Document:

Indenture, dated February 7, 2007

 Exhibit 10.1 
 EXECUTION COPY 
 NEWPORT CORPORATION 
 2.50% CONVERTIBLE SUBORDINATED NOTES DUE 2012 
  

 INDENTURE 
 DATED AS OF FEBRUARY 7, 2007

  

 WELLS FARGO BANK,
NATIONAL ASSOCIATION 
 AS TRUSTEE 

 TABLE OF CONTENTS 
  

			
	 	  	Page
	 Article 1 DEFINITIONS AND INCORPORATION BY REFERENCE
	  	1
		
	 Section 1.01 Definitions.
	  	1
		
	 Section 1.02 Other Definition.
	  	8
		
	 Section 1.03 Trust Indenture Act Provisions.
	  	9
		
	 Section 1.04 Rules of Construction.
	  	10
		
	 Article 2 THE SECURITIES
	  	11
		
	 Section 2.01 Form and Dating.
	  	11
		
	 Section 2.02 Execution and Authentication.
	  	12
		
	 Section 2.03 Registrar, Paying Agent and Conversion Agent.
	  	13
		
	 Section 2.04 Paying Agent to Hold Money in Trust.
	  	13
		
	 Section 2.05 Lists of Holders of Securities.
	  	14
		
	 Section 2.06 Transfer and Exchange.
	  	14
		
	 Section 2.07 Replacement Securities.
	  	15
		
	 Section 2.08 Outstanding Securities.
	  	15
		
	 Section 2.09 Treasury Securities.
	  	16
		
	 Section 2.10 Temporary Securities.
	  	16
		
	 Section 2.11 Cancellation.
	  	16
		
	 Section 2.12 Legend; Additional Transfer and Exchange Requirements.
	  	16
		
	 Section 2.13 CUSIP Numbers.
	  	20
		
	 Article 3 PURCHASE UPON FUNDAMENTAL CHANGE
	  	21
		
	 Section 3.01 Purchase at Holders’ Option upon a Fundamental Change.
	  	21
		
	 Section 3.02 Effect of Fundamental Change Purchase Notice.
	  	23
		
	 Section 3.03 Deposit of Fundamental Change Purchase Price.
	  	23
		
	 Section 3.04 Repayment to The Company.
	  	24
		
	 Section 3.05 Securities Purchased in Part.
	  	24
		
	 Section 3.06 Compliance with Securities Laws upon Purchase of Securities.
	  	24
		
	 Section 3.07 Purchase of Securities in Open Market.
	  	24
		
	 Article 4 CONVERSION
	  	25
		
	 Section 4.01 Conversion Privilege and Conversion Rate.
	  	25
		
	 Section 4.02 Conversion Procedure.
	  	28
		
	 Section 4.03 Fractional Shares.
	  	30
		
	 Section 4.04 Taxes on Conversion.
	  	30

  

 i 

 TABLE OF CONTENTS 
  

			
	 	  	Page
	 Section 4.05 Company to Provide Stock.
	  	30
		
	 Section 4.06 Adjustment of Conversion Rate.
	  	30
		
	 Section 4.07 No Adjustment.
	  	37
		
	 Section 4.08 Notice of Adjustment.
	  	37
		
	 Section 4.09 Notice of Certain Transactions.
	  	37
		
	 Section 4.10 Effect of Recapitalization, Reclassification, Consolidation, Merger or Sale.
	  	37
		
	 Section 4.11 Trustee’s Disclaimer.
	  	38
		
	 Section 4.12 Voluntary Increase.
	  	39
		
	 Section 4.13 Payment of Cash in Lieu of Common Stock.
	  	39
		
	 Article 5 COVENANTS
	  	41
		
	 Section 5.01 Payment of Securities.
	  	41
		
	 Section 5.02 SEC and Other Reports.
	  	41
		
	 Section 5.03 Compliance Certificates.
	  	42
		
	 Section 5.04 Further Instruments and Acts.
	  	42
		
	 Section 5.05 Maintenance of Corporate Existence.
	  	42
		
	 Section 5.06 Rule 144A Information Requirement.
	  	42
		
	 Section 5.07 Stay, Extension and Usury Laws.
	  	42
		
	 Section 5.08 Payment of Additional Interest.
	  	43
		
	 Section 5.09 Maintenance of Office or Agency.
	  	43
		
	 Article 6 CONSOLIDATION; MERGER; CONVEYANCE; TRANSFER OR LEASE
	  	44
		
	 Section 6.01 Company May Consolidate, Etc., Only on Certain Terms.
	  	44
		
	 Section 6.02 Successor Substituted.
	  	44
		
	 Article 7 DEFAULT AND REMEDIES
	  	45
		
	 Section 7.01 Events of Default.
	  	45
		
	 Section 7.02 Acceleration.
	  	46
		
	 Section 7.03 Other Remedies.
	  	47
		
	 Section 7.04 Waiver of Defaults and Events of Default.
	  	47
		
	 Section 7.05 Control by Majority.
	  	47
		
	 Section 7.06 Limitations on Suits.
	  	48
		
	 Section 7.07 Rights of Holders to Receive Payment and to Convert.
	  	48
		
	 Section 7.08 Collection Suit by Trustee.
	  	48
		
	 Section 7.09 Trustee May File Proofs of Claim.
	  	48

  

 ii 

 TABLE OF CONTENTS 
  

			
	 	  	Page
	 Section 7.10 Priorities.
	  	49
		
	 Section 7.11 Undertaking for Costs.
	  	49
		
	 Article 8 TRUSTEE
	  	50
		
	 Section 8.01 Obligations of Trustee.
	  	50
		
	 Section 8.02 Rights of Trustee.
	  	51
		
	 Section 8.03 Individual Rights of Trustee.
	  	52
		
	 Section 8.04 Trustee’s Disclaimer.
	  	52
		
	 Section 8.05 Notice of Default or Events of Default.
	  	52
		
	 Section 8.06 Reports by Trustee to Holders.
	  	52
		
	 Section 8.07 Compensation and Indemnity.
	  	53
		
	 Section 8.08 Replacement of Trustee.
	  	54
		
	 Section 8.09 Successor Trustee by Merger, Etc.
	  	54
		
	 Section 8.10 Eligibility; Disqualification.
	  	54
		
	 Section 8.11 Preferential Collection of Claims Against Company.
	  	55
		
	 Article 9 SATISFACTION AND DISCHARGE OF INDENTURE
	  	56
		
	 Section 9.01 Satisfaction and Discharge of Indenture.
	  	56
		
	 Section 9.02 Application of Trust Money.
	  	56
		
	 Section 9.03 Repayment to Company.
	  	56
		
	 Section 9.04 Reinstatement.
	  	57
		
	 Article 10 AMENDMENTS; SUPPLEMENTS AND WAIVERS
	  	58
		
	 Section 10.01 Without Consent of Holders.
	  	58
		
	 Section 10.02 With Consent of Holders.
	  	58
		
	 Section 10.03 Compliance with Trust Indenture Act.
	  	59
		
	 Section 10.04 Revocation and Effect of Consents.
	  	59
		
	 Section 10.05 Notation on or Exchange of Securities.
	  	60
		
	 Section 10.06 Trustee to Sign Amendments, Etc.
	  	60
		
	 Section 10.07 Effect of Supplemental Indentures.
	  	60
		
	 Article 11 SUBORDINATION
	  	61
		
	 Section 11.01 Agreement to Subordinate.
	  	61
		
	 Section 11.02 Payment to Holders.
	  	61
		
	 Section 11.03 Subrogation of Securities.
	  	63
		
	 Section 11.04 Authorization to Effect Subordination.
	  	64

  

 iii 

 TABLE OF CONTENTS 
  

			
	 	  	Page
	 Section 11.05 Notice to Trustee.
	  	64
		
	 Section 11.06 Trustee’s Relation to Senior Indebtedness.
	  	65
		
	 Section 11.07 No Impairment of Subordination.
	  	65
		
	 Section 11.08 Certain Conversions Deemed Payment.
	  	66
		
	 Section 11.09 Article Applicable to Paying Agents.
	  	66
		
	 Section 11.10 Senior Indebtedness Entitled to Rely.
	  	66
		
	 Section 11.11 Reinstatement.
	  	66
		
	 Section 11.12 Actions by Holders of Senior Indebtedness.
	  	67
		
	 Article 12 MISCELLANEOUS
	  	68
		
	 Section 12.01 Trust Indenture Act Controls.
	  	68
		
	 Section 12.02 Notices.
	  	68
		
	 Section 12.03 Communications By Holders with Other Holder.
	  	69
		
	 Section 12.04 Certificate and Opinion as to Conditions Precedent.
	  	69
		
	 Section 12.05 Record Date for Vote or Consent of Holders of Securities.
	  	70
		
	 Section 12.06 Rules by Trustee, Paying Agent, Registrar and Conversion Agent.
	  	70
		
	 Section 12.07 Legal Holidays.
	  	70
		
	 Section 12.08 Governing Law.
	  	70
		
	 Section 12.09 No Adverse Interpretation of Other Agreements.
	  	70
		
	 Section 12.10 No Recourse Against Others.
	  	70
		
	 Section 12.11 No Security Interest Created.
	  	70
		
	 Section 12.12 Successors.
	  	70
		
	 Section 12.13 Multiple Counterparts.
	  	70
		
	 Section 12.14 Separability.
	  	71
		
	 Section 12.15 Table of Contents, Headings, Etc.
	  	71
		
	 Exhibit A
	  	A-1

  

 iv 

 CROSS REFERENCE TABLE* 
  

					
	 TIA
SECTION
	  	 	  	 INDENTURE
 SECTION

	 Section
	  	 310
	  	12.01
		  	 310(a)(1)
	  	8.10
		  	 (a)(2)
	  	8.10
		  	 (a) (3)
	  	N.A.**
		  	 (a) (4)
	  	N.A.
		  	 (a) (5)
	  	8.10
		  	 (b)
	  	8.10
		  	 (c)
	  	N.A.
	 Section
	  	 311
	  	12.01
		  	 311 (a)
	  	8.11
		  	 (b)
	  	8.11
		  	 (c)
	  	N.A.
	 Section
	  	 312
	  	12.01
		  	 312(a)
	  	2.05
		  	 (b)
	  	12.03
		  	 (c)
	  	12.03
	 Section
	  	 313
	  	12.01
		  	 313(a)
	  	8.06(a)
		  	 (b)(1)
	  	N.A.
		  	 (b)(2)
	  	8.06(a)
		  	 (c)
	  	8.06(a)
		  	 (d)
	  	8.06(b)
	 Section
	  	 314
	  	12.01
		  	 314(a)
	  	5.02(a); 5.03
		  	 (b)
	  	N.A.
		  	 (c)(1)
	  	2.02; 9.01; 12.04
		  	 (c)(2)
	  	9.01; 12.04
		  	 (c)(3)
	  	N.A.
		  	 (d)
	  	N.A.
		  	 (e)
	  	12.04
		  	 (f)
	  	N.A.
	 Section
	  	 315
	  	12.01
		  	 315(a)
	  	8.01(b)
		  	 (b)
	  	8.05
		  	 (d)
	  	8.01(c)
		  	 (d)(2)
	  	8.01(c)
		  	 (d)(3)
	  	8.01(c)
		  	 (e)
	  	7.11
	 Section
	  	 316
	  	12.01
		  	 316 (a)
	  	7.05; 10.02 (b)
		  	 (b)
	  	7.07
		  	 (c)
	  	12.05
	 Section
	  	 317
	  	7.08; 7.09; 12.01
	 Section
	  	 318
	  	12.01

	*	This Cross-Reference Table shall not, for any purpose, be deemed a part of this Indenture. 

	**	N.A. means Not Applicable. 

 THIS INDENTURE dated as of February 7, 2007 is between Newport Corporation, a corporation duly
organized under the laws of the State of Nevada (the “Company”), and Wells Fargo Bank, National Association, a national banking association organized and existing under the laws of the United States, as Trustee (the “Trustee”).

 In consideration of the purchase of the Securities (as defined herein) by the Holders thereof, both parties agree as follows for the
benefit of the other and for the equal and ratable benefit of the Holders of the Securities. 
 ARTICLE 1 
 DEFINITIONS AND INCORPORATION BY REFERENCE 
 Section 1.01 Definitions. 
 “Additional Interest” has the meaning specified in the Registration Rights
Agreement. All references herein to interest accrued or payable as of any date shall include any Additional Interest accrued or payable as of such date as provided in the Registration Rights Agreement. 
 “Affiliate” means, with respect to any specified person, 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 person means the power to direct the management and policies of such person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
 “Agent” means any Registrar, Paying Agent or Conversion Agent. 
 “Aggregate Share Cap” means initially 47 shares of Common Stock per $1,000 principal amount of Securities, subject to proportional adjustment in the same manner as the Conversion Rate upon the occurrence of
any of the events described in clauses (1) through (4) under Section 4.06(a). 
 “Applicable Procedures” means, with
respect to any transfer or exchange of beneficial ownership interests in a Global Security, the rules and procedures of the Depositary, to the extent applicable to such transfer or exchange. 
 “Beneficial Ownership” means the definition such term is given in accordance with Rule 13d-3 promulgated by the SEC under the Exchange Act.

 “Board of Directors” means either the board of directors of the Company or any committee of the Board of Directors authorized to
act for it with respect to this Indenture. 
 “Business Day” means any weekday that is not a day on which banking institutions in
The City of New York are authorized or obligated to close. 
 “Capital Stock” of any Person means any and all shares, interests,
rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) equity of such Person, but excluding any debt securities convertible into such equity. 
 “Cash” or “cash” means such coin or currency of the United States as at any time of payment is legal tender for the payment of public
and private debts. 
  

 1 

 “Certificated Security” means a Security that is in substantially the form attached as Exhibit
A but that does not include the information or the schedule called for by footnote 1 thereof. 
 “Change of Control” means the
occurrence of any of the following after the date hereof: (i) the acquisition by any Person of Beneficial Ownership (including any syndicate or group which would be deemed to be a “person” under Section 13(d)(3) of the Exchange
Act), directly or indirectly, through a purchase, merger or other acquisition transaction or series of transactions, of shares of the Company’s Capital Stock entitling that Person to exercise 50% or more of the total voting power of all shares
of the Company’s Capital Stock entitled to vote generally in elections of directors, other than any acquisition by the Company, any of its subsidiaries or any of its employee benefit plans; or (ii) the consolidation or merger of the
Company with or into any other Person, any merger of another Person into the Company, or any conveyance, transfer, sale, lease or other disposition of all or substantially all of the Company’s properties and assets to another Person other than
to one or more of the Company’s wholly-owned subsidiaries, provided that this clause (ii) shall not apply to (A) any transaction (x) that does not result in any reclassification, conversion, exchange or cancellation of
outstanding shares of the Company’s Capital Stock and (y) pursuant to which holders of the Company’s Capital Stock immediately prior to the transaction have the entitlement to exercise, directly or indirectly, 50% or more of the total
voting power of all shares of the Capital Stock entitled to vote generally in elections of directors of the continuing or surviving Person immediately after the transaction; or (B) any merger solely for the purpose of changing the
Company’s jurisdiction of incorporation and resulting in a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares of common stock of the surviving entity; or (iii) if, during any consecutive
two-year period, individuals who at the beginning of that two-year period constituted the Company’s Board of Directors, together with any new directors whose election to the Company’s Board of Directors, or whose nomination for election by
the Company’s stockholders, was approved by a vote of a majority of the directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved, cease for
any reason to constitute a majority of the Company’s Board of Directors then in office. Notwithstanding anything to the contrary set forth herein, it will not constitute a Change of Control if 90% of the consideration for the Common Stock
(excluding cash payments for fractional shares and cash payments made in respect of dissenters’ appraisal rights) in the transaction or transactions otherwise constituting a Change of Control consists of common stock or American Depositary
Shares representing shares of common stock, in each case which are traded on a U.S. national securities exchange, or which will be so traded when issued or exchanged in connection with the Change of Control, and as a result of such transaction or
transactions the Securities become convertible solely into cash in an amount equal to the lesser of $1,000 and the Conversion Value and, if the Conversion Value is greater than $1,000, payment of the excess value in the form of such common stock,
subject to the right to deliver cash in lieu of all or a portion of such remaining shares, in substantially the same manner as described under Section 4.13. 
 “Closing Price” means on any Trading Day, the reported last sale price per share (or if no last sale price is reported, the average of the bid and ask prices per share or, if more than one in either case,
the average of the average bid and the average ask prices per share) on such date reported by the Nasdaq Global Market or, if the Common Stock (or the applicable security) is not quoted or listed for trading on the Nasdaq Global Market, as reported
by the principal national or regional securities exchange on which the Common Stock (or such other security) is listed. If the Common Stock (or such other security) is not listed for trading on a United States national or regional securities
exchange and not reported by the Nasdaq Global Market on the relevant date, the “Closing Price” shall be the last quoted bid price for the Common Stock (or such other security) in the over-the-counter market on the relevant date as
reported by the National Quotation Bureau or similar organization. If the Common Stock (or such other security) is not so quoted, the “Closing Price” shall be the average of the midpoint of the last bid and ask prices for the Common Stock
(or such other security) on the relevant date from each of at least three independent nationally recognized investment banking firms selected by the Company for this purpose. 
  

 2 

 “Common Stock” means the common stock of the Company, par value $0.1167 per share as it exists
on the date of this Indenture and any shares of any class or classes of Capital Stock of the Company resulting from any reclassification or reclassifications thereof, or, in the event of a merger, consolidation or other similar transaction involving
the Company that is otherwise permitted hereunder in which the Company is not the surviving corporation the common stock, common equity interests, ordinary shares or depositary shares or other certificates representing common equity interests of
such surviving corporation or its direct or indirect parent corporation, 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, however, 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 of Securities 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 party named as such in the first paragraph of this Indenture until a successor replaces it pursuant to the applicable
provisions of this Indenture, and thereafter “Company” shall mean such successor Company. 
 “Conversion Price” per share
of Common Stock as of any day means the result obtained by dividing (i) $1,000 by (ii) the then applicable Conversion Rate, rounded to the nearest cent. 
 “Conversion Rate” means the rate at which shares of Common Stock shall be delivered upon conversion, which rate shall be initially 41.5861 shares of Common Stock for each $1,000 principal amount of
Securities, as adjusted from time to time pursuant to the provisions of this Indenture. 
 “Conversion Reference Period” means:

 (i) for Securities that are converted during the one month period prior to the Final Maturity Date of the Securities, the
ten consecutive Trading Days beginning on the third Trading Day following the Final Maturity Date; and 
 (ii) in all other
instances, the ten consecutive Trading Days beginning on the third Trading Day following the Conversion Date. 
 “Conversion Value”
means, for each $1,000 principal amount of Securities, the average of the Daily Conversion Values for each of the ten consecutive Trading Days of the Conversion Reference Period. 
 “Corporate Trust Office” means the office of the Trustee at which at any particular time the trust created
by this Indenture shall be administered, which initially will be the office of Wells Fargo Bank, National Association, Corporate Trust and Escrow Services located at 707 Wilshire Blvd., 17th Floor, Los Angeles, CA 90017, Attention: Maddy Hall (Newport Corporation 2.50% Convertible Subordinated Notes due 2012). 
 “Daily Conversion Value” means, with respect to any Trading Day, the product of (1) the applicable Conversion Rate and (2) the Volume
Weighted Average Price of the Company’s Common Stock on such Trading Day. 
  

 3 

 “Daily Share Amount” means, for each Trading Day of the Conversion Reference Period and for
each $1,000 principal amount of Securities surrendered for conversion, a number of shares (but in no event less than zero) equal to (i) the amount of (a) the Volume Weighted Average Price for such Trading Day multiplied by the Conversion
Rate in effect on the Conversion Date, less (b) $1,000; divided by (ii) the Volume Weighted Average Price for such Trading Day multiplied by 10. 
 “Default” means, when used with respect to the Securities, any event that is or, after notice or passage of time, or both, would be, an Event of Default. 
 “Designated senior indebtedness” means any senior indebtedness that is specifically identified by the Company in the instrument governing or
evidencing the indebtedness or the assumption or guarantee thereof (or related agreements or documents to which the Company is a party) as “designated senior indebtedness” for purposes of this Indenture, provided that such instrument,
agreement or other document may place limitations and conditions on the right of such senior indebtedness to exercise the rights of designated senior indebtedness. 
 “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. 
 “Final Maturity Date” means February 15, 2012. 
 “Fundamental Change” means the occurrence of a Change of Control or a Termination of Trading following the original issuance of the Securities. 
 “Fundamental Change Effective Date” means the date on which any Fundamental Change becomes effective. 
 “Fundamental Change Purchase Price” of any Security, means 100% of the principal amount of the Security to be purchased plus accrued and unpaid
interest, if any, and Additional Interest, if any, to, but excluding, the Fundamental Change Purchase Date. 
 “GAAP” means
generally accepted accounting principles in the United States of America as in effect from time to time, including those set forth in (1) the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified
Public Accountants, (2) the statements and pronouncements of the Public Company Accounting Oversight Board and the Financial Accounting Standards Board, (3) such other statements by such other entity as approved by a significant segment of
the accounting profession and (4) the rules and regulations of the SEC governing the inclusion of financial statements (including pro forma financial statements) in registration statements filed under the Securities Act and periodic reports
required to be filed pursuant to Section 13 of the Exchange Act, including opinions and pronouncements in staff accounting bulletins and similar written statements from the accounting staff of the SEC. 
 “Global Security” means a Security in global form that is in substantially the form attached as Exhibit A and that includes the information and
schedule called for in footnote 1 thereof and which is deposited with the Depositary or its custodian and registered in the name of the Depositary or its nominee. 
 “Holder” or “Holder of a Security” means the person in whose name a Security is registered on the Registrar’s books. 
 “Indebtedness” means, with respect to any Person on any date of determination, without duplication, the principal or face amount of:

  

 4 

 (1) all of such Person’s indebtedness, obligations and other liabilities, contingent
or otherwise, (A) for borrowed money, including overdrafts, foreign exchange contracts, currency exchange agreements, interest rate protection agreements, and any loans or advances from banks, whether or not evidenced by notes or similar
instruments, or (B) evidenced by credit or loan agreements, bonds, debentures, notes or similar instruments, or incurred in connection with the acquisition of any property, services or assets, whether or not the recourse of the lender is to the
whole of such Person’s assets or to only a portion thereof, other than any account payable or other accrued current liability or obligation to trade creditors representing the purchase price or cost of materials or services obtained in the
ordinary course of business; 
 (2) all of such Person’s reimbursement obligations and other liabilities, contingent or
otherwise, with respect to letters of credit, bank guarantees, bankers’ acceptances, surety bonds, performance bonds or other guaranty of contractual performance; 
 (3) all of such Person’s obligations and other liabilities, contingent or otherwise, in respect of leases required, in conformity
with GAAP, to be accounted for as capitalized lease obligations on such Person’s balance sheet or for a financing purpose; 
 (4) all of such Person’s obligations and other liabilities, contingent or otherwise, under any lease or related document, including a purchase agreement, conditional sale or other title retention agreement, in connection with the lease
of real property or improvements thereon (or any personal property included as part of any such lease) which provides that such Person is contractually obligated to purchase or cause a third party to purchase the leased property or pay an agreed
upon residual value of the leased property, including such Person’s payment obligations under such lease or related document to purchase or cause a third party to purchase such leased property or pay an agreed upon residual value of the leased
property to the lessor; 
 (5) all of such Person’s obligations, contingent or otherwise, with respect to an interest
rate or other swap, cap, floor or collar agreement or hedge agreement, forward contract or other similar instrument or agreement or foreign currency hedge, exchange, purchase or similar instrument or agreement; 
 (6) all of such Person’s direct or indirect guarantees or similar agreements by such Person in respect of, and all of such
Person’s payment obligations or monetary liabilities, contingent or otherwise, to purchase or otherwise acquire or otherwise assure a creditor against loss in respect of, indebtedness, obligations or liabilities of another Person of the kinds
described in clauses (1) through (5); 
 (7) all indebtedness or other obligations of the kind described in clauses
(1) through (5) secured by any mortgage, pledge, lien or other encumbrance existing on property that is owned or held by such Person, regardless of whether the indebtedness or other obligation secured thereby shall have been assumed by
such Person; and 
 (8) any and all deferrals, renewals, extensions, refinancings and refundings of, or amendments,
modifications or supplements to, any indebtedness, obligation or liability of the kinds described in clauses (1) through (7). 
 “Indenture” means this Indenture as amended or supplemented from time to time pursuant to the terms of this Indenture, including the provisions of the TIA that are automatically deemed to be a part of this Indenture by operation
of the TIA. 
  

 5 

 “Initial Purchaser” means Merrill Lynch, Pierce, Fenner & Smith Incorporated.

 “Interest Payment Date” means February 15 and August 15 of each year, commencing August 15, 2007. 
 “Issue Date” of any Security means the date on which the Security was originally issued or deemed issued as set forth on the face of the
Security. 
 “Officer” means the Chairman or any Co-Chairman of the Board, any Vice Chairman of the Board, the Chief Executive
Officer, the President, any Vice President, the Chief Financial Officer, the Controller, the Secretary, any Assistant Controller or any Assistant Secretary of the Company. 
 “Officers’ Certificate” means a certificate signed on behalf of the Company by two Officers; provided, however, that for purposes of
Sections 4.10 and 5.03, “Officers’ Certificate” means a certificate signed by (a) the principal executive officer, principal financial officer or principal accounting officer of the Company and (b) one other Officer.

 “Opinion of Counsel” means a written opinion from legal counsel reasonably acceptable to the Trustee. The counsel may be an
employee of or counsel to the Company or the Trustee. 
 “Person” or “person” means any individual, corporation,
partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization, government or any agency or political subdivision thereof or any syndicate or group that would be deemed to be a
“person” under Section 13(d)(3) of the Exchange Act or any other entity. 
 “Principal” or “principal” of
a debt security, including the Securities, means the principal of the debt security plus, when appropriate, the premium, if any, on the debt security. 
 “Registration Rights Agreement” means the Registration Rights Agreement, dated as of February 7, 2007, between the Company and the Initial Purchaser, as amended from time to time in accordance with its
terms. 
 “Regular Record Date” means, with respect to each Interest Payment Date, the February 1 or August 1, as the
case may be, next preceding such Interest Payment Date. 
 “Representative” means the trustee, agent or representative (if any) for
an issue of Senior Indebtedness. 
 “Responsible Officer” means, when used with respect to the Trustee, any officer within the
corporate trust services 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 and familiarity with the particular subject. 
 “Restricted Global Security” means a Global
Security that is a Restricted Security. 
 “Restricted Security” means a Security required to bear the restricted legend set forth
in the form of Security annexed as Exhibit A. 
 “Rule 144” means Rule 144 under the Securities Act or any successor to such Rule.

 “Rule 144A” means Rule 144A under the Securities Act or any successor to such Rule. 
  

 6 

 “SEC” means the Securities and Exchange Commission. 
 “Securities” means the up to $175,000,000 million aggregate principal amount of 2.50% Convertible Subordinated Notes due 2012, or any of them
(each a “Security”), as amended or supplemented from time to time, that are issued under this Indenture. 
 “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in effect from time to time. 
 “Securities Custodian” means the Trustee, as custodian with respect to the Securities in global form, or any successor thereto. 
 “Senior Indebtedness” means the principal of, premium (if any) and interest, including any interest accruing after the commencement of any bankruptcy or similar proceeding, whether or not a claim for post-petition interest is
allowed as a claim in the proceeding, and rent payable on or termination payment with respect to or in connection with, and all fees, costs, expenses and other amounts accrued or due on or in connection with, the Company’s Indebtedness, whether
secured or unsecured, absolute or contingent, due or to become due, outstanding on the date of this Indenture or thereafter created, incurred, assumed, guaranteed or in effect guaranteed by the Company, including all deferrals, renewals, extensions
or refundings of, or amendments, modifications or supplements to, the foregoing. “Senior Indebtedness” does not include: (i) Indebtedness pursuant to the subordinated promissory note, dated July 16, 2004 issued by the Company to
Thermo Electron Corporation, as such note may be amended, modified, supplemented or restated from time to time, which note shall rank pari passu with the notes; (ii) any other Indebtedness that expressly provides that such Indebtedness will not
be senior in right of payment to the Securities or expressly provides that such Indebtedness is on parity with or junior in right of payment to the Securities; and (iii) any Indebtedness to any of the Company’s Subsidiaries. 
 “Significant Subsidiary” means, in respect of any Person, as of any date of determination, a Subsidiary of such Person that would constitute a
“significant subsidiary” as such term is defined under Rule 1-02(w) of Regulation S-X under the Securities Act. 
 “Stock
Price” means the price paid, or deemed to be paid, per share of the Common Stock in connection with a Fundamental Change as determined pursuant to Section 4.01(j). 
 “Subsidiary” means, in respect of any Person, any corporation, association, partnership or other business entity of which more than 50% of the
total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency within the control of such Person to satisfy) to vote in the election of directors, managers, general partners or trustees thereof is at the
time owned or controlled, directly or indirectly, by (i) such Person, (ii) such Person and one or more Subsidiaries of such Person, or (iii) one or more Subsidiaries of such Person. 
 “Termination of Trading” means the termination (but not the temporary suspension) of trading of the Common Stock, which will be deemed to have
occurred if the Common Stock or other common stock into which the Securities are convertible is neither listed for trading on a United States national securities exchange, or traded in over-the-counter securities markets, and no American Depository
Shares or similar instruments for such common stock are so listed or approved for listing in the United States. 
 “TIA” means the
Trust Indenture Act of 1939, as amended, and the rules and regulations thereunder as in effect on the date of this Indenture, except to the extent that the Trust Indenture Act or any amendment thereto expressly provides for application of the Trust
Indenture Act as in effect on another date. 
  

 7 

 “Trading Day” means any day on which the Nasdaq Global Market or, if the Common Stock is not
quoted or listed for trading on the Nasdaq Global Market, the principal national or regional securities exchange on which the Common Stock is listed, is open for trading or, if the Common Stock is not so listed, admitted for trading or quoted, any
Business Day. A Trading Day only includes those days that have a scheduled closing time of 4:00 p.m. (New York City time) or the then standard closing time for regular trading on the relevant exchange or trading system. 
 “Trading Price” of the Securities on any date of determination means the average of the secondary market bid quotations obtained by the Trustee
for $5 million principal amount of Securities at approximately 3:30 p.m., New York City time, on such determination date from three nationally recognized securities dealers the Company selects; provided that if three such bids cannot reasonably be
obtained by the Trustee, but two such bids are obtained, then the average of the two bids shall be used, and if only one such bid can reasonably be obtained by the Trustee, that one bid shall be used. If the Trustee cannot reasonably obtain at least
one bid for $5 million principal amount of Securities from a nationally recognized securities dealer, then the Trading Price per $1,000 principal amount of Securities will be deemed to be less than 98% of the product of the Closing Price of the
Common Stock and the Conversion Rate per $1,000 principal amount of Securities. 
 “Trustee” means the party named as such in the
first paragraph of this Indenture until a successor replaces it in accordance with the provisions of this Indenture, and thereafter means the successor. 
 “Trust Officer” means, with respect to the Trustee, any officer assigned to the Corporate Trust Office, and also, with respect to a particular matter, any other officer to whom such matter is referred
because of such officer’s knowledge of and familiarity with the particular subject. 
 “Vice President” when used with respect
to the Company or the Trustee, means any vice president, whether or not designated by a number or a word or words added before or after the title “vice president.” 
 “Volume Weighted Average Price” per share of Common Stock on any Trading Day means such price as displayed on Bloomberg (or any successor
service) page NEWP <equity> VAP in respect of the period from 9:30 a.m. to 4:00 p.m., New York City time, on such Trading Day; or, if such price is not available, the Volume Weighted Average Price means the market value per share of Common
Stock on such day as determined by a nationally recognized independent investment banking firm retained for this purpose by the Company. 
 “Voting Stock” of a Person means all classes of Capital Stock or other interests (including partnership interests) of such Person then outstanding and normally entitled (without regard to the occurrence of any contingency within
the control of such person to satisfy) to vote in the election of directors, managers or trustees thereof. 
 Section 1.02 Other
Definitions. 
  

			
	 Term
	  	Defined in Section
	 “Agent Members”
	  	2.01
	 “Bankruptcy Law”
	  	7.01
	 “Business Combination”
	  	4.10
	 “Company Order”
	  	2.02
	 “Conversion Trigger Price”
	  	4.01
	 “Conversion Agent”
	  	2.03

  

 8 

			
	 “Conversion Date”
	  	4.02
	 “Current Market Price”
	  	4.06
	 “DTC”
	  	2.01
	 “Depositary”
	  	2.01
	 “Determination Date”
	  	4.06
	 “Distributed Securities”
	  	4.06
	 “Distribution Notice”
	  	4.01
	 “Event of Default”
	  	7.01
	 “Expiration Date”
	  	4.06
	 “Expiration Time”
	  	4.06
	 “Fundamental Change Company Notice”
	  	3.01
	 “Fundamental Change Purchase Date”
	  	3.01
	 “Fundamental Change Purchase Notice”
	  	3.01
	 “Junior Securities”
	  	11.08
	 “Legal Holiday”
	  	12.07
	 “Legend”
	  	2.12
	 “Make Whole Premium”
	  	4.01
	 “NASD”
	  	4.06
	 “Notice of Default”
	  	7.01
	 “Paying Agent”
	  	2.03
	 “Payment Blockage Notice”
	  	11.02
	 “Primary Registrar”
	  	2.03
	 “Purchase Agreement”
	  	2.01
	 “Purchased Shares”
	  	4.06
	 “record date”
	  	4.06
	 “QIB”
	  	2.01
	 “Receiver”
	  	7.01
	 “Registrar”
	  	2.03
	 “Rights”
	  	4.06
	 “Rights Plan”
	  	4.06
	 “Spinoff Securities”
	  	4.06
	 “Spinoff Valuation Period”
	  	4.06
	 “tender offer”
	  	4.06
	 “Triggering Distribution”
	  	4.06

 Section 1.03 Trust Indenture Act Provisions. 
 Whenever this Indenture refers to a provision of the TIA, that provision is incorporated by reference in and made a part of this Indenture. This Indenture
shall also include those provisions of the TIA required to be included herein by the provisions of the Trust Indenture Reform Act of 1990. The following TIA terms used in this Indenture have the following meanings: 
 “indenture securities” means the Securities; 
 “indenture security holder” means a Holder of a Security; 
  

 9 

 “indenture to be qualified” means this Indenture; 
 “indenture trustee” or “institutional trustee” means the Trustee; and 
 “obligor” on the indenture securities means the Company or any other obligor on the Securities. 
 All other terms used in this Indenture that are defined in the TIA, defined by TIA reference to another statute or defined by any SEC rule and not
otherwise defined herein have the meanings assigned to them therein. 
 Section 1.04 Rules of Construction. 
 (a) Unless the context otherwise requires: 
 (1) a term has the meaning assigned to it; 
 (2) an accounting term not otherwise defined has
the meaning assigned to it in accordance with GAAP; 
 (3) words in the singular include the plural, and words in the plural
include the singular; 
 (4) provisions apply to successive events and transactions; 
 (5) the term “merger” includes a statutory share exchange and the term “merged” has a correlative meaning; 

(6) the masculine gender includes the feminine and the neuter; 
 (7) references to agreements and other instruments include subsequent amendments thereto; and 
 (8) all “Article”, “Exhibit” and “Section” references are to Articles, Exhibits and Sections, respectively,
of or to this Indenture unless otherwise specified herein, and the terms “herein,” “hereof” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.

  

 10 

 ARTICLE 2 
 THE SECURITIES 
 Section 2.01 Form and Dating. 
 The Securities and the Trustee’s certificate of authentication shall be substantially in the respective forms set forth in Exhibit A, which Exhibit
is incorporated in and made part of this Indenture. The Securities may have notations, legends or endorsements required by law, stock exchange or automated quotation system rule or regulation or usage. The Company shall provide any such notations,
legends or endorsements to the Trustee in writing. Each Security shall be dated the date of its authentication. The Securities are being offered and sold by the Company pursuant to a Purchase Agreement dated February 1, 2007 (the “Purchase
Agreement”) between the Company and the Initial Purchaser, in transactions exempt from, or not subject to, the registration requirements of the Securities Act. 
 (a) Restricted Global Securities. 
 All of the Securities are initially being offered and sold to
qualified institutional buyers as defined in Rule 144A (collectively, “QIBS” or individually, each a “QIB”) in reliance on Rule 144A under the Securities Act and shall be issued initially in the form of one or more Restricted
Global Securities, which shall be deposited on behalf of the purchasers of the securities represented thereby with the Trustee, at its Corporate Trust Office, as custodian for the depositary, The Depository Trust Company (“DTC”, and such
depositary, or any successor thereto, being hereinafter referred to as the “Depositary”), and registered in the name of its nominee, Cede & Co. (or any successor thereto), for the accounts of participants in the Depositary, duly
executed by the Company and authenticated by the Trustee as hereinafter provided. The aggregate principal amount of the Restricted Global Securities may from time to time be increased or decreased by adjustments made on the records of the Securities
Custodian as hereinafter provided, subject in each case to compliance with the Applicable Procedures. 
 (b) Global Securities In
General. 
 Each Global Security shall represent such of the outstanding Securities as shall be specified therein and each shall provide
that it shall represent the aggregate amount of outstanding Securities from time to time endorsed thereon and that the aggregate amount of outstanding Securities represented thereby may from time to time be reduced or increased, as appropriate, to
reflect replacements, exchanges, purchases, or conversions of such Securities. Any adjustment of the aggregate principal amount of a Global Security to reflect the amount of any increase or decrease in the amount of outstanding Securities
represented thereby shall be made by the Trustee in accordance with instructions given by the Holder thereof as required by Section 2.12 and shall be made on the records of the Trustee and the Depositary. 
 Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under this Indenture with respect to any Global Security
held on their behalf by the Depositary or under the Global Security, and the Depositary (including, for this purpose, its nominee) 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 Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall (1) 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 (2) impair, as between the Depositary and its Agent Members, the operation of customary practices governing the exercise of the rights of a Holder of any Security. 
  

 11 

 (c) Book Entry Provisions. 
 The Company shall execute and the Trustee shall, in accordance with this Section 2.01(c), authenticate and deliver initially one or more Global
Securities that (1) shall be registered in the name of the Depositary or its nominee, (2) shall be delivered by the Trustee to the Depositary or pursuant to the Depositary’s instructions and (3) shall bear legends substantially
to the following effect: 
 “UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY
(AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE
THEREOF. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART
FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY
OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.” 
 Section 2.02 Execution and
Authentication. 
 (a) The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is
limited to $175,000,000 aggregate principal amount, except as provided in Sections 2.06 and 2.07. 
 (b) An Officer shall sign the Securities
for the Company by manual or facsimile signature. Typographic and other minor errors or defects in any such facsimile signature shall not affect the validity or enforceability of any Security that has been authenticated and delivered by the Trustee.

 (c) If an officer whose signature is on a Security no longer holds that office at the time the Trustee authenticates the Security, the
Security shall be valid nevertheless. 
 (d) A Security shall not be valid until an authorized signatory of the Trustee by manual or
facsimile signature signs the certificate of authentication on the Security. The signature shall be conclusive evidence that the Security has been authenticated under this Indenture. 
 (e) The Trustee shall authenticate and make available for delivery Securities for original issue in the aggregate principal amount of up to $175,000,000
upon receipt of a written order or orders of 

  

 12 

 
the Company signed by an Officer of the Company (a “Company Order”). The Company order shall specify the amount of Securities to be authenticated,
shall provide that all such securities will be represented by a Restricted Global Security and the date on which each original issue of Securities is to be authenticated. 
 (f) The Trustee shall act as the initial authenticating agent. Thereafter, the Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities. An authenticating agent may authenticate
Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent shall have the same rights as an Agent to deal with the Company or an
Affiliate of the Company. 
 (g) The Securities shall be issuable only in registered form without coupons and only in denominations of $1,000
principal amount and any integral multiple thereof. 
 Section 2.03 Registrar, Paying Agent and Conversion Agent. 
 (a) The Company shall maintain one or more offices or agencies where Securities may be presented for registration of transfer or for exchange (each, a
“Registrar”), one or more offices or agencies where Securities may be presented for payment (each, a “Paying Agent”), one or more offices or agencies where Securities may be presented for conversion (each, a “Conversion
Agent”) and one or more offices or agencies where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served. The Company will at all times maintain a Paying Agent, Conversion Agent, Registrar and
an office or agency where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served. One of the Registrars (the “Primary Registrar”) shall keep a register of the Securities and of their
transfer and exchange. 
 (b) The Company shall enter into an appropriate agency agreement with any Agent not a party to this Indenture,
provided that the Agent may be an Affiliate of the Trustee. The agreement shall implement the provisions of this Indenture that relate to such Agent. The Company shall notify the Trustee of the name and address of any Agent not a party to this
Indenture. If the Company fails to maintain a Registrar, Paying Agent, Conversion Agent, or agent for service of notices and demands in any place required by this Indenture, or fails to give the foregoing notice, the Trustee shall act as such. The
Company or any Affiliate of the Company may act as Paying Agent (except for the purposes of Section 5.01 and Article 9). 
 (c) The
Company hereby initially designates the Trustee as Paying Agent, Registrar, Securities Custodian and Conversion Agent, and designates the Corporate Trust Office of the Trustee as an office or agency where notices and demands to or upon the Company
in respect of the Securities and this Indenture shall be served. 
 Section 2.04 Paying Agent to Hold Money in Trust. 

Prior to 12:00 p.m. (noon), New York City time, on each due date of the payment of principal of, or interest on, any Securities, the Company shall
deposit with the Paying Agent a sum sufficient to pay such principal or interest so becoming due. Subject to Section 9.02, a Paying Agent shall hold in trust for the benefit of Holders of Securities or the Trustee all money held by the Paying
Agent for the payment of principal of, or interest on, the Securities, and shall notify the Trustee of any failure by the Company (or any other obligor on the Securities) to make any such payment. If the Company or an Affiliate of the Company acts
as Paying Agent, it shall, before 12:00 p.m. (noon), New York City time, on each due date of the principal of, or interest on, any Securities, segregate the money and hold it as a separate trust fund. The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee, and the 

  

 13 

 
Trustee may at any time during the continuance of any Default, upon written request to a Paying Agent, require such Paying Agent to pay forthwith to the
Trustee all sums so held in trust by such Paying Agent. Upon doing so, the Paying Agent (other than the Company) shall have no further liability for the money. 
 Section 2.05 Lists of Holders of Securities. 
 The Trustee shall preserve in as current a form as
is reasonably practicable the most recent list available to it of the names and addresses of Holders of Securities. If the Trustee is not the Primary Registrar, the Company shall furnish to the Trustee on or before each Interest Payment Date and at
such other times as the Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Holders of Securities. 
 Section 2.06 Transfer and Exchange. 
 (a) Subject to compliance with any applicable additional requirements contained in Section 2.12, when a Security is presented to a Registrar with a request to register a transfer thereof or to exchange such Security for an equal
principal amount of Securities of other authorized denominations, the Registrar shall register the transfer or make the exchange as requested; provided, however, that every Security presented or surrendered for registration of transfer or exchange
shall be duly endorsed or accompanied by an assignment form and, if applicable, a transfer certificate each in the form included in Exhibit A, and completed in a manner satisfactory to the Registrar and duly executed by the Holder thereof or its
attorney duly authorized in writing. To permit registration of transfers and exchanges, upon surrender of any Security for registration of transfer or exchange at an office or agency maintained pursuant to Section 2.03, the Company shall
execute and the Trustee shall authenticate Securities of a like aggregate principal amount at the Registrar’s request. Any exchange or transfer shall be without charge, except that the Company or the Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in relation thereto; provided that this sentence shall not apply to any exchange pursuant to Section 2.10, 2.12(a), 3.05, 4.02(e) or 10.05. 
 (b) Neither the Company, any Registrar nor the Trustee shall be required to exchange or register a transfer of any Securities or portions thereof in
respect of which a Fundamental Change Purchase Notice has been delivered and not withdrawn by the Holder thereof (except, in the case of the purchase of a Security in part, the portion thereof not to be purchased). 
 (c) All Securities issued upon any transfer or exchange of Securities shall be valid obligations of the Company, evidencing the same debt and entitled to
the same benefits under this Indenture, as the Securities surrendered upon such transfer or exchange. 
 (d) Any Registrar appointed pursuant
to Section 2.03 shall provide to the Trustee such information as the Trustee may reasonably require in connection with the delivery by such Registrar of Securities upon transfer or exchange of Securities. 
 (e) Each Holder of a Security agrees to indemnify the Company and the Trustee against any liability that may result from the transfer, exchange or
assignment of such Holder’s Security in violation of any provision of this Indenture and/or applicable United States federal or state securities law. 
 (f) 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 Security (including any transfers between or among Agent Members or other beneficial owners of interests in any Global Security) 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. 

  

 14 

 Section 2.07 Replacement Securities. 
 (a) If any mutilated Security is surrendered to the Company, a Registrar or the Trustee, and the Company, a Registrar and the Trustee receive evidence to
their satisfaction of the destruction, loss or theft of any Security, and there is delivered to the Company, the applicable Registrar and the Trustee such security or indemnity as will be required by them to save each of them harmless, then, in the
absence of notice to the Company, such Registrar or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall execute, and upon its written request the Trustee shall authenticate and deliver, in exchange for any
such mutilated Security or in lieu of any such destroyed, lost or stolen Security, a new Security of like tenor and principal amount, bearing a number not contemporaneously outstanding. 
 (b) If any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, or is about to be purchased by the
Company pursuant to Article 3, or converted pursuant to Article 4, the Company in its discretion may, instead of issuing a new Security, pay, purchase or convert such Security, as the case may be. 
 (c) Upon the issuance of any new Securities under this Section 2.07, the Company may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto as a result of any Securities, at the request of any Holder, being issued to a Person other than such Holder and any other reasonable expenses (including the reasonable fees and
expenses of the Trustee or the Registrar) in connection therewith. 
 (d) Every new Security issued pursuant to this Section 2.07 in
lieu of any mutilated, destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the mutilated, destroyed, lost or stolen Security shall be at any time enforceable by anyone, and
shall be entitled to all benefits of this Indenture equally and proportionately with any and all other Securities duly issued hereunder. 
 (e) The provisions of this Section 2.07 are (to the extent lawful) exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen
Securities. 
 Section 2.08 Outstanding Securities. 
 (a) Securities outstanding at any time are all Securities authenticated by the Trustee, except for those canceled by it, those purchased pursuant to Article 3, those converted pursuant to Article 4, those delivered to
the Trustee for cancellation or surrendered for transfer or exchange and those described in this Section 2.08 as not outstanding. 
 (b)
If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the Company receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser. 
 (c) If a Paying Agent (other than the Company or an Affiliate of the Company) holds in respect of the outstanding Securities on a Fundamental Change
Purchase Date or the Final Maturity Date money sufficient to pay the principal of (including premium, if any), accrued interest and Additional Interest, if any, on Securities (or portions thereof) payable on that date, then on and after such
Fundamental Change Purchase Date or Final Maturity Date, as the case may be, such Securities (or portions thereof, as the case may be) shall cease to be outstanding and cash interest and Additional Interest, if any, on them shall cease to accrue.

  

 15 

 (d) Subject to the restrictions contained in Section 2.09, a Security does not cease to be
outstanding because the Company or an Affiliate of the Company holds the Security. 
 Section 2.09 Treasury Securities.

 In determining whether the Holders of the required principal amount of Securities have concurred in any notice, direction, waiver or
consent, securities owned by the Company or any other obligor on the Securities or by any Affiliate of the Company or of such other obligor shall be disregarded, except that, for purposes of determining whether the Trustee shall be protected in
relying on any such notice, direction, waiver or consent, only Securities which a Trust Officer of the Trustee with responsibility for this Indenture actually knows are so owned shall be so disregarded. Securities so owned which have been pledged in
good faith shall not be disregarded if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to the Securities and that the pledgee is not the Company or any other obligor on the Securities or any
Affiliate of the Company or of such other obligor. 
 Section 2.10 Temporary Securities. 
 Until definitive Securities are ready for delivery, the Company may prepare and execute, and, upon receipt of a Company Order, the Trustee shall
authenticate and deliver, temporary Securities. Temporary Securities shall be substantially in the form of definitive securities but may have variations that the Company with the consent of the Trustee considers appropriate for temporary Securities.
Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate and deliver definitive Securities in exchange for temporary Securities. 
 Section 2.11 Cancellation. 
 The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar, the Paying Agent and the Conversion Agent shall forward to the Trustee or its agent any Securities surrendered to them for transfer, exchange, purchase, payment or conversion. The Trustee and no one else shall cancel, in
accordance with its standard procedures, all Securities surrendered for transfer, exchange, purchase, payment, conversion or cancellation and shall dispose of the cancelled Securities in accordance with its customary procedures or deliver the
canceled Securities to the Company. All Securities which are purchased or otherwise acquired by the Company or any of its Subsidiaries prior to the Final Maturity Date pursuant to Article 3 shall be delivered to the Trustee for cancellation, and the
Company may not hold or resell such Securities or issue any new Securities to replace any such Securities or any Securities that any Holder has converted pursuant to Article 4. 
 Section 2.12 Legend; Additional Transfer and Exchange Requirements. 
 (a) If Securities are issued upon the transfer, exchange or replacement of Securities subject to restrictions on transfer and bearing the legends set
forth on the forms of Securities attached as Exhibit A (collectively, the “Legend”), or if a request is made to remove the Legend on a Security, the Securities so issued shall bear the Legend, or the Legend shall not be removed, as the
case may be, unless there is delivered to the Company and the Registrar such satisfactory evidence, which shall include an Opinion of Counsel if requested by the Company or such Registrar, as may be reasonably required by the Company and the
Registrar, that neither the Legend nor the restrictions on transfer set forth therein are required to ensure that transfers thereof comply with the provisions of Rule 144A or Rule 144 under the Securities Act or that such Securities are not
“restricted” within the meaning of Rule 144 under the Securities Act; 

  

 16 

 
provided that no such evidence need be supplied in connection with the sale of such Security pursuant to a registration statement that is effective at the
time of such sale. Upon (1) provision of such satisfactory evidence if requested, or (2) notification by the Company to the Trustee and Registrar of the sale of such Security pursuant to a registration statement that is effective at the
time of such sale, the Trustee, at the written direction of the Company, shall authenticate and deliver a Security that does not bear the Legend. If the Legend is removed from the face of a Security and the Security is subsequently held by an
Affiliate of the Company, the Legend shall be reinstated. 
 (b) A Global Security may not be transferred, in whole or in part, to any Person
other than the Depositary or a nominee or any successor thereof, and no such transfer to any such other Person may be registered; provided that the foregoing shall not prohibit any transfer of a Security that is issued in exchange for a Global
Security but is not itself a Global Security. No transfer of a Security to any Person shall be effective under this Indenture or the Securities unless and until such Security has been registered in the name of such Person. Notwithstanding any other
provisions of this Indenture or the Securities, transfers of a Global Security, in whole or in part, shall be made only in accordance with this Section 2.12. 
 (c) Subject to Section 2.12(b) and in compliance with Section 2.12(d), every Security shall be subject to the restrictions on transfer provided in the Legend. Whenever any Restricted Security other than a
Restricted Global Security is presented or surrendered for registration of transfer or in exchange for a Security registered in a name other than that of the Holder, such Security must be accompanied by a certificate in substantially the form set
forth in Exhibit A, dated the date of such surrender and signed by the Holder of such Security, as to compliance with such restrictions on transfer. The Registrar shall not be required to accept for such registration of transfer or exchange any
Security not so accompanied by a properly completed certificate. 
 (d) The restrictions imposed by the Legend upon the transferability of
any Security shall cease and terminate when such Security has been sold pursuant to an effective registration statement under the Securities Act or transferred in compliance with Rule 144 under the Securities Act (or any successor provision thereto)
or, if earlier, upon the expiration of the holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor provision). Any Security as to which such restrictions on transfer shall have expired in accordance
with their terms or shall have terminated may, upon a surrender of such Security for exchange to the Registrar in accordance with the provisions of this Section 2.12 (accompanied, in the event that such restrictions on transfer have terminated
by reason of a transfer in compliance with Rule 144 or any successor provision, by, if requested by the Company or the Registrar, an Opinion of Counsel reasonably acceptable to the Company and the Registrar and addressed to the Company and the
Registrar, to the effect that the transfer of such Security has been made in compliance with Rule 144 or such successor provision), be exchanged for a new Security, of like tenor and aggregate principal amount, which shall not bear the restrictive
Legend. The Company shall inform the Trustee of the effective date of any registration statement registering the offer and sale of the Securities under the Securities Act. The Trustee shall not be liable for any action taken or omitted to be taken
by it in good faith in accordance with the aforementioned Opinion of Counsel or registration statement. 
 As used in Sections 2.12(c) and
(d), the term “transfer” encompasses any sale, pledge, transfer, hypothecation or other disposition of any Security. 
 (e) The
provisions below shall apply only to Global Securities: 
 (1) Each Global Security 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 Security shall constitute a single Security for purposes of this Indenture. 

  

 17 

 (2) Notwithstanding any other provisions of this Indenture or the Securities, a Global
Security shall not be exchanged in whole or in part for a Security registered, and no transfer of a Global Security in whole or in part shall be registered in the name of any Person other than the Depositary or one or more nominees thereof; provided
that a Global Security may be exchanged for securities registered in the names of any person designated by the Depositary in the event that (A) the Depositary has notified the Company that it is unwilling or unable to continue as Depositary for
such Global Security or such Depositary has ceased to be a “clearing agency” registered under the Exchange Act, and a successor Depositary is not appointed by the Company within 90 days after receiving such notice or becoming aware that
the Depositary has ceased to be a “clearing agency,” or (B) an Event of Default has occurred and is continuing with respect to the Securities. Any Global Security exchanged pursuant to subclause (A) above shall be so exchanged in
whole and not in part, and any Global Security exchanged pursuant to subclause (B) above may be exchanged in whole or from time to time in part as directed by the Depositary. Any Security issued in exchange for a Global Security or any portion
thereof shall be a Global Security; provided further that any such Security so issued that is registered in the name of a Person other than the Depositary or a nominee thereof shall not be a Global Security. 
 (3) Securities issued in exchange for a Global Security or any portion thereof shall be issued in definitive, fully registered form,
without interest coupons, shall have an aggregate principal amount equal to that of such Global Security 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 the applicable legends provided for herein. Any Global Security to be exchanged in whole shall be surrendered by the Depositary to the Trustee, as Registrar. With regard to any Global Security to be exchanged in part, either
such Global Security 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 Security, 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 deliver the Security issuable on such exchange to or upon the
order of the Depositary or an authorized representative thereof. 
 (4) Subject to clause (6) of this
Section 2.12(e), the registered Holder may grant proxies and otherwise authorize any Person, including Agent Members and Persons that may hold interests through Agent Members, to take any action which a Holder is entitled to take under this
Indenture or the Securities. 
 (5) In the event of the occurrence of any of the events specified in clause (2) of this
Section 2.12(e), the Company will promptly make available to the Trustee a reasonable supply of Certificated Securities in definitive, fully registered form, without interest coupons. 
 (6) Neither 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 Security registered in the name of the Depositary or any nominee thereof, or under any such Global Security, 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 Security 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 

  

 18 

 
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 Security. 
 (7) At
such time as all interests in a Global Security have been converted, canceled or exchanged for Securities in certificated form, such Global Security shall, upon receipt thereof, be cancelled by the Trustee in accordance with standing procedures and
instructions existing between the Depositary and the Securities Custodian, subject to Section 2.11 of this Indenture. At any time prior to such cancellation, if any interest in a Global Security is converted, canceled or exchanged for
Securities in certificated form, the principal amount of such Global Security shall, in accordance with the standing procedures and instructions existing between the Depositary and the Securities Custodian, be appropriately reduced, and an
endorsement shall be made on such Global Security, by the Trustee or the Securities Custodian, at the direction of the Trustee, to reflect such reduction. 
 (f) Until the expiration of the holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor provision thereto), any stock certificate representing Common Stock issued upon
conversion of any Security shall bear a legend in substantially the following form, unless such Common Stock has been sold pursuant to a registration statement that has been declared effective under the Securities Act (and which continues to be
effective at the time of such transfer) or transferred in compliance with Rule 144 under the Securities Act (or any successor provision thereto), or such Common Stock has been issued upon conversion of Securities that have been transferred pursuant
to a registration statement that has been declared effective under the Securities Act or pursuant to Rule 144 under the Securities Act (or any successor provision thereto), or unless otherwise agreed by the Company in writing with written notice
thereof to the transfer agent: 
 THE COMMON STOCK EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT
FROM, OR NOT SUBJECT TO, REGISTRATION UNDER THE SECURITIES ACT. 
 BY ITS ACQUISITION HEREOF, THE HOLDER AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THE
COMMON STOCK EVIDENCED HEREBY PRIOR TO THE DATE THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH NEWPORT CORPORATION (THE “COMPANY”) OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THE COMMON
STOCK EVIDENCED HEREBY (OR ANY PREDECESSOR OF THE COMMON STOCK EVIDENCED HEREBY) (THE “RESALE RESTRICTION TERMINATION DATE”) ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS
BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, OR (C) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRANSFER AGENT’S RIGHT PRIOR TO ANY SUCH
OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (C) PRIOR TO THE RESALE RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING
CASES, TO REQUIRE THAT A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS CERTIFICATE IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRANSFER AGENT. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE
RESALE RESTRICTION TERMINATION DATE. 
  

 19 

 Any such Common Stock as to which such restrictions on transfer shall have expired in accordance with
their terms or as to which the conditions for removal of the foregoing legend set forth therein have been satisfied may, upon surrender of the certificates representing such shares of Common Stock for exchange in accordance with the procedures of
the transfer agent for the Common Stock, be exchanged for a new certificate or certificates for a like number of shares of Common Stock, which shall not bear the restrictive legend required by this section. 
 Section 2.13 CUSIP Numbers. 
 The
Company in issuing the Securities may use one or more “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of purchase as a convenience to Holders; provided that any such notice
may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a purchase and that reliance may be placed only on the other identification numbers printed on the
Securities, and any such purchase 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. 
  

 20 

 ARTICLE 3 
 PURCHASE UPON FUNDAMENTAL CHANGE 
 Section 3.01 Purchase at Holders’ Option upon a Fundamental
Change. 
 (a) If a Fundamental Change occurs prior to the Final Maturity Date, each Holder of a Security shall have the right, at the
option of the Holder, to require the Company to repurchase for cash all or any portion of the Securities of such Holder equal to $1,000 principal amount (or an integral multiple thereof) at the Fundamental Change Purchase Price, on the date that is
not less than 30 days nor more than 45 days after the date of the Fundamental Change Company Notice pursuant to subsection 3.01(b) (the “Fundamental Change Purchase Date”). 
 (b) On or before the 30th day after the occurrence of a Fundamental Change, the Company shall mail a written notice of the Fundamental Change and of the
resulting repurchase right to the Trustee, Paying Agent and to each Holder (and to beneficial owners as required by applicable law) (the “Fundamental Change Company Notice”). The Fundamental Change Company Notice shall include the form of
a Fundamental Change Purchase Notice to be completed by the Holder and shall state: 
 (1) the events causing such Fundamental
Change; 
 (2) the date (or expected date) of such Fundamental Change; 
 (3) the last date by which the Fundamental Change Purchase Notice must be delivered to elect the repurchase option pursuant to this
Section 3.01; 
 (4) the Fundamental Change Purchase Date; 
 (5) the Fundamental Change Purchase Price; 
 (6) the Holder’s right to require the Company to purchase the Securities; 
 (7) the name
and address of each Paying Agent and Conversion Agent; 
 (8) the then effective Conversion Rate and any adjustments to the
Conversion Rate resulting from such Fundamental Change; 
 (9) the procedures that the Holder must follow to exercise rights
under Article 4 and that Securities as to which a Fundamental Change Purchase Notice has been given may be converted into Common Stock pursuant to Article 4 of this Indenture only to the extent that the Fundamental Change Purchase Notice has been
duly withdrawn in accordance with the terms of this Indenture; 
 (10) the procedures that the Holder must follow to exercise
rights under this Section 3.01; 
 (11) the procedures for withdrawing a Fundamental Change Purchase Notice; 

(12) that, unless the Company fails to pay such Fundamental Change Purchase Price, Securities covered by any Fundamental Change
Purchase Notice will cease to be outstanding and interest and Additional Interest, if any, will cease to accrue on and after the Fundamental Change Purchase Date; and 
  

 21 

 (13) the CUSIP number of the Securities. 
 At the Company’s request, the Trustee shall give such Fundamental Change Company Notice in the Company’s name and at the Company’s expense; provided,
that, in all cases, the text of such Fundamental Change Company Notice shall be prepared by the Company. If any of the Securities is in the form of a Global Security, then the Company shall modify such notice to the extent necessary to accord with
the Applicable Procedures relating to the purchase of Global Securities. 
 (c) A Holder may exercise its rights specified in
Section 3.01(a) upon delivery of a written notice (which shall be in substantially the form attached as Exhibit A under the heading “Fundamental Change Purchase Notice” and which may be delivered by letter, overnight courier, hand
delivery, facsimile transmission or in any other written form and, in the case of Global Securities, may be delivered electronically or by other means in accordance with the Depositary’s Applicable Procedures) of the exercise of such rights (a
“Fundamental Change Purchase Notice”) to the Company or any Paying Agent at any time prior to the close of business on the Business Day next preceding the Fundamental Change Purchase Date, subject to extension to comply with applicable
law. 
 (1) The Fundamental Change Purchase Notice shall state: (A) the certificate number (if such Security is held
other than in global form) of the Security which the Holder will deliver to be purchased (or, if the Security is held in global form, any other items required to comply with the Applicable Procedures), (B) the portion of the principal amount of
the Security which the Holder will deliver to be purchased and (C) that such Security shall be purchased as of the Fundamental Change Purchase Date pursuant to the terms and conditions specified in the Securities and in this Indenture.

 (2) The delivery of a Security for which a Fundamental Change Purchase Notice has been timely delivered to any Paying Agent
and not duly withdrawn prior to, on or after the Fundamental Change Purchase Notice (together with all necessary endorsements) at the office of such Paying Agent shall be a condition to the receipt by the Holder of the Fundamental Change Purchase
Price therefor. 
 (3) The Company shall only be obliged to purchase, pursuant to this Section 3.01, a portion of a
Security if the principal amount of such portion is $1,000 or an integral multiple of $1,000 (provisions of this Indenture that apply to the purchase of all of a Security also apply to the purchase of such portion of such Security). 
 (4) Notwithstanding anything herein to the contrary, any Holder delivering to a Paying Agent the Fundamental Change Purchase Notice
contemplated by this Section 3.01(c) shall have the right to withdraw such Fundamental Change Purchase Notice in whole or in a portion thereof that is a principal amount of $1,000 or in an integral multiple thereof at any time prior to the
close of business on the Business Day prior to the Fundamental Change Purchase Date by delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 3.02. 
 (5) A Paying Agent shall promptly notify the Company of the receipt by it of any Fundamental Change Purchase Notice or written withdrawal
thereof. 
  

 22 

 (6) Anything herein to the contrary notwithstanding, in the case of Global Securities,
any Fundamental Change Purchase Notice may be delivered or withdrawn and such Securities may be surrendered or delivered for purchase in accordance with the Applicable Procedures as in effect from time to time. 
 Section 3.02 Effect of Fundamental Change Purchase Notice. 
 (a) Upon receipt by any Paying Agent of a properly completed Fundamental Change Purchase Notice from a Holder, the Holder of the Security in respect of which such Fundamental Change Purchase Notice was given shall
(unless such Fundamental Change Purchase Notice is duly withdrawn as specified in Section 3.02(b)) thereafter be entitled to receive the Fundamental Change Purchase Price with respect to such Security, subject to the occurrence of the
Fundamental Change Effective Date and an absence of an Event of Default, or a continuation thereof (other than a Default in the payment of the Fundamental Change Purchase Price). Such Fundamental Change Purchase Price shall be paid to such Holder
promptly following the later of (1) the Fundamental Change Purchase Date (provided that the conditions in Section 3.01 have been satisfied) and (2) the time of delivery of such Security to a Paying Agent by the Holder thereof in the
manner required by Section 3.01(c). Securities in respect of which a Fundamental Change Purchase Notice has been given by the Holder thereof may not be converted into shares of Common Stock pursuant to Article 4 on or after the date of the
delivery of such Fundamental Change Purchase Notice unless such Fundamental Change Purchase Notice has first been duly withdrawn in accordance with Section 3.02(b) with respect to the Securities to be converted. 
 (b) A Fundamental Change Purchase Notice may be withdrawn by means of a written notice (which may be delivered by mail, overnight courier, hand delivery,
facsimile transmission or in any other written form and, in the case of Global Securities, may be delivered electronically or by other means in accordance with the Applicable Procedures) of withdrawal delivered by the Holder to a Paying Agent at any
time prior to the close of business on the Business Day immediately prior to the Fundamental Change Purchase Date, specifying (1) the principal amount of the Security or portion thereof (which must be a principal amount of $1,000 or an integral
multiple of $1,000 in excess thereof) with respect to which such notice of withdrawal is being submitted, (2) if certificated Securities have been issued, the certificate number of the Security being withdrawn in whole or in withdrawable part
(or if the Securities are not certificated, such written notice must comply with the Applicable Procedures) and (3) the portion of the principal amount of the Security that will remain subject to the Fundamental Change Purchase Notice, which
portion must be a principal amount of $1,000 or an integral multiple thereof. 
 Section 3.03 Deposit of Fundamental Change Purchase
Price. 
 (a) On or before 10:00 a.m. New York City time on the applicable Fundamental Change Purchase Date, the Company shall deposit
with the Trustee or with a Paying Agent (or if the Company or an Affiliate of the Company is acting as the Paying Agent, shall segregate and hold in trust as provided in Section 2.04) an amount of money (in immediately available funds),
sufficient to pay the aggregate Fundamental Change Purchase Price of all the Securities or portions thereof that are to be purchased as of such Fundamental Change Purchase Date. 
 (b) If a Paying Agent or the Trustee holds, in accordance with the terms hereof, money sufficient to pay the Fundamental Change Purchase Price of any
Security for which a Fundamental Change Purchase Notice has been tendered and not duly withdrawn in accordance with this Indenture then, on immediately after the applicable Fundamental Change Purchase Date, such Security will cease to be
outstanding, whether or not the Security is delivered to the Paying Agent or the Trustee, and interest and Additional Interest, if any, shall cease to accrue, and the rights of the Holder in respect of the Security shall terminate (other than the
right to receive the Fundamental Change Purchase Price as aforesaid). The Company shall publicly announce in accordance with applicable law the principal amount of Securities repurchased on or as soon as practicable after the Fundamental Change
Purchase Date. 

  

 23 

 (c) The Paying Agent will promptly return to the respective Holders thereof any Securities with respect
to which a Fundamental Change Purchase Notice has been duly withdrawn in compliance with this Indenture. 
 (d) If a Fundamental Change
Purchase Date falls after a Regular Record Date and on or before the related Interest Payment Date, then interest on the Securities payable on such Interest Payment Date will be payable to the Holders in whose names the Securities are registered at
the close of business on such Regular Record Date. 
 Section 3.04 Repayment to The Company. 
 To the extent that the aggregate amount of cash deposited by the Company pursuant to Section 3.03 exceeds the aggregate Fundamental Change Purchase
Price of the Securities or portions thereof that the Company is obligated to purchase, then promptly after the Fundamental Change Purchase Date the Trustee or a Paying Agent, as the case may be, shall return any such excess cash to the Company.

 Section 3.05 Securities Purchased in Part. 
 Any Security that is to be purchased only in part shall be surrendered at the office of a Paying Agent, and promptly after the Fundamental Change Purchase Date, the Company shall execute and the Trustee shall
authenticate and deliver to the Holder of such Security, without service charge, a new Security or Securities, of such authorized denomination or denominations as may be requested by such Holder (which must be equal to $1,000 principal amount or any
integral thereof), in aggregate principal amount equal to, and in exchange for, the portion of the principal amount of the Security so surrendered that is not purchased. 
 Section 3.06 Compliance with Securities Laws upon Purchase of Securities. 
 In connection with
any offer to purchase Securities under Section 3.01, the Company shall (a) comply with Rule 13e-4 and Rule 14e-1 (or any successor to either such Rule), and any other tender offer rules, if applicable, under the Exchange Act, (b) file
the related Schedule TO (or any successor or similar schedule, form or report) if required under the Exchange Act, and (c) otherwise comply with all federal and state securities laws in connection with such offer to purchase or purchase of
Securities, all so as to permit the rights of the Holders and obligations of the Company under Sections 3.01 through 3.04 to be exercised in the time and in the manner specified therein. To the extent that compliance with any such laws, rules and
regulations would result in a conflict with any of the terms hereof, this Indenture is hereby modified to the extent required for the Company to comply with such laws, rules and regulations. 
 Section 3.07 Purchase of Securities in Open Market. 
 The Company (a) on or prior to the date that is two years from the latest issuance of any Securities and in accordance with Section 2.11, shall surrender any Security purchased by the Company pursuant to
this Article 3 to the Trustee for cancellation, and (b) after such date and in accordance with Section 2.11, may surrender such Security to the Trustee for cancellation. Any securities surrendered to the Trustee for cancellation may not be
reissued or resold by the Company and will be canceled promptly in accordance with Section 2.11. The Company may repurchase Securities in the open market, by tender at any price or by negotiated transactions and such Securities may be reissued
or resold, to the extent permitted by applicable law, or may be surrendered to the Trustee for cancellation. 
  

 24 

 ARTICLE 4 
 CONVERSION 
 Section 4.01 Conversion Privilege and Conversion Rate. 
 (a) Subject to the obligation and the right of the Company to pay some or all of the conversion consideration in cash in accordance with Section 4.13, and
upon compliance with the provisions of this Article 4, at the option of the Holder thereof, any Security or portion thereof that is an integral multiple of $1,000 principal amount may be converted into fully paid and nonassessable shares (calculated
as to each conversion to the nearest 1/100th of a share) of Common Stock prior to the close of business on the Business Day immediately preceding the Final Maturity Date or such earlier date set forth in this Article 4, unless previously purchased
by the Company at the Holder’s option upon the occurrence of a Fundamental Change, at the Conversion Rate in effect at such time, determined as hereinafter provided and subject to the adjustments described below, only under the following
circumstances: 
 (1) during any calendar quarter beginning after March 31, 2007, and only during such calendar quarter, if,
as of the last day of the immediately preceding calendar quarter, the Closing Price per share of the Common Stock for at least 20 Trading Days in the period of the 30 consecutive Trading Days ending on the last Trading Day of such preceding calendar
quarter was more than 120% of the Conversion Price (the “Conversion Trigger Price”); 
 (2) if the Company
distributes to all holders of Common Stock rights (including rights under a stockholder rights agreement) or warrants entitling them to purchase, for a period expiring within 45 days of the date of issuance, Common Stock at less than the Current
Market Price of the Common Stock on the day of issuance; 
 (3) if the Company distributes to all holders of Common Stock,
cash, assets, debt securities or rights to purchase the Company’s securities, which distribution has a per share value exceeding 7.5% of the Closing Price of the Common Stock on the Business Day preceding the declaration date for such
distribution; 
 (4) if a Fundamental Change occurs; 
 (5) at any time during the period beginning on January 15, 2012 and ending at the close of business on the Business Day immediately
preceding the Final Maturity Date; or 
 (6) during any five Business Day period after any five consecutive Trading Day period
in which the Trading Price per $1,000 principal amount of Securities, as determined following a request by a Holder in accordance with the procedures described below in Section 4.01(e)(ii), for each day of that period was less than 98% of the
product of the Closing Price of the Common Stock for each day in that period and the Conversion Rate per $1,000 principal amount of Securities. 
 (b) In the
case of a distribution contemplated by clauses (2) and (3) of Section 4.01(a), the Company shall notify Holders at least 20 days prior to the ex-dividend date for such distribution (the “Distribution Notice”); provided that if the Company
distributes rights pursuant to a stockholder rights agreement, it will notify the Holders of the Securities on the Business Day after the Company is required to give notice generally to its stockholders pursuant to such stockholder rights agreement
if such date is less than 20 days prior to the date of such distribution. Once the Company has given the Distribution Notice, Holders may surrender their Securities for conversion at any time until the earlier of the close of 
  

 25 

 business on the last Business Day preceding the ex-dividend date or the Company’s announcement that such
distribution will not take place. In the event of a distribution contemplated by clauses (2) and (3) of Section 4.01(a), Holders may not convert the Securities if the Holders will otherwise participate in such distribution without converting their
Securities. The Company will provide written notice to the Conversion Agent as soon as reasonably practicable of any anticipated or actual event or transaction that will cause or causes the Securities to become convertible pursuant to clauses (2) or
(3) of Section 4.01(a). 
 (c) [Intentionally Omitted] 
 (d) In the case of a transaction contemplated by clause (4) of section 4.01(a), the Company will notify the Holders and Trustee at least 10 Trading Days
prior to the anticipated Fundamental Change Effective Date of any Fundamental Change that the Company knows or reasonably should know will occur. If the Company does not know, and should not reasonably know, that a Fundamental Change will occur
until a date that is within 10 Trading Days before the anticipated Fundamental Change Effective Date, the Company will notify the Holders and the Trustee promptly after the Company has knowledge of such Fundamental Change. Holders may surrender
Securities for conversion at any time beginning 10 Trading Days before the anticipated Fundamental Change Effective Date of a Fundamental Change and until the last Trading Day preceding the Fundamental Change Purchase Date. 
 (e) (i) For each calendar quarter of the Company, beginning with the calendar quarter ending March 31, 2007, the Conversion Agent, on behalf of the
Company, will determine, on the first Business Day following the last Trading Day of such calendar quarter, whether the Securities are convertible pursuant to clause (1) of Section 4.01(a), and, if so, will notify the Trustee and the Company in
writing. Upon request of the Conversion Agent, the Company shall provide, or cause to be provided to, the Conversion Agent the Closing Price per share of Common Stock for the 30 consecutive Trading Days ending on the last Trading Day of the
preceding calendar quarter. 
 (ii) The Trustee shall have no obligation to determine the Trading Price of the Securities and whether the
Securities are convertible pursuant to clause (6) of Section 4.01(a) unless the Company has requested such determination in writing; and the Company shall have no obligation to make such request unless a Holder of Securities provides the Company
with reasonable evidence that the Trading Price per $1,000 principal amount of Securities would be less than 98% of the product of the Closing Price of the Common Stock and the Conversion Rate per $1,000 principal amount of Securities. At such time,
the Company shall instruct the Trustee to determine the Trading Price of the Securities beginning on the next Trading Day and on each successive Trading Day until the Trading Price per $1,000 principal amount of the Securities is greater than 98% of
the product of the Closing Price of the Common Stock and the Conversion Rate per $1,000 principal amount of the Securities. 
 (f) The
conversion rights pursuant to this Article 4 shall commence on the initial issuance date of the Securities and expire at the close of business on the Business Day immediately preceding the Final Maturity Date, but shall be exercisable only during
the time periods specified with respect to each circumstance pursuant to which the Securities become convertible, subject, in the case of conversion of any Global Security, to any Applicable Procedures. If a Security is submitted or presented for
purchase upon a Fundamental Change pursuant to Article 3, such conversion right shall terminate at the close of business on the Business Day immediately preceding the Fundamental Change Purchase Date for such Security (unless the Company shall fail
to make the Fundamental Change Purchase Price payment when due in accordance with Article 3, in which case the conversion right shall terminate at the close of business on the date such failure is cured and such Security is purchased). If a Security
is convertible as a result of a Fundamental Change, such conversion right shall commence and terminate as set forth in Section 4.01(d). Securities in respect of which a Fundamental Change Purchase Notice has been 

  

 26 

 
delivered may not be surrendered for conversion pursuant to this Article 4 prior to a due withdrawal of such Fundamental Change Notice in accordance with the
provisions of Article 3. 
 (g) Provisions of this Indenture that apply to conversion of all of a Security also apply to conversion of a
portion of a Security. 
 (h) A Holder of Securities is not entitled to any rights of a holder of Common Stock until such Holder has
converted its Securities into Common Stock, and only to the extent such Securities are deemed to have been converted into Common Stock pursuant to this Article 4. 
 (i) The Conversion Rate shall be adjusted in certain instances as provided in Sections 4.01(j) and Section 4.06. 
 (j) If there shall have occurred a Fundamental Change, then the Conversion Rate per $1,000 principal amount of Securities otherwise in effect in respect of Securities that are converted during the period beginning 10
Trading Days before the anticipated Fundamental Change Effective Date and ending at the close of business on the Trading Day immediately preceding the Fundamental Change Purchase Date shall be increased by the amount, if any, determined by reference
to the table below, based on the Fundamental Change Effective Date and the Stock Price of such Fundamental Change; provided that if the Stock Price or Fundamental Change Effective Date are not set forth on the table: (i) if the actual Stock
Price on the Fundamental Change Effective Date is between two Stock Prices on the table or the actual Fundamental Change Effective Date is between two Fundamental Change Effective Dates on the table, the amount of the Conversion Rate adjustment will
be determined by a straight-line interpolation between the adjustment amounts set forth for the two Stock Prices and the two Fundamental Change Effective Dates on the table based on a 365-day year, as applicable, (ii) if the Stock Price on the
Fundamental Change Effective Date exceeds $60.00 per share, subject to adjustment as set forth herein, no adjustment to the applicable Conversion Rate will be made, and (iii) if the Stock Price on the Fundamental Change Effective Date is less
than $18.86 per share, subject to adjustment as set forth herein, no adjustment to the applicable Conversion Rate will be made. If holders of the Common Stock receive only cash in the Fundamental Change, the Stock Price shall be the cash amount paid
per share of the Common Stock in connection with the Fundamental Change. Otherwise, the Stock Price shall be equal to the average Closing Prices of the Common Stock for each of the 10 Trading Days immediately preceding, but not including, the
applicable Fundamental Change Effective Date. 
 The following table shows the amount, if any, by which the applicable Conversion Rate will
increase for each hypothetical Stock Price and Fundamental Change Effective Date set forth below: 
  

 27 

 Make Whole Premium upon a Fundamental Change (Increase in Applicable Conversion Rate) 

 

														
	Stock Price on
Effective Date	 	February 7,
2007	 	February 15,
2008	 	February 15,
2009	 	February 15,
2010	 	February 15,
2011	 	February 15,
2012
	$	18.86	 	11.4361	 	11.4361	 	11.4361	 	11.4361	 	11.4361	 	11.4361
	$	20.00	 	10.1154	 	9.8642	 	9.5245	 	9.0824	 	8.4831	 	8.4139
	$	22.00	 	8.2772	 	7.9062	 	7.4095	 	6.7360	 	5.7245	 	3.8685
	$	24.00	 	6.8931	 	6.4508	 	5.8677	 	5.0785	 	3.8734	 	0.0806
	$	26.00	 	5.8312	 	5.3541	 	4.7350	 	3.9024	 	2.6571	 	0.0000
	$	28.00	 	5.0015	 	4.5159	 	3.8889	 	3.0623	 	1.8698	 	0.0000
	$	30.00	 	4.3429	 	3.8634	 	3.2499	 	2.4577	 	1.3641	 	0.0000
	$	40.00	 	2.4842	 	2.1071	 	1.6514	 	1.1191	 	0.5299	 	0.0000
	$	50.00	 	1.6640	 	1.3892	 	1.0767	 	0.7300	 	0.3697	 	0.0000
	$	60.00	 	1.2305	 	1.0238	 	0.8009	 	0.5512	 	0.2881	 	0.0000

 The Stock Prices set forth in the first column of the table above will be adjusted as of any date
on which the Conversion Rate of the Securities is adjusted, other than as a result of an adjustment of the Conversion Rate by virtue of the provisions of this Section 4.01(j). The adjusted Stock Prices will equal the Stock Prices applicable
immediately prior to such adjustment multiplied by a fraction, the numerator of which is the Conversion Rate immediately prior to the adjustment giving rise to the Stock Price adjustment and the denominator of which is the Conversion Rate as so
adjusted. The Conversion Rate adjustment amounts set forth in the table above will be adjusted in the same manner as the Conversion Rate as set forth in Section 4.06 hereof. 
 Notwithstanding the foregoing paragraph, in no event will the Conversion Rate exceed 53.0222 per $1,000 principal amount of Securities, subject to
adjustment in the manner set forth in clauses (1) through (4) of Section 4.06(a) hereof. 
 (k) Except as set forth in
Section 4.02(c), by delivering the amount of cash and/or the number of shares of Common Stock issuable on conversion to the Trustee, the Company will be deemed to have satisfied its obligation to pay the principal amount of the Securities so
converted and its obligation to pay accrued and unpaid interest, and Additional Interest if any, attributable to the period from the most recent Interest Payment Date through the Conversion Date (which amount will be deemed paid in full rather than
cancelled, extinguished or forfeited). 
 (l) Notwithstanding anything else contained herein, the Securities shall not become subject to
conversion by reason of a merger, consolidation, or other transaction effected with one of the Company’s direct or indirect Subsidiaries for the purpose of changing the Company’s state of incorporation to any other state within the United
States or the District of Columbia. 
 Section 4.02 Conversion Procedure. 
 (a) To convert a Security, a Holder must (1) complete and manually sign the conversion notice on the back of the Security and deliver such notice to
a Conversion Agent, (2) surrender the Security to a Conversion Agent, (3) furnish appropriate endorsements and transfer documents if required by a Registrar or a Conversion Agent, and (4) pay all transfer or similar taxes, if required
pursuant to Section 4.04. The date on which the Holder satisfies all of those requirements is the “Conversion Date.” Upon the conversion of a Security, the Company will pay the cash and deliver the shares of Common Stock, as
applicable, as promptly as practicable after the expiration of the Conversion Reference Period, but in no event later than the fifth Business Day after such expiration. Anything herein to the contrary notwithstanding, in the case of Global
Securities, conversion notices may be delivered and such Securities may be surrendered for conversion in accordance with the Applicable Procedures as in effect from time to time. 
  

 28 

 (b) The person in whose name the shares of Common Stock are issuable upon conversion shall be deemed to
be a holder of record of such Common Stock on the later of (i) the Conversion Date, (ii) the expiration of the period in which the Company may elect to deliver cash in lieu of shares of common stock, or (iii) if the Company elects to
deliver cash in lieu of some, but not all, of such shares of Common Stock, the date on which the amount of cash issuable per Security has been determined; provided, however, that no surrender of a Security on any Conversion Date when the stock
transfer books of the Company shall be closed shall be effective to constitute the person or persons entitled to receive the shares of Common Stock upon conversion as the record holder or holders of such shares of Common Stock on such date, but such
surrender shall be effective to constitute the person or persons entitled to receive such shares of Common Stock as the record holder or holders thereof for all purposes at the close of business on the next succeeding day on which such stock
transfer books are open; provided further that such conversion shall be at the Conversion Rate in effect on the Conversion Date as if the stock transfer books of the Company had not been closed. Upon conversion of a Security, such person shall no
longer be a Holder of such Security. Except as set forth in this Indenture, no payment or adjustment will be made for dividends or distributions declared or made on shares of Common Stock issued upon conversion of a Security prior to the issuance of
such shares. 
 (c) Holders of Securities surrendered for conversion (in whole or in part) during the period from the close of business on
any Regular Record Date to the opening of business on the next succeeding Interest Payment Date will receive the semi-annual interest payable on such Securities on the corresponding Interest Payment Date notwithstanding the conversion. Upon
surrender of any such Securities for conversion, unless such Securities have been surrendered for conversion following the regular record date immediately preceding the final interest payment date (February 15, 2012), such Securities shall also be
accompanied by payment in funds acceptable to the Company of an amount equal to the interest payable on such corresponding Interest Payment Date. Except as otherwise provided in this Section 4.02(c), no payment or adjustment will be made for
accrued interest on a converted Security. 
 (d) Subject to Section 4.02(c), nothing in this Section shall affect the right of a Holder
in whose name any Security is registered at the close of business on a Regular Record Date to receive the interest payable on such Security on the related Interest Payment Date in accordance with the terms of this Indenture, the Securities and the
Registration Rights Agreement. If a Holder converts more than one Security at the same time, the amount of cash to be paid and the number of shares of Common Stock issuable upon the conversion, if any (and the amount of any cash in lieu of
fractional shares pursuant to Section 4.03), shall be based on the aggregate principal amount of all Securities so converted. 
 (e) In
the case of any Security which is converted in part only, upon such conversion the Company shall execute and the Trustee shall authenticate and deliver to the Holder thereof, without service charge, a new Security or Securities of authorized
denominations in an aggregate principal amount equal to, and in exchange for, the unconverted portion of the principal amount of such Security. A Security may be converted in part, but only if the principal amount of such part is an integral
multiple of $1,000 and the principal amount of such Security to remain outstanding after such conversion is equal to $1,000 or any integral multiple of $1,000 in excess thereof. 
 (f) Upon the Company’s determination that a Holder is or will be entitled to convert their Securities into shares of Common Stock pursuant to this
Article 4, the Company will promptly after making such determination issue a press release and use its reasonable efforts to post such information on the Company’s website or otherwise publicly disclose such information. 
  

 29 

 Section 4.03 Fractional Shares. 
 The Company will not issue fractional shares of Common Stock upon conversion of Securities. If more than one Security shall be surrendered for conversion
at one time by the same Holder, the number of full shares that shall be issuable upon conversion shall be computed on the basis of the aggregate principal amount of the Securities (or specified portions thereof to the extent permitted hereby) so
surrendered. In lieu of any fractional shares, the Company will pay an amount in cash for the current market value of the fractional shares. The current market value of a fractional share shall be determined (calculated to the nearest 1/100th of a
share) by multiplying the arithmetic average of the Volume Weighted Average Price of the Common Stock for each of the ten consecutive Trading Days of the Conversion Reference Period by such fractional share and rounding the product to the nearest
whole cent. 
 Section 4.04 Taxes on Conversion. 
 If a Holder converts a Security, the Company shall pay any transfer, stamp or similar taxes or duties related to the issue or delivery of shares of Common Stock upon such conversion. The Company shall also pay any
such tax with respect to cash received in lieu of fractional shares. The Holder shall pay any such tax which is due because the Holder requests the shares to be issued in a name other than the Holder’s name. The Conversion Agent may refuse to
deliver the certificate representing the Common Stock being issued in a name other than the Holder’s name until the Conversion Agent receives a sum sufficient to pay any tax which will be due because the shares are to be issued in a name other
than the Holder’s name. Nothing herein shall preclude any tax withholding required by law or regulation. 
 Section 4.05 Company
to Provide Stock. 
 (a) The Company shall, prior to issuance of any Securities hereunder, and from time to time as may be necessary,
reserve, out of its authorized but unissued Common Stock, a sufficient number of shares of Common Stock to permit the conversion of all outstanding Securities into shares of Common Stock. 
 (b) All shares of Common Stock delivered upon conversion of the Securities shall be newly issued shares, shall be duly authorized, validly issued, fully
paid and nonassessable and shall be free from preemptive or similar rights and free of any lien or adverse claim as the result of any action by the Company. 
 (c) The Company will endeavor promptly to comply with all federal and state securities laws regulating the offer and delivery of shares of Common Stock upon conversion of Securities. 
 Section 4.06 Adjustment of Conversion Rate. 
 (a) The Conversion Rate shall be adjusted from time to time by the Company as follows: 
 (1)
If the Company shall pay a dividend or make a distribution to all holders of outstanding Common Stock in shares of Common Stock, the Conversion Rate in effect immediately prior to the record date for the determination of stockholders entitled to
receive such dividend or other distribution shall be increased so that the same shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior to such record date by a fraction of which the numerator shall be the sum
of the number of shares of Common Stock outstanding at the close of business on such record date plus the total number of shares of Common Stock constituting such dividend or other distribution and of which the denominator shall be the number of
shares of Common Stock outstanding at the close of business on such record date. Such 

  

 30 

 
adjustment shall be made successively whenever any such dividend or distribution is made and shall become effective immediately after such record date. For
the purpose of this clause (1), 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 Common Stock held in the
treasury of the Company. If any dividend or distribution of the type described in this clause 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. 
 (2) If the Company shall subdivide its outstanding Common Stock into a greater number
of shares, or combine its outstanding Common Stock into a smaller number of shares, the Conversion Rate in effect immediately prior to the day upon which such subdivision or combination becomes effective shall be, in the case of a subdivision of
Common Stock, proportionately increased and, in the case of a combination of Common Stock, proportionately reduced. Such adjustment shall be made successively whenever any such subdivision or combination of the Common Stock occurs and shall become
effective immediately after the date upon which such subdivision or combination becomes effective. 
 (3) If the Company shall
issue rights (other than the Rights (as defined below) contemplated in Section 4.06(a)(5) below) or warrants to all holders of its outstanding Common Stock entitling them (for a period expiring within 45 days after such issuance) to subscribe
for or purchase shares of Common Stock (or securities convertible into Common Stock) at a price per share (or having a conversion price per share) less than the Current Market Price per share of Common Stock (as determined in accordance with clause
(9) of this Section 4.06(a)) on the record date for the determination of stockholders entitled to receive such rights or warrants, the Conversion Rate in effect immediately prior thereto shall be adjusted so that the same shall equal the
rate determined by multiplying the Conversion Rate in effect immediately prior to such record date by a fraction of which the numerator shall be the number of shares of Common Stock outstanding at the close of business on such record date plus the
number of additional shares of Common Stock that such rights or warrants entitle holders thereof to subscribe for or purchase (or into which such convertible securities are convertible) and of which the denominator shall be the number of shares of
Common Stock outstanding at the close of business on such record date plus the number of shares which the aggregate offering price of the total number of shares of Common Stock so offered for subscription or purchase (or the aggregate conversion
price of the convertible securities so offered for subscription or purchase, which shall be determined by multiplying the number of shares of Common Stock issuable upon conversion of such convertible securities by the conversion price per share of
Common Stock pursuant to the terms of such convertible securities) would purchase at the Current Market Price per share of Common Stock on such record date. Such adjustment shall be made successively whenever any such rights or warrants (or
convertible securities) are issued, and shall become effective immediately after such record date. To the extent that shares of Common Stock (or securities convertible into Common Stock) are not delivered after the expiration of such rights or
warrants, the Conversion Rate shall be readjusted to the Conversion Rate that would then be in effect had the adjustments made upon the issuance of such rights or warrants been made on the basis of delivery of only the number of shares of Common
Stock (or securities convertible into 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 the record date 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 stockholders to subscribe for or purchase shares of Common Stock at a price less than the Current
Market Price per share of Common Stock and in determining the aggregate offering price of the total number of shares of Common Stock so 

  

 31 

 
offered, 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. 
 (4) If
the Company shall make a dividend or other distribution to all holders of its Common Stock of Capital Stock, other than Common Stock, or evidences of indebtedness or other assets of the Company (excluding (x) any issuance of rights or warrants
for which an adjustment was made pursuant to Section 4.06(a)(3), (y) dividends or distributions in connection with a reclassification, change, consolidation, merger, combination, liquidation, dissolution, winding up, sale or
conveyance resulting in a change in the conversion consideration, or pursuant to any shareholder rights plan or (z) any dividend or distribution paid exclusively in cash for which an adjustment was made pursuant to Section 4.06(a)(6)) (the
“Distributed Securities”), then in each such case (unless the Company distributes such Distributed Securities for distribution to the Holders of Securities on such dividend or distribution date as if each Holder had converted such Security
into Common Stock immediately prior to the record date with respect to such distribution) the Conversion Rate in effect immediately prior to the record date fixed for the determination of shareholders entitled to receive such dividend or
distribution shall be adjusted so that the same shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior to such record date by a fraction of which the numerator shall be the Current Market Price per share of
the Common Stock on such record date and of which the denominator shall be the Current Market Price per share on such record date less the fair market value (as determined in good faith by the Board of Directors, whose determination shall be
conclusive evidence of such fair market value and which shall be evidenced by an Officers’ Certificate delivered to the Trustee) on such record date of the portion of the Distributed Securities so distributed applicable to one share of Common
Stock (determined on the basis of the number of shares of Common Stock outstanding at the close of business on such record date). Such adjustment shall be made successively whenever any such distribution is made and shall become effective
immediately after the record date for the determination of shareholders entitled to receive such distribution. In the event that 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 fair market value (as so determined) of
the portion of the Distributed Securities so distributed applicable to one share of Common Stock is equal to or greater than the Current Market Price per share of the Common Stock on such record date, in lieu of the foregoing adjustment, adequate
provision shall be made so that each holder of a Security shall have the right to receive upon conversion the amount of Distributed Securities so distributed that such Holder would have received had such Holder converted each Security on such record
date. If the Board of Directors determines the fair market value of any distribution for purposes of this Section 4.06(a)(4) 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 of the Common Stock. 
 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 of the Company (the “Spinoff Securities”), the Conversion Rate shall
be adjusted, unless the Company makes an equivalent distribution to the Holders of the Securities, so that the same shall be equal to the rate determined by multiplying the Conversion Rate in effect on the record date fixed for the determination of
shareholders entitled to receive such distribution by a fraction, the numerator of which shall be the sum of (A) the average Closing Price of one share of Common Stock over the ten consecutive Trading Day period (the “Spinoff Valuation
Period”) 

  

 32 

 
commencing on and including the fifth Trading Day after the date on which ex-dividend trading commences for such distribution on the Nasdaq Global Market or
such other U.S. national or regional exchange or market on which the Common Stock is then listed or quoted and (B) the average of the Closing Prices over the Spinoff Valuation Period of the Spinoff Securities multiplied by the number of Spinoff
Securities distributed in respect of one share of Common Stock and the denominator of which shall be the average Closing Price of one share of Common Stock over the Spinoff Valuation Period, such adjustment to become effective immediately prior to
the opening of business on the fifteenth Trading Day after the date on which ex-dividend trading commences; provided, however, that the Company may in lieu of the foregoing adjustment elect to make adequate provision so that each Holder of
Securities shall have the right to receive upon conversion thereof the amount of such Spinoff Securities that such Holder of Securities would have received if such Securities had been converted on the record date with respect to such distribution.

 (5) With respect to any rights or warrants (the “Rights”) that may be issued or distributed pursuant to any
rights plan that the Company implements after the date of this Indenture (a “Rights Plan”), or if the Company’s current Rights Plan is still in effect, in lieu of any adjustment required by any other provision of this
Section 4.06 upon conversion of the Securities into Common Stock, to the extent that such Rights Plan is in effect upon such conversion, the Holders of Securities will receive, with respect to the shares of Common Stock issued upon conversion,
the Rights described therein (whether or not the Rights have separated from the Common Stock at the time of conversion), subject to the limitations set forth in and in accordance with any such Rights Plan; provided that in the case of the
Company’s current Rights Plan or a future Rights Plan to the extent applicable, if, at the time of conversion, however, the Rights have separated from the shares of Common Stock in accordance with the provisions of the Rights Plan so that
Holders would not be entitled to receive any rights in respect of the shares of Common Stock issuable upon conversion of the Securities as a result of the timing of the Conversion Date, the Conversion Rate will be adjusted as if the Company
distributed to all holders of Common Stock Distributed Securities constituting such rights as provided in the first paragraph of clause (4) of this Section 4.06(a), subject to appropriate readjustment in the event of the expiration,
termination, repurchase or redemption of the Rights. Any distribution of rights or warrants pursuant to a Rights Plan complying with the requirements set forth in the immediately preceding sentence of this paragraph shall not constitute a
distribution of rights or warrants pursuant to this Section 4.06(a). Other than as specified in this clause (5) of this Section 4.06(a), there will not be any adjustment to the Conversion Rate as the result of the issuance of any
Rights, the distribution of separate certificates representing such Rights, the exercise or redemption of such Rights in accordance with any Rights Plan or the termination or invalidation of any Rights. 
 (6) If the Company shall, by dividend or otherwise, at any time distribute (a “Triggering Distribution”) to all holders of its
Common Stock a payment consisting exclusively of cash (excluding any dividend or distribution in connection with the liquidation, dissolution or winding up of the Company, whether voluntary or involuntary) the Conversion Rate shall be increased so
that the same shall equal the rate determined by multiplying such Conversion Rate in effect immediately prior to the close of business on the record date for such Triggering Distribution (a “Determination Date”) by a fraction of which the
numerator shall be such Current Market Price per share of the Common Stock on the Determination Date and the denominator of which shall be the Current Market Price per share of the Common Stock on the Determination Date less the amount of such cash
dividend or distribution applicable to one share of Common Stock (determined on the basis of the number of shares of Common Stock outstanding at the close of business on the Determination Date), such increase to become effective immediately prior to

  

 33 

 
the opening of business on the day following the date on which the Triggering Distribution is paid. If the amount of cash dividend or distribution applicable
to one share of Common Stock is equal to or greater than the Current Market Price per share of the Common Stock on the Determination Date, in lieu of the foregoing adjustment, adequate provision shall be made so that each Holder of a Security shall
have the right to receive upon conversion the amount of cash so distributed that such Holder would have received had such Holder converted each Security on such Determination Date. In the event that 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 divided or distribution had not been declared. 
 (7) If any tender offer made by the Company or any of its Subsidiaries for all or any portion of Common Stock shall expire, then, if the
tender offer shall require the payment to shareholders of consideration per share of Common Stock having a fair market value (determined as provided below) that exceeds the Closing Price per share of Common Stock on the Trading Day next succeeding
the last date (the “Expiration Date”) tenders could have been made pursuant to such tender offer (as it may be amended) (the last time at which such tenders could have been made on the Expiration Date is hereinafter sometimes called 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 close of business on the Expiration Date by a fraction of
which the numerator shall be the sum of (A) the fair market value of the aggregate consideration (the fair market value as determined in good faith by the Board of Directors, whose determination shall be conclusive evidence of such fair market
value and which shall be evidenced by an Officers’ Certificate delivered to the Trustee) payable to shareholders based on the acceptance (up to any maximum specified in the terms of the tender offer) of all shares validly tendered and not duly
withdrawn as of the Expiration Time (the shares deemed so accepted, up to any such maximum, being referred to as the “Purchased Shares”) and (B) the product of the number of shares of Common Stock outstanding (less any Purchased
Shares and excluding any shares held in the treasury of the Company) at the Expiration Time and the Closing Price per share of Common Stock on the Trading Day next succeeding the Expiration Date and the denominator of which shall be the product of
the number of shares of Common Stock outstanding (including Purchased Shares but excluding any shares held in the treasury of the Company) at the Expiration Time multiplied by the Closing Price per share of the Common Stock on the Trading Day next
succeeding the Expiration Date, such increase to become effective immediately prior to the opening of business on the day following the Expiration Date. In the event that the Company is obligated to purchase shares pursuant to any such tender offer,
but the Company is permanently prevented by applicable law from effecting any or all such purchases or any or all such purchases are rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate which would have been in effect
based upon the number of shares actually purchased, if any. If the application of this clause (7) of Section 4.06(a) to any tender offer would result in a decrease in the Conversion Rate, no adjustment shall be made for such tender offer
under this clause (7). 
 (8) For purposes of this Section 4.06, the term “tender offer” shall mean and include
both tender offers and exchange offers, all references to “purchases” of shares in tender offers (and all similar references) shall mean and include both the purchase of shares in tender offers and the acquisition of shares pursuant to
exchange offers, and all references to “tendered shares” (and all similar references) shall mean and include shares tendered in both tender offers and exchange offers. 
  

 34 

 (9) For purposes of any computation under this Section 4.06, “Current Market
Price” shall mean the average of the daily Closing Prices per share of Common Stock for each of the ten consecutive Trading Days immediately prior to the date in question; provided, however, that if 
 (A) the “ex” date (as hereinafter defined) for any event (other than the issuance or distribution requiring such computation)
that requires an adjustment to the Conversion Rate pursuant to Section 4.06(a) (1), (2), (3), (4), (5), (6) or (7) occurs during such ten consecutive Trading Days, the Closing Price for each Trading Day prior to the “ex”
date for such other event shall be adjusted by dividing such Closing Price by the same fraction by which the Conversion Rate is so required to be adjusted as a result of such other event; 
 (B) the “ex” date for any event (other than the issuance or distribution requiring such computation) that requires an adjustment
to the Conversion Rate pursuant to Section 4.06(a) (1), (2), (3), (4), (5), (6) or (7) occurs on or after the “ex” date for the issuance or distribution requiring such computation and prior to the day in question, the
Closing Price for each Trading Day on and after the “ex” date for such other event shall be adjusted by dividing such Closing Price by the reciprocal of the fraction by which the Conversion Rate is so required to be adjusted as a result of
such other event; and 
 (C) the “ex” date for the issuance or distribution requiring such computation is prior to
the day in question, after taking into account any adjustment required pursuant to the immediately preceding clause (A) or (B) of this Section 4.06(a)(9), the Closing Price for each Trading Day on or after such “ex” date
shall be adjusted by adding thereto the amount of any cash and the fair market value (as determined in good faith by the Board of Directors in a manner consistent with any determination of such value for purposes of Section 4.06(a)(4) or (7),
whose determination shall be conclusive and set forth in a Board Resolution) of the evidences of indebtedness, shares of capital stock or assets being distributed applicable to one share of Common Stock as of the close of business on the day before
such “ex” date. 
 For purposes of any computation under Section 4.06(a)(7), if the “ex” date for any event (other
than the tender offer that is the subject of the adjustment pursuant to Section 4.06(a)(7)) that requires an adjustment to the Conversion Rate pursuant to Section 4.06(a)(1), (2), (3), (4), (5) or (6) occurs on the date of the
Expiration Time for the tender or exchange offer requiring such computation or on the Trading Day next following the Expiration Time, the Closing Price for each Trading Day on and after the “ex” date for such other event shall be adjusted
by dividing such Closing Price by the reciprocal of the fraction by which the Conversion Rate is so required to be adjusted as a result of such other event. For purposes of this Section 4.06(a)(9) the term “ex” date, when used:

 (A) 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 Price was obtained without the right to receive such issuance or distribution; 
 (B) 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, and 
  

 35 

 (C) with respect to any tender or exchange offer, means the first date on which the
Common Stock trades regular way on such exchange or in such market after the Expiration Time of such offer. 
 Notwithstanding the foregoing,
whenever successive adjustments to the Conversion Rate are called for pursuant to this Section 4.06, such adjustments shall be made to the Current Market Price as may be necessary or appropriate to effectuate the intent of this
Section 4.06 and to avoid unjust or inequitable results as determined in good faith by the Board of Directors. 
 (b) In any case in
which this Section 4.06 shall require that an adjustment be made following a record date, a Determination Date or Expiration Date, as the case may be, established for the purposes specified in this Section 4.06, the Company may elect to
defer (but only until five Business Days following the filing by the Company with the Trustee of the certificate described in Section 4.08) issuing to the Holder of any Security converted after such record date, Determination Date or Expiration
Date the shares of Common Stock and other Capital Stock of the Company issuable upon such conversion over and above the shares of Common Stock and other Capital Stock of the Company (or other cash, property or securities, as applicable) issuable
upon such conversion only on the basis of the Conversion Rate prior to adjustment; and, in lieu of any cash, property or securities the issuance of which is so deferred, the Company shall issue or cause its transfer agents to issue due bills or
other appropriate evidence prepared by the Company of the right to receive such cash, property or securities. If any distribution in respect of which an adjustment to the Conversion Rate is required to be made as of the record date, Determination
Date or Expiration Date therefore is not thereafter made or paid by the Company for any reason, the Conversion Rate shall be readjusted to the Conversion Rate which would then be in effect if such record date had not been fixed or such record date,
Determination Date or Expiration Date had not occurred. 
 (c) For purposes of this Section 4.06, “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
or converted into any combination of cash, securities or other property, the date fixed for determination of shareholders entitled to receive such cash, security or other property (whether or not such date is fixed by the Board of Directors or by
statute, contract or otherwise). 
 (d) If one or more event occurs requiring an adjustment be made to the Conversion Rate for a particular
period, adjustments to the Conversion Rate shall be determined by the Company’s Board of Directors to reflect the combined impact of such Conversion Rate adjustment events, as set out in this Section 4.06, during such period. 

(e) Notwithstanding the provisions set forth in Section 4.06(a) (subject only to the provisions of the second succeeding sentence), in no event
shall the Conversion Rate exceed 53.0222 per $1,000 principal amount of Securities, subject to adjustment in the manner set forth in clauses (1) through (4) of Section 4.06(a) (such limitation herein referred to as the
“Conversion Rate Cap”). The Company shall not take any action if, as a result of such action, the adjustment to the Conversion Rate that would otherwise be made pursuant to the provisions of clauses (6) or (7) of
Section 4.06(a) would be limited by the Conversion Rate Cap, unless such action would not result in a violation of the National Association of Securities Dealers, Inc. (“NASD”) Rule 4350 as such rule or successor to such rule may
be then in effect and interpreted by the NASD. If such action would not result in a violation of NASD Rule 4350, then the Conversion Rate Cap shall not apply to such action taken by the Company. 
  

 36 

 Section 4.07 No Adjustment. 
 (a) No adjustment in the Conversion Rate shall be required if Holders may participate in the transactions set forth in Section 4.06 above (to the
same extent as if the Securities had been converted into Common Stock immediately prior to such transactions) without converting the Securities held by such Holders. 
 (b) No adjustment in the Conversion Rate shall be required unless such adjustment would require an increase or decrease of at least 1% in the Conversion Rate as last adjusted; provided, however, that any adjustments
which would be required to be made but for this Section 4.07(b) shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Article 4 shall be made to the nearest cent or to the nearest one-ten
thousandth of a share, as the case may be, with one half cent and 0.00005 of a share, respectively, being rounded upward. 
 (c) No
adjustment in the Conversion Rate shall be required for issuances of Common Stock pursuant to a Company plan for reinvestment of dividends or interest or for a change in the par value or a change to no par value of the Common Stock. 
 (d) To the extent that the Securities become convertible into the right to receive cash, no adjustment need be made thereafter as to the cash.

 Section 4.08 Notice of Adjustment. 
 Whenever the Conversion Rate or conversion privilege is required to be adjusted pursuant to this Indenture, the Company shall promptly mail to Holders a notice of the adjustment and file with the Trustee an
Officers’ Certificate briefly stating the facts requiring the adjustment and the manner of computing it. Failure to mail such notice or any defect therein shall not affect the validity of any such adjustment. Unless and until the Trustee shall
receive an Officers’ Certificate setting forth an adjustment of the Conversion Rate, the Trustee may assume without inquiry that the Conversion Rate has not been adjusted and that the last Conversion Rate of which it has knowledge remains in
effect. 
 Section 4.09 Notice of Certain Transactions. 
 In the event that there is a dissolution or liquidation of the Company, the Company shall mail to Holders and file with the Trustee a notice stating the
proposed effective date. The Company shall mail such notice at least 10 days before such proposed effective date. Failure to mail such notice or any defect therein shall not affect the validity of any transaction referred to in this
Section 4.09. 
 Section 4.10 Effect of Recapitalization, Reclassification, Consolidation, Merger or Sale. 
 If any of following events occur (each, a “Business Combination”): 
 (1) any recapitalization, reclassification or change of the Common Stock, other than changes resulting from a subdivision or a
combination, 
 (2) a consolidation, merger or combination involving the Company, 
 (3) a sale, conveyance or lease to another corporation of all or substantially all of the property and assets of the Company, other than
one or more of the Company’s subsidiaries, or 
 (4) any statutory share exchange, 
  

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 in each case as a result of which holders of Common Stock are entitled to receive stock, other securities, other property
or assets (including cash or any combination thereof) with respect to or in exchange for Common Stock, 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 TIA as in force at the date of execution of such supplemental indenture if such supplemental indenture is then required to so comply) providing that the Holders of the Securities then outstanding will be entitled thereafter to
convert such Securities into the kind and amount of shares of stock, other securities or other property or assets (including cash or any combination thereof) which they would have owned or been entitled to receive upon such Business Combination had
such Securities been converted into Common Stock (assuming for such purpose such conversion were settled entirely in the Company’s Common Stock and without giving effect to any adjustment to the conversion rate with respect to a Business
Combination constituting a Fundamental Change) immediately prior to such Business Combination, except that such Holders will not receive the Make Whole Premium if such Holder does not convert its Securities “in connection with” the
relevant Fundamental Change. A conversion of the Securities by a Holder will be deemed for these purposes to be “in connection with” a Fundamental Change if the notice of such conversion is provided in compliance with Section 4.02(a)
to the Conversion Agent on or subsequent to the date 10 Trading Days prior to the date announced by the Company as the anticipated Fundamental Change Effective Date but before the close of business on the Business Day immediately preceding the
related Fundamental Change Purchase Date. In the event holders of Common Stock have the opportunity to elect the form of consideration to be received in such Business Combination, the Company shall make adequate provision whereby the Securities
shall be convertible from and after the effective date of such Business Combination into the form of consideration elected by a majority of the Company’s stockholders in such Business Combination. Appropriate provisions will be made, as
determined in good faith by the Company’s Board of Directors, to preserve the settlement provisions in Section 4.13 following such Business Combination to the extent feasible. The Company may not become a party to any such transaction
unless its terms are consistent with this Section 4.10. 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 4. If, in the case of
any such Business Combination, the stock or other securities and assets receivable thereupon by a holder of shares of Common Stock 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 Business Combination, 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 Securities
as the Board of Directors shall reasonably consider necessary by reason of the foregoing, including to the extent practicable the provisions providing for the repurchase rights set forth in Article 3 hereof. Notwithstanding anything contained in
this Section, and for the avoidance of doubt, this Section shall not affect the right of a Holder to convert its Securities into shares of Common Stock prior to the effective date of the Business Combination. 
 Section 4.11 Trustee’s Disclaimer. 
 (a) The Trustee shall have no duty to determine when an adjustment under this Article 4 should be made, how it should be made or what such adjustment should be, but may accept as conclusive evidence of that fact or the correctness of any
such adjustment, and shall be protected in relying upon, an Officers’ Certificate, including the Officers’ Certificate with respect thereto which the Company is obligated to file with the Trustee pursuant to Section 4.08. The Trustee
makes no representation as to the validity or value of any securities or assets issued upon conversion of Securities, and the Trustee shall not be responsible for the Company’s failure to comply with any provisions of this Article 4.

 (b) The Trustee shall not be under any responsibility to determine the correctness of any provisions contained in any supplemental
indenture executed pursuant to Section 4.10, but may accept as conclusive evidence of the correctness thereof, and shall be fully protected in relying upon, the Officers’ Certificate, with respect thereto which the Company is obligated to
file with the Trustee pursuant to Section 12.04. 
  

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 Section 4.12 Voluntary Increase. 
 The Company from time to time may increase the Conversion Rate, to the extent permitted by law, by any amount for any period of time if the period is at
least 20 days, and the Company provides 15 days’ prior written notice to any increase in the Conversion Rate to the Trustee and Holders. The Company may also make such an increase to the Conversion Rate as the Board of Directors determines
would avoid or diminish U.S. federal income tax to holders of shares of Common Stock in connection with a dividend or distribution of stock (or rights to acquire stock) or from any event treated as such for U.S. federal income tax purposes.

 Notwithstanding the foregoing paragraph, in no event shall the Conversion Rate exceed the Conversion Rate Cap. The Company shall not take
any action if, as a result of such action, the adjustment to the Conversion Rate that would otherwise be made pursuant to the provisions of clauses (6) or (7) of Section 4.06(a) would be limited by the Conversion Rate Cap, unless such
action would not result in a violation of the NASD Rule 4350 as such rule or successor to such rule may be then in effect and interpreted by the NASD. If such action would not result in a violation of NASD Rule 4350, then the Conversion
Rate Cap shall not apply to such action taken by the Company. 
 Section 4.13 Payment of Cash in Lieu of Common Stock.

 (a) In lieu of delivery of some or all of the shares of Common Stock otherwise issuable upon notice of conversion of any Securities,
Holders surrendering Securities for conversion shall receive for each $1,000 principal amount of Securities surrendered for conversion: (A) cash in an amount equal to the lesser of (1) $1,000 and (2) the Conversion Value; and
(B) if the Conversion Value is greater than $1,000, a number of shares of Common Stock equal to the sum of the Daily Share Amounts for each of the ten consecutive Trading Days in the Conversion Reference Period, appropriately adjusted to
reflect stock splits, stock dividends, combinations or similar events occurring during the Conversion Reference Period, subject to the Company’s right to deliver cash in lieu of all or a portion of such shares as set forth in
Section 4.13(b); provided that in no event shall the aggregate number of shares of Common Stock to be issued pursuant to the foregoing clause (B), per $1,000 principal amount of Securities, exceed the Aggregate Share Cap, without taking into
account any election by the Company to deliver cash in lieu of all or a portion of the shares of Common Stock otherwise deliverable as set forth in Section 4.13(b). The Company will deliver such cash and any shares of Common Stock, together
with any cash payable for fractional shares, to such Holder in accordance with Section 4.02(a). 
 (b) The Company may elect to pay cash
to the Holders of Securities surrendered for conversion in lieu of all or a portion of the Common Stock otherwise issuable pursuant to Section 4.13(a). In such event, on any day prior to the first Trading Day of the applicable Conversion
Reference Period, the Company will specify a percentage of the Daily Share Amount that will be settled in cash (the “Cash Percentage”) and the amount of cash that the Company will pay in respect of each Trading Day in the applicable
Conversion Reference Period will equal the product of: (1) the Cash Percentage, (2) the Daily Share Amount for such Trading Day and (3) the Volume Weighted Average Price of the Common Stock for such Trading Day (provided that after
the consummation of a Fundamental Change in which the consideration is comprised entirely of cash, the amount used in this clause (3) will be the cash price per share received by holders of the Common Stock in such Fundamental Change). The
number of shares that the Company shall deliver in respect of each Trading Day in the applicable Conversion Reference Period will be a percentage of the Daily Share Amount equal to 100% minus the Cash Percentage. Upon making a determination that a
percentage of the Daily Share Amount will be settled in cash, the Company 

  

 39 

 
shall promptly issue a press release and disclose such information on its website prior to the first Trading Day of the applicable Conversion Reference
Period. If the Company does not specify a Cash Percentage by the start of the applicable Conversion Reference Period, the Company shall settle 100% of the Daily Share Amount for each Trading Day in the applicable Conversion Reference Period with
shares of Common Stock; provided, however, that the Company shall pay cash in lieu of fractional shares otherwise issuable upon conversion of Securities. 
 (c) For the purposes of Sections 4.13(a) and (b), in the event that any of Conversion Value, Daily Share Amounts or Volume Weighted Average Price cannot be determined for all portions of the Conversion Reference
Period, the Company’s Board of Directors shall in good faith determine the values necessary to calculate the Conversion Value, Daily Share Amounts and Volume Weighted Average Price, as applicable. 
  

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 ARTICLE 5 
 COVENANTS 
 Section 5.01 Payment of Securities. 
 (a) The Company shall promptly make all payments in respect of the Securities on the dates and in the manner provided in the Securities and this
Indenture. A payment of principal or interest or Additional Interest, if any, shall be considered paid on the date it is due if the Paying Agent (other than the Company) holds by 12:00 p.m. (noon), New York City time, on that date money, deposited
by or on behalf of the Company sufficient to make the payment. Subject to Section 4.02, accrued and unpaid interest on any Security that is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the
Person in whose name that Security is registered at the close of business on the Regular Record Date for such interest at the office or agency of the Company maintained for such purpose. Principal, interest, Fundamental Change Purchase Price and
Additional Interest, if any, in each case if payable, shall be considered paid on the applicable date due if on such date the Trustee or the Paying Agent holds, in accordance with this Indenture, money sufficient to pay all such amounts then due.
The Company shall, to the fullest extent permitted by law, pay interest in immediately available funds on overdue principal amount and interest at the annual rate borne by the Securities compounded semiannually, which interest shall accrue from the
date such overdue amount was originally due to the date payment of such amount, including interest thereon, has been made or duly provided for. All such interest shall be payable on demand. 
 (b) Payment of the principal of and interest, if any, on the Securities shall be made at the office or agency of the Company maintained for that purpose
(which shall initially be at the address of the Trustee set forth in Section 12.02) or at the Corporate Trust Office of the Trustee in such coin or currency of the United States of America as at the time of payment is legal tender for payment
of public and private debts; provided, however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address appears in the Register; provided further that a Holder
with an aggregate principal amount in excess of $2,000,000 will be paid by wire transfer in immediately available funds at the election of such Holder if such Holder has provided wire transfer instructions to the Trustee at least 10 Business Days
prior to the payment date. Any wire transfer instructions received by the Trustee will remain in effect until revoked by the Holder. 
 Section 5.02 SEC and Other Reports. 
 (a) The Company shall timely file all reports and other information and documents
which it is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act, and within 15 days after it files them with the SEC, the Company shall file copies of all such reports, information and other documents with the
Trustee; provided that any such reports, information and documents filed with the SEC pursuant to its Electronic Data Gathering, Analysis and Retrieval (or EDGAR) system shall be deemed to be filed with the Trustee. The Company also shall at all
times comply with the provisions of TIA Section 314(a). 
 (b) Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of
its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates). 
  

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 Section 5.03 Compliance Certificates. 
 The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of the Company (beginning with the fiscal year ending
December 29, 2007), an Officers’ Certificate as to the signer’s knowledge of the Company’s compliance with all conditions and covenants on its part contained in this Indenture and stating whether or not the signer knows of any
Default or Event of Default. If such signer knows of such a Default or Event of Default, the Officers’ Certificate shall describe the Default or Event of Default and the efforts to remedy the same. For the purposes of this Section 5.03,
compliance shall be determined without regard to any grace period or requirement of notice provided pursuant to the terms of this Indenture. 
 Section 5.04 Further Instruments and Acts. 
 Upon request of the Trustee, the Company will execute and deliver such
further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purposes of this Indenture. 
 Section 5.05 Maintenance of Corporate Existence. 
 Subject to Article 6, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate existence. 
 Section 5.06 Rule 144A Information
Requirement. 
 During the period prior to the expiration of the holding period applicable to sales thereof under Rule 144(k) under the
Securities Act (or any successor provision), the Company covenants and agrees that it shall, during any period in which it is not subject to Section 13 or 15(d) under the Exchange Act, upon the request of any Holder or beneficial holder of the
Securities make available to such Holder or beneficial holder of Securities or any Common Stock issued upon conversion thereof which continue to be Restricted Securities in connection with any sale thereof and any prospective purchaser of Securities
or such Common Stock designated by such Holder or beneficial holder, the information required pursuant to Rule 144A(d)(4) under the Securities Act and it will take such further action as any Holder or beneficial holder of such Securities or such
Common Stock may reasonably request, all to the extent required from time to time to enable such Holder or beneficial holder to sell its Securities or Common Stock without registration under the Securities Act within the limitation of the exemption
provided by Rule 144A, as such Rule may be amended from time to time. Whether a person is a beneficial holder shall be determined by the Company. 
 Section 5.07 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 accrued but unpaid interest or Additional Interest, if any, on the Securities 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. 
  

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 Section 5.08 Payment of Additional Interest. 
 If Additional Interest is payable by the Company pursuant to the Registration Rights Agreement, the Company shall deliver to the Trustee an Officers’
Certificate to that effect stating (i) the amount of such Additional Interest that is payable, (ii) the reason why such Additional Interest is payable and (iii) the date on which such Additional Interest is payable. Unless and until a
Trust Officer of the Trustee receives such a certificate, the Trustee may assume without inquiry that no such Additional Interest is payable. If the Company has paid Additional Interest directly to the Persons entitled to such Additional Interest,
the Company shall deliver to the Trustee a certificate setting forth the particulars of such payment. 
 Section 5.09 Maintenance of
Office or Agency. 
 The Company will maintain an office or agency of the Trustee, Registrar and Paying Agent where securities may be
presented or surrendered for payment, where Securities may be surrendered for registration of transfer, purchase and where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served. The Corporate Trust
Office shall initially be one such office or agency for all of the aforesaid purposes. The Company shall give prompt written notice to the Trustee of the location, and of any change in the location, of any such office or agency (other than a change
in the location of the office of 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 address of the Trustee set forth in Section 12.02. 
 The Company may also from time to time designate one
or more other offices or agencies where the Securities may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency. 
  

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 ARTICLE 6 
 CONSOLIDATION; MERGER; CONVEYANCE; TRANSFER OR LEASE 
 Section 6.01 Company May Consolidate, Etc.,
Only on Certain Terms. 
 The Company may not consolidate with or merge into any Person (unless the Company is the surviving corporation)
or convey, transfer or lease the property and assets, substantially as an entity, of the Company to another Person, other than to one or more of the Company’s wholly-owned subsidiaries, unless: 
 (1) the Person (if other than the Company) formed by such consolidation or into which the Company is merged, or the Person which acquires
by conveyance, transfer or lease all or substantially all of the properties and assets of the Company, shall (i) be a corporation, limited liability company, partnership, trust or other business entity organized and existing under the laws of
the United States of America or any State thereof or the District of Columbia and (ii) expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, the obligations of the
Company under the Securities and this Indenture and the performance or observance of every covenant and provision of this Indenture and the Securities required on the part of the Company to be performed or observed and the conversion rights shall be
provided for in accordance with Article 4, by supplemental indenture satisfactory in form to the Trustee, executed and delivered to the Trustee, by the Person (if other than the Company) formed by such consolidation or into which the Company shall
have been merged or by the Person which shall have acquired the Company’s assets; 
 (2) after giving effect to such
transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing; and 
 (3) if the Company will not be the resulting or surviving corporation, the Company shall have, at or prior to the effective date of such
consolidation, merger or transfer, delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger or transfer complies with this Article 6.01 and, if a supplemental indenture is
required in connection with such transaction, such supplemental indenture complies with this Article, and that all conditions precedent herein provided for relating to such transaction have been complied with. 
 Section 6.02 Successor Substituted. 
 Upon any consolidation of the Company with, or merger of the Company into, any other Person or any conveyance, transfer or lease substantially as an entity, of the properties and assets of the Company and its Subsidiaries, taken as a whole,
in accordance with Section 6.01, the successor Person formed by such consolidation or into which the Company is merged or to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right
and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein, and thereafter, except in the case of a lease, and except for obligations the predecessor Person may have under a
supplemental indenture, the predecessor Person shall be relieved of all obligations and covenants under this Indenture and the Securities. 
  

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 ARTICLE 7 
 DEFAULT AND REMEDIES 
 Section 7.01 Events of Default. 
 (a) An “Event of Default” shall occur if: 
 (1) the Company shall fail to pay when due the Principal or Fundamental Change Purchase Price of any Security, when the same becomes due and payable whether at the Final Maturity Date, upon repurchase, acceleration or
otherwise, and regardless of whether such payment is permitted pursuant to the subordination provisions under Article 11; or 
 (2) the Company shall fail to pay an installment of cash interest or Additional Interest, if any, on any of the Securities, which failure continues for 30 days after the date when due, regardless of whether such payment is permitted
pursuant to the subordination provisions under Article 11; or 
 (3) the Company shall fail to deliver when due all cash and
shares of Common Stock, if any, deliverable upon conversion of the Securities, which failure continues for 15 days, regardless of whether such payment is permitted pursuant to the subordination provisions under Article 11; or 
 (4) the Company shall fail to perform or observe (or obtain a waiver with respect to) any other term, covenant or agreement contained in
the Securities or this Indenture for a period of 60 days after receipt by the Company of a Notice of Default specifying such failure; or 
 (5) default in the payment of principal by the end of any applicable grace period or resulting in acceleration of other Indebtedness of the Company for borrowed money where the aggregate principal amount with respect
to which the default or acceleration has occurred exceeds $10 million and such acceleration has not been rescinded or annulled or such Indebtedness repaid within a period of 30 days after receipt of a Notice of Default, provided that if any such
default is cured, waived, rescinded or annulled, then the Event of Default by reason thereof would not be deemed to have occurred; or 
 (6) the Company, or any Significant Subsidiary of the Company, pursuant to or within the meaning of any Bankruptcy Law: 
 (A) commences as a debtor a voluntary case or proceeding; 
 (B) consents to the entry of an
order for relief against it in an involuntary case or proceeding or the commencement of any case against it; 
 (C) consents
to the appointment of a Receiver of it or for all or substantially all of its property; 
 (D) makes a general assignment for
the benefit of its creditors; 
 (E) files a petition in bankruptcy or answer or consent seeking reorganization or relief; or

  

 45 

 (F) consents to the filing of such a petition or the appointment of or taking possession
by a Receiver; or 
 (7) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 (A) grants relief against the Company or any Significant Subsidiary of the Company in an involuntary case or proceeding or
adjudicates the Company or any Significant Subsidiary of the Company insolvent or bankrupt; 
 (B) appoints a Receiver of the
Company or any Significant Subsidiary of the Company or for all or substantially all of the property of the Company or any Significant Subsidiary of the Company; or 
 (C) orders the winding up or liquidation of the Company or any Significant Subsidiary of the Company; 
 and in each case the order or decree remains unstayed and in effect for 60 consecutive days. 
 The term “Bankruptcy Law” means Title 11 of the United States Code (or any successor thereto) or any similar federal or state law for the
relief of debtors. The term “Receiver” means any receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law. 
 (b) Notwithstanding Section 7.01(a), no Event of Default under clauses (4) or (5) of Section 7.01(a) shall occur until the Trustee notifies the Company in writing, or the Holders of at least 25% in
aggregate principal amount of the Securities then outstanding notify the Company and the Trustee in writing, of the Default (a “Notice of Default”), and the Company does not cure the Default within the time specified in clause (4) or
(5) of Section 7.01(a), as applicable, after receipt of such notice. A notice given pursuant to this Section 7.01 shall be given by registered or certified mail, must specify the Default, demand that it be remedied and state that the
notice is a Notice of Default. When any Default under this Section 7.01 is cured, it ceases. 
 (c) The Company will deliver to the
Trustee, within five Business Days after becoming aware of the occurrence of a Default or Event of Default, written notice thereof. 
 The
Trustee shall not be charged with knowledge of any Event of Default unless written notice thereof shall have been given to a Trust Officer with responsibility for this Indenture at the Corporate Trust Office of the Trustee by the Company, a Paying
Agent, any Holder or any agent of any Holder or unless a Trust Officer with responsibility for this Indenture acquires actual knowledge of such Event of Default in the course of performing other duties pursuant to this Indenture. 
 Section 7.02 Acceleration. 
 If
an Event of Default (other than an Event of Default specified in clause (6) or (7) of Section 7.01(a)) occurs and is continuing with respect to the Company, the Trustee may, by notice to the Company, or the Holders of at least 25% in
aggregate principal amount of the Securities then outstanding may, by notice to the Company and the Trustee, declare the principal amount and accrued and unpaid interest, if any, and accrued and unpaid Additional Interest, if any, through the date
of declaration on all the Securities to be immediately due and payable. Upon such a declaration, such principal amount and such accrued and unpaid interest, if any, and such accrued and unpaid Additional Interest, if any, shall be due and payable
immediately. If an Event of Default specified in Section 7.01(a)(6) or (7) occurs in 

  

 46 

 
respect of the Company and is continuing, the principal amount and accrued but unpaid interest, if any, and accrued and unpaid Additional Interest, if any,
on all the Securities shall become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holders of Securities. The Holders of a majority in aggregate principal amount of the Securities then
outstanding by notice to the Trustee may rescind an acceleration and its consequences if (a) all existing Events of Default, other than the nonpayment of the principal of the Securities which have become due solely by such declaration of
acceleration, have been cured or waived; (b) to the extent the payment of such interest is lawful, interest (calculated at the rate per annum borne by the Securities) on overdue installments of interest and overdue principal, which has become
due otherwise than by such declaration of acceleration, has been paid; (c) the rescission would not conflict with any judgment or decree of a court of competent jurisdiction; and (d) all payments due to the Trustee and any predecessor
Trustee under Section 8.07 have been made. No such rescission shall affect any subsequent Default or impair any right consequent thereto. 
 Section 7.03 Other Remedies. 
 (a) If an Event of Default occurs and is continuing, the Trustee may, but shall not be
obligated to, pursue any available remedy by proceeding at law or in equity to collect payment of the principal amount and accrued and unpaid interest, if any, and accrued and unpaid Additional Interest, if any, on the Securities or to enforce the
performance of any provision of the Securities or this Indenture. 
 (b) The Trustee may maintain a proceeding even if it does not possess
any of the Securities or does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver
of or acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All available remedies are cumulative to the extent permitted by applicable law. 
 Section 7.04 Waiver of Defaults and Events of Default. 
 Subject to Sections 7.07 and 10.02, the
Holders of a majority in aggregate principal amount of the Securities then outstanding by notice to the Trustee may waive an existing Default or Event of Default and its consequences, except an uncured Default or Event of Default in the payment of
the principal of, premium, if any, or any accrued but unpaid interest on any Security, an uncured failure by the Company to convert any Securities into Common Stock and cash, as applicable, or any Default or Event of Default in respect of any
provision of this Indenture or the Securities which, under Section 10.02, cannot be modified or amended without the consent of the Holder of each Security affected. When a Default or Event of Default is waived, it is cured and ceases to exist.

 Section 7.05 Control by Majority. 
 The Holders of a majority in aggregate principal amount of the Securities then outstanding may 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 it. However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture, that the Trustee determines may be unduly prejudicial to the rights of another Holder or the Trustee, or that may
involve the Trustee in personal liability unless the Trustee is offered security or indemnity satisfactory to it; provided, however, that the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such
direction. 
  

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 Section 7.06 Limitations on Suits. 
 (a) A Holder may not pursue any remedy with respect to this Indenture or the Securities (except actions for payment of overdue principal, premium, if any,
or interest or for the conversion of the Securities pursuant to Article 4) unless: 
 (1) the Holder gives to the Trustee
written notice of a continuing Event of Default; 
 (2) the Holders of at least 25% in aggregate principal amount of the then
outstanding Securities make a written request to the Trustee to pursue the remedy; 
 (3) such Holder or Holders offer to the
Trustee reasonable security or indemnity to the Trustee against any loss, liability or expense; 
 (4) the Trustee does not
comply with the request within 60 days after receipt of the request and the offer of security or indemnity; and 
 (5) no
direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in aggregate principal amount of the Securities then outstanding. 
 (b) No Holder of a Security shall have any right under any provision of this Indenture or the Securities to affect, disturb, or prejudice the rights of
another Holder of a Security or to obtain a preference or priority over another Holder of a Security. 
 Section 7.07 Rights of
Holders to Receive Payment and to Convert. 
 Notwithstanding any other provision of this Indenture but subject to the provisions of
Article 11 hereof, the right of any Holder of a Security to receive payment of the principal amount, interest, Fundamental Change Purchase Price, if any, or Additional Interest, if any, in respect of the Securities held by such Holder, on or after
the respective due dates expressed in the Securities and this Indenture (whether upon repurchase or otherwise), and to convert such Security in accordance with Article 4, and to bring suit for the enforcement of any such payment on or after such
respective due dates or for the right to convert in accordance with Article 4, is absolute and unconditional and shall not be impaired or affected without the consent of the Holder. 
 Section 7.08 Collection Suit by Trustee. 
 If an Event of Default described in clause (1) or (2) of Section 7.01(a) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company or another obligor on
the Securities for the whole amount owing with respect to the Securities and such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel. 
 Section 7.09 Trustee May File Proofs of Claim. 
 The Trustee may 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
(including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the Holders allowed in any judicial proceedings relative to the Company (or any other obligor on the Securities),
its creditors or its property and shall be entitled and empowered to collect and receive any money or other property payable or deliverable on any such claims and to distribute the same, and any Receiver in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee and, in the 

  

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event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 8.07, and to the extent that such payment of the reasonable compensation, expenses, disbursements and
advances 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, money, securities and other property which the Holders may be
entitled to receive in such proceedings, whether in liquidation or under any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to, or, on behalf of any
Holder, to authorize, accept or adopt any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any
such proceeding. 
 Section 7.10 Priorities. 
 (a) If the Trustee collects any money pursuant to this Article 7, it shall pay out the money in the following order: 
 (1) First, to the Trustee for amounts due under Section 8.07; 
 (2) Second, to the
Holders of Senior Indebtedness to the extent required by Article 11; 
 (3) Third, to Holders for amounts due and unpaid on
the Securities for the principal amount, interest, and Additional Interest, as applicable, ratably, without preference or priority of any kind, according to such respective amounts due and payable on the Holders’ Securities; 
 (4) Fourth, to such other Person or Persons, if any, to the extent entitled thereto; and 
 (5) Fifth, the balance, if any, to the Company. 
 (b) The Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section 7.10. 
 Section 7.11 Undertaking for Costs. 
 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, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant.
This Section 7.11 does not apply to a suit made by the Trustee, a suit by a Holder pursuant to Section 7.07, or a suit by Holders of more than 10% in aggregate principal amount of the Securities then outstanding. This Section 7.11
shall be in lieu of Section 315(e) of the TIA and such Section 315(e) is hereby expressly excluded from this Indenture, as permitted by the TIA. 
  

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 ARTICLE 8 
 TRUSTEE 
 Section 8.01 Obligations of Trustee. 
 (a) If an Event of Default of which a Responsible Officer of the Trustee shall have actual knowledge has occurred and is continuing, 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 its exercise as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs. 

(b) Except during the continuance of an Event of Default of which a Responsible Officer of the Trustee shall have actual knowledge: 
 (1) the Trustee need perform only those duties as are specifically set forth in this Indenture and no others; and 
 (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. The Trustee, however, shall examine any certificates and opinions which by any provision hereof are
specifically required to be delivered to the Trustee to determine whether or not they conform to the requirements of this Indenture, but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein.

 This Section 8.01(b) shall be in lieu of Section 315(a) of the TIA and such Section 315(a) is hereby
expressly excluded from this Indenture, as permitted by the TIA. 
 (c) The Trustee may not be relieved from liability for its own gross
negligent action, its own gross negligent failure to act, or its own willful misconduct, except that: 
 (1) this paragraph
does not limit the effect of Section 8.01(b); 
 (2) the Trustee shall not be liable in its individual capacity for any
error of judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was grossly negligent in ascertaining the pertinent facts; and 
 (3) the Trustee shall not be liable in its individual capacity with respect to any action it takes or omits to take in good faith in
accordance with this Indenture or a direction received by it pursuant to Section 7.05. 
 This Section 8.01(c) shall
be in lieu of Sections 315(d)(1), 315(d)(2) and 315(d)(3) of the TIA and such Sections are hereby expressly excluded from this Indenture as permitted by the TIA. 
 (d) No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of
its rights or powers unless the Trustee shall have received adequate security or indemnity in its opinion against potential costs and liabilities incurred by it relating thereto. 
  

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 (e) Every provision of this Indenture that in any way relates to the Trustee is subject to subsections
(a), (b), (c) and (d) of this Section 8.01. 
 (f) The Trustee shall not be liable for interest on any money received by it
except as the Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law. 
 Section 8.02 Rights of Trustee. 
 (a) Subject to Section 8.01: 
 (1) The Trustee may rely conclusively and shall be protected in acting or
refraining from acting upon on any document believed by it to be genuine and to have been signed or presented by the proper person. The Trustee need not investigate any fact or matter stated in the document. 
 (2) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel, which shall
conform to Section 12.04(b). The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel. 
 (3) The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents,
attorneys or custodians, and the Trustee shall not be responsible for any misconduct or negligence on the part of any such agent, attorney or custodian appointed by the Trustee with due care. 
 (4) The Trustee shall not be personally liable for any action it takes or omits to take in good faith which it believes to be authorized
or within its rights or powers. 
 (5) The Trustee may consult with counsel of its selection, and the advice or opinion of
such counsel as to matters of law shall be full and complete authorization and protection in respect of any such action taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel.

 (6) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture or to
institute, conduct or defend any litigation hereunder or in relation hereto at the request or direction of any of the Holders pursuant to this Indenture, unless such Holders shall have offered to the Trustee security or indemnity satisfactory to the
Trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction. 
 (7) 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, note, other
evidence of indebtedness or other paper or document, but the Trustee, in its discretion, 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 sole cost of the Company, and shall incur no liability or additional liability of any kind by reason of such
inquiry or investigation. The reasonable expense of every such examination shall be paid by the Company or, if paid by the Trustee, shall be repaid by the Company upon demand from the Company’s own funds. 
  

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 (8) The Trustee shall not be deemed to have notice or knowledge of any Default, Event of
Default, or Fundamental Change unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a Default is received by the Trustee at the Corporate Trust Office, and such notice
references the Securities and this Indenture. In the absence of receipt of such notice or actual knowledge, the Trustee may conclusively assume that there is no Default, Event of Default, or Fundamental Change. 
 (9) 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, including, without limitation as Paying Agent, Registrar and Conversion Agent, and to each agent, custodian and other Person employed to act
hereunder. 
 (10) The right of the Trustee to perform any discretionary act enumerated in this Indenture shall not be
construed as a duty, and the Trustee shall not be answerable for other than its own gross negligence or willful misconduct in the performance of such act. 
 Section 8.03 Individual Rights of Trustee. 
 The Trustee in its individual or any other capacity
may become the owner or pledgee of Securities and may otherwise deal with the Company or an Affiliate of the Company with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. However, the Trustee is
subject to Sections 8.10 and 8.11. 
 Section 8.04 Trustee’s Disclaimer. 
 The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities and the Trustee assumes no responsibility for their
correctness. It shall not be accountable for the Company’s use of the proceeds from the Securities and it shall not be responsible for any statement in the Securities other than its certificate of authentication. 
 Section 8.05 Notice of Default or Events of Default. 
 If a Default or an Event of Default occurs and is continuing and if it is known to the Trustee, the Trustee shall mail to each Holder of a Security notice of all uncured Defaults or Events of Default known to it
within 90 days after it occurs or, if later, within 15 days after it becomes known to the Trustee. However, the Trustee may withhold the notice if and for so long as a committee of its Trust Officers in good faith determines that withholding notice
is in the interests of Holders of Securities, except in the case of a Default or an Event of Default in payment of the principal of, or premium, if any, or interest on any Security when due or in the payment of any purchase obligation, or the
Company’s failure to convert Securities when obligated to convert them. This Section 8.05 is in lieu of section 315(b) of the TIA and such provision is expressly excluded from this Indenture as permitted by the TIA. 
 Section 8.06 Reports by Trustee to Holders. 
 (a) If a report is required by TIA Section 313, within 60 days after each May 15, beginning with the May 15 following the date of this Indenture, the Trustee shall mail to each Holder of Securities a
brief report dated as of such May 15 that complies with TIA Section 313(a). If required by TIA Section 313, the Trustee also shall comply with TIA Sections 313(b)(2) and (c). 
  

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 (b) A copy of each report at the time of its mailing to Holders of Securities shall be mailed to the
Company and, to the extent required by the TIA, filed with the SEC, and each stock exchange, if any, on which the Securities are listed. The Company shall notify the Trustee whenever the Securities become listed on any stock exchange or listed or
admitted to trading on any quotation system and any changes in the stock exchanges or quotation systems on which the Securities are listed or admitted to trading and of any delisting thereof. 
 Section 8.07 Compensation and Indemnity. 
 (a) The Company shall pay to the Trustee from time to time such compensation (as agreed to from time to time by the Company and the Trustee in writing) for its services (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust). The Company shall reimburse the Trustee upon request for all reasonable disbursements, expenses and advances incurred or made by it. Such expenses may include the reasonable compensation,
disbursements and expenses of the Trustee’s agents and counsel. 
 (b) The Company shall indemnify the Trustee or any predecessor
Trustee (which for purposes of this Section 8.07 shall include its officers, directors, employees and agents) for, and hold it harmless against, any and all loss, liability or expense including taxes (other than franchise taxes and taxes based
upon, measured by or determined by the income of the Trustee), incurred by it in connection with the acceptance or administration of its duties under this Indenture or any action or failure to act as authorized or within the discretion or rights or
powers conferred upon the Trustee hereunder including the reasonable costs and expenses of the Trustee and its counsel in defending (including reasonable legal fees and expenses) itself against any claim or liability in connection with the exercise
or performance of any of its powers or duties hereunder. The Trustee shall notify the Company promptly of any claim asserted against the Trustee for which it may seek indemnity. The Company need not pay for any settlement effected without its prior
written consent, which shall not be unreasonably withheld. Anything in this Indenture to the contrary notwithstanding, in no event shall the Trustee be liable for special, indirect or consequential loss or damage of any kind whatsoever (including
but not limited to lost profits), even if the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. 
 (c) The Company need not reimburse the Trustee for any expense or indemnify it against any loss or liability incurred by it resulting from its gross negligence, willful misconduct or bad faith. 
 (d) The Trustee shall have a senior claim to which the Securities are hereby made subordinate on all money or property held or collected by the Trustee.
The obligations of the Company under this Section 8.07 shall survive the satisfaction and discharge of this Indenture or the resignation or removal of the Trustee. 
 (e) When the Trustee incurs expenses or renders services after an Event of Default specified in clause (6) or (7) of Section 7.01(a) occurs, the expenses and the compensation for the services are
intended to constitute expenses of administration under any Bankruptcy Law. The provisions of this Section shall survive the termination of this Indenture. 
  

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 Section 8.08 Replacement of Trustee. 
 (a) The Trustee may resign by so notifying the Company. The Holders of a majority in aggregate principal amount of the Securities then outstanding may
remove the Trustee by so notifying the Trustee and the Company and may, with the Company’s written consent, appoint a successor Trustee. The Company may remove the Trustee at any time, so long as no Default or Event of Default has occurred and
is continuing, and appoint a Successor Trustee in accordance with this Section 8.08. 
 (b) If the Trustee resigns or is removed or if a
vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee. If the Company fails to promptly appoint a successor Trustee, the Trustee shall have the right to choose a qualified Trustee as
successor, and the Company shall appoint such successor as Trustee. The resignation or removal of a Trustee shall not be effective until a successor Trustee shall have delivered the written acceptance of its appointment as described below.

 (c) If a successor Trustee does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee, the
Company or the Holders of 10% in principal amount of the Securities then outstanding may petition any court of competent jurisdiction for the appointment of a successor Trustee at the expense of the Company. 
 (d) If the Trustee fails to comply with Section 8.10, any Holder may petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee. 
 (e) A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee and be released from its obligations (exclusive of any liabilities that the retiring Trustee may have
incurred while acting as Trustee) hereunder, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. A successor Trustee
shall mail notice of its succession to each Holder. 
 (f) A retiring Trustee shall not be liable for the acts or omissions of any successor
Trustee after its succession. 
 (g) Notwithstanding replacement of the Trustee pursuant to this Section 8.08, the Company’s
obligations under Section 8.07 shall continue for the benefit of the retiring Trustee. 
 Section 8.09 Successor Trustee by
Merger, Etc. 
 If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust
business (including the administration of this Indenture) to, another corporation, the resulting, surviving or transferee corporation, without any further act, shall be the successor Trustee; provided such transferee corporation shall qualify and be
eligible under Section 8.10. Such successor Trustee shall promptly mail notice of its succession to the Company and each Holder. 
 Section 8.10 Eligibility; Disqualification. 
 The Trustee shall always satisfy the requirements of paragraphs (1),
(2) and (5) of TIA Section 310(a). The Trustee (or its parent holding company) shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. If at any time the
Trustee shall cease to satisfy any such requirements, it shall resign immediately in the manner and with the effect 

  

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specified in this Article 8. The Trustee shall be subject to the provisions of TIA Section 310(b). Nothing herein shall prevent the Trustee from filing
with the SEC the application referred to in the penultimate paragraph of TIA Section 310(b). 
 Section 8.11 Preferential
Collection of Claims Against Company. 
 The Trustee shall comply with TIA Section 311(a), excluding any creditor relationship
listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated therein. 
  

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 ARTICLE 9 
 SATISFACTION AND DISCHARGE OF INDENTURE 
 Section 9.01 Satisfaction and Discharge of Indenture.

 (a) This Indenture shall cease to be of further force and effect (except as to any surviving rights of conversion, registration of transfer
or exchange of Securities herein expressly provided for and except as further provided below), and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when either: 
 (A) all Securities theretofore authenticated and delivered (other than (i) Securities which
have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.07 and (ii) Securities for whose payment money has theretofore been deposited in trust and thereafter repaid to the Company as provided in
Section 9.03) have been delivered to the Trustee for cancellation; or 
 (B) all such Securities not theretofore
delivered to the Trustee for cancellation have become due and payable, provided, that 
 (1) the Company has deposited with
the Trustee or a Paying Agent (other than the Company or any of its Affiliates) immediately available funds in trust for the purpose of and in an amount sufficient to pay and discharge all indebtedness related to such Securities not theretofore
delivered to the Trustee for cancellation, for principal and interest to the date of such deposit; 
 (2) the Company has paid
or caused to be paid all other sums payable hereunder by the Company; and 
 (3) the Company has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein relating to the satisfaction and discharge of this Indenture have been complied with. 
 (b) Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company with respect to the conversion privilege and the
Conversion Rate of the Securities pursuant to Article 4, the obligations of the Company to the Trustee under Section 8.07 and, if money shall have been deposited with the Trustee pursuant to clause (2) of Section 9.01(a), the
provisions of Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.12, 5.01 and 12.05, Article 4, and this Article 9, shall survive until the Securities have been paid in full. 
 Section 9.02 Application of Trust Money. 
 Subject to the provisions of Section 9.03, the
Trustee or a Paying Agent shall hold in trust, for the benefit of the Holders, all money deposited with it pursuant to Section 9.01 and shall apply the deposited money in accordance with this Indenture and the Securities to the payment of the
principal of and interest on the Securities. 
 Section 9.03 Repayment to Company. 
 (a) The Trustee and each Paying Agent shall promptly pay to the Company upon request any excess money (1) deposited with them pursuant to
Section 9.01 and (2) held by them at any time. 
  

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 (b) The Trustee and each Paying Agent shall, subject to applicable abandonment property laws, pay to the
Company upon request any money held by them for the payment of principal or interest that remains unclaimed for two years after a right to such money has matured; provided, however, that the Trustee or such Paying Agent, before being required to
make any such payment, may at the expense of the Company cause to be mailed to each Holder entitled to such money notice that such money remains unclaimed and that after a date specified therein, which shall be at least 30 days from the date of such
mailing, any unclaimed balance of such money then remaining will be repaid to the Company. After payment to the Company, Holders entitled to money must look to the Company for payment as general creditors unless an applicable abandoned property law
designates another person. 
 Section 9.04 Reinstatement. 
 If the Trustee or any Paying Agent is unable to apply any money in accordance with Section 9.02 by reason of any legal proceeding or by reason of any
order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company’s obligations under this Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to Section 9.01 until such time as the Trustee or such Paying Agent is permitted to apply all such money in accordance with Section 9.02; provided, however, that if the Company has made any payment of the
principal of or interest on any Securities because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive any such payment from the money held by the Trustee or such Paying
Agent. 
  

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 ARTICLE 10 
 AMENDMENTS; SUPPLEMENTS AND WAIVERS 
 Section 10.01 Without Consent of Holders. 
 (a) The Company and the Trustee may amend or supplement this Indenture or the Securities without notice to or consent of any Holder of a Security for the
purpose of: 
 (1) evidencing a successor to the Company and the assumption by that successor of the Company’s
obligations under this Indenture and the Securities; 
 (2) adding to the Company’s covenants for the benefit of the
Holders or surrendering any right or power conferred upon the Company; 
 (3) securing the Company’s obligations in
respect of the Securities; 
 (4) evidencing and providing for the acceptance of the appointment of a successor trustee in
accordance with Article 8; 
 (5) complying with the requirements of the SEC in order to effect or maintain the qualification
of this Indenture under the TIA, as contemplated by this Indenture or otherwise; 
 (6) curing any ambiguity, omission,
inconsistency or correcting or supplementing any defective provision contained in this Indenture; or 
 (7) modifying any
other provisions of this Indenture in any manner that will not adversely affect the rights of the Holders in any material respect. 
 Section 10.02 With Consent of Holders. 
 (a) The Company and the Trustee may amend or supplement this Indenture or the
Securities with the written consent of the Holders of at least a majority in aggregate principal amount of the Securities then outstanding. However, subject to Section 10.04, without the written consent of each Holder affected, an amendment,
supplement or waiver may not: 
 (1) alter the manner of calculation or rate of accrual of interest on any Security or change
the time of payment of any installment of interest on, or any Additional Interest with respect to, any Security; 
 (2) make
any of the Securities payable in money or securities other than that stated in the Securities; 
 (3) change the stated
maturity of any Security; 
 (4) reduce the principal amount or Fundamental Change Purchase Price (including any Make Whole
Premium payable) (as applicable) with respect to any of the Securities, or any Additional Interest, or purchase pursuant to Article 3, with respect to any Security; 
  

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 (5) make any change that adversely affects the conversion rights of a Holder in any
material respect other than as provided herein; 
 (6) make any change that adversely affects the rights of Holders to require
the Company to purchase Securities at the option of Holders; 
 (7) impair the right to institute suit for the enforcement of
any payment on or with respect to any Security or with respect to the conversion of any Security; 
 (8) change the currency
of payment of principal of, or interest on, the Securities; 
 (9) except as otherwise permitted or contemplated by
Section 4.10, adversely affect the conversion rights of the Securities; or 
 (10) reduce the percentage in aggregate
principal amount of Securities outstanding necessary to modify or amend this Indenture or to waive any past Default or otherwise change the provisions in this Indenture that relate to modifying or amending this Indenture. 
 (b) Without limiting the provisions of Section 10.02(a) hereof, the Holders of a majority in principal amount of the Securities then outstanding
may, on behalf of all the Holders of all Securities, (i) waive compliance by the Company with the restrictive provisions of this Indenture, and (ii) waive any past Default or Event of Default under this Indenture and its consequences,
except an uncured failure to pay when due the principal amount, accrued and unpaid interest, accrued and unpaid Additional Interest or Fundamental Change Purchase Price, or in the obligation to deliver Common Stock or cash, if any and as applicable,
or in respect of any provision which under this Indenture cannot be modified or amended without the consent of the Holder of each outstanding Security affected. 
 (c) After an amendment, supplement or waiver under this Section 10.02 becomes effective, the Company shall promptly mail to the Holders affected thereby a notice briefly describing the amendment, supplement or
waiver. Any failure of the Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such amendment, supplement or waiver. 
 Section 10.03 Compliance with Trust Indenture Act. 
 Every amendment to or supplement of this Indenture or the Securities shall comply with the TIA as in effect at the date of such amendment or supplement. 
 Section 10.04 Revocation and Effect of Consents. 
 (a) Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the
same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security. However, any such Holder or subsequent Holder may revoke the consent as to its Security or portion of a Security if the Trustee receives
the notice of revocation before the date the amendment, supplement or waiver becomes effective. 
 (b) After an amendment, supplement or
waiver becomes effective, it shall bind every Holder of a Security. 
  

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 Section 10.05 Notation on or Exchange of Securities. 
 If an amendment, supplement or waiver changes the terms of a Security, the Trustee may require the Holder of the Security to deliver it to the Trustee.
The Trustee may place an appropriate notation on the Security about the changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so determines, the Company in exchange for the Security shall issue and the Trustee shall
authenticate a new Security that reflects the changed terms. 
 Section 10.06 Trustee to Sign Amendments, Etc. 
 The Trustee shall sign any amendment or supplemental indenture authorized pursuant to this Article 10 if the amendment or supplemental indenture does not
adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may, in its sole discretion, but need not sign it. In signing or refusing to sign such amendment or supplemental indenture, the Trustee shall be
entitled to receive and, subject to Section 8.01, shall be fully protected in relying upon, an Opinion of Counsel stating that such amendment or supplemental indenture is authorized or permitted by this Indenture. The Company may not sign an
amendment or supplement indenture until the Board of Directors approves it. 
 Section 10.07 Effect of Supplemental Indentures.

 Upon the execution of any supplemental indenture under this Article 10, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder shall be bound thereby. 
  

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 ARTICLE 11 
 SUBORDINATION 
 Section 11.01 Agreement to Subordinate. 
 The Company covenants and agrees, and each Holder by accepting a Security likewise covenants and agrees, that all Securities shall be issued subject to
the provisions of this Article 11; and each Person holding any Security, whether upon original issue or upon transfer, assignment or exchange thereof, accepts and agrees to be bound by such provisions. 
 The payment of the principal of, premium, if any, interest, and Additional Interest, if any, on all Securities (including, but not limited to, the
Fundamental Change Purchase Price with respect to the Securities subject to repurchase in accordance with Article 3 as provided in this Indenture) issued hereunder shall, to the extent and in the manner hereinafter set forth, be subordinated
and subject in right of payment to the prior payment of all Senior Indebtedness, whether outstanding at the date of this Indenture or thereafter incurred, in full in cash or payment satisfactory to the holders of Senior Indebtedness. 
 No provision of this Article 11 shall prevent the occurrence of any Default or Event of Default hereunder. 
 Section 11.02 Payment to Holders. 
 No payment shall be made with respect to the principal of, or premium, if any, interest and Additional Interest, if any, on the Securities (including, but not limited to, the Fundamental Change Purchase Price with respect to the Securities
subject to repurchase in accordance with Article 3 as provided in this Indenture), and no repurchase or retirement of the Securities shall occur and no deposit shall be made pursuant to Article 9 at a time when such deposited amounts would not
otherwise be permitted under this Article 11, other than through the delivery of Common Stock (but not the cash portion of the Company’s conversion obligation) in respect of the conversion of Securities if: 
 (a) a default in the payment of principal, premium, interest, rent or other obligations due on any Senior Indebtedness occurs and is
continuing and the Trustee receives notice of such default (or, in the case of Senior Indebtedness for which there is a period of grace, in the event of such a default that continues beyond the period of grace, if any, specified in the instrument or
lease evidencing such Senior Indebtedness), unless and until such default shall have been cured or waived by the appropriate holders of the Senior Indebtedness or shall have ceased to exist; or 
 (b) a default, other than a payment default, on any Designated Senior Indebtedness occurs and is continuing that then permits holders of
such Designated Senior Indebtedness to accelerate the maturity of all or any portion of such Designated Senior Indebtedness (or would permit such holders to so accelerate with the giving of notice or the passage of time or both) and the Trustee
receives a notice of the default (a “Payment Blockage Notice”) from a Representative or holder of such Designated Senior Indebtedness or the Company. 
 Subject to the provisions of Section 11.05, if the Trustee receives any Payment Blockage Notice pursuant to clause (b) above, no subsequent Payment Blockage Notice shall be effective for purposes of this
Section unless and until at least 365 days shall have elapsed since the initial effectiveness of the immediately prior Payment Blockage Notice. No nonpayment default that existed or was continuing on the date of delivery of any Payment Blockage
Notice to the Trustee (unless such default was waived, cured or otherwise ceased to exist and thereafter subsequently reoccurred) shall be, or be made, the basis for a subsequent Payment Blockage Notice, whether or not within a period of 365
consecutive days. 
  

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 Unless this Article 11 otherwise prohibits payments on or distributions in respect of the Securities at
the time of such payments or distributions, the Company may and shall resume such payments on and distributions: 
 (A) in the
case of a default referred to in clause (a) above, the date upon which the default is cured or waived by the requisite holders of Senior Indebtedness or otherwise ceases to exist, or 
 (B) in the case of a default referred to in clause (b) above, the earliest to occur of (i) the date on which such default is
cured or waived or otherwise ceases to exist or such Designated Senior Indebtedness is discharged or paid in full, (ii) 179 days pass after the date on which the applicable Payment Blockage Notice is received, and (iii) the date such
payment blockage period shall have been terminated by written notice to the Company or the Trustee from the Person initiating such payment blockage period provided that, if the maturity of such Designated Senior Indebtedness has been accelerated no
payment may be made on the Securities until such default is cured or waived or otherwise ceases to exist or such Designated Senior Indebtedness is discharged or paid in full. 
 Upon any payment by the Company, or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to creditors
upon any dissolution or winding-up or liquidation or reorganization of the Company (whether voluntary or involuntary) or in bankruptcy, insolvency, receivership or similar proceedings, all amounts due or to become due upon all Senior Indebtedness
shall first be paid in full in cash, or other payment satisfactory to the holders of Senior Indebtedness, before any payment is made on account of the principal of, premium, if any, interest or Additional Interest, if any, on the Securities
(including, but not limited to, the Fundamental Change Purchase Price with respect to the Securities subject to repurchase in accordance with Article 3 as provided in this Indenture); and upon any such dissolution or winding-up or liquidation
or reorganization of the Company or bankruptcy, insolvency, receivership or other proceeding, any payment by the Company, or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the
Holders or the Trustee would be entitled, except for the provision of this Article 11, shall (except as aforesaid) be paid by the Company or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or
distribution, or by the Holders or by the Trustee under this Indenture if received by them or it, directly to the holders of Senior Indebtedness (pro rata to such holders on the basis of the respective amounts of Senior Indebtedness held by such
holders, or as otherwise required by law or a court order) or their Representative or Representatives, as their respective interests may appear, to the extent necessary to pay all Senior Indebtedness in full in cash, or other payment satisfactory to
the holders of Senior Indebtedness, after giving effect to any concurrent payment or distribution to or for the holders of Senior Indebtedness, before any payment or distribution is made to the Holders or to the Trustee. 
 For purposes of this Article 11, the words, “cash, property or securities” shall not be deemed to include shares of stock of the Company as
reorganized or readjusted, or securities of the Company or any other corporation provided for by a plan of reorganization or readjustment, the payment of which is subordinated at least to the extent provided in this Article 11 with respect to the
Securities to the payment of all Senior Indebtedness which may at the time be outstanding; provided that (i) the Senior Indebtedness is assumed by the new corporation, if any, resulting from any reorganization or readjustment, and (ii) the
rights of the holders of Senior Indebtedness (other than leases which are not assumed by the Company or the new corporation, as the case may be) are not, without the consent of such holders, altered by such 

  

 62 

 
reorganization or readjustment. The consolidation of the Company with, or the merger of the Company into, another corporation or the liquidation or
dissolution of the Company following the conveyance, transfer, sale, lease or other disposition of its property as an entirety, or substantially as an entirety, to another corporation upon the terms and conditions provided for in Article 6 shall not
be deemed a dissolution, winding-up, liquidation or reorganization for the purposes of this Section 11.02 if such other corporation shall, as a part of such consolidation, merger, conveyance, transfer, sale, lease or other disposition, comply
with the conditions stated in Article 6. 
 In the event of the acceleration of the Securities because of an Event of Default, no payment or
distribution shall be made to the Trustee or any Holders in respect of the principal of, premium, if any, interest or Additional Interest, if any, on the Securities by the Company (including, but not limited to, the Fundamental Change Purchase Price
with respect to the Securities subject to repurchase in accordance with Article 3 as provided in this Indenture), except payments and distributions made by the Trustee as permitted by Section 11.05, until all Senior Indebtedness has been
paid in full in cash or other payment satisfactory to the holders of Senior Indebtedness or such acceleration is rescinded in accordance with the terms of this Indenture. If payment of the Securities is accelerated because of an Event of Default,
the Company shall promptly notify holders of Senior Indebtedness of such acceleration. 
 In the event that, notwithstanding the foregoing
provisions, any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities (including, without limitation, by way of setoff or otherwise), prohibited by the provisions of this Article 11, shall
be received by the Trustee or any of the Holders before all Senior Indebtedness is paid in full, in cash or other payment satisfactory to the holders of Senior Indebtedness, or provision is made for such payment thereof in accordance with its terms
in cash or other payment satisfactory to the holders of Senior Indebtedness, such payment or distribution shall be held in trust for the benefit of and shall be paid over or delivered to the holders of Senior Indebtedness or their Representative or
Representatives, as their respective interests may appear, as calculated by the Company. 
 Nothing in this Section 11.02 shall apply to
claims of, or payments to, the Trustee under or pursuant to Section 8.07. This Section 11.02 shall be subject to the further provisions of Section 11.05. 
 Section 11.03 Subrogation of Securities. 
 After the payment in full, in cash or other payment
satisfactory to the holders of Senior Indebtedness, of all Senior Indebtedness (and all commitments with respect to such Senior Indebtedness have terminated or expired), the rights of the Holders shall be subrogated to the extent of the payments or
distributions made to the holders of such Senior Indebtedness pursuant to the provisions of this Article 11 (equally and ratably with the holders of all indebtedness of the Company which by its express terms is subordinated to other indebtedness of
the Company to substantially the same extent as the Securities are subordinated and is entitled to like rights of subrogation) to the rights of the holders of Senior Indebtedness to receive payments or distributions of cash, property or securities
of the Company applicable to the Senior Indebtedness until the principal, premium, if any, interest or Additional Interest, if any, on the Securities shall be paid in full in cash or other payment satisfactory to the holders of Senior Indebtedness;
and, for the purposes of such subrogation, no payments or distributions to the holders of the Senior Indebtedness of any cash, property or securities to which the Holders or the Trustee would be entitled except for the provisions of this Article 11,
and no payment over pursuant to the provisions of this Article 11, to or for the benefit of the holders of Senior Indebtedness by Holders or the Trustee, shall, as between the Company, its creditors other than holders of Senior Indebtedness, and the
Holders, be deemed to be a payment by the Company to or on account of the Senior Indebtedness; and no payments or distributions of cash, property or securities to or for the benefit of the Holders pursuant to the subrogation provisions of this
Article 11, which would otherwise have been paid to the holders of Senior 

  

 63 

 
Indebtedness, shall be deemed to be a payment by the Company to or for the account of the Securities. It is understood that the provisions of this Article 11
are and are intended solely for the purposes of defining the relative rights of the Holders, on the one hand, and the holders of the Senior Indebtedness, on the other hand. 
 Nothing contained in this Article 11 or elsewhere in this Indenture or in the Securities is intended to or shall impair, as among the Company, its
creditors other than the holders of Senior Indebtedness, and the Holders, the obligation of the Company, which is absolute and unconditional, to pay to the Holders the principal of (and premium, if any), interest or Additional Interest, if any, on
the Securities as and when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the relative rights of the Holders and creditors of the Company other than the holders of the Senior Indebtedness, nor
shall anything herein or therein prevent the Trustee or the Holders from exercising all remedies otherwise permitted by applicable law during the continuance of an Event of Default under this Indenture, subject to the rights, if any, under this
Article 11 of the holders of Senior Indebtedness in respect of cash, property or securities of the Company received upon the exercise of any such remedy. 
 Upon any payment or distribution of assets of the Company referred to in this Article 11, the Trustee, subject to the provisions of Section 8.01, and the Holders shall be entitled to conclusively rely upon any
order or decree made by any court of competent jurisdiction in which such bankruptcy, dissolution, winding-up, liquidation or reorganization proceedings are pending, or a certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent
or other Person making such payment or distribution, delivered to the Trustee or to the Holders, for the purpose of ascertaining the Persons entitled to participate in such distribution, the holders of the Senior Indebtedness and other indebtedness
of the Company, the amount thereof or payable thereon and all other facts pertinent thereto or to this Article 11. 
 Section 11.04
Authorization to Effect Subordination. 
 Each Holder by accepting a Security authorizes and directs the Trustee on such Holder’s
behalf to take such action as may be necessary or appropriate to effectuate the subordination as provided in this Article 11 and as may be requested in writing and as prepared by the holders of Senior Indebtedness at their expense, and each Holder
appoints the Trustee to act as such Holder’s attorney-in-fact for any and all such purposes. If the Trustee does not file a proper proof of claim or proof of debt in the form required in any proceeding referred to in Section 11.03 hereof
at least 30 days before the expiration of the time to file such claim, the holders of any Senior Indebtedness or their Representatives are hereby authorized to file an appropriate claim for and on behalf of the Holders and each Holder hereby
appoints the holders of Senior Indebtedness or their respective Representatives to act as its attorney-in-fact for any and all such purposes. 
 Section 11.05 Notice to Trustee. 
 The Company shall give prompt written notice in the form of an Officers’
Certificate to a Responsible Officer of the Trustee and to any Paying Agent of any fact known to the Company which would prohibit the making of any payment of monies to or by the Trustee or any Paying Agent in respect of the Securities pursuant to
the provisions of this Article 11. Notwithstanding the provisions of this Article 11 or any other provision of this Indenture, the Trustee shall not be charged with knowledge of the existence of any facts which would prohibit the making of any
payment of monies to or by the Trustee in respect of the Securities pursuant to the provisions of this Article 11, unless and until a Responsible Officer of the Trustee shall have received written notice thereof at the office of the Trustee
specified in Section 12.02 hereof from the Company (in the form of an Officers’ Certificate) or a Representative or a holder or holders of Senior Indebtedness; and before the receipt of any such written notice, the Trustee, subject to the
provisions of Section 8.01, shall be entitled in all respects to assume that no such facts exist; 

  

 64 

 
provided that with respect to any such monies that may become payable for any purpose (including, without limitation, the payment of the principal of, or
premium, if any, or interest on any Security) unless the Trustee shall have received, on a date not less than one Business Day immediately prior to the date upon which by the terms hereof such monies shall become payable, the notice provided for in
this Section 11.05, then, anything in the first two paragraphs of Section 11.02 contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such monies and to apply the same to the purpose for
which they were received, and shall not be affected by any notice to the contrary which may be received by it on or after such prior date; provided further that if the Trustee shall receive any such notice on the date upon which by the terms hereof
such monies shall become payable, the Trustee may, in its reasonable discretion, waive the time for notice provided in the foregoing proviso. Nothing shall prevent any payment by the Trustee to the holders of monies deposited with it pursuant to
Article 9, and any such payment shall not be subject to the provisions of Article 11; provided that, at the time of any such deposit, such deposit and payment were permitted under this Article 11 without giving effect to the first clause of
this sentence. 
 The Trustee, subject to the provisions of Section 8.01, shall be entitled to conclusively rely on the delivery to it
of a written notice by a Representative or a Person representing himself to be a holder of Senior Indebtedness to establish that such notice has been given by a Representative or a holder of Senior Indebtedness. In the event that the Trustee
determines in good faith that further evidence is required with respect to the right of any Person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to this Article 11, the Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and any other facts pertinent to
the rights of such Person under this Article 11, and if such evidence is not furnished the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment. 
 Section 11.06 Trustee’s Relation to Senior Indebtedness. 
 The Trustee in its individual capacity shall be entitled to all the rights set forth in this Article 11 in respect of any Senior Indebtedness at any time held by it, to the same extent as any other holder of Senior
Indebtedness, and nothing in Section 8.11 or elsewhere in this Indenture shall deprive the Trustee of any of its rights as such holder. Nothing in this Article 11 shall apply to the claims of, or payment to, the Trustee under or pursuant to
Section 8.07. 
 With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to observe only such of its
covenants and obligations as are specifically set forth in this Article 11, and no implied covenants or obligations with respect to the holders of Senior Indebtedness shall be read into this Indenture against the Trustee. The Trustee shall not be
deemed to owe any fiduciary duty to the holders of Senior Indebtedness and, subject to the provisions of Section 8.01, the Trustee shall not be liable to any holder of Senior Indebtedness if it shall pay over or deliver to Holders, the Company
or any other Person money or assets to which any holder of Senior Indebtedness shall be entitled by virtue of this Article 11 or otherwise. 
 Section 11.07 No Impairment of Subordination. 
 No right of any present or future holder of any Senior Indebtedness to
enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by
the Company with the terms, provisions and covenants of this Indenture, regardless of any knowledge thereof which any such holder may have or otherwise be charged with. 
  

 65 

 Section 11.08 Certain Conversions Deemed Payment. 
 For the purposes of this Article 11 only, (a) the issuance and delivery of Junior Securities upon conversion of Securities in accordance with
Article 4 shall not be deemed to constitute a payment or distribution on account of the principal of (or premium, if any), interest or Additional Interest, if any, on the Securities or on account of the purchase or other acquisition of Securities,
and (b) the payment, issuance or delivery of cash (except in satisfaction of fractional shares), securities (other than Junior Securities) or other property upon conversion of a Security shall be deemed to constitute payment on account of the
principal of such Security, the payment, issuance and delivery of such cash being made subject to the subordination provisions of this Article 11. For the purposes of this Section 11.08, the term “Junior Securities” means
(1) shares of any stock of any class of the Company or (2) securities of the Company which are subordinated in right of payment to all Senior Indebtedness which may be outstanding at the time of issuance or delivery of such securities to
substantially the same extent as, or to a greater extent than, the Securities are so subordinated as provided in this Article 11. Nothing contained in this Article 11 or elsewhere in this Indenture or in the Securities is intended to or shall
impair, as among the Company, its creditors other than holders of Senior Indebtedness and the Holders, the right, which is absolute and unconditional, of the Holders to convert such Securities in accordance with Article 4. 
 Section 11.09 Article Applicable to Paying Agents. 
 If at any time any Paying Agent other than the Trustee shall have been appointed by the Company and be then acting hereunder, the term “Trustee” as used in this Article shall (unless the context otherwise
requires) be construed as extending to and including such Paying Agent within its meaning as fully for all intents and purposes as if such Paying Agent were named in this Article in addition to or in place of the Trustee; provided, however, that the
first paragraph of Section 11.05 shall not apply to the Company or any Affiliate of the Company if it or such Affiliate acts as Paying Agent. 
 Section 11.10 Senior Indebtedness Entitled to Rely. 
 The holders of Senior Indebtedness shall have the right to rely
upon this Article 11, and no amendment or modification of the provisions of this Article 11 that adversely affect the rights and interests of such holders shall be effective as to such holders unless such holders shall have agreed in writing
thereto. Each Holder by accepting a Security acknowledges and agrees that the provisions of Article 11 are, and are intended to be, an inducement and consideration to each holder of Senior Indebtedness (whether such Senior Indebtedness was acquired
or created before or after the issuance of the Securities) to acquire and hold, or to continue to hold, such Senior Indebtedness, and such holder of Senior Indebtedness shall be deemed conclusively to have relied on the provisions of this Article 11
in acquiring and continuing to hold such Senior Indebtedness. 
 Section 11.11 Reinstatement. 
 To the extent the payment of or distribution in respect of any Senior Indebtedness (whether by or on behalf of the Company as proceeds of security or
enforcement of any right of setoff or otherwise) is declared to be fraudulent or preferential, set aside or required to be paid to any receiver, trustee in bankruptcy, liquidating trustee, agent or similar Person under any bankruptcy, insolvency,
receivership, fraudulent conveyance or similar law, then if such payment or distribution is recovered by, or paid over to, such receiver, trustee in bankruptcy, liquidating trustee, agent or similar Person, the Senior Indebtedness or part thereof
originally intended to be satisfied shall be deemed to be reinstated and outstanding as if such payment had not occurred. 
  

 66 

 Section 11.12 Actions by Holders of Senior Indebtedness. 
 The holders of the Senior Indebtedness may, at any time and from time to time, without the consent of or notice to the Trustee or the Holders, without
incurring responsibility to the Holders and without impairing or releasing the subordination provided in this Indenture or the obligations of the Holders hereunder to the holders of the Senior Indebtedness, do any one or more of the following:

 (a) change the manner, place or terms of payment or extend the time of payment of, or renew or alter, the Senior
Indebtedness or any instrument evidencing the same or any agreement under which any Senior Indebtedness is outstanding or secured; 
 (b) sell, exchange, release or otherwise deal with any property pledged, mortgaged or otherwise secured; 
 (c)
release any Person liable in any manner for the collection of Senior Indebtedness; 
 (d) exercise or refrain from exercising
any rights against the Company or any other Person; and 
 (e) take any other action in the reasonable business judgment of
the holders of Senior Indebtedness. 
  

 67 

 ARTICLE 12 
 MISCELLANEOUS 
 Section 12.01 Trust Indenture Act Controls. 
 If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by any of Sections 310 to 317, inclusive, of the TIA through
operation of Section 318(c) thereof, such imposed duties shall control. 
 Section 12.02 Notices. 
 Any demand, authorization notice, request, consent or communication shall be given in writing and delivered in person or mailed by first-class mail,
postage prepaid, addressed as follows or transmitted by facsimile transmission (confirmed by delivery in person or mail by first-class mail, postage prepaid, or by guaranteed overnight courier) to the following facsimile numbers: 
 If to the Company, to: 
 Newport Corporation 
 1791 Deere Avenue 
 Irvine, CA 92714 
 Attention: General Counsel 
 Tel: (949) 863-3144 
 Fax: (949) 253-1221 
 with a copy to: 
 Stradling Yocca Carlson & Rauth 
 Attention: K.C. Schaaf 
 660 Newport Center Drive 
 Suite 1600 
 Newport Beach, CA 92660 
 Tel: (949) 725-4000 
 Fax: (949) 725-4100 
 if to the Trustee, to: 
 Wells Fargo Bank, National Association 
 Corporate Trust and Escrow Services 
 707 Wilshire Blvd, 17th Floor 
 Los Angeles, CA 90017

 Attention: Maddy Hall (Newport Corporation 2.50% Convertible Subordinated 
 Notes due 2012) 
 Tel: (213) 614-2588 
 Fax: (213) 614-3355 
 Such notices or communications shall be effective when received. 
 The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications. 
  

 68 

 Any notice or communication mailed to a Holder of a Security shall be mailed by first-class mail or
delivered by an overnight delivery service to it at its address shown on the register kept by the Primary Registrar. 
 Failure to mail a
notice or communication to a Holder of a Security or any defect in it shall not affect its sufficiency with respect to other Holders of Securities. If a notice or communication to a Holder of a Security is mailed in the manner provided above, it is
duly given, whether or not the addressee receives it. 
 If the Company mails any notice to a Holder of a Security, it shall mail a copy to
the Trustee and each Registrar, Paying Agent and Conversion Agent. 
 Section 12.03 Communications By Holders with Other Holder.

 Holders of Securities may communicate pursuant to TIA Section 312(b) with other Holders of Securities with respect to their rights
under this Indenture or the Securities. The Company, the Trustee, the Registrar and any other person shall have the protection of TIA Section 312(c). 
 Section 12.04 Certificate and Opinion as to Conditions Precedent. 
 (a) Upon any request or
application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee at the request of the Trustee: 
 (1) an Officers’ Certificate stating that, in the opinion of the signers, all conditions precedent (including any covenants, compliance with which constitutes a condition precedent), if any, provided for in this
Indenture relating to the proposed action have been complied with; and 
 (2) an Opinion of Counsel stating that, in the
opinion of such counsel, all such conditions precedent (including any covenants, compliance with which constitutes a condition precedent) have been complied with. 
 (b) Each Officers’ Certificate and Opinion of Counsel 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 statements or opinions contained in
such certificate or opinion are based; 
 (3) a statement that, in the opinion of such person, he or she has made such
examination or investigation as is necessary to enable him or her 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; 
 provided, however, that with respect to matters of fact an Opinion of Counsel may rely on an Officers’ Certificate or certificates of public officials. 

 

 69 

 Section 12.05 Record Date for Vote or Consent of Holders of Securities. 
 The Company (or, in the event deposits have been made pursuant to Section 9.01, the Trustee) may set a record date for purposes of determining the
identity of Holders entitled to vote or consent to any action by vote or consent authorized or permitted under this Indenture, which record date shall not be more than 30 days prior to the date of the commencement of solicitation of such action.
Notwithstanding the provisions of Section 10.04, if a record date is fixed, those persons who were Holders of Securities at the close of business on such record date (or their duly designated proxies), and only those persons, shall be entitled
to take such action by vote or consent or to revoke any vote or consent previously given, whether or not such persons continue to be Holders after such record date. 
 Section 12.06 Rules by Trustee, Paying Agent, Registrar and Conversion Agent. 
 The Trustee may
make reasonable rules (not inconsistent with the terms of this Indenture) for action by or at a meeting of Holders. Any Registrar, Paying Agent or Conversion Agent may make reasonable rules for its functions. 
 Section 12.07 Legal Holidays. 
 A
“Legal Holiday” is a Saturday, Sunday or a day on which state or federally chartered banking institutions in New York, New York are authorized or obligated to close. If a payment date is a Legal Holiday, payment shall be made on the next
succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period. If a Regular Record Date is a Legal Holiday, the record date shall not be affected. 
 Section 12.08 Governing Law. 
 This Indenture and the Securities shall be governed by, and construed in accordance with, the laws of the State of New York. 
 Section 12.09 No Adverse Interpretation of Other Agreements. 
 This Indenture may not be used to interpret another
indenture, loan or debt agreement of the Company or a Subsidiary of the Company. Any such indenture, loan or debt agreement may not be used to interpret this Indenture. 
 Section 12.10 No Recourse Against Others. 
 All liability described in paragraph 15 of the
Securities of any director, officer, employee or shareholder, as such, of the Company hereby is waived and released by each of the Holders. 
 Section 12.11 No Security Interest Created. 
 Nothing in this Indenture or in the Securities, express or implied, shall
be construed to constitute a security interest under the Uniform Commercial Code or similar legislation, now in effect or hereafter enacted and made effective, in any jurisdiction. 
 Section 12.12 Successors. 
 All
agreements of the Company in this Indenture and the Securities shall bind its successor. All agreements of the Trustee in this Indenture shall bind its successor. 
  

 70 

 Section 12.13 Multiple Counterparts. 
 The parties may sign multiple counterparts of this Indenture. Each signed counterpart shall be deemed an original, but all of them together represent the
same agreement. 
 Section 12.14 Separability. 
 If any provisions in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired
thereby. 
 Section 12.15 Table of Contents, Headings, Etc. 
 The table of contents, cross-reference sheet 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. 
 [SIGNATURE PAGE
FOLLOWS] 
  

 71 

 IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the date and year first above
written. 
  

			
	NEWPORT CORPORATION
		
	By:	 	 /s/ Jeffrey B. Coyne

	Name:	 	Jeffrey B. Coyne
	Title:	 	Senior Vice President, General Counsel and Corporate Secretary
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION
		
	By:	 	 /s/ Maddy Hall

	Name:	 	Maddy Hall
	Title:	 	Assistant Vice President

 EXHIBIT A 
 [FORM OF FACE OF SECURITY] 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.1 
 THIS SECURITY AND THE SHARES OF COMMON STOCK ISSUABLE
UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY, THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT
TO, REGISTRATION UNDER THE SECURITIES ACT.2 
 BY ITS ACQUISITION HEREOF, THE HOLDER AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY PRIOR TO THE DATE THAT IS TWO YEARS AFTER THE LATER OF
THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH NEWPORT CORPORATION (THE “COMPANY”) OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY) (THE “RESALE RESTRICTION TERMINATION
DATE”) ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO
RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER AS 
  

	 1
	 This paragraph should be included only if the Security is a Global Security.

  

	 2
	 These paragraphs to be included only if the Security is a Restricted Security. 

  

 A-1 

 
DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, OR (D) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSE (D) PRIOR TO THE RESALE RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT
A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION
DATE.2 
 THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT (AS SUCH TERM IS DEFINED
IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF) AND, BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT.2 
  

 A-2 

 NEWPORT CORPORATION 
 2.50% Convertible Subordinated Notes due 2012 
  

	 No.              
	 CUSIP:              

 Newport Corporation, a Nevada corporation, promises to pay to Cede & Co. or registered assigns the principal amount of one hundred seventy-five
million dollars ($175,000,000) on February 15, 2012. 
 This Security shall bear interest as specified on the other side of this
Security. This Security is convertible as specified on the other side of this Security. 
 Additional provisions of this Security are set
forth on the other side of this Security. 
 Dated:
                    , 2007 
 [SIGNATURE PAGE FOLLOWS] 
  

 A-3 

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

			
	NEWPORT CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	

 Dated:
                    , 2007 
  

			
	Trustee’s Certificate of Authentication: This is one of the Securities referred to in the within-mentioned Indenture.
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION
	as Trustee
		
	By:	 	  

		 	Authorized Signatory

  

 A-4 

 [FORM OF REVERSE SIDE OF SECURITY] 
 NEWPORT CORPORATION 
 CONVERTIBLE SUBORDINATED NOTES DUE 2012 
 1. INTEREST 
 Newport Corporation, a Nevada corporation (the
“Company”, which term shall include any successor corporation under the Indenture hereinafter referred to), promises to pay interest on the principal amount of this Security at the rate of 2.50% per annum. The Company shall pay
interest semiannually on February 15 and August 15 of each year (each, an “Interest Payment Date”), commencing August 15, 2007. Each payment of interest will include interest accrued through the day before the relevant
Interest Payment Date (or purchase date). Cash interest will be computed on the basis of a 360-day year comprised of twelve 30-day months. Any payment required to be made on a day that is not a Business Day shall be made on the next succeeding
Business Day. Any reference herein to interest accrued or payable as of any date shall include any Additional Interest accrued or payable on such date as provided in the Registration Rights Agreement. 
 No sinking fund is provided for the Securities. 
 2. METHOD
OF PAYMENT 
 The Company shall pay interest on this Security (except defaulted interest) to the person who is the Holder of this Security at
the close of business on February 1 or August 1, as the case may be (each, a “Regular Record Date”), next preceding the related Interest Payment Date. The Holder must surrender this Security to a Paying Agent to collect payment
of principal. The Company will pay principal and interest in money of the United States that at the time of payment is legal tender for payment of public and private debts. The Company may pay principal and interest in respect of any Certificated
Security by check or wire payable in such money; provided, however, that a Holder with an aggregate principal amount in excess of $2,000,000 will be paid by wire transfer in immediately available funds at the election of such Holder if such Holder
has provided wire transfer instructions to the Trustee at least 10 Business Days prior to the Payment Date. The Company may mail an interest check to the Holder’s registered address. Notwithstanding the foregoing, so long as this Security is
registered in the name of a Depositary or its nominee, all payments hereon shall be made by wire transfer of immediately available funds to the account of the Depositary or its nominee. 
 Any wire transfer instructions received by the Trustee will remain in effect until revoked by the Holder. 
 3. PAYING AGENT, REGISTRAR AND CONVERSION AGENT 
 Initially,
Wells Fargo Bank, National Association (the “Trustee”, which term shall include any successor trustee under the Indenture hereinafter referred to) will act as Paying Agent, Registrar and Conversion Agent. The Company may change any Paying
Agent, Registrar or Conversion Agent without notice to the Holder. The Company or any of its Subsidiaries may, subject to certain limitations set forth in the Indenture, act as Paying Agent or Registrar. 
 4. INDENTURE, LIMITATIONS 
 This Security is one of a duly
authorized issue of Securities of the Company designated as its 2.50% Convertible Subordinated Notes due 2012 (the “Securities”), issued under an Indenture dated as of 

  

 A-5 

 
February 7, 2007 (together with any supplemental indentures thereto, the “Indenture”), between the Company and the Trustee. The terms of this
Security include those stated in the Indenture and those required by or made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended, as in effect on the date of the Indenture. This Security is subject to all such terms,
and the Holder of this security is referred to the Indenture and said Act for a statement of them. Capitalized terms not otherwise defined herein have the meaning ascribed to such terms in the Indenture. 
 The Securities are unsecured, subordinated obligations of the Company limited to $175,000,000 aggregate principal amount. The Indenture does not limit
other debt of the Company, secured or unsecured. 
 5. PURCHASE OF SECURITIES OF HOLDERS’ OPTION UPON A FUNDAMENTAL CHANGE 
 If a Fundamental Change occurs prior to the Final Maturity Date, at the option of the Holder and subject to the terms and conditions of the Indenture, the
Company shall become obligated to purchase for cash, all or any part specified by the Holder (so long as the principal amount of such part is $1,000 or an integral multiple of $1,000) of the Securities held by such Holder on a date specified by the
Company that is not less than 30 nor more than 45 days after the date of the Fundamental Change Company Notice, at a purchase price equal to 100% of the principal amount thereof together with accrued and unpaid interest, if any, and accrued and
unpaid Additional Interest, if any, to, but excluding, the Fundamental Change Purchase Date. The Holder shall have the right to withdraw any Fundamental Change Purchase Notice (in whole or in a portion thereof that is $1,000 or an integral multiple
of $1,000) at any time prior to the close of business on the Business Day next preceding the Fundamental Change Purchase Date by delivering a written notice of withdrawal to the Paying Agent in accordance with the terms of the Indenture. 

6. CONVERSION 
 Subject to and upon compliance with the
provisions of the Indenture and upon the occurrence of the events specified in the Indenture, a Holder may surrender for conversion any Security that is $1,000 principal amount or integral multiples thereof. In lieu of receiving shares of Common
Stock, a Holder will receive, for each $1,000 principal amount of Securities surrendered for conversion: 
  

	 	•	 	 cash in an amount equal to the lesser of (1) $1,000 and (2) the Conversion Value; and 

  

	 	•	 	 if the Conversion Value is greater than $1,000, a number of shares of Common Stock equal to the sum of the Daily Share Amounts, for each of the ten consecutive
Trading Days in the Conversion Reference Period, appropriately adjusted to reflect stock splits, stock dividends, combinations or similar events occurring during the Conversion Reference Period, subject to the Company’s right to deliver cash in
lieu of all or a portion of such shares as described in the Indenture; 

 provided that in no event shall the aggregate number of shares of
Common Stock to be issued pursuant to the foregoing clause, per $1,000 principal amount of Securities, exceed the Aggregate Share Cap, as defined in the Indenture, without taking into account any election by the Company to deliver cash in lieu of
all or a portion of the shares of Common Stock otherwise deliverable as set forth in the Indenture. 
 The Conversion Rate on any Securities
surrendered in connection with a Fundamental Change may be increased by an amount, if any, determined in accordance with Section 4.01(j) of the Indenture. 
  

 A-6 

 7. SUBORDINATION 
 To the extent provided in the Indenture, the Securities are subordinated to Senior Indebtedness, as defined in the Indenture, of the Company. To the extent provided in the Indenture, Senior Indebtedness must be paid in full before the
Securities may be paid. The Company agrees, and each Securityholder by accepting a Security agrees, to the subordination provisions contained in the Indenture and authorizes the Trustee to give it effect and appoints the Trustee as attorney-in-fact
for such purpose. 
 8. DENOMINATIONS, TRANSFER, EXCHANGE 
 The Securities are in registered form, without coupons, in denominations of $1,000 principal amount and integral multiples of $1,000 principal amount. A Holder may register the transfer of or exchange Securities in
accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents. 
 9.
PERSONS DEEMED OWNERS 
 The Holder of a Security may be treated as the owner of it for all purposes. 
 10. UNCLAIMED MONEY 
 If money for the payment of principal
or interest remains unclaimed for two years, the Trustee and any Paying Agent will pay the money back to the Company at its written request, subject to applicable unclaimed property law and the provisions of the Indenture. After that, Holders
entitled to money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person. 
 11.
AMENDMENT, SUPPLEMENT AND WAIVER 
 Subject to certain exceptions, the Indenture or the Securities may be amended or supplemented with the
consent of the Holders of at least a majority in aggregate principal amount of the Securities then outstanding, and an existing Default or Event of Default and its consequence or compliance with any provision of the Indenture or the Securities may
be waived in a particular instance with the consent of the Holders of a majority in aggregate principal amount of the Securities then outstanding. Without the consent of or notice to any Holder, the Company and the Trustee may amend or supplement
the Indenture or the Securities to, among other things, cure any ambiguity, defect or inconsistency or make any other change that does not adversely affect the rights of the Holders in any material respect. 
 12. SUCCESSOR ENTITY 
 When a successor corporation assumes
all the obligations of its predecessor under the Securities and the Indenture in accordance with the terms and conditions of the Indenture, the predecessor corporation (except in certain circumstances specified in the Indenture) shall be released
from those obligations. 
 13. DEFAULTS AND REMEDIES 
 Under the Indenture, an Event of Default shall occur if: 
 (1) the Company shall fail to pay when due the Principal
or Fundamental Change Purchase Price of any Security, when the same becomes due and payable whether at the Final 

  

 A-7 

 
Maturity Date, upon repurchase, acceleration or otherwise and regardless of whether such payment is permitted pursuant to the subordination provisions under
Article 11 of the Indenture; or 
 (2) the Company shall fail to pay an installment of cash interest or Additional Interest,
if any, on any of the Securities, which failure continues for 30 days after the date when due, regardless of whether such payment is permitted pursuant to the subordination provisions under Article 11 of the Indenture; or 
 (3) the Company shall fail to deliver when due all cash and shares of Common Stock, if any, deliverable upon conversion of the Securities,
which failure continues for 15 days, regardless of whether such payment is permitted pursuant to the subordination provisions under Article 11 of the Indenture; or 
 (4) the Company shall fail to perform or observe (or obtain a waiver with respect to) any other term, covenant or agreement contained in
the Securities or the Indenture for a period of 60 days after receipt by the Company of a Notice of Default specifying such failure; or 
 (5) default in the payment of principal by the end of any applicable grace period or resulting in acceleration of other Indebtedness of the Company for borrowed money where the aggregate principal amount with respect
to which the default or acceleration has occurred exceeds $25 million and such acceleration has not been rescinded or annulled or such Indebtedness repaid within a period of 30 days after receipt of a Notice of Default, provided that if any such
default is cured, waived, rescinded or annulled, then the Event of Default by reason thereof would be deemed not to have occurred; or 
 (6) the Company, or any Significant Subsidiary of the Company, pursuant to or within the meaning of any Bankruptcy Law: 
 (A) commences as a debtor a voluntary case or proceeding; or 
 (B) consents to the entry of
an order for relief against it in an involuntary case or proceeding or the commencement of any case against it; 
 (C)
consents to the appointment of a Receiver of it or for all or substantially all of its property; or 
 (D) makes a general
assignment for the benefit of its creditors; 
 (E) files a petition in bankruptcy or answer or consent seeking reorganization
or relief; or 
 (F) consents to the filing of such a petition or the appointment of or taking possession by a Receiver; or

 (7) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 
  

 A-8 

 (A) grants relief against the Company or any Significant Subsidiary of the Company in an
involuntary case or proceeding or adjudicates the Company or any Significant Subsidiary of the Company insolvent or bankrupt; 
 (B) appoints a Receiver of the Company or any Significant Subsidiary of the Company or for all or substantially all of the property of the Company or any Significant Subsidiary of the Company; or 
 (C) orders the winding up or liquidation of the Company or any Significant Subsidiary of the Company; 
 and in each case the order or decree remains unstayed and in effect for 60 consecutive days. 
 The term “Bankruptcy Law” means Title 11 of the United States Code (or any successor thereto) or any similar federal or state law for the
relief of debtors. The term “Receiver” means any receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law. 
 Notwithstanding the above, no Event of Default under clauses (4) or (5) above shall occur until the Trustee notifies the Company in writing, or the Holders of at least 25% in aggregate principal amount of
the Securities then outstanding notify the Company and the Trustee in writing, of the Default (a “Notice of Default”), and the Company does not cure the Default within the time specified in clause (4) or (5), as applicable, after
receipt of such notice. 
 If an Event of Default (other than an Event of Default specified in clause (6) or (7) above) occurs and
is continuing with respect to the Company, the Trustee may, by notice to the Company, or the Holders of at least 25% in aggregate principal amount of the Securities then outstanding may, by notice to the Company and the Trustee, declare the
principal amount and accrued and unpaid interest, if any, and accrued and unpaid Additional Interest, if any, through the date of declaration on all the Securities to be immediately due and payable. Upon such a declaration, such principal amount and
such accrued and unpaid interest, if any, and such accrued and unpaid Additional Interest, if any, shall be due and payable immediately. If an Event of Default specified in clauses (6) or (7) above occurs in respect of the Company and is
continuing, the principal amount and accrued but unpaid interest, if any, and accrued and unpaid Additional Interest, if any, on all the Securities shall become and be immediately due and payable without any declaration or other act on the part of
the Trustee or any Holders of Securities. The Holders of a majority in aggregate principal amount of the Securities then outstanding by notice to the Trustee may rescind an acceleration and its consequences if (a) all existing Events of
Default, other than the nonpayment of the principal of the Securities which have become due solely by such declaration of acceleration, have been cured or waived; (b) to the extent the payment of such interest is lawful, interest (calculated at
the rate per annum borne by the Securities) on overdue installments of interest and overdue principal, which has become due otherwise than by such declaration of acceleration, has been paid; (c) the rescission would not conflict with any
judgment or decree of a court of competent jurisdiction; and (d) all payments due to the Trustee and any predecessor Trustee under the Indenture have been made. No such rescission shall affect any subsequent Default or impair any right
consequent thereto. 
 Holders may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may require
indemnity satisfactory to it before it enforces the Indenture or the Securities. Subject to certain limitations, Holders of a majority in aggregate principal amount of the Securities then outstanding may direct the Trustee in its exercise of any
trust or power. The Trustee may withhold from Holders notice of any continuing Default (except a Default in payment of principal or interest) if and so long as it determines that withholding notice is in their interests. The Company is required to
file periodic certificates with the Trustee as to the Company’s compliance with the Indenture and knowledge or status of any Default. 
  

 A-9 

 14. TRUSTEE DEALINGS WITH THE COMPANY 
 Wells Fargo Bank, National Association, the initial Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept deposits from and perform services for the Company or an Affiliate of
the Company, and may otherwise deal with the Company or an Affiliate of the Company, as if it were not the Trustee. 
 15. NO RECOURSE AGAINST OTHERS

 A director, officer, employee or shareholder, as such, of the Company shall not have any liability for any obligations of the Company under
the Securities or the Indenture nor for any claim based on, in respect of or by reason of such obligations or their creation. The Holder of this Security by accepting this Security waives and releases all such liability. The waiver and release are
part of the consideration for the issuance of this Security. 
 16. AUTHENTICATION 
 This Security shall not be valid until the Trustee or an authenticating agent manually signs the certificate of authentication on the other side of this
Security. 
 17. ABBREVIATIONS AND DEFINITIONS 
 Customary abbreviations may be used in the name of the Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common),
CUST (= Custodian) and UGMA (= Uniform Gifts to Minors Act). 
 All terms defined in the Indenture and used in this Security but not
specifically defined herein are defined in the Indenture and are used herein as so defined. 
 18. INDENTURE TO CONTROL; GOVERNING LAW 
 In the case of any conflict between the provisions of this Security and the Indenture, the provisions of the Indenture shall control. This Security and
the Indenture shall be governed by, and construed in accordance with, the laws of the State of New York. 
 The Company will furnish to any
Holder, upon written request and without charge, a copy of the Indenture. Requests may be made to: Newport Corporation, 1791 Deere Avenue, Irvine, CA 92606, Attention: General Counsel, Telephone: (949) 863-3144. 
  

 A-10 

 ASSIGNMENT FORM 
 To assign this Security, fill in the form below: 
 I or we assign and transfer this Security to 

___________________________________________________________________________________________________________________________ 
 (Insert assignee’s soc. sec. or tax I.D. no.) 
 ___________________________________________________________________________________________________________________________ 
 ___________________________________________________________________________________________________________________________ 
 ___________________________________________________________________________________________________________________________ 
 (Print
or type assignee’s name, address and zip code) 
 and irrevocably appoint 
 ___________________________________________________________________________________________________________________________ 
 agent to transfer this Security on the books of the Company. The agent may substitute another to act for him or her. 
  

			
		    	 Your Signature

		
	 Date:
                        
	    	  

		    	(Sign exactly as your name appears on the other
side of this Security)

  

	*	Signature guaranteed by: 

  

			
	 By:
	 	  

	*	The signature must be guaranteed by an institution which is a member of one of the following recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion
Program (STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the Trustee. 

  

 A-11 

 CONVERSION NOTICE 
 To convert this Security into Common Stock of the Company, check the box: 
 To convert only part of this
Security, state the principal amount to be converted (must be $1,000 or a integral multiple of $1,000): $                    . 
 If you want the stock certificate made out in another person’s name, fill in the form below: 
 ___________________________________________________________________________________________________________________________ 
 (Insert assignee’s soc. sec. or tax I.D. no.) 
 ___________________________________________________________________________________________________________________________ 
 ___________________________________________________________________________________________________________________________ 
 ___________________________________________________________________________________________________________________________ 
 (Print
or type assignee’s name, address and zip code) 
  

			
		    	 Your Signature

		
	 Date:
                        
	    	  

		    	(Sign exactly as your name appears on the other
side of this Security)

  

	*	Signature guaranteed by: 

  

			
	 By:
	 	  

	*	The signature must be guaranteed by an institution which is a member of one of the following recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion
Program (STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the Trustee. 

  

 A-12 

 FUNDAMENTAL CHANGE REPURCHASE NOTICE 
 To: Newport Corporation 
 The undersigned registered owner of this Security hereby irrevocably acknowledges
receipt of a notice from Newport Corporation (the “Company”) as to the occurrence of a Fundamental Change with respect to the Company and requests and instructs the Company to purchase the entire principal amount of this Security, or the
portion thereof (which is $1,000 or an integral multiple thereof) below designated, in accordance with the terms of the Security and the Indenture referred to in the Security at the Fundamental Change Purchase Price, together with accrued and unpaid
interest and Additional Interest, if any, to, but excluding, such date, to the registered Holder hereof. 
  

			
	Date:                         	 	 _______________________________________________________________________
 Signature (s)

		
		 	Signature(s) must be guaranteed by a qualified guarantor institution with membership in an approved signature guarantee program pursuant to Rule
		 	17Ad-15 under the Securities Exchange Act of 1934.
		
		 	 _______________________________________________________________________
 Signature Guaranty

	Principal amount to be purchased (in an	 	
	integral multiple of $1,000, if less than all):	 	

 NOTICE: The signature to the foregoing Election must
correspond to the Name as written upon the face of this Security in every particular, without any alteration or change whatsoever. 
  

 A-13 

 SCHEDULE OF EXCHANGES OF SECURITIES1 
 The following exchanges, purchases or
conversions of a part of this Global Security have been made: 
  

							
	Principal Amount
of this Global Note
Following Such
Decrease Date of
Exchange
(or
Increase)	 	Authorized Signatory
of Securities
Custodian	 	Amount of Decrease
in Principal Amount
of this Global Note	 	Amount of Increase in
Principal Amount of
this Global Note

  

	1.	This schedule should be included only if the Security is a Global Security. 

  

 A-14 

 CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION 
 OF TRANSFER OF RESTRICTED SECURITIES 
  

	Re:	2.50% Convertible Subordinated Notes due 2012 (the “Securities”) of Newport Corporation 

 This certificate relates to $             principal amount of Securities owned in
(check applicable box) 
           book-entry or
                     definitive form by
                     (the “Transferor”). 
 The Transferor has requested a Registrar or the Trustee to exchange or register the transfer of such Securities. 
 In connection with such request and in respect of each such Security, the Transferor does hereby certify that the Transferor is familiar with transfer restrictions relating to the Securities as provided in Section 2.12 of the Indenture
dated as of February 7, 2007 between Newport Corporation and Wells Fargo Bank, National Association, as trustee (the “Indenture”), and the transfer of such Security is being made pursuant to an effective registration statement under
the Securities Act of 1933, as amended (the “Securities Act”) (check applicable box), or the transfer or exchange, as the case may be, of such Security does not require registration under the Securities Act because (check applicable box):

  

			
	            	  	Such Security is being transferred pursuant to an effective registration statement under the Securities Act.
		
	            	  	Such Security is being acquired for the Transferor’s own account, without transfer.
		
	            	  	Such Security is being transferred to the Company or a Subsidiary (as defined in the Indenture) of the Company.
		
	            	  	Such security is being transferred to a person the Transferor reasonably believes is a “qualified institutional buyer” (as defined in Rule 144A or any successor provision thereto
(“Rule 144A”) under the Securities Act) that is purchasing for its own account or for the account of a “qualified institutional buyer”, in each case to whom notice has been given that the transfer is being made in reliance on
such Rule 144A, and in each case in reliance on Rule 144A.
		
	            	  	Such Security is being transferred pursuant to and in compliance with an exemption from the registration requirements under the Securities Act in accordance with Rule 144 (or any successor
thereto) (“Rule 144”) under the Securities Act.
		
	            	  	Such Security is being transferred to a non-U.S. Person in an offshore transaction in compliance with Rule 904 of Regulation S under the Securities Act (or any successor
thereto).
		
	            	  	Such Security is being transferred pursuant to and in compliance with an exemption from the registration requirements of the Securities Act (other than an exemption referred to above) and as
a result of which such Security will, upon such transfer, cease to be a “restricted security” within the meaning of Rule 144 under the Securities Act.

  

 A-15 

 The Transferor acknowledges and agrees that, if the transferee will hold any such Securities in the form
of beneficial interests in a Global Note which is a “restricted security” within the meaning of Rule 144 under the Securities Act, then such transfer can only be made pursuant to (i) Rule 144A under the Securities Act and such
transferee must be a “qualified institutional buyer” (as defined in Rule 144A) or (ii) Regulation S under the Securities Act. 
  

			
	Date:                     	    	  

		    	(Insert Name of Transferor)

  

 A-16Registration Rights Agreement

 EXHIBIT 10.2 
 EXECUTION COPY 
 Registration Rights Agreement 
 Dated as of February 7, 2007 
 between 
 Newport Corporation 
 and 
 Merrill Lynch, Pierce, Fenner & Smith 
 Incorporated 

 REGISTRATION RIGHTS AGREEMENT 
 This Registration Rights Agreement is made and entered into this 7th day of February, 2007 between Newport Corporation, a Nevada corporation (the
“Company”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (the “Initial Purchaser”). 
 This Agreement is made pursuant to the Purchase Agreement, dated as of February 1, 2007, between the Company and the Initial Purchaser (the “Purchase Agreement”), which provides for the sale by the Company to the
Initial Purchaser of an aggregate of $150,000,000 aggregate principal amount ($175,000,000 principal amount if the Initial Purchaser exercises its overallotment option in full) of the Company’s 2.50% Convertible Subordinated Notes due 2012 (the
“Notes” and together with the shares of common stock of the Company into which the Notes are convertible, the “Securities”). In order to induce the Initial Purchaser to enter into the Purchase Agreement, the Company
has agreed to provide the registration rights set forth in this Agreement. The execution of this Agreement is a condition to the closing under the Purchase Agreement. 
 In consideration of the foregoing, the parties hereto agree as follows: 
  

	 	1.	Definitions. 

 As used in this Agreement, the
following capitalized defined terms shall have the following meanings: 
 “1933 Act” shall mean the Securities Act of 1933,
as amended from time to time. 
 “1934 Act” shall mean the Securities Exchange Act of l934, as amended from time to time.

 “1939 Act” shall mean the Trust Indenture Act of 1939, as amended from time to time. 
 “Additional Interest” shall have the meaning set forth in Section 2.4(d) herein. 
 “Agreement” shall mean this Registration Rights Agreement as it may be amended, modified or supplemented from time to time in accordance
with the terms thereof. 
 “Closing Date” shall mean the Closing Time as defined in the Purchase Agreement. 
 “Common Stock” shall mean any shares of common stock, $0.1167 par value, of the Company and any other shares of common stock as may
constitute “Common Stock” for purposes of the Indenture. 
 “Company” shall have the meaning set forth in the
preamble and shall also include the Company’s successors. 
 “Depositary” shall mean The Depository Trust Company, or
any other depositary appointed by the Company, provided, however, that such depositary must have an address in the Borough of Manhattan, in the City of New York. 
 “Effectiveness Period” shall have the meaning set forth in Section 2.1(b) herein. 
 “Holder” shall mean the Initial Purchaser, for so long as it owns any Registrable Securities, and each of its successors, assigns and direct and indirect transferees who become owners, beneficial or otherwise, of
Registrable Securities under the Indenture. 
  

 1 

 “Indenture” shall mean the Indenture relating to the Securities, dated as of the date
hereof, between the Company and Wells Fargo Bank, National Association, as Trustee, as the same may be amended, supplemented, waived or otherwise modified from time to time in accordance with the terms thereof. 
 “Initial Purchaser” shall have the meaning set forth in the preamble. 
 “Issuer Free Writing Prospectus” shall have the meaning set forth in Section 2.1(f) herein. 
 “Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of outstanding Registrable Securities;
provided, that whenever the consent or approval of Holders of a specified percentage of Registrable Securities is required hereunder, Registrable Securities held by the Company or any Affiliate (as defined in the Indenture) of the Company
shall be disregarded in determining whether such consent or approval was given by the Holders of such required percentage amount. 
 “Offering Memorandum” means that certain offering memorandum dated February 1, 2007 relating to the issuance of the Notes. 
 “Person” shall mean an individual, partnership (general or limited), corporation, limited liability company, trust or unincorporated organization, or a government or agency or political subdivision
thereof. 
 “Prospectus” shall mean the prospectus included in a Shelf Registration Statement, including any preliminary
prospectus, and any such prospectus as amended or supplemented by any prospectus supplement, including any such prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by a Shelf
Registration Statement, and by all other amendments and supplements to a prospectus, including post-effective amendments, and in each case including all materials incorporated by reference therein. 
 “Purchase Agreement” shall have the meaning set forth in the preamble. 
 “Questionnaire” shall have the meaning set forth in Section 2.1(d) herein. 
 “Registrable Securities” shall mean all or any of the Notes issued from time to time under the Indenture in registered form, and the
shares of Common Stock issuable upon conversion of such Notes; provided, however, that any such Securities shall cease to be Registrable Securities upon the earliest to occur of (i) a Shelf Registration Statement with respect to such
Securities shall have been declared effective under the 1933 Act and such Securities shall have been disposed of pursuant to such Shelf Registration Statement, (ii) such Securities have been sold to the public pursuant to Rule 144 or may be
sold or transferred pursuant to Rule l44(k) (or any similar provision then in force, but not Rule 144A) under the 1933 Act, or (iii) such Securities shall have ceased to be outstanding. 
 “Registration Expenses” shall mean any and all expenses incident to performance of or compliance by the Company with this Agreement,
including without limitation: (i) all SEC, stock exchange or National Association of Securities Dealers, Inc. (the “NASD”) registration and filing fees, including, if applicable, the fees and expenses of any “qualified
independent underwriter” (and its counsel) that is required to be retained by any holder of Registrable Securities in accordance with the rules and regulations of the NASD, (ii) all fees and expenses incurred in connection with compliance
with state securities or blue sky laws and compliance with the rules of the NASD (including reasonable fees and disbursements of a single counsel for any underwriters in connection with blue sky qualification of 

  

 2 

 
any of the Registrable Securities and any filings with the NASD), (iii) all expenses of the Company in preparing or assisting in preparing, word
processing, printing and distributing any Shelf Registration Statement, any Prospectus, any amendments or supplements thereto, any securities sales agreements and other documents relating to the performance of and compliance with this Agreement,
(iv) all fees and expenses incurred in connection with the listing, if any, of any of the Registrable Securities on any securities exchange or exchanges, (v) all rating agency fees, if any, (vi) the fees and disbursements of counsel
for the Company and of the independent public accountants of the Company, including the expenses of any special audits or “comfort” letters required by or incident to such performance and compliance, (vii) the reasonable fees and
expenses of the Trustee, and any escrow agent or custodian, (viii) the reasonable fees and expenses of a single counsel to the Holders in connection with the Shelf Registration Statement (in no event shall the Company be obligated to pay fees
and expenses of such counsel in excess of $5,000), which counsel shall be selected by the Majority Holders, and (ix) any fees and expenses of any special experts retained by the Company in connection with any Shelf Registration Statement, but
excluding any underwriting discounts and commissions and transfer taxes, if any, relating to the sale or disposition of Registrable Securities by a Holder. 
 “Rule 430B Information” means any information included in a Prospectus that was omitted from the Shelf Registration Statement at the time it became effective but that is deemed to be part of and
included in such Shelf Registration Statement pursuant to Rule 430B under the 1933 Act. 
 “SEC” shall mean the United
States Securities and Exchange Commission or any successor agency or government body performing the functions currently performed by the United States Securities and Exchange Commission. 
 “Shelf Registration” shall mean a registration effected pursuant to Section 2.1 hereof. 
 “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company (which may include an automatic
shelf registration statement if the Company is a well-known seasoned issuer, as defined in Rule 405 under the 1933 Act) pursuant to the provisions of Section 2.1 of this Agreement, which covers all of the Registrable Securities on an
appropriate form under Rule 415 under the 1933 Act, or any similar rule that may be adopted by the SEC, and all amendments and supplements to such registration statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all materials incorporated by reference therein. 
 “Suspension
Period” shall have the meaning set forth in Section 2.5 herein. 
 “Trustee” shall mean the trustee with
respect to the Securities under the Indenture. 
  

	 	2.	Registration Under the 1933 Act. 

  

	 	2.1.	Shelf Registration. 

 (a) The Company
shall, at its cost, no later than 90 days after the Closing Date, file with the SEC, and thereafter shall use its commercially reasonable efforts to cause to be declared effective as promptly as practicable but no later than 180 days after
the Closing Date, a Shelf Registration Statement relating to the offer and sale of the Registrable Securities by the Holders that have provided the information pursuant to Section 2.1(d) provided, however, that in the event the
Company is eligible for, and elects to file, an automatic Shelf Registration Statement, the only obligation of the Company under this Section 2.1(a) shall be to file (and have become automatically effective) a Shelf Registration Statement with
the SEC no later than 120 days after the Closing Date. 
  

 3 

 (b) The Company shall, at its cost, use its commercially reasonable efforts, subject to
Section 2.5, to keep the Shelf Registration Statement continuously effective in order to permit the Prospectus forming part thereof to be usable by Holders for a period of two years from the Closing Date, or for such shorter period that will
terminate when all Registrable Securities covered by the Shelf Registration Statement have been sold pursuant to the Shelf Registration Statement, when the Holders, other than Affiliates (as defined in the Indenture) of the Company, are able to sell
or transfer to the public all Registrable Securities immediately without restriction pursuant to Rule 144 (or any similar provision then in force, including Rule 144(k) but not Rule 144A) under the 1933 Act or when all Registrable
Securities cease to be outstanding or otherwise to be Registrable Securities (the “Effectiveness Period”). 
 (c) Notwithstanding any other provisions hereof, the Company shall use its commercially reasonable efforts to ensure that (i) any Shelf Registration Statement and any amendment thereto and any Prospectus forming part thereof and any
supplement thereto complies in all material respects with the 1933 Act and the rules and regulations thereunder, (ii) any Shelf Registration Statement and any amendment thereto does not, when it becomes effective, contain an untrue statement of
a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading and (iii) any Prospectus forming part of any Shelf Registration Statement, and any supplement to such
Prospectus (as amended or supplemented from time to time), does not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they
were made, not misleading. 
 (d) Notwithstanding any other provision hereof, no Holder of Registrable Securities may include
any of its Registrable Securities in the Shelf Registration Statement pursuant to this Agreement unless the Holder furnishes to the Company a fully completed notice and questionnaire in the form attached as Annex A to the Offering Memorandum (the
“Questionnaire”) and such other information in writing as the Company may reasonably request in writing for use in connection with the Shelf Registration Statement or Prospectus included therein and in any application to be filed with or
under state securities laws. In order to be named as a selling securityholder in the Prospectus at the time of effectiveness of the Shelf Registration Statement (other than an automatic Shelf Registration Statement), each Holder must, before the
effectiveness of the Shelf Registration Statement and no later than the 20th day after the issuance of a press release by the Company announcing the initial filing of the Shelf Registration Statement, furnish the completed Questionnaire and such
other information that the Company may reasonably request in writing (it being understood, without limitation, that any requests by the Company made at the behest or request of the SEC shall be deemed to meet this standard), if any, to the Company
in writing and the Company will include the information from the completed Questionnaire and such other information, if any, in the Shelf Registration Statement and the Prospectus in a manner so that upon effectiveness of the Shelf Registration
Statement the Holder will be permitted to deliver the Prospectus to purchasers of the Holder’s Registrable Securities. In the case of an automatic Shelf Registration Statement, the Company will issue a press release soliciting completed
Questionnaires in advance of the filing and effectiveness of the registration statement, or promptly after the filing and effectiveness of the registration statement, so long as Holders have at least 20 days following the issuance of such press
release to furnish their written Questionnaires to the Company. From and after the date that the Shelf Registration Statement becomes effective or is first declared effective by the SEC, upon receipt of a completed Questionnaire and such other
information that the Company may reasonably request in writing, if any, the Company will use its commercially reasonable efforts to file within 20 business days any amendments or supplements to the Shelf Registration Statement necessary for such
Holder to be named as a selling securityholder in the Prospectus contained therein to permit such Holder to 

  

 4 

 
deliver the Prospectus to purchasers of the Holder’s Securities (subject to the Company’s right to suspend the Shelf Registration Statement as
described in Section 2.5 below); provided, however, that the Shelf Registration Statement shall include the disclosure required by Rule 430B under the 1933 Act in order to enable the Company to add selling securityholders on to
the Shelf Registration Statement pursuant to the filing of prospectus supplements. The Company shall not be required to file more than one such amendment to the Shelf Registration Statement in any calendar quarter for all such Holders. Holders that
do not deliver a completed written Questionnaire and such other information, as provided for in this Section 2.1(d), will not be named as selling securityholders in the Prospectus. Each Holder named as a selling securityholder in the Prospectus
agrees to promptly furnish to the Company all information required to be disclosed in order to make information previously furnished to the Company by the Holder not materially misleading and any other information regarding such Holder and the
distribution of such Holder’s Registrable Securities as the Company may from time to time reasonably request in writing. 
 (e) Each Holder agrees not to sell any Registrable Securities pursuant to the Shelf Registration Statement without delivering, or causing to be delivered, a Prospectus to the purchaser thereof and, following termination of the Effectiveness
Period, to notify the Company, within ten days of a written request by the Company, of the amount of Registrable Securities sold pursuant to the Shelf Registration Statement and, in the absence of a response, the Company may assume that all of such
Holder’s Registrable Securities have been so sold; provided, that the Company shall use reasonable efforts to confirm that all of such Holder’s Registrable Securities have been so sold prior to making such assumption. 
 (f) The Company represents and agrees that, unless it obtains the prior consent of Holders of a majority of the Registrable Securities
that are registered under the Shelf Registration Statement at such time or the consent of the managing underwriter in connection with any underwritten offering of Registrable Securities, and each Holder represents and agrees that, unless it obtains
the prior consent of the Company and any such underwriter, it will not make any offer relating to the Securities that would constitute an “issuer free writing prospectus,” as defined in Rule 433 (an “Issuer Free Writing
Prospectus”), or that would otherwise constitute a “free writing prospectus,” as defined in Rule 405, required to be filed with the SEC. The Company represents that any Issuer Free Writing Prospectus will not include any
information that conflicts with the information contained in the Shelf Registration Statement or the Prospectus and, any Issuer Free Writing Prospectus, when taken together with the information in the Shelf Registration Statement and the Prospectus,
will not include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 
 The Company shall not permit any securities other than Registrable Securities to be included in the Shelf Registration Statement. 
  

	 	2.2.	Expenses. The Company shall pay all Registration Expenses in connection with the registration pursuant to Section 2.1. Each Holder shall pay all underwriting discounts
and commissions, broker fees and commissions and transfer taxes, if any, relating to the sale or disposition of such Holder’s Registrable Securities pursuant to the Shelf Registration Statement. 

  

 5 

	 	2.3.	Effectiveness. 

 (a) The Company
will be deemed not to have used commercially reasonable efforts to cause the Shelf Registration Statement to become, or to remain, effective during the requisite period if the Company voluntarily takes any action that would, or omits to take any
action which omission would, result in any such Shelf Registration Statement not being declared effective or in the Holders of Registrable Securities covered thereby not being able to offer and sell such Registrable Securities during that period as
and to the extent contemplated hereby, unless such action is required by applicable law and except as contemplated by Section 2.5. 
 (b) A Shelf Registration Statement pursuant to Section 2.1 hereof will not be deemed to have become effective unless it has been declared effective by the SEC or has become automatically effective under the 1933
Act pursuant to Rule 462(e) thereunder; provided, however, that if, after it has been declared effective, the offering of Registrable Securities pursuant to a Shelf Registration Statement is interfered with by any stop order, injunction or
other order or requirement of the SEC or any other governmental agency or court, such Shelf Registration Statement will be deemed not to have become effective during the period of such interference, until the offering of Registrable Securities
pursuant to such Shelf Registration Statement may legally resume. 
  

	 	2.4.	Interest. In the event that (a) a Shelf Registration Statement is not filed with the SEC, in violation of Section 2.1(a), (b) a Shelf Registration Statement is
not declared effective or does not become effective, in violation of Section 2.1(a), (c) after effectiveness, subject to Section 2.5, the Shelf Registration Statement fails to be effective or usable by the Holders without being
succeeded within seven business days by a post-effective amendment or a report filed with the SEC pursuant to the 1934 Act that cures the failure to be effective or usable, or (d) the Shelf Registration Statement is unusable by the Holders for
any reason, and the number of days for which the Shelf Registration Statement shall not be usable exceeds the Suspension Period (as defined in Section 2.5 hereof) (each such event being a “Registration Default”), additional
interest (“Additional Interest”), will accrue at a rate per annum of one-quarter of one percent (0.25%) of the principal amount of the Notes for the first 90-day period from the day following the Registration Default, and thereafter
at a rate per annum of one-half of one percent (0.50%) of the principal amount of the Notes; provided, that, in no event shall Additional Interest accrue at a rate per annum exceeding one half of one percent (0.50%) of the principal amount of
the Notes; provided further, that no Additional Interest shall accrue after the second anniversary of the date of this Agreement. Upon the cure of all Registration Defaults then continuing, the accrual of Additional Interest will
automatically cease and the interest rate borne by the Notes will revert to the original interest rate at such time. Additional Interest shall be computed based on the actual number of days elapsed in each 90-day period in which the Shelf
Registration Statement is not effective or is unusable. Holders who have converted Notes into Common Stock will not be entitled to receive any Additional Interest with respect to such Common Stock or the issue price of the Notes converted.

 The Company shall notify the Trustee within five business days after each and every date on which an event occurs in respect
of which Additional Interest is required to be paid. Additional Interest shall be paid by depositing with the Trustee, in trust, for the benefit of the Holders of Registrable Securities, on or before the applicable semiannual interest payment date,
in immediately available funds in sums sufficient to pay the Additional Interest then due. The Additional Interest due shall be payable in arrears on each interest payment date to the record Holder of Registrable Securities entitled to receive the

  

 6 

 
interest payment to be paid on such date as set forth in the Indenture. Each obligation to pay Additional Interest shall be deemed to accrue from and
including the day following the Registration Default to but excluding the day on which the Registration Default is cured. 
 A Registration
Default under clause (a) above shall be cured on the date that the Registration Statement is filed with the SEC. A Registration Default under clause (b) above shall be cured on the date that the Shelf Registration Statement is declared
effective by the SEC or deemed to become automatically effective under the 1933 Act pursuant to Rule 462(e) thereunder. A Registration Default under clauses (c) or (d) above shall be cured on the date an amended Shelf Registration
Statement is declared effective by the SEC or deemed to become automatically effective under the 1933 Act pursuant to Rule 462(e) thereunder or the Company otherwise declares the Shelf Registration Statement and the Prospectus useable, as
applicable. The Company will have no liabilities for monetary damages other than the Additional Interest with respect to any Registration Default. 
  

	 	2.5.	Suspension. The Company may suspend the use of any Prospectus, without incurring or accruing any obligation to pay Additional Interest pursuant to Section 2.4 hereof,
for a period not to exceed 45 calendar days in any three-month period, or an aggregate of 120 calendar days in any twelve-month period (each, a “Suspension Period”), if the Board of Directors of the Company shall have determined in
good faith that because of valid business reasons (not including avoidance of the Company’s obligations hereunder), including without limitation proposed or pending corporate developments and similar events or because of filings with the SEC,
it is in the best interests of the Company to suspend such use, and prior to suspending such use the Company provides the Holders with written notice of such suspension, which notice need not specify the nature of the event giving rise to such
suspension. Each Holder shall keep confidential any communications received by it from the Company regarding the suspension of the use of the Prospectus, except as required by applicable law. 

  

	 	3.	Registration Procedures. 

 In connection with the
obligations of the Company with respect to the Shelf Registration, the Company shall: 
 (a) prepare and file with the SEC a
Shelf Registration Statement, within the relevant time period specified in Section 2, on the appropriate form under the 1933 Act, which form (i) shall be selected by the Company, (ii) shall be available for the sale of the Registrable
Securities by the Holders, (iii) shall comply as to form in all material respects with the requirements of the applicable form and include or incorporate by reference all financial statements required by the SEC to be filed therewith or
incorporated by reference therein, and (iv) shall comply in all respects with the applicable requirements of Regulation S-T under the 1933 Act, if any, and use commercially reasonable efforts to cause such Shelf Registration Statement to
become effective and remain effective in accordance with Section 2 hereof; 
 (b) prepare and file with the SEC such
amendments and post-effective amendments to the Shelf Registration Statement as may be necessary under applicable law to keep the Shelf Registration Statement effective for the Effectiveness Period, subject to Section 2.5; and cause each
Prospectus to be supplemented by any required prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provision then in force) under the 1933 Act and comply during the Effectiveness Period with the
provisions of the 1933 Act, the 1934 Act and the rules and regulations thereunder required to enable the disposition of all Registrable Securities covered by the Shelf Registration Statement in accordance with the intended method or methods of
distribution by the selling Holders thereof; 
  

 7 

 (c) (i) notify each Holder of Registrable Securities of the filing, by issuing a
press release, of a Shelf Registration Statement with respect to the Registrable Securities; (ii) furnish to each Holder of Registrable Securities that has provided the information required by Section 2.1(d) and to each underwriter of an
underwritten offering of Registrable Securities, if any, without charge, as many copies of each Prospectus, including each preliminary Prospectus, and any amendment or supplement thereto and such other documents as such Holder or underwriter may
reasonably request, including financial statements and schedules and, if the Holder so requests, all exhibits in order to facilitate the unrestricted sale or other disposition of the Registrable Securities; and (iii) subject to Section 2.5
hereof and to any notice by the Company in accordance with Section 3(e) hereof of the existence of any fact of the kind described in Sections 3(e)(ii), (iii), (iv), (v) and (vi) hereof, hereby consent to the use of the Prospectus
or any amendment or supplement thereto by each of the selling Holders of Registrable Securities that has provided the information required by Section 2.1(d) in connection with the offering and sale of the Registrable Securities; 
 (d) use commercially reasonable efforts to register or qualify the Registrable Securities under all applicable state securities or
“blue sky” laws of such jurisdictions as any Holder of Registrable Securities covered by a Shelf Registration Statement and each underwriter of an underwritten offering of Registrable Securities shall reasonably request, and do any and all
other acts and things which may be reasonably necessary or advisable to enable each such Holder and underwriter to consummate the disposition in each such jurisdiction of such Registrable Securities owned by such Holder; provided, however,
that the Company shall not be required to (i) qualify as a foreign corporation or as a dealer in securities in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), or (ii) take any action
which would subject it to general service of process or taxation in any such jurisdiction where it is not then so subject; 
 (e) notify promptly each Holder of Registrable Securities under a Shelf Registration that has provided the information required by Section 2.1(d) and, if requested by such Holder, confirm such advice in writing promptly (i) when a
Shelf Registration Statement has become effective and when any post-effective amendments (other than supplements that do nothing more than name Holders and provide information with respect thereto or that are required to be filed by the Company
under the 1934 Act) thereto become effective, (ii) of any request by the SEC or any state securities authority for post-effective amendments and supplements to a Shelf Registration Statement and Prospectus or for additional information after
the Shelf Registration Statement has become effective, (iii) of the issuance by the SEC or any state securities authority of any stop order suspending the effectiveness of a Shelf Registration Statement or the initiation of any proceedings for
that purpose, (iv) of the happening of any event or the discovery of any facts during the period a Shelf Registration Statement is effective which makes any statement made in such Shelf Registration Statement or the related Prospectus untrue in
any material respect or which requires the making of any changes in such Shelf Registration Statement or Prospectus in order to make the statements therein not misleading, (v) of the receipt by the Company of any notification with respect to
the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose and (vi) of any determination by the Company that a post-effective amendment
(other than supplements that do nothing more than name Holders and provide information with respect thereto or that are required to be filed by the Company under the 1934 Act) to such Shelf Registration Statement would be appropriate; 
  

 8 

 (f) furnish to the Initial Purchaser on behalf of the Holders and to special counsel to
the Initial Purchaser (i) copies of any comment letters received from the SEC with respect to a Shelf Registration Statement or, after the initial filing of a Shelf Registration Statement and prior to its effectiveness, any documents
incorporated therein and (ii) any other request by the SEC or any state securities authority for amendments or supplements to a Shelf Registration Statement and Prospectus or for additional information with respect to the Shelf Registration
Statement and Prospectus; 
 (g) use commercially reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of a Shelf Registration Statement as soon as practicable; 
 (h) furnish to each Holder of Registrable
Securities that has provided the information required by Section 2.1(d), and each underwriter, if any, without charge, at least one conformed copy of each Shelf Registration Statement and any post-effective amendment thereto, including
financial statements and schedules (without documents incorporated therein by reference and all exhibits thereto, unless requested); 
 (i) cooperate with the selling Holders of Registrable Securities to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold and not bearing any restrictive legends (other than as
required by the Company’s certificate of incorporation or bylaws or applicable law); and enable such Registrable Securities to be in such denominations (consistent with the provisions of the Indenture) and registered in such names as the
selling Holders or the underwriters, if any, may reasonably request at least three business days prior to the closing of any sale of Registrable Securities; 
 (j) upon the occurrence of any event or the discovery of any facts, each as contemplated by Sections 3(e)(ii), (iii), (iv),
(v) and (vi) hereof, as promptly as practicable after the occurrence of such an event, use commercially reasonable efforts to prepare a supplement or post-effective amendment to the Shelf Registration Statement or the related Prospectus or
any document incorporated therein by reference or file any other required document so that, as thereafter delivered to the purchasers of the Registrable Securities, such Prospectus will not contain at the time of such delivery any untrue statement
of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading or will remain so qualified. At such time as such public disclosure is otherwise
made or the Company determines that such disclosure is not necessary, in each case to correct any misstatement of a material fact or to include any omitted material fact, the Company agrees to promptly notify each Holder that has provided the
information required by Section 2.1(d) of such determination and to furnish each Holder such number of copies of the Prospectus as amended or supplemented, as such Holder may reasonably request; 
 (k) no less than three business days prior to the filing of any Shelf Registration Statement, any Prospectus, any amendment to a Shelf
Registration Statement or amendment or supplement to a Prospectus (other than amendments and supplements that do nothing more than name Holders and provide information with respect thereto or that are required to be filed by the Company under the
1934 Act), provide copies of such document to the Initial Purchaser on behalf of such Holders, and make representatives of the Company, as shall be reasonably requested by the Holders of Registrable Securities or the Initial Purchaser on behalf of
such Holders, available for discussion of such document; 
 (l) provide the Trustee with printed certificates for the
Registrable Securities in a form eligible for deposit with the Depositary; 
  

 9 

 (m) (i) use commercially reasonable efforts to cause the Indenture to be qualified
under the 1939 Act in connection with the registration of the Registrable Securities, (ii) cooperate with the Trustee and the Holders to effect such changes to the Indenture as may be required for the Indenture to be so qualified in accordance
with the terms of the 1939 Act, and (iii) execute, and use commercially reasonable efforts to cause the Trustee to execute, all documents as may be required to effect such changes, and all other forms and documents required to be filed with the
SEC to enable the Indenture to be so qualified in a timely manner; 
 (n) enter into such customary agreements and take all
other customary and appropriate actions in order to expedite or facilitate the disposition of such Registrable Securities, including, but not limited to: 
 (i) obtain opinions of counsel to the Company and updates thereof addressed to each selling Holder and the underwriters, if any, covering the matters set forth in the opinion of such counsel delivered at the Closing
Date; 
 (ii) obtain “comfort” letters and updates thereof from the Company’s independent certified public
accountants (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial statements are, or are required to be, included in the Shelf
Registration Statement) addressed to the underwriters, if any, and use reasonable efforts to have such letter addressed to the selling Holders of Registrable Securities (to the extent consistent with Statement on Auditing Standards No. 72 of the
American Institute of Certified Public Accounts), such letters substantially in the form and covering the matters covered in the comfort letter delivered on the Closing Date; 
 (iii) if an underwriting agreement is entered into, cause the same to set forth indemnification provisions and procedures substantially
equivalent to the indemnification provisions and procedures set forth in Section 4 hereof with respect to the underwriters and all other parties to be indemnified pursuant to said Section or, at the request of any underwriters, in the form
customarily provided to such underwriters in similar types of transactions; and 
 (iv) deliver such documents and
certificates as may be reasonably requested and as are customarily delivered in similar offerings to the Holders of a majority in principal amount of the Registrable Securities being sold and the managing underwriters, if any. 
 The above shall be done only in connection with any underwritten offering of Registrable Securities using such Shelf Registration Statement pursuant to an underwriting
or similar agreement as and to the extent required thereunder, and as reasonably requested by any of the parties thereto; provided, however, that in no event will an underwritten offering of Registrable Securities be made without the
prior written agreement of the Company; 
 (o) if reasonably requested in connection with a disposition of Registrable
Securities, make available for inspection during business hours by representatives of the Holders of the Registrable Securities, any underwriters participating in any disposition pursuant to a Shelf Registration Statement and any counsel or
accountant retained by any of the foregoing, all financial and other records, pertinent corporate documents and properties of the Company reasonably requested by any such persons, and cause the respective officers, directors, employees, 

  

 10 

 
and any other agents of the Company to supply all information reasonably requested by any such representative, underwriter, special counsel or accountant in
connection with a Shelf Registration Statement, and make such representatives of the Company available for discussion of such documents as shall be reasonably requested by the Initial Purchaser, in each case as is customary for “due
diligence” investigations; provided, that, to the extent the Company, in its reasonable discretion, agrees to disclose material non-public or other confidential information, such persons shall first agree in writing with the Company that
any such non-public or confidential information shall be kept confidential by such persons and shall be used solely for the purposes of exercising rights under this Agreement and such person shall not engage in trading any securities of the Company
until such material non-public or confidential information becomes properly publicly available, unless (i) disclosure of such information is required by court or administrative order or is necessary to respond to inquiries of regulatory
authorities, (ii) disclosure of such information is required by law (including any disclosure requirements pursuant to federal securities laws in connection with the filing of any Shelf Registration Statement or the use of any Prospectus
referred to in this Agreement upon a customary opinion of counsel for such persons delivered and reasonably satisfactory to the Company), (iii) such information becomes generally available to the public other than as a result of a disclosure or
failure to safeguard by any such person, (iv) such information becomes available to any such person from a source other than the Company and such source is not bound by a confidentiality agreement, or (v) the Company informs such Holders
that such non-public information ceases to be material; provided further, that, the foregoing inspection and information gathering shall, to the greatest extent possible, be coordinated on behalf of all the Holders and the other parties
entitled thereto by special counsel to the Holders; 
 The above shall be done only in connection with any underwritten offering of Registrable Securities
using such Shelf Registration Statement pursuant to an underwriting or similar agreement as and to the extent required thereunder, and as reasonably requested by any of the parties thereto; provided, however, that in no event will an
underwritten offering of Registrable Securities be made without the prior written agreement of the Company; 
 (p) a
reasonable time prior to filing the Shelf Registration Statement, any Prospectus forming a part thereof, any amendment to the Shelf Registration Statement or amendment or supplement to such Prospectus (other than amendments and supplements that do
nothing more than name Holders and provide information with respect thereto), furnish to the Initial Purchaser and one special counsel to the Initial Purchaser copies of all such documents proposed to be filed and use its commercially reasonable
efforts to reflect in each such document when so filed with the SEC such comments as the Initial Purchaser and such special counsel to the Initial Purchaser reasonably shall propose within three business days of the delivery of such copies to
the Initial Purchaser and counsel to the Initial Purchaser. In addition, if any Holder that has provided the information required by Section 2.1(d) shall so request in writing, a reasonable time prior to filing any such documents, the Company
shall furnish to such Holder copies of all such documents proposed to be filed and use its reasonable efforts to reflect in each such document when so filed with the SEC such comments as such Holder reasonably shall propose within three business
days of the delivery of such copies to such Holder; 
 (q) if requested by any selling Holder or the underwriters, if any,
incorporate in the Shelf Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if necessary, such information as such selling Holder or underwriter, if any, may reasonably request to have included therein with
respect to the name or names of such selling Holder, the number of shares of Common Stock or principal amount of Notes owned by such Holder, the plan of distribution of the Registrable Securities (as required by Item 508 of Regulation S-K), the

  

 11 

 
principal amount of Notes or number of shares of Common Stock being sold, the purchase price being paid therefor, and any other terms of the offering of the
Registrable Securities to be sold in such offering; 
 (r) use its commercially reasonable efforts to cause all Registrable
Securities to be listed on any securities exchange or inter-dealer quotation system on which similar debt securities issued by the Company are then listed if requested by the Majority Holders, or if requested by the underwriter or underwriters of an
underwritten offering of Registrable Securities, if any; 
 (s) otherwise comply with all applicable rules and regulations of
the SEC and make available to its securityholders, as soon as reasonably practicable, an earnings statement covering at least 12 months which shall satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158 thereunder; and

 (t) use its commercially reasonable efforts to cooperate and assist in any filings required to be made with the NASD by any
underwriter and its counsel (including any “qualified independent underwriter” that is required to be retained in accordance with the rules and regulations of the NASD). 
 Without limiting the provisions of Section 2.1(d), the Company may (as a condition to such Holder’s participation in the Shelf Registration)
require each Holder of Registrable Securities to furnish to the Company such information regarding the Holder and the proposed distribution by such Holder of such Registrable Securities as the Company may from time to time reasonably request in
writing. 
 Each Holder agrees that, upon receipt of any notice from the Company of the happening of any event or the discovery of any facts,
each of the kind described in Section 3(e)(ii), (iii), (iv), (v) and (vi) hereof, such Holder will forthwith discontinue disposition of Registrable Securities pursuant to the Prospectus included in the Shelf Registration Statement
until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section 3(j) hereof or written notice from the Company that the Shelf Registration Statement is again effective and no amendment or
supplement is needed, and, if so directed by the Company, such Holder will deliver to the Company (at its expense) all copies in such Holder’s possession, other than permanent file copies then in such Holder’s possession, of the Prospectus
covering such Registrable Securities current at the time of receipt of such notice. 
 In the event that a Registration Default occurs and is
continuing under Section 2.4(a) hereof, the Company shall not file any registration statement with respect to any securities (within the meaning of Section 2(l) of the 1933 Act) of the Company other than Registrable Securities or a
registration statement relating to the registration of securities under an employee benefit plan. In addition, in the event that a Registration Default occurs and is continuing under Section 2.4(b), (c) or (d) hereof, subject to other
contractual obligations of the Company to third parties, the Company will not take any action (including requesting acceleration of effectiveness) which would cause another registration statement with respect to any other securities (within the
meaning of Section 2(l) of the 1933 Act) of the Company to become or be declared effective. 
 If any of the Registrable Securities
covered by any Shelf Registration Statement are to be sold in an underwritten offering, the underwriter or underwriters and manager or managers that will manage such offering will be selected by the Majority Holders of such Registrable Securities
included in such offering and shall be acceptable to the Company. No Holder of Registrable Securities may participate in any underwritten registration hereunder unless such Holder (a) agrees to sell such Holder’s Registrable Securities on
the basis provided in any underwriting arrangements approved by the persons entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other
documents required under the terms of such underwriting arrangements. 
  

 12 

	 	4.	Indemnification; Contribution. 

 (a)
The Company agrees to indemnify and hold harmless the Initial Purchaser, each Holder, each Person who participates as an underwriter (any such Person being an “Underwriter”) and each Person, if any, who controls any such Initial
Purchaser, Holder or Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act as follows: 
 (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in any Shelf Registration
Statement (or any amendment or supplement thereto), including the Rule 430B information, pursuant to which Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or the omission or
alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus
(or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading; 
 (ii) against any and all loss, liability, claim, damage
and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon
any such untrue statement or omission, or any such alleged untrue statement or omission; provided, that (subject to Section 4(d) below) any such settlement is effected with the prior written consent of the Company; and 
 (iii) against any and all reasonable out-of-pocket expense whatsoever, as incurred (including the reasonable fees and disbursements of
counsel chosen by any indemnified party), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever
based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under subparagraph (i) or (ii) above; 
 provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out
of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by or on behalf of any Holder or Underwriter expressly for use in a Shelf
Registration Statement (or any amendment thereto), including the Rule 430B information, any Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto). 
 (b) Each Holder, severally, but not jointly, agrees to indemnify and hold harmless the Company, the Initial Purchaser, each Underwriter
and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company, the Initial 

  

 13 

 
Purchaser, any Underwriter or any other selling Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any
and all loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred (including the fees and disbursements of counsel chosen by the Company), but only with respect to untrue statements or
omissions, or alleged untrue statements or omissions, made in the Shelf Registration Statement (or any amendment thereto), including the Rule 430B Information, or any Prospectus included therein (or any amendment or supplement thereto) or any Issuer
Free Writing Prospectus in reliance upon and in conformity with written information with respect to such Holder furnished to the Company by or on behalf of such Holder expressly for use in the Shelf Registration Statement (or any amendment thereto)
or such Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus; provided, however, that no such Holder shall be liable for any claims hereunder in excess of the amount of net proceeds received by such Holder
from the sale of Registrable Securities pursuant to such Shelf Registration Statement. 
 (c) Each indemnified party shall
give notice as promptly as reasonably practicable to each indemnifying party of any action or proceeding commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve
such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement.
An indemnifying party may participate at its own expense in the defense of such action; provided, however, that counsel to the indemnifying party shall not (except with the consent of the indemnified party) also be counsel to the indemnified
party. In no event shall the indemnifying party or parties be liable for the fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action
or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or
consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be
sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability
arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. 
 (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and
expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than
45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and
(iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. 
 (e) If the indemnification provided for in this Section 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims, damages or expenses
referred to therein, then each indemnifying party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred, in such proportion as is appropriate to reflect the
relative fault of 

  

 14 

 
the Company on the one hand and the Holders and the Initial Purchaser on the other hand in connection with the statements or omissions which resulted in such
losses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations. 
 The relative fault of the
Company on the one hand and the Holders and the Initial Purchaser on the other hand shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to
state a material fact relates to information supplied by the Company, or by the Holders or the Initial Purchaser and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission. 
 The Company, the Holders and the Initial Purchaser agree that it would not be just and equitable if contribution pursuant to
this Section 4 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities,
claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include any reasonable out-of-pocket legal or other expenses reasonably incurred by such indemnified party in
investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission
or alleged omission. 
 Notwithstanding the provisions of this Section 4, the Initial Purchaser shall not be required to contribute any
amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which the Initial Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. 
 No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the 1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. 
 For purposes of
this Section 4, each Person, if any, who controls the Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or
Holder, and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company.

  

	 	5.	Miscellaneous. 

  

	 	5.1.	No Inconsistent Agreements. The Company has not entered into and the Company will not after the date of this Agreement enter into any agreement which is inconsistent with the
rights granted to the Holders of Registrable Securities in this Agreement or otherwise conflicts with the provisions hereof. The rights granted to the Holders hereunder do not and will not for the term of this Agreement in any way conflict with the
rights granted to the holders of the Company’s other issued and outstanding securities under any such agreements. 

  

	 	5.2.	Adjustments Affecting Registrable Securities. The Company shall not, directly or indirectly, intentionally take any action with respect to the Registrable Securities as a
class that would adversely affect the ability of the Holders of Registrable Securities to include such Registrable Securities in a registration undertaken pursuant to this Agreement. 

  

 15 

	 	5.3.	Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to
departures from the provisions hereof may not be given unless the Company has obtained the written consent of Holders of at least a majority in aggregate principal amount of the outstanding Registrable Securities (assuming conversion of all Notes
into Common Stock) affected by such amendment, modification, supplement, waiver or departure. Notwithstanding the foregoing, this Agreement may be amended by a written agreement between the Company and the Initial Purchaser, without the consent of
the Holders of the Registrable Securities, in order to cure any ambiguity or to correct or supplement any provision contained herein, provided that no such amendment shall adversely affect the interest of the Holders of Registrable Securities. Each
Holder of Registrable Securities outstanding at the time of any amendment, modification, waiver or consent pursuant to this Section 5.4, shall be bound by such amendment, modification, waiver or consent, whether or not any notice or writing
indicating such amendment, modification, waiver or consent is delivered to such Holder. 

  

	 	5.4.	Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand delivery, registered first-class mail, facsimile, or any
courier guaranteeing overnight delivery (a) if to a Holder, at the most current address given by such Holder to the Company in a Questionnaire or by means of a notice given in accordance with the provisions of this Section 5.5, which
address initially is the address set forth in the Purchase Agreement with respect to the Initial Purchaser; and (b) if to the Company, initially at the Company’s address set forth in the Purchase Agreement, and thereafter at such other
address of which notice is given in accordance with the provisions of this Section 5.5. 

 All such notices and
communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; four business days after being deposited in the mail, postage prepaid, if mailed; when receipt is acknowledged, if sent by facsimile; and
on the next business day if timely delivered to an overnight courier. 
 Copies of all such notices, demands, or other communications shall be concurrently
delivered by the person giving the same to the Trustee under the Indenture, at the address specified in such Indenture. 
  

	 	5.5.	Successor and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors, assigns and transferees of each of the parties, including, without
limitation and without the need for an express assignment, subsequent Holders; provided, that, nothing herein shall be deemed to permit any assignment, transfer or other disposition of Registrable Securities in violation of the terms of the
Purchase Agreement or the Indenture. If any transferee of any Holder shall acquire Registrable Securities, in any manner, whether by operation of law or otherwise, such Registrable Securities shall be held subject to all of the terms of this
Agreement, and by taking and holding such Registrable Securities such person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement, including the restrictions on resale set forth
in this Agreement and, if applicable, the Purchase Agreement, and such person shall be entitled to receive the benefits hereof. The Initial Purchaser (in its capacity as Initial Purchaser) shall have no liability or obligation to the Company with
respect to any failure by a Holder, other than such Initial Purchaser, to comply with, or breach by any Holder, other than such Initial Purchaser, of, any of the obligations of such Holder under this Agreement. 

  

 16 

	 	5.6.	Third Party Beneficiaries. The Initial Purchaser (even if the Initial Purchaser is not a Holder of Registrable Securities) shall be a third party beneficiary to the
agreements made hereunder between the Company, on the one hand, and the Holders, on the other hand, and shall have the right to enforce such agreements directly to the extent it deems such enforcement necessary or advisable to protect its rights or
the rights of Holders hereunder. Each Holder of Registrable Securities shall be a third party beneficiary to the agreements made hereunder between the Company, on the one hand, and the Initial Purchaser, on the other hand, and shall have the right
to enforce such agreements directly to the extent it deems such enforcement necessary or advisable to protect its rights hereunder. 

  

	 	5.7.	Specific Enforcement. Without limiting the remedies available to the Initial Purchaser and the Holders, the Company acknowledges that any failure by the Company to comply
with its obligations under Section 2.1 hereof may result in material irreparable injury to the Initial Purchaser or the Holders for which there is no adequate remedy at law, that it may not be possible to measure damages for such injuries
precisely and that, in the event of any such failure, the Initial Purchaser or any Holder may seek such relief as may be required to specifically enforce the Company’s obligations under Sections 2.1 hereof. 

  

	 	5.8.	Restriction on Resales. Until the expiration of two years after the original issuance of the Securities, the Company will not, and will cause its controlled Affiliates not
to, resell any Securities that are “restricted securities” (as such term is defined under Rule 144(a)(3) under the 1933 Act) that have been reacquired by any of them and shall immediately upon any purchase of any such Securities submit
such Securities to the Trustee for cancellation. 

  

	 	5.9.	Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the same agreement. 

  

	 	5.10.	Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 

  

	 	5.11.	GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS
THEREOF. 

  

	 	5.12.	Severability. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable,
the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby. 

  

	 	5.13.	Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement
and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with respect to the registration rights
granted by the Company with respect to the Registrable Securities. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter. 

  

 17 

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

  

			
	NEWPORT CORPORATION
		
	By:	 	 /s/ Jeffrey B. Coyne

	Name:	 	Jeffrey B. Coyne
	Title:	 	 Senior Vice President,
 General Counsel and Corporate
Secretary

  

			
	 Confirmed and accepted
 as of the date first
above written:

	
	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
		
	By:	 	 /s/ Manish Sarin

	Name:	 	Manish Sarin
	Title:	 	Vice President

 [Signature Page to Registration Rights Agreement]

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