 16.02. Official Acts By
Successor Corporation. Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of the Company shall and may be done and performed with like force and effect by
the like board, committee or officer of any Person that shall at the time be the lawful sole successor of the Company. 
  
 Section 16.03. Addresses For Notices, Etc. Any notice or demand which by any provision of this Indenture is required or permitted to be given or
served by the Trustee or by the holders of Notes on the Company shall be deemed to have been sufficiently given or made, for all purposes, if given or served by being deposited postage prepaid by registered or certified mail in a post office letter
box or sent by telecopier transmission addressed as follows: to Commonwealth Telephone Enterprises, Inc., 100 CTE Drive, Dallas, Pennsylvania 18612-9774, Attention: General Counsel, Telecopier No. 570-637-2895. Any notice, direction, request or
demand hereunder to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or served by being deposited, postage prepaid, by registered or certified mail in a post office letter box or sent by
telecopier transmission addressed as follows: The Bank of New York, 101 Barclay Street, Fl. 8W, New York, New York 10286, Telecopier No.: 212-815-5707, Attention: Corporate Trust Administration. 
  
 The Trustee, by notice to the Company, may designate additional or different
addresses for subsequent notices or communications. 
  
 Any notice
or communication mailed to a Noteholder shall be mailed to him by first-class mail, postage prepaid, at his address as it appears on the Note Register and shall be sufficiently given to him if so mailed within the time prescribed. 
  
 Failure to mail a notice or communication to a Noteholder or any defect in it
shall not affect its sufficiency with respect to other Noteholders. If a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it. 
  
 Section 16.04. Governing Law. This Indenture and each Note shall be
deemed to be a contract made under the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of the State of New York, without regard to conflicts of laws principles thereof. 
  
 Section 16.05. Evidence Of Compliance With Conditions Precedent,
Certificates To Trustee. Upon any application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company shall furnish to the Trustee an Officers’ Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with, and an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

  

 80 

 Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to
compliance with a condition or covenant provided for in this Indenture shall include: (1) a statement that the person making such certificate or opinion has read such covenant or condition; (2) a brief statement as to the nature and scope of the
examination or investigation upon which the statement or opinion contained in such certificate or opinion is based; (3) a statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition has been complied with; and (4) a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with. 
  
 Section 16.06. Legal Holidays. In any case in which the date of
maturity of Interest on or principal of the Notes or the redemption date of any Note will not be a Business Day, then payment of such Interest on or principal of the Notes need not be made on such date, but may be made on the next succeeding
Business Day with the same force and effect as if made on the date of maturity or the redemption date, and no Interest shall accrue for the period from and after such date. 
  
 Section 16.07. Trust Indenture Act. This Indenture is hereby made subject to, and shall be governed by, the
provisions of the Trust Indenture Act required to be part of and to govern indentures qualified under the Trust Indenture Act; provided that unless otherwise required by law, notwithstanding the foregoing, this Indenture and the Notes issued
hereunder shall not be subject to the provisions of subsections (a)(1), (a)(2), and (a)(3) of Section 314 of the Trust Indenture Act as now in effect or as hereafter amended or modified; provided further that this Section 16.07 shall not require
this Indenture or the Trustee to be qualified under the Trust Indenture Act prior to the time such qualification is in fact required under the terms of the Trust Indenture Act, nor shall it constitute any admission or acknowledgment by any party to
the Indenture that any such qualification is required prior to the time such qualification is in fact required under the terms of the Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another provision hereof which is
required to be included in an indenture qualified under the Trust Indenture Act, such required provision shall control. 
  
 Section 16.08. No Security Interest Created. Nothing in this 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 in which property of the Company or its subsidiaries is located. 
  
 Section 16.09. Benefits Of Indenture. Nothing in this Indenture or in
the Notes, express or implied, shall give to any Person, other than the parties hereto, any paying agent, any authenticating agent, any Note Registrar and their successors hereunder and the holders of Notes any benefit or any legal or equitable
right, remedy or claim under this Indenture. 
  

 81 

 Section 16.10. Table Of Contents, Headings, Etc. The table of contents and the titles and headings
of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof. 
  
 Section 16.11. Authenticating Agent. The Trustee may appoint an
authenticating agent that shall be authorized to act on its behalf, and subject to its direction, in the authentication and delivery of Notes in connection with the original issuance thereof and transfers and exchanges of Notes hereunder, including
under Sections 2.04, 2.05, 2.06, 2.07, 3.03, 3.05, 3.06, 3.10 and 15.02, as fully to all intents and purposes as though the authenticating agent had been expressly authorized by this Indenture and those Sections to authenticate and deliver Notes.
For all purposes of this Indenture, the authentication and delivery of Notes by the authenticating agent shall be deemed to be authentication and delivery of such Notes “by the Trustee” and a certificate of authentication executed on
behalf of the Trustee by an authenticating agent shall be deemed to satisfy any requirement hereunder or in the Notes for the Trustee’s certificate of authentication. Such authenticating agent shall at all times be a Person eligible to serve as
trustee hereunder pursuant to Section 8.09. 
  
 Any corporation
into which any authenticating agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, consolidation or conversion to which any authenticating agent shall be a party, or any corporation
succeeding to the corporate trust business of any authenticating agent, shall be the successor of the authenticating agent hereunder, if such successor corporation is otherwise eligible under this Section 16.11, without the execution or filing of
any paper or any further act on the part of the parties hereto or the authenticating agent or such successor corporation. 
  
 Any authenticating agent may at any time resign by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time
terminate the agency of any authenticating agent by giving written notice of termination to such authenticating agent and to the Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any time any
authenticating agent shall cease to be eligible under this Section, the Trustee shall either promptly appoint a successor authenticating agent or itself assume the duties and obligations of the former authenticating agent under this Indenture and,
upon such appointment of a successor authenticating agent, if made, shall give written notice of such appointment of a successor authenticating agent to the Company and shall mail notice of such appointment of a successor authenticating agent to all
holders of Notes as the names and addresses of such holders appear on the Note Register. 
  
 The Company agrees to pay to the authenticating agent from time to time such reasonable compensation for its services as shall be agreed upon in writing between the Company and the authenticating agent. 
  
 The provisions of Sections 8.02, 8.03, 8.04 and 9.03 and this Section 16.11
shall be applicable to any authenticating agent. 
  

 82 

 Section 16.12. Execution In Counterparts. This Indenture may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument. 
  
 Section 16.13. Severability. In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, then (to the
extent permitted by law) the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 The Bank of New York hereby accepts the trusts in this Indenture declared and provided, upon the terms and conditions herein above set forth. 

 

 83 

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

			
	 COMMONWEALTH TELEPHONE ENTERPRISES, INC.

		
	By:	 	 /s/ Raymond B. Ostroski

	Name:	 	Raymond B. Ostroski
	Title:	 	 Senior Vice-President, General Counsel and
 Corporate
Secretary

	
	 THE BANK OF NEW YORK, as Trustee

		
	By:	 	 /s/ Beata Hryniewicka

	Name:	 	Beata Hryniewicka
	Title:	 	Assistant Treasurer

 EXHIBIT A 
  

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (THE
“DEPOSITARY”, WHICH TERM INCLUDES ANY SUCCESSOR DEPOSITARY FOR THE CERTIFICATES) 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 REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREIN IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), 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. 

 COMMONWEALTH TELEPHONE ENTERPRISES, INC. 
  
 2005 Series A 31⁄4% Convertible Note due 2023 
  
 CUSIP: 203349AC9 
  

			
	No. 1	  	 $63,892,000

  
 Commonwealth Telephone
Enterprises, Inc., a corporation duly organized and validly existing under the laws of the State of Pennsylvania (herein called the “Company”, which term includes any successor corporation under the Indenture referred to on the
reverse hereof), for value received hereby promises to pay to CEDE & CO. or its registered assigns, the principal sum as set forth on Schedule I hereto on July 15, 2023, at the office or agency of the Company maintained for that purpose in
accordance with the terms of the Indenture, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest, semiannually on January 15 and
July 15 of each year, commencing January 15, 2006, on said principal sum at said office or agency, in like coin or currency, at the rate per annum of 3.25%, from the January 15 or July 15, as the case may be, next preceding the date of this Note to
which interest has been paid or duly provided for, unless the date hereof is a date to which interest has been paid or duly provided for, in which case from the date of this Note, or unless no interest has been paid or duly provided for on the
Notes, in which case from August 3, 2005, until payment of said principal sum has been made or duly provided for. Notwithstanding the foregoing, if the date hereof is after any January 1 or July 1, as the case may be, and before the following
January 15 or July 15, this Note shall bear interest from such January 15 or July 15; provided that if the Company shall default in the payment of interest due on such January 15 or July 15, then this Note shall bear interest from the next
preceding January 15 or July 15 to which interest has been paid or duly provided for or, if no interest has been paid or duly provided for on such Note, from August 3, 2005. Contingent interest, if any, will accrue for any six month interest period
and be payable to holders of this Note on the applicable interest payment date to the person in whose name this Note is registered on the corresponding record date. Except as otherwise provided in the Indenture, the interest payable on the Note
pursuant to the Indenture on any January 15 or July 15 will be paid to the Person entitled thereto as it appears in the Note Register at the close of business on the record date, which shall be the January 1 or July 1 (whether or not a Business Day)
next preceding such January 15 or July 15, as provided in the Indenture; provided that any such interest not punctually paid or duly provided for shall be payable as provided in the Indenture. The Company shall pay interest (i) on any Notes
in certificated form by check mailed to the address of the Person entitled thereto as it appears in the Note Register (provided that the holder of Notes with an aggregate principal amount in excess of $2,000,000 shall, at the written election
of such holder, be paid by wire transfer of immediately available funds) or (ii) on any Global Note by wire transfer of immediately available funds to the account of the Depositary or its nominee. 
  

 A-2 

 The Company promises to pay interest on overdue principal and (to the extent that payment of such
interest is enforceable under applicable law) interest at the rate of 1% per annum. 
  
 Reference is made to the further provisions of this Note set forth on the reverse hereof, including, without limitation, provisions giving the holder of this Note the right to convert this Note into Common Stock, cash
or a combination of cash and Common Stock of the Company on the terms and subject to the limitations referred to on the reverse hereof and as more fully specified in the Indenture. Such further provisions shall for all purposes have the same effect
as though fully set forth at this place. 
  
 This Note shall be
deemed to be a contract made under the laws of the State of New York, and for all purposes shall be construed in accordance with and governed by the laws of the State of New York, without regard to conflicts of laws principles thereof. 

 
 This Note shall not be valid or become obligatory for any purpose until
the certificate of authentication hereon shall have been manually signed by the Trustee or a duly authorized authenticating agent under the Indenture. 
  

 A-3 

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

			
	 COMMONWEALTH TELEPHONE ENTERPRISES, INC.

		
	 By:
	 	 /s/ Donald Cawley

	 Name:
	 	Donald Cawley
	 Title:
	 	Executive Vide President and Chief Accounting Officer

  

			
	Attest:
		
	 By:
	 	 /s/ Raymond B. Ostroski

	 Name:
	 	Raymond B. Ostroski
	 Title:
	 	Senior Vice President, General Counsel and Corporate Secretary

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

					
	THE BANK OF NEW YORK, as Trustee
		
	 By:
	 	  

	 	 	Authorized Signatory
		
	 	 	                                       
     , or
		
	 By:
	 	  

	 	 	As Authenticating Agent (if different from Trustee)
			
	 	 	By:	 	  

	 	 	 	 	Authorized Signatory

  

 A-4 

 FORM OF REVERSE OF NOTE 
  
 COMMONWEALTH TELEPHONE ENTERPRISES, INC. 
  
 2005 Series A 31⁄4% Convertible Note due 2023 
  
 This Note is one of a duly authorized issue of Notes of the Company, designated as its 2005 Series A 31⁄4% Convertible
Notes due 2023 (herein called the “Notes”), limited in aggregate principal amount to $63,892,000, issued and to be issued under and pursuant to an Indenture dated as of August 3, 2005, 2005 (herein called the
“Indenture”), between the Company and The Bank of New York, as trustee (herein called the “Trustee”), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the
rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the holders of the Notes. 
  
 In case an Event of Default shall have occurred and be continuing, the principal of and accrued and unpaid Interest on all Notes may be declared by either
the Trustee or the holders of not less than 25% in aggregate principal amount of the Notes then outstanding, and upon said declaration shall become, due and payable, in the manner, with the effect and subject to the conditions provided in the
Indenture. 
  
 The Indenture contains provisions permitting the
Company and the Trustee, with the consent of the holders of at least a majority in aggregate principal amount of the Notes at the time outstanding, to execute supplemental indentures adding any provisions to or changing in any manner or eliminating
any of the provisions of the Indenture or of any supplemental indenture or modifying in any manner the rights of the holders of the Notes; provided that no such supplemental indenture shall (i) extend the fixed maturity of any Note, or reduce
the rate or extend the time of payment of Interest thereon, or reduce the principal amount thereof or reduce any amount payable upon redemption or repurchase thereof, or change the obligation of the Company to repurchase any Note at the option of a
Noteholder on a Repurchase Date in a manner adverse to the holders of Notes, or change the obligation of the Company to repurchase any Note upon the happening of a Designated Event in a manner adverse to the holders of Notes, or impair the right of
any Noteholder to institute suit for the payment thereof, or make the principal thereof or interest thereon payable in any coin or currency other than that provided in the Notes, or impair the right to convert the Notes into cash, Common Stock or a
combination of cash and Common Stock or reduce the number of shares of Common Stock, the conversion value or any other property receivable by a Noteholder upon conversion subject to the terms set forth in the Indenture, including Section 15.03 and
15.07 thereof, in each case, without the consent of the holder of each Note so affected, or modify any of the provisions of Section 11.02 or Section 7.07 thereof, except to increase any such percentage or to provide that certain other provisions of
the Indenture cannot be modified or waived without the consent of the holder of each Note so affected, or change any obligation of the Company to maintain an office or agency in the places and for the purposes set forth in Section 5.02 thereof, or
reduce the quorum or voting requirements 

  

 A-5 

 
set forth in Article 10 or (ii) reduce the aforesaid percentage of Notes, the holders of which are required to consent to any such supplemental indenture,
without the consent of the holders of all Notes then outstanding. Subject to the provisions of the Indenture, the holders of a majority in aggregate principal amount of the Notes at the time outstanding may on behalf of the holders of all of the
Notes waive any past Default or Event of Default under the Indenture and its consequences except (A) a default in the payment of Interest on, or the principal of, any of the Notes, (B) a failure by the Company to convert any Notes into Common Stock
of the Company, (C) a default in the payment of the redemption price pursuant to Article 3 of the Indenture, (D) a default in the payment of the repurchase price pursuant to Article 3 of the Indenture, or (E) a default in respect of a covenant or
provisions of the Indenture which under Article 11 of the Indenture cannot be modified or amended without the consent of the holders of each or all Notes then outstanding or affected thereby. Any such consent or waiver by the holder of this Note
(unless revoked as provided in the Indenture) shall be conclusive and binding upon such holder and upon all future holders and owners of this Note and any Notes which may be issued in exchange or substitution hereof, irrespective of whether or not
any notation thereof is made upon this Note or such other Notes. 
  
 No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and Interest on this Note at the place,
at the respective times, at the rate and in the coin or currency herein prescribed. 
  
 Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months. 
  
 The Notes are issuable in fully registered form, without coupons, in denominations of $1,000 principal amount and any multiple of $1,000. At the office or
agency of the Company referred to on the face hereof, and in the manner and subject to the limitations provided in the Indenture, without payment of any service charge but with payment of a sum sufficient to cover any tax, assessment or other
governmental charge that may be imposed in connection with any registration or exchange of Notes, Notes may be exchanged for a like aggregate principal amount of Notes of any other authorized denominations. 
  
 At any time on or after July 18, 2008 and prior to maturity, the Notes may be
redeemed at the option of the Company, in whole or in part, upon mailing a notice of such redemption not less than 30 days but not more than 60 days before the redemption date to the holders of Notes at their last registered addresses, all as
provided in the Indenture, at a cash redemption price equal to 100% of the principal amount of the Notes being redeemed and accrued and unpaid Interest, to, but excluding, the redemption date; provided that if the redemption date falls after
a record date and on or prior the corresponding interest payment date, then accrued and unpaid Interest to, but excluding, the redemption date shall be paid on such interest payment date to the holders of record of such Notes on the applicable
record date instead of to the holders surrendering such Notes for redemption on such date. 
  

 A-6 

 The Company may not give notice of any redemption of the Notes if a default in the payment of Interest on
the Notes has occurred and is continuing. 
  
 The Notes are not
subject to redemption through the operation of any sinking fund. 
  
 If a Designated Event occurs at any time prior to maturity of the Notes, the Company shall become obligated to purchase, at the option of the holder, all or any portion of the Notes held by such holder, on a date specified by the Company
that is thirty (30) days after notice thereof at a cash repurchase price of 100% of the principal amount, plus any accrued and unpaid Interest, on such Note up to, but excluding, the Designated Event Repurchase Date; provided that if the
repurchase date falls after a record date and on or prior the corresponding interest payment date, then accrued and unpaid Interest to, but excluding, the Designated Event Repurchase Date shall be paid on such interest payment date to the holders of
record of such Notes on the applicable record date instead of to the holders surrendering such Notes for repurchase on such date. The Notes will be subject to repurchase in multiples of $1,000 principal amount. The Company shall mail to all holders
of record of the Notes a notice of the occurrence of a Designated Event and of the repurchase right arising as a result thereof on or before the 15th day after the occurrence of such Designated Event. To exercise such right, a holder shall deliver to the Company such Note with the form entitled “Designated EventRepurchase
Notice” on the reverse thereof duly completed, together with the Note, duly endorsed for transfer, at any time prior to the close of business on the Designated Event Repurchase Date, and shall deliver the Notes to the Trustee (or other
paying agent appointed by the Company) as set forth in the Indenture. 
  
 Subject to the terms and conditions of the Indenture, the Company shall become obligated to purchase, at the option of the holder, all or any portion of the Notes held by such holder on July 15, 2008, 2013 and 2018 in whole multiples of
$1,000 at a cash repurchase price of 100% of the principal amount, plus any accrued and unpaid Interest, on such Note up to the Repurchase Date. To exercise such right, a holder shall deliver to the Company such Note with the form entitled
“Repurchase Notice” on the reverse thereof duly completed, together with the Note, duly endorsed for transfer, at any time from the opening of business on the date that is 20 Business Days prior to such Repurchase Date until the
close of business on the date that is two Business Days prior to the Repurchase Date, and shall deliver the Notes to the Trustee (or other paying agent appointed by the Company) as set forth in the Indenture. 
  
 Holders have the right to withdraw any Designated Event Repurchase Notice or
the Repurchase Notice, as the case may be, by delivering to the Trustee (or other paying agent appointed by the Company) a written notice of withdrawal up to the close of business on the Designated Event Repurchase Date or the Repurchase Date, as
the case may be, all as provided in the Indenture. 
  
 If money or
cash, sufficient to pay the repurchase price of all Notes or portions thereof to be purchased as of the Designated Event Repurchase Date or the Repurchase Date, as the case may be, is deposited with the Trustee (or other paying agent appointed

  

 A-7 

 
by the Company), on the Designated Event Repurchase Date or the Repurchase Date, as the case may be, interest will cease to accrue on such Notes (or portions
thereof) immediately after such Repurchase Date, and the holder thereof shall have no other rights as such other than the right to receive the repurchase price upon surrender of such Note. 
  
 Subject to the occurrence of certain events and in compliance with the
provisions of the Indenture, prior to the final maturity date of the Notes, the holder hereof has the right, at its option, to convert each $1,000 principal amount of the Notes into 23.6396 shares of the Company’s Common Stock (a conversion
price of approximately $42.30 per share), subject to the Company’s right to deliver, in lieu of Common Stock, cash or a combination of cash and Common Stock as such shares shall be constituted at the date of conversion and subject to adjustment
from time to time as provided in the Indenture, upon surrender of this Note with the form entitled “Conversion Notice” on the reverse thereof duly completed, to the Company at the office or agency of the Company maintained for that
purpose in accordance with the terms of the Indenture, or at the option of such holder, the Corporate Trust Office, and, unless the shares issuable on conversion are to be issued in the same name as this Note, duly endorsed by, or accompanied by
instruments of transfer in form satisfactory to the Company duly executed by, the holder or by his duly authorized attorney. The Company will notify the holder thereof of any event triggering the right to convert the Notes as specified above in
accordance with the Indenture. 
  
 No adjustment in respect of
interest on any Note converted or dividends on any shares issued upon conversion of such Note will be made upon any conversion except as set forth in the next sentence. If this Note (or portion hereof) is surrendered for conversion during the period
from the close of business on any record date for the payment of interest to the close of business on the Business Day preceding the following interest payment date, this Note (or portion hereof being converted) must be accompanied by payment, in
immediately available funds or other funds acceptable to the Company, of an amount equal to the interest otherwise payable on such interest payment date on the principal amount being converted; provided that no such payment shall be required
(1) if the Company has specified a redemption date that is after a record date and prior to the next interest payment date, (2) if the Company has specified a Designated Event Repurchase Date that is during such period or (3) to the extent of any
overdue Interest, if any overdue interest exists at the time of conversion with respect to such Note. 
  
 No fractional shares will be issued upon any conversion, but an adjustment and payment in cash will be made, as provided in the Indenture, in respect of
any fraction of a share which would otherwise be issuable upon the surrender of any Note or Notes for conversion. 
  
 A Note in respect of which a holder is exercising its right to require repurchase upon a Designated Event or repurchase on a Repurchase Date may be
converted only if such holder withdraws its election to exercise either such right in accordance with the terms of the Indenture. 
  

 A-8 

 Any Notes called for redemption, unless surrendered for conversion by the holders thereof on or before
the close of business on the Business Day preceding the redemption date, may be deemed to be redeemed from the holders of such Notes for an amount equal to the applicable redemption price, together with accrued but unpaid interest to, but excluding,
the date fixed for redemption, by one or more investment banks or other purchasers who may agree with the Company (i) to purchase such Notes from the holders thereof and convert them into shares of the Company’s Common Stock and (ii) to make
payment for such Notes as aforesaid to the Trustee in trust for the holders. 
  
 Upon due presentment for registration of transfer of this Note at the office or agency of the Company maintained for that purpose in accordance with the terms of the Indenture, a new Note or Notes of authorized
denominations for an equal aggregate principal amount will be issued to the transferee in exchange thereof, subject to the limitations provided in the Indenture, without charge except for any tax, assessment or other governmental charge imposed in
connection therewith. 
  
 The Company, the Trustee, any
authenticating agent, any paying agent, any conversion agent and any Note Registrar may deem and treat the registered holder hereof as the absolute owner of this Note (whether or not this Note shall be overdue and notwithstanding any notation of
ownership or other writing hereon made by anyone other than the Company or any Note Registrar) for the purpose of receiving payment hereof, or on account hereof, for the conversion hereof and for all other purposes, and neither the Company nor the
Trustee nor any other authenticating agent nor any paying agent nor other conversion agent nor any Note Registrar shall be affected by any notice to the contrary. All payments made to or upon the order of such registered holder shall, to the extent
of the sum or sums paid, satisfy and discharge liability for monies payable on this Note. 
  
 No recourse for the payment of the principal of or Interest on this Note, or for any claim based hereon or otherwise in respect hereof, and no recourse under or upon any obligation, covenant or agreement of the
Company in the Indenture or any supplemental indenture or in any Note, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, employee, agent, officer or director or subsidiary, as
such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment
or penalty or otherwise, all such liability being, by acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released. 
  
 For purposes of sections 1272, 1273 and 1275 of the Internal Revenue Code of 1986, as amended, this Note is being issued with Tax Original Issue Discount
and the issue date of this Note is August 3, 2005. In addition, this Note is subject to the United States federal income tax regulations governing contingent payment debt instruments. For purposes of sections 1272, 1273 and 1275 of the Internal
Revenue Code, the comparable yield of this Note is 8.00% per year, compounded semi-annually (which will be treated as the yield to maturity for United States federal income tax purposes). 
  

 A-9 

 The Company agrees, and by acceptance of a beneficial interest in a Note each holder and any beneficial
owner of a Note shall be deemed to have agreed to treat the Note as indebtedness of the Company for United States federal income tax purposes that is subject to Treasury Regulation Section 1.1275-4 or any successor provision (the “contingent
payment regulations”) and to be bound (in the absence of an administrative determination or judicial ruling to the contrary) by the Company’s determination of the comparable yield and the projected payment schedule within the meaning of
the contingent payment regulations. A holder of Notes may obtain the issue price amount of Tax Original Issue Discount, issue date, yield to maturity, comparable yield and projected payment schedule for the Notes, determined by the Company pursuant
to the contingent payment regulations, by submitting a written request for it to the Company at the following address: Commonwealth Telephone Enterprises, Inc., 100 CTE Drive, Dallas, Pennsylvania 18612-9774, Attention: Vice President, Investor
Relations. 
  
 This Note shall be deemed to be a contract made
under the laws of New York, and for all purposes shall be construed in accordance with the laws of New York, without regard to conflicts of laws principles thereof. 
  
 Terms used in this Note and defined in the Indenture are used herein as therein defined. 
  

 A-10 

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

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

 (State)

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

 CONVERSION NOTICE 
  

	TO:	COMMONWEALTH TELEPHONE ENTERPRISES, INC. 

	    	THE BANK OF NEW YORK 

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

	
	  

  
  

 Signature(s)

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

	Signature Guarantee

 Fill in the registration of shares of Common Stock 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):

	
	 $

	
	 Social Security or Other Taxpayer
 Identification
Number:

	
	  

 DESIGNATED EVENT REPURCHASE NOTICE 
  

	TO:	COMMONWEALTH TELEPHONE ENTERPRISES, INC. 

	    	THE BANK OF NEW YORK 

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

 REPURCHASE NOTICE 
  

	TO:	COMMONWEALTH TELEPHONE ENTERPRISES, INC. 

	    	THE BANK OF NEW YORK 

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

 ASSIGNMENT 
  

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

	
	  

	  
  

 Signature(s)

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

 Signature Guarantee

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

 Schedule I 
  
 COMMONWEALTH 
 TELEPHONE ENTERPRISES, INC.

 2005 Series A 31⁄4% Convertible Note due 2023 
  
 No. 1 
  
 The original principal amount of this Note is $SIXTY THREE MILLION EIGHT HUNDRED NINETY TWO THOUSAND DOLLARS ($63,892,000). The principal amount has been adjusted in accordance with the terms of the Indenture as set forth below: 

 

							
	 Date

	  	 Principal Amount

	  	 Notation Explaining Principal
 Amount Recorded

	  	Authorized Signature
of Trustee or
Custodian

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