Document:

Credit Agreement, dated as of March 27, 2007

 Exhibit 10.1 
 $40,000,000 
 CREDIT AGREEMENT 
 Dated as of 
 March 27, 2007 
 among 
 ALESCO FINANCIAL HOLDINGS,
LLC 
 Borrower 
 ALESCO FINANCIAL INC. 
 Guarantor 
 ROYAL BANK OF CANADA 
 U.S. BANK NATIONAL ASSOCIATION 
 Lenders 
 and 
 ROYAL BANK OF CANADA 
 Agent

 CREDIT AGREEMENT dated as of March 27, 2007 among ALESCO FINANCIAL HOLDINGS, LLC, a
Delaware limited liability company (“Borrower”), ALESCO FINANCIAL INC., a Maryland Corporation (“Guarantor”), ROYAL BANK OF CANADA and U.S. BANK NATIONAL ASSOCIATION (“Lenders”) and ROYAL BANK OF
CANADA, as agent for the Lenders (in such capacity, together with any successors thereto in such capacity, the “Agent”). 
 WHEREAS, Borrower has requested that Lenders make loans to it in an aggregate principal amount not exceeding $40,000,000 at any one time outstanding and Lenders are willing to make such loans upon the terms and conditions hereof;

 WHEREAS, Guarantor owns all outstanding shares of the capital stock of Borrower and will benefit from the loans made by Lender to
Borrower; 
 NOW, THEREFORE, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS AND ACCOUNTING TERMS; RULES OF CONSTRUCTION

 1.01 Definitions and Rules of Construction. As used in this Agreement, the following terms shall have the following
meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined): 
 “Affiliate”
means, with respect to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person. A Person shall be deemed to control another Person if such Person possesses, directly or
indirectly, the power to direct or cause the direction of the management and policies of such other Person, whether through the ownership of voting securities, by contract or otherwise. In the case of Borrower, “Affiliate” shall include
Cohen Brothers Management and any Affiliate of Cohen & Company Management. 
 “Agent Related Person” means any of
the Agent or any officer, director, employee, agent or Affiliate thereof. 
 “Agreement” means this Credit Agreement, as it
may be amended, supplemented, restated or otherwise modified from time to time. 
 “AHL” means Alesco Holdings Ltd., an
exempt company incorporated under the laws of the Cayman Islands. 
 “AHL Security Agreement” means, the Security Agreement
dated as of March 27, 2007, as form time to time amended, modified, supplemental or restated, between AHL and the Agent. 
 “Alesco Funding Entity” means any of (a) Alesco Preferred Funding X, Ltd. (“Alesco X”), Alesco Preferred Funding XI, Ltd. (“Alesco XI”), Alesco Preferred Funding XII, Ltd.
(“Alesco XII”), Alesco Funding XIII, Ltd. (“Alesco XIII”), Alesco Funding XIV, Ltd. 

  

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(“Alesco XIV”) Emporia Preferred Funding II, Ltd. (“Emporia II”) or Emporia Preferred Funding III, Ltd. (“Emporia
III”), each an exempt company organized under the laws of the Cayman Islands. 
 “Alesco Funding Preferred Shares”
means Preferred Shares, issued by an Alesco Funding Entity. 
 “Alesco Funding Securities” means Alesco Funding Preferred
Shares and other securities or notes issued by an Alesco Funding Entity. 
 “Applicable Margin” means (i) 2.75% in the
case of Eurodollar Loans and (ii) 1.50% in the case of Base Rate Loans. 
 “Assignment and Acceptance” has the meaning
specified in Section 10.06(b). 
 “Bankruptcy Code” means the United States Bankruptcy Reform Act of 1978, Title 11 of
the United States Code, as amended from time to time, and any successor statute. 
 “Base Rate” means, for any day, the
higher of (a) the Federal Funds Rate plus 0.50% and (b) the Prime Rate. 
 “Base Rate Loan” means a Loan at
such time as it bears interest based on the Base Rate. 
 “Borrowing” means a borrowing hereunder from both Lenders on a
Borrowing Date. 
 “Borrowing Date” means a date on which a Loan is made. 
 “Business Day” means (a) with respect to any borrowing or payment of, or determination of LIBOR with respect to, a Eurodollar Loan
or when used in the definition of Interest Period or with respect to a Notice of Conversion, any day on which dealings in U.S. Dollars are carried on in the London interbank market other than a Saturday, Sunday or other day on which commercial
banks in New York, New York are authorized or obligated by Law or by local proclamation to close, and (b) for all other purposes, any day other than a Saturday, Sunday or other day on which commercial banks in New York, New York, are authorized
or obligated by Law or by local proclamation to close. 
 “Capital Lease Obligations” means, as to any Person, the
obligations of such Person to pay rent and/or other amounts under a lease of (or other agreement conveying the right to use) real and/or personal property which obligations are required to be classified and accounted for as a capital lease on a
balance sheet of such Person prepared in accordance with GAAP and, for purposes of this Agreement, the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP. 
 “Change in Management” means (i) Cohen & Company Management ceasing to manage Guarantor pursuant to the Management
Agreement, (ii) Cohen & Company Management ceasing to be a direct or indirect wholly-owned subsidiary of Cohen Brothers LLC, or (iii) any 

  

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resignation or removal of any of Daniel Cohen as the Chairman or Jay McEntee as the President and Chief Executive Officer of Guarantor or Cohen &
Company Management or ceasing to have substantially the responsibility or authority at Guarantor and Cohen & Company Management customarily possessed by a Chairman or Chief Executive Officer, respectively. 
 “Change of Control” means that a “person” or “group” (within the meaning of Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended) (other than (i) the beneficial owners of Guarantors or Cohen Brothers LLC, as applicable, as of the date hereof, or(ii) Lender and its Affiliates) becomes the “beneficial owner” (as
defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of 50% or more of the total voting equity interests of Guarantor or Cohen Brothers LLC, or otherwise has the power to direct or cause the direction
of the management or policies of Borrower or Cohen Brothers LLC Equity interests whose holders do not possess voting power except upon the happening of contingencies or which entitle their holders to vote only with regard to matters as to which
holders of nonvoting preferred shares or limited partnership interests are customarily entitled to vote shall not constitute voting shares or voting equity interests for purposes of determining whether a Change of Control has occurred. 

“Cleanup Payment” has the meaning specified in Section 2.05(b). 
 “Cleanup Period” means a period of at least four (4) consecutive Business Day during which no loans are outstanding. For purposes
of determining whether any four Business Days are consecutive, any intervening non-Business Days shall be disregarded. 
 “Closing
Date” means the earliest date on which the conditions precedent to Lender’s obligation to make Loans to Borrower are satisfied or waived. 
 “Code” means the United States Internal Revenue Code of 1986, as amended from time to time. 
 “Cohen & Company Management” means [Cohen & Company Management LLC], a [Delaware] limited liability company. 
 “Cohen Securities” means Cohen & Company Securities, LLC, a Delaware limited liability company. 
 “Collateral” has the meaning specified in the Security Agreement and/or the AHL Security Agreement and includes all Pledged Alesco Funding Securities. 
 “Collateral Account” means the Dain Account or each other securities account or deposit account to which is credited any Collateral.

 “Collateralized Debt Obligation” or “Collateralized Loan Obligation” means an offering, by a special
purpose entity, of interests in secured debt obligations, and other investments permitted under the organizational and operating documents of such entity, which interests are sold to third party investors. 
  

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 “Commitment” means with respect to any Lender, such Lender’s obligation to make
Loans in an aggregate principal amount not exceeding at any one time outstanding the amount set forth for such Lender next to its name on the signature pages hereof (as such amount may be reduced pursuant to the terms hereof). 
 “Commitment Fees” has the meaning specified in Section 2.05(b). 
 “Commitment Percentage” means, as to each Lender, the percentage which such Lender’s Commitment represents of the Total
Commitments, as set forth next to the name of such Lender on the signature pages hereof. 
 “Commitment Period” means the
period from the Effective Date to the Termination Date. 
 “Consolidated VIE” means a variable interest entity that is
required under GAAP to be consolidated with Borrower. 
 “Conversion Date” means any date on which a Loan is converted from
one Type to another pursuant to Section 2.03(c) or any other provision of this Agreement. 
 “Credit Date” means
(a) each Borrowing Date, (b) each date on which a Loan is continued as the same Type of Loan for an additional Interest Period and (c) each date on which a Loan is converted to a different Type of Loan. 
 “Credit Documents” means this Agreement, the Security Agreement, the AHL Security Agreement, the Dain Control Agreement, any other
Control Agreement, the Note and all documents and instruments related to any of the foregoing. 
 “Creditor” means any
Lender or the Agent. 
 “Dain” means RBC Dain Rauscher Inc. 
 “Dain Account” means (i) Account No. 12Y3-5204-6135 maintained by Dain for Borrower and (ii) each securities account
established by Dain for Borrower in substitution thereof or replacement thereof or to which any Pledged Alesco Funding Securities or other items of Collateral are credited. 
 “Dain Account Agreement” means the Account Agreement dated September 25, 2006 between Borrower and Dain establishing the Dain
Account. 
 “Dain Control Agreement” means the Control Agreement dated the date hereof among the Borrower, Cohen Securities,
the Agent and Dain granting to the Agent, for the benefit of the Lenders, Control of the Dain Account. 
 “Debt” of any
Person means (a) indebtedness of such Person for borrowed money, (b) obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (c) obligations of such Person to pay the deferred purchase price of
property or services (excluding trade payables and other accounts payable incurred in the ordinary course of 

  

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business of such Person and not more than 90 days overdue), (d) Capital Lease Obligations of such Person, (e) Debt of others secured by a Lien on
the property of such Person, whether or not the Debt so secured has been assumed by such Person, (f) the maximum amount available to be drawn under all letters of credit issued for the account of such Person and all unpaid drawings in respect
of such letters of credit, (g) all obligations, contingent or otherwise, in respect of bankers’ acceptances, (h) all obligations of such Person to pay a specified purchase price for goods or services, whether or not delivered or
accepted, i.e., take-or-pay and similar obligations, (i) all obligations of such Person created or arising under any conditional sale or other title retention agreement or incurred as financing, (j) the net obligations of such
Person under derivative transactions (including but not limited to under Swap Agreements) or commodity transactions (determined in the case of any such transaction on the basis specified in the relevant Swap Agreement, commodity contract or other
agreement governing such transaction or (absent such specification) on a mark-to-market basis for the date of determination), and (k) obligations of such Person under any Guaranty of Debt of others of the kinds referred to in the foregoing
clauses (a) through (j). 
 “Default” means an Event of Default or any event that, with the giving of notice or lapse
of time, or both, would become an Event of Default. 
 “Depository Bank” means any bank maintaining a Collateral Account.

 “Dollars” and “$” mean lawful money of the United States of America. Any reference in this Agreement or
any other Credit Document to payment in “Dollars” or “$” means payment in immediately available Dollar funds. 
 “Effective Date” means the date on which this Agreement is executed and delivered by Borrower and Lender. 
 “Eurodollar Loan” means a Loan at such time as it bears interest based on LIBOR. 
 “Events of
Default” has the meaning specified in Section 7.01. 
 “Existing Credit Agreement” means the Credit Agreement
dated as of September 29, 2006 among Borrower, Alesco Financial Trust and Royal Bank of Canada. 
 “Extending Lender”
has the meaning specified in Section 2.11. 
 “Federal Funds Rate” means, for any day, the rate per annum (rounded
upwards, if necessary, to the nearest 1/100 of 1%) equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the
Federal Reserve Bank of New York on the Business Day next succeeding such day, provided that (a) if the day for which such rate is to be determined is not a Business Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if such rate is not so published for a particular day, the Federal Funds Rate for such day shall be the average rate quoted to the
Agent on such day for such transactions as determined by the Agent in good faith. 
  

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 “GAAP” means United States generally accepted accounting principles consistently
applied. 
 “Guaranty” by any Person means any obligation of such Person guaranteeing or in effect guaranteeing any Debt of
another Person, including but not limited to any obligation of such Person to purchase or pay (or supply or advance funds for the purchase or payment of) such Debt (whether arising by virtue of a partnership agreement, agreement to keep well, to
purchase property or assets or services, to take or pay, or to maintain financial statement conditions or otherwise), or any obligation incurred for the purpose of assuring the holder of such Debt of the payment thereof in whole or in part;
provided that the term “Guaranty” shall not include any endorsement of an instrument for deposit or collection in the ordinary course of business. 
 “Indemnified Party” has the meaning specified in Section 8.04. 
 “Insolvency
Proceeding” means (i) a voluntary or involuntary case under the Bankruptcy Code and/or (ii) any other case or proceeding under the laws of any jurisdiction relating to bankruptcy, insolvency, reorganization, or relief of debtors.

 “Interest Payment Date” means (i) with respect to any Eurodollar Loan, the last day of each Interest Period for such
Loan and (ii) with respect to any Base Rate Loan, the last Business Day of each calendar month. 
 “Interest Period”
means, as to any Eurodollar Loan, the period commencing on the Borrowing Date of such Loan or on the date on which the Loan is converted into or continued as a Eurodollar Loan, and ending on the date one, two or three months thereafter, as selected
by a Borrower pursuant to Section 2.03(a) or in a Notice of Conversion, provided that: 
 (i) if any Interest
Period would otherwise end on a day that is not a Business Day, that Interest Period shall be extended to the following Business Day unless the result of such extension would be to carry such Interest Period into another calendar month, in which
event such Interest Period shall end on the preceding Business Day; 
 (ii) any Interest Period that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period;
and 
 (iii) no Interest Period shall extend beyond the Stated Termination Date. 
 “Intermediary” means Dain or any other securities intermediary (as defined in Section 8-102(a) of the UCC) maintaining a Collateral
Account. 
 “Law” means any constitution, treaty, convention, statute, law, code, ordinance, decree, order, rule,
regulation, guideline, interpretation, directive or policy of a governmental, regulatory, or administrative body or an applicable order or decree of a court or arbitrator. 
  

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 “LIBOR” means for any Interest Period with respect to any Eurodollar Loans: 

(a) the rate per annum equal to the rate determined by the Agent to be the offered rate that appears on the page of the LIBOR 01 screen (or any
successor thereto) that displays an average British Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period, determined as of
approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period, or 
 (b) if the rate referenced in
the preceding subsection (a) does not appear on such page or service or such page or service shall cease to be available, the rate per annum equal to the rate determined by the Agent to be the offered rate on such other page or other service
that displays an average British Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period, determined as of approximately 11:00 a.m.
(London time) two Business Days Prior to the first day of such Interest Period, or 
 (c) if the rates referenced in the preceding subsections
(a) and (b) are not available, the rate per annum determined by the Agent as the rate of interest (rounded upward to the next 1/100th of 1%) at which deposits in Dollars for delivery on the first day of such Interest Period in same day
funds in the approximate amount of the Eurodollar Loans being made, continued or converted by a Borrower and with a term equivalent to such Interest Period would be offered by the Agent’s London branch to major banks in the offshore U.S. dollar
market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period. 
 “Lien” means any lien, pledge, security interest or other charge or encumbrance of any kind, or any other type of preferential arrangement, including but not limited to the lien or retained security title of a conditional
vendor and the interest of a lessor under a lease intended as security (but not including the interest of a lessor under any operating lease), and any filed Uniform Commercial Code financing statement or comparable filing in any other jurisdiction.

 “LLC Agreement” means the Limited Liability Company Agreement dated as of February 9, 2006 for the Borrower.

 “Loan” has the meaning specified in Section 2.01. 
 “Loan Limit” means the lesser of (i) the Total Commitments and (ii) an amount equal to the LTV Ratio (expressed as a decimal)
multiplied by the Value of the Collateral. 
 “LTV Ratio” means 50%. 
 “Majority Lenders” means Lenders whose Commitment Percentage total at least
66 2/3% or, if no Commitments are in effect, who hold Loans in an aggregate outstanding principal amount
exceeding 66 2/3% of the aggregate outstanding principal amount of all Loans. 
 “Management Agreement” means the Management Agreement dated as of January 31, 2006 between Guarantor and Cohen & Company
Management, as supplemented by 

  

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the Assignment and Assumption Agreement, by and among Alesco Financial Trust, Sunset Financial Resources, Inc. and Cohen & Company Management
(whereby Alesco Financial Trust, upon its merger with and into Jaguar Acquisition, Inc. (a wholly owned subsidiary of Guarantor) assigned all of its right, title and interest under the Management Agreement to Sunset Financial Resources, Inc. (which
was then renamed Alesco Financial Inc.) and Sunset Financial Resources, Inc. assumed all the right, title and interest of Alesco Financial Trust under the Management Agreement, and Cohen & Company Management consented to such assignment, as
from time further amended, modified, supplemented or restated. 
 “Margin Stock” means margin stock as defined in Regulation
U of the Board of Governors of the Federal Reserve System, 12 CFR §221.2, as in effect from time to time and any successor thereto, or other regulation or official interpretation of such Board relating to the extension of credit by banks for
the purpose of purchasing or carrying margin stock applicable to member banks of the Federal Reserve System. 
 “Material Adverse
Effect” means a material adverse effect on (a) the business, financial or other condition, assets or results of operations of an Obligor and its Subsidiaries, taken as a whole or any Alesco Funding Entity, (b) either
Obligor’s ability to perform its obligations under any Credit Document, (c) the validity or enforceability of any Credit Document or the rights or remedies of Lender thereunder, or (d) Borrower’s title to the Collateral or the
validity, enforceability, perfection or priority of Lender’s security interest on the Collateral. 
 “Non-Extending
Lender” has the meaning specified in Section 2.11. 
 “Note” means Borrower’s promissory note issued
pursuant hereto evidencing Loans made by a Lender, substantially in the form of Exhibit A, payable to the order of a Lender in the amount of the Commitment of such Lender or the outstanding amount of the Loans held by a Lender, and any other
promissory note acceptable to and accepted by a Lender from time to time in substitution or exchange therefor or renewal thereof. 
 “Notice of Borrowing” has the meaning specified in Section 2.02. 
 “Notice of Conversion”
means a notice of conversion of a Loan or Loans from one Type to the other Type, substantially in the form of Exhibit C. 
 “Obligations” means all unpaid principal of and accrued and unpaid interest on the Loans, all accrued and unpaid fees and all expenses, reimbursements, indemnities and other obligations of each Obligor to each Lender or any
Indemnified Party arising under or in connection with any of the Credit Documents. 
 “Obligor” means Borrower, Guarantor or
AHL, and “Obligors” means Borrower Guarantor and AHL collectively. 
 “Other Taxes” has the meaning
specified in Section 3.05. 
 “Participant” has the meaning specified in Section 9.06. 
  

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 “Permitted Lien” means a Lien specified in clauses (i), (ii) and (iii) of
Section 6.02(c). 
 “Person” means any natural person, partnership, corporation, trust (including a business trust),
limited liability company, joint stock company, unincorporated association, joint venture or other entity (or any segregated portfolio, segregated subfund, account, cell or other similar legally respected subdivision of the foregoing which may
contract on its own behalf or on whose behalf the entity may contract) or any government or any political subdivision or agency, department or instrumentality thereof. 
 “Pledged Alesco Funding Securities” means all Alesco Funding Securities pledged from time to time by Borrower to Lender pursuant to the Security Agreement or otherwise subject to the security interest
granted by the Security Agreement and all security entitlements of Borrower in respect thereof. 
 “Prime Rate” means for
any day, the rate of interest per annum determined by the Agent from time to time as its prime commercial lending rate for Dollar loans in the United States for such day. The Prime Rate is not necessarily the lowest rate charged by the Agent for
such loans. 
 “Request for Extension” has the meaning specified in Section 2.11. 
 “Reserve Requirement” means, with respect to any Interest Period, the reserve percentage applicable during such Interest Period (or if
more than one such percentage shall be so applicable, the daily average of such percentages for those days in such Interest Period during which any such percentage shall be so applicable) under regulations issued from time to time by the Board of
Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including but not limited to any emergency, supplemental or other marginal reserve requirement) for Lenders with respect to liabilities or
assets consisting of or including Eurocurrency liabilities (as defined in Regulation D of such Board, as in effect from time to time) having a term most closely corresponding to the term of such Interest Period. 
 “Responsible Officer” means any designee thereof, or any other authorized officer or representative of an Obligor acceptable to the
Agent, in each case for whom an incumbency certificate in form and manner reasonably acceptable to Lender has been provided by such Obligor to Lender. 
 “Security Agreement” means the Security Agreement dated as of the date hereof between Borrower and the Agent, as amended, supplemented, restated or otherwise modified from time to time. 
 “Security Interest” has the meaning specified in the Security Agreement and/or the AHL Security Agreement. 
 “Shareholder Equity” means, at any time, the amount shown as “shareholders equity” on the then most recent consolidated
financial statements of Guarantor furnished to Lender pursuant to Section 6.01(c). 
  

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 “Solvent” with respect to any Person means that the fair value of such Person’s
property is greater than the sum of such Person’s debts. 
 “Stated Termination Date” means September 27, 2007 or
such later date as may be determined pursuant to Section 2.11. 
 “Subsidiary” means, with respect to any Person, any
other Person of which more than 50% of the securities or other ownership interests, having by the terms thereof ordinary voting power to elect a majority of the board of directors or other persons performing similar functions for such other Person
(irrespective of whether or not at the time securities or other ownership interests of any other class or classes of such other Person shall have or might have voting power by reason of the happening of any contingency), are at the time directly or
indirectly owned or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person. 
 “Swap Agreement” means (i) any “swap agreement” as defined in §101(53B) of the Bankruptcy Code or any successor provision, or (ii) any “Transaction” as defined in
the form 1992 ISDA Master Agreement or the form 2002 ISDA Master Agreement, in either such case as published by the International Swaps and Derivatives Association, Inc. 
 “Taxes” means any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, including penalties and interest, imposed by any
governmental or other authority of any country, including any political subdivision thereof, other than taxes imposed on or measured by gross or net income of a Lender, and franchise taxes and branch profits taxes and similar taxes imposed on a
Lender, by (i) the jurisdiction under the Law of which such Lender is organized or any political subdivision thereof, (ii) any jurisdiction as a result of such Lender being engaged or deemed to be engaged in a trade or business in such
jurisdiction for reasons other than its extension of credit pursuant to this Agreement, or (iii) the jurisdiction in which is located the office through which such Lender is acting hereunder or any political subdivision thereof. 
 “Termination Date” means the Stated Termination Date or any earlier date on which the Commitment is terminated pursuant hereto.

 “Total Commitments” means the total Commitments of all Lenders. 
 “Type” means, with respect to any Loan, its nature as a Eurodollar Loan or a Base Rate Loan. 
 “UCC” means the Uniform Commercial Code as in effect in the State of New York. 
 “Unutilized Commitments” at any time the amount by which the Total Commitments in effect at such time exceeds the aggregate principal
amount of all Loans outstanding at such time. 
 “Utilization Period” means each period (i) commencing on the last day
of a Cleanup Period and (ii) ending on the first day the immediately succeeding Cleanup Period, provided that the first Utilization Period shall commence on the first Borrowing Date and end on the first day of the first Cleanup Period
thereafter. 
  

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 “Valuation Report” has the meaning specified in Section 6.01(d). 
 “Value” means, as further provided in Section 2.12, (i) with respect to Cash, the amount thereof, and (ii) with respect
to Pledged Alesco Funding Securities, the value thereof as set forth in the most recent Valuation Report delivered to Lender, subject to such adjustments in such value as the Agent shall in good faith deem appropriate to reflect circumstances
arising or occurring after the date of such Valuation Report, and (iii) with respect to any other item of Collateral, the fair market value of such item, as determined by the Agent in its reasonable discretion. 
 1.02 Computation of Time Periods. In this Agreement in the computation of periods of time from a specified date to a later specified date, the
word “from” means “from and including” and the words “to” and “until” mean “to but excluding.” 
 1.03 Accounting Terms. All accounting and financial terms not specifically defined herein shall be construed in accordance with GAAP. All banking terms not specifically defined herein shall be construed in accordance with general
practice among commercial banks in New York, New York. 
 1.04 Principles of Construction. (a) Unless otherwise expressly
specified herein, (i) references to Articles, Sections, Schedules and Exhibits are to Articles, Sections, Schedules and Exhibits of this Agreement, (ii) the words “hereof”, “herein”, “hereunder” and other
similar words refer to this Agreement as a whole, and (iii) words of any gender mean and include correlative words of the other genders. 
 (b) Unless otherwise specified, all terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto. 
 (c) The Table of Contents and the captions in this Agreement are for convenience only and shall not in any way affect the meaning or construction of any
provision of this Agreement. 
 (d) All references herein to times of day shall be New York City time unless otherwise expressly specified
herein. All references to “days” shall be to calendar days unless Business Days are specified. 
 (e) Each party hereto and its
counsel have reviewed this Agreement and the other Credit Documents and have participated in the preparation of this Agreement and the other Credit Documents. Accordingly, any rules of construction requiring that ambiguities are to be resolved
against a particular party shall not be applicable in the construction and interpretation of this Agreement and the other Credit Documents. 
  

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 ARTICLE II  
 THE CREDIT FACILITY 
 2.01 Loans. Subject to the terms and conditions hereof, each
Lender agrees to make loans (each, a “Loan”) to Borrower from time to time during the Commitment Period in an aggregate principal amount at any one time outstanding not to exceed the lesser of (i) the Commitment of such Lender
and (ii) the Commitment Percentage of such Lender (expressed as a decimal) multiplied by the Loan Limit. The Loans may from time to time be (i) Eurodollar Loans, (ii) Base Rate Loans, or (iii) a combination thereof, as determined
by Borrower and notified to the Agent in accordance with Sections 2.02 and 2.03. During the Commitment Period, Borrower may utilize the Commitment by borrowing hereunder, prepaying Loans in whole or in part and reborrowing hereunder, all in
accordance with the terms and conditions hereof. Each Loan shall be payable on the Termination Date. 
 2.02 Procedure for Borrowing.
(a) Borrower may borrow from the Lenders under the Total Commitments during the Commitment Period on any Business Day by delivering to the Agent a notice of borrowing substantially in the form of Exhibit B (a “Notice of
Borrowing”) (which notice, to be effective on the requested Borrowing Date, must be received by the Agent (a) prior to 12:00 noon, three Business Days before the requested Borrowing Date, if the requested Loans are initially to be
Eurodollar Loans or (b) prior to 11:00 a.m., on the requested Borrowing Date, if the requested Loans are initially to be Base Rate Loans), specifying (i) the amount of the proposed Borrowing, which shall be $1,000,000 or whole multiples of
$100,000 in excess thereof, (ii) the proposed Borrowing Date, and (iii) whether the requested Loans are to be Eurodollar Loans or Base Rate Loans and, in the case of a Eurodollar Loans, the initial Interest Period therefor;
provided, however, that the initial Borrowing shall be in an amount sufficient to repay all principal, interest and other amounts owing under the Existing Credit Agreement and the Agent is authorized to apply the proceeds of the
initial Borrowing hereunder directly to the repayment of such principal, interest and other amounts, as notified to it by Royal Bank of Canada. The Agent shall promptly notify each Lender of a requested Borrowing, specifying the amount thereof, the
requested Borrowing Date and each Lender’s share of the requested Borrowing. No later than 3:00 p.m. on the proposed Borrowing Date each Lender shall remit to the Agent such Lender’s pro rata share (which shall be equal to its Commitment
Percentage) of the Borrowing requested by the Borrower for such Borrowing Date. The Agent shall, unless it determines that any applicable condition specified in Article IV has not been satisfied, make the amount of the requested Borrowing available
to Borrower in immediately available funds on the requested Borrowing Date by crediting the amount in the Borrower’s operating account at the Agent’s branch at One Liberty Plaza, New York, New York, or as otherwise specified by the
Borrower to Lender in the notice of Borrowing. 
 (b) Unless the Agent shall have received notice from a Lender prior to the proposed date of
any Borrowing that such Lender will not make available to the Agent such Lender’s share of such Borrowing, the Agent may assume that such Lender has made such share available on such date in accordance with the provisions of this Agreement
concerning funding by Lenders and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Loans available to the Agent, then the
applicable Lender shall pay to the Agent forthwith on 

  

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demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but
excluding the date of payment to the Agent, at a rate determined by the Agent in accordance with prevailing banking industry practice on interbank compensation. If such Lender pays such amount to the Agent, then such amount shall constitute such
Lender’s Loan included in such Borrowing. If the Lender does not do so forthwith, the Borrower shall pay to the Agent forthwith on written demand such corresponding amount with interest thereon at the interest rate applicable to the Loans in
question. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that has failed to make such payment to the Agent. 
 2.03 Conversion and Continuation. (a) At least three Business Days prior to the expiration of each Interest Period for a Eurodollar Loan, Borrower shall notify the Agent (who shall promptly notify each
Lender thereof) of the requested duration of the succeeding Interest Period unless Borrower shall have given a timely Notice of Conversion with respect to such Eurodollar Loan pursuant to paragraph (b) of this Section 2.03 or unless
Borrower shall have given notice of its intention to prepay such Eurodollar Loan on or before the first day of any such succeeding Interest Period. If Borrower fails to timely notify the Agent of the desired duration of the Interest Period
succeeding an expiring Interest Period for a Eurodollar Loan, or to timely give notice of a conversion or a notice of prepayment of such Loan, it shall be deemed to have requested a one-month duration for such succeeding Interest Period;
provided that (i) no Eurodollar Loan may be continued as such when an Event of Default has occurred and is continuing and (ii) if such continuation is not permitted pursuant to the preceding clause (i), such Eurodollar Loan shall be
automatically converted to a Base Rate Loan on the last day of the then expiring Interest Period. 
 (b) Borrower may elect from time to time
to convert Loans from one Type to the other Type, by delivering to the Agent a Notice of Conversion (which Notice to be effective on the requested conversion date (a “Conversion Date”) must be received by the Agent (who shall
promptly notify each Lender thereof) by the time prescribed in Section 2.02 for receipt of a Notice of Borrowing for Loans of the Type being converted to); provided that (i) any such conversion of Eurodollar Loans may only be made
on the last day of an Interest Period with respect thereto, and (ii) no Base Rate Loan may be converted into a Eurodollar Loan when an Event of Default has occurred and is continuing. 
 2.04 Evidence of Indebtedness, Note. The Agent shall open and maintain on its books accounts and records evidencing the Loans made to Borrower.
The Agent shall record therein the amount of each Lender’s Loans, the interest rate applicable thereto, each payment of principal of or interest on each Lender’s Loans, interest, fees, expenses and other amounts payable by Borrower
hereunder and all other amounts paid by Borrower under this Agreement. Each Lender shall maintain similar accounts and records with respect to Loans made by it and amounts paid and owing to it hereunder. Such accounts and records maintained by the
Agent and each Lender will constitute, in the absence of manifest error, prima facie evidence of the indebtedness of Borrower to Lenders and the Agent pursuant to this Agreement, including the date each Lender made a Loan to Borrower, the
amount of such Loan, interest accrued on such Loan and the amounts Borrower has paid from time to time on account of the principal of and interest on each Loan and fees, expenses and other amounts payable by Borrower hereunder. The Loans of each
Lender shall also be evidenced by the Note issued to 
  

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such Lender. Each Lender is hereby authorized to record the date and amount of each Loan made by it and the date and amount of each payment or prepayment of
principal thereof on the schedule annexed to and constituting a part of the Note issued to such Lender; provided that a Lender’s failure to make any such recordation (or any error in such recordation) shall not limit or otherwise affect
Borrower’s obligations to such Lender hereunder or under the Note issued to such Lender. 
 2.05 Prepayments. (a) If at any
time the aggregate outstanding principal amount of the Loans exceeds the Loan Limit, Borrower shall, within two Business Days after written demand by the Agent, or by any Lender through the Agent, prepay the Loans and/or provide additional
Collateral consisting of cash or Alesco Funding Securities or such other Collateral as may be mutually agreed upon by Borrower and the Agent having a Value sufficient to eliminate such excess, provided that if the aggregate outstanding
principal amount of the Loans exceeds the Total Commitments, Borrower shall immediately prepay the Loans by an amount at least equal to such excess. 
 (b) Borrower shall not permit any Utilization Period to exceed one hundred and fifty (150) days. Accordingly Borrower shall prepay all outstanding Loans and all accrued interest thereon on the 150th day of each
Utilization Period (such a prepayment herein called a “Cleanup Payment”) and shall not make any borrowing hereunder for four consecutive Business Days following such prepayment. 
 (c) Borrower may at any time and from time to time prepay the Loans, in whole or ratably in part, without premium or penalty, upon prior notice to the
Agent (who shall promptly notify each Lender thereof, but in no event later than one Business Day after the Agent receives such notice), which notice must be received by the Agent prior to 11:00 a.m. three (3) Business Days prior to the
prepayment date specifying the date and amount of prepayment and the Type of Loans to be prepaid; provided that each prepayment of Eurodollar Loans on a day other than the last day of an Interest Period shall require the payment of all
amounts payable by Borrower pursuant to Section 3.04. Any such notice shall be irrevocable, and the payment amount specified in such notice shall be due and payable on the date specified, together with accrued interest to such date on the
amount prepaid. Partial prepayments of principal shall be in an amount of $1,000,000 or a whole multiple of $100,000 in excess thereof. 
 (d) Partial prepayments of the Loans shall be applied first to Base Rate Loans and then to Eurodollar Loans in such order as will minimize the amount payable by Borrower pursuant to Section 3.04. 
 2.06 Reduction or Termination of Commitments. Borrower may at any time, upon 5 Business Days’ prior notice to the Agent (who shall promptly
notify each Lender thereof), permanently terminate, or from time to time permanently ratably reduce, the Total Commitments; provided that each partial reduction of the Total Commitments shall be in an amount that is $1,000,000 or any whole
multiple of $500,000 in excess thereof. Each partial reduction of the Total Commitments shall be applied ratably to the Commitment of each Lender. In the case of a reduction of the Total Commitments, the Borrower shall, on the effective date of such
reduction, prepay in accordance with Section 2.05 so much of the aggregate outstanding principal amount of the Loans as exceeds the amount of the Total Commitments as so reduced 
  

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together with all interest accrued thereon. In the case of the termination of the Total Commitments, Borrower shall, on the effective date of any such
termination, prepay the principal amount of all outstanding Loans, all accrued and unpaid interest thereon and all fees, expenses and any other amounts due hereunder or under any other Credit Document. Once such termination or reduction has
occurred, the Total Commitments and each Lender’s Commitment, or the amount of such reduction, may not be reinstated. 
 2.07
Fees. (a) As consideration for the credit facility made available hereunder, Borrower shall pay to the Agent a non-refundable structuring fee and an annual Agent fee in amounts to be separately agreed to by Borrower and the Agent. Such
restructuring fee shall be due and payable on the earlier of the Closing Date and the Termination Date, and such Agent fee shall be due and payable annually in advance on the Closing Date and on each anniversary of the Closing Date. Without limiting
Borrower’s liability for payment of such fees, Borrower hereby authorizes Lender to deduct such fees from the proceeds of the Loans. 
 (b) Borrower agrees to pay to the Agent for the benefit of the Lenders a fee (the “Commitment Fee”) at the rate of 0.50% (fifty basis points) per annum on the amount of the Unutilized Commitment during the Commitment
Period. The Commitment Fee shall be payable in arrears on the last Business Day of each calendar quarter during the Commitment Period (commencing on the first such day to occur after the Effective Date) and on the Termination Date, shall be
calculated on the average daily amount of the Unutilized Commitment for each period for which the Commitment Fee is paid and shall be shared ratably by Lenders in accordance with their share of the Total Commitments. 
 2.08 Interest Rates and Payments Dates. (a) Each Eurodollar Loan shall bear interest on the outstanding principal amount thereof for each
Interest Period applicable thereto until it becomes due and payable or is converted into a Loan of another Type, at a rate per annum equal to LIBOR for such Interest Period plus the Applicable Margin. Interest accrued on each Eurodollar Loan
shall be payable in arrears on each Interest Payment Date, on any date on which such Loan is prepaid (on the amount prepaid), whether due to acceleration or otherwise, and at maturity. 
 (b) Each Base Rate Loan shall bear interest on the outstanding principal amount thereof, from the date such Loan is made until it becomes due and payable
or is converted into a Loan of another Type, at a rate per annum equal to the Base Rate for plus the Applicable Margin. Interest accrued on each Base Rate Loan shall be payable in arrears on each Interest Payment Date, commencing with the
first such date to occur after the Borrowing Date of such Loan, and at maturity. 
 (c) If all or a portion of (i) the principal amount
of any Loan, or (ii) any interest payable thereon or any other amount due hereunder or under any other Credit Document shall not be paid when due (whether at the stated maturity, by acceleration, on the 100th day of a Utilization Period or
otherwise), such overdue amount shall bear interest at a rate per annum that is (x) in the case of overdue principal, the rate that would otherwise be applicable thereto pursuant to paragraphs (a) or (b), as applicable, of this
Section 2.08 plus 2.00% and (y) in the case of overdue interest or any such other amount, the Base Rate plus the Applicable Margin plus 2.00%, in each case from the date of such non-payment until such amount is paid in
full (after as well as before judgment). Any such interest shall be payable in arrears on demand or, if no earlier demand for payment is made, on the last Business Day of each calendar month. 
  

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 (d) In no event shall the interest charged with respect to any Loan or any other obligation of Borrower
hereunder or under the Note exceed the maximum amount permitted by applicable Law. Notwithstanding anything to the contrary herein or elsewhere, if at any time the rate of interest payable for the account of Lender hereunder or under the Note (the
“Stated Rate”) would exceed the highest rate of interest permitted under any applicable law to be charged by such Lender (the “Maximum Lawful Rate”), then for so long as the Maximum Lawful Rate would be so exceeded,
the rate of interest payable for the account of such Lender shall be equal to the Maximum Lawful Rate; provided that if at any time thereafter the Stated Rate is less than the Maximum Lawful Rate, Borrower shall, to the extent permitted by
law, continue to pay interest for the account of such Lender at the Maximum Lawful Rate until such time as the total interest received by such Lender is equal to the total interest which such Lender would have received had the Stated Rate been (but
for the operation of this provision) the interest rate payable. Thereafter, the interest rate payable for the account of such Lender shall be the Stated Rate unless and until the Stated Rate again would exceed the Maximum Lawful Rate, in which event
this provision shall again apply. In no event shall the total interest received by a Lender exceed the amount which such Lender could lawfully have received had the interest been calculated for the full term hereof at the Maximum Lawful Rate. If a
Lender has received interest hereunder in excess of the Maximum Lawful Rate, such excess amount shall be applied to the reduction of the principal balance of the Loans of such Lender or to other amounts (other than interest) payable hereunder to
such Lender, and if no such principal or other amounts are then outstanding, such excess or part thereof remaining shall be paid to Borrower. 
 2.09 Interest and Fee Basis. (a) Commitment Fee and, whenever it is calculated on the basis of the Prime Rate, interest on Base Rate Loans shall be calculated on the basis of a 365-day (or 366-day, as the case may be) year for
the actual days elapsed; otherwise, interest shall be calculated on the basis of a 360-day year for the actual days elapsed. Agent shall as soon as practicable notify Borrower of each determination of LIBOR. Any change in the interest rate on a Loan
resulting from a change in the Base Rate shall become effective as of the opening of business on the day on which such change in the Base Rate is announced. Each determination of an interest rate by the Agent pursuant to any provision of this
Agreement shall be conclusive and binding on Borrower and Lenders in the absence of manifest error. 
 (b) Interest shall be payable for the
day a Loan is made but not for the day of any repayment thereof on the amount repaid if payment is received prior to 12:00 noon. If any principal of or interest on a Loan shall become due on a day that is not a Business Day, such due date shall be
extended to the next succeeding Business Day and, in the case of principal, such extension of time shall be included in computing interest payable on such principal. For purposes of the Interest Act (Canada), the annual rate of interest or
fees charged to Borrower to which the rate calculated in accordance with this Agreement is equivalent is the rate so calculated multiplied by a fraction, the numerator of which is the actual number of days in the calendar year in which such
calculation is made and the denominator of which is the number of days comprising the basis on which such interest is calculated. 
  

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 2.10 Method of Payment. (a) All payments (including prepayments) by Borrower on account of
principal, interest, fees and other amounts payable hereunder shall be made in Dollars and immediately available funds to the Agent for the account of Lenders or Agent, as the case may be, by 12:00 noon on the date when due at the office of the
Agent located at the address specified in Section 10.02 for notices to the Agent or as otherwise specified by the Agent to Borrower in writing. The Agent shall promptly after its receipt of such payment (but in no event later than 2:00 p.m. of
the Business Day of receipt or 10:00 a.m. of the next Business Day if received by the Agent after 2:00 p.m.) remit to each Lender all payments received by the Agent from Borrower in respect of principal of and interest on Loans held by such Lender
and in respect of all other amounts owed to such Lender. If, on the due date for any payment on any Loan or any Commitment Fee, the Agent has not received from Borrower notice that it intends to pay such payment from another source, then the Agent
is authorized (but shall not be required) to debit any deposit account of Borrower at the Agent for such payment. 
 (b) Unless the Agent
shall have received notice from Borrower prior to the date on which any payment is due to the Agent for the account of any Lender hereunder that Borrower will not make such payment, the Agent may assume that Borrower has made such payment on such
date in accordance herewith and may, in reliance upon such assumption, distribute the amount due to the Lenders. In such event, if Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay to the Agent forthwith
on demand the amount so distributed to such Lender with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Agent, at a rate determined by the Agent in accordance
with prevailing banking industry practice on interbank compensation. 
 2.11 Extension of Commitment. Not less than 30 days and not
more than 45 days before the Stated Termination Date then in effect, Borrower and Guarantor may, by written notice to the Agent (who shall promptly notify each Lender thereof, but in no event more than one Business Day after the Agent receives such
request) substantially in the form of Exhibit D (a “Request for Extension”), request that the Stated Termination Date be extended for a period of up to 180 days from the Stated Termination Date then in effect. Such request shall not
be effective as to a Lender unless such Lender consents thereto in writing no later than 15 days prior to the Stated Termination Date. A Lender may grant or withhold its consent in its sole and absolute discretion, provided that any failure
by a Lender to respond to such request in such time period shall be deemed to be a refusal by such Lender to extend. If a Lender shall consent in writing as provided herein to a request to extend the Stated Termination Date (an “Extending
Lender”), then on the then scheduled Stated Termination Date (i) the Commitment of the non-consenting Lender (a “Non-Extending Lender”) shall be terminated, (ii) the Total Commitments and the Commitment Percentage
of each Extending Lender shall be adjusted to reflect the termination of the Commitments of the Non-Extending Lender and (iii) the Stated Termination Date as to each Extending Lender(s) (but not as to a Non-Extending Lender) shall be extended
to the date specified in the Request for Extension. A Lender that consents to such requested extension of the Stated Termination Date shall so notify the Agent in writing, who shall then notify Borrower and Guarantor in writing of such Lender’s
consent. No consent to an extension of the Stated Termination Date, or notice of such consent by the Agent to Borrower and Guarantor, shall be effective unless it is in writing. 
  

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 2.12 Adjustments to Value. Without limiting the Agent’s discretion to determine Value (as
provided in the definition of such term herein) of any item of collateral, (i) the Value of the Collateral shall be reduced by the amount of any claims of, and liabilities or indebtedness to, third parties secured by a Lien on such item of
Collateral, (ii) any item of Collateral as to which the Agent reasonably determines there is insufficient current information may be assigned such Value as the Agent determines in its reasonable discretion, including a Value of zero
(provided that the Agent agrees that the provision of the Valuation Report pursuant to Section 6.01(d) will constitute sufficient information regarding the Pledged Alesco Funding Securities covered thereby), (iii) if the Agent
determines that for any reason, other than its own fault, it does not possess a valid, enforceable and perfected Lien for its own and Lenders’ benefit on any item of Collateral, which Lien is senior to all other Liens thereon, such item of
Collateral may be assigned by the Agent such Value as the Agent determines in its reasonable discretion, including a Value of zero, and (iv) if the Agent is notified by Borrower or any Lender, or otherwise learning of any event that could
reasonably be expected to have a Material Adverse Effect on any item of Collateral, such item of Collateral may be assigned such Value as the Agent in its reasonable discretion shall determine, including a Value of zero. No such reduction in the
Value of any item of Collateral shall limit the Agent’s or Lenders’ rights or Borrower’s obligation under Sections 6.02 and 7.01. 
 2.13 Pro Rata Treatment. All Borrowings, all payments of principal, interest and Commitment Fees, all conversions of Loans from one Type to another and all reductions of the Commitments shall be made ratably with respect to the
Lenders in proportion to their share of (i) the outstanding Loans (in the case of payments of principal and interest) and (ii) the Total Commitments (in the case of reductions of the Commitments of Lenders or payment of Commitment Fees);
provided that if any one or more, but not all, Lenders refuse to extend the Stated Termination Date in accordance with Section 2.11 and there exists no Event of Default on the scheduled Statement Termination Date (before giving effect to
any extension thereof), payments of principal, interest and fees shall be made to the Non-Extending Lenders, and their Commitment shall be reduced to zero, without corresponding payments of principal, interest or fees, or termination of the
Commitment, of Extending Lenders which agree to extend the Stated Termination Date pursuant to Section 2.11. 
 2.14 Termination of
Existing Credit Agreement. Concurrently with the initial Borrowing hereunder the Existing Credit Agreement and the Commitment (as defined therein) of Royal Bank of Canada thereunder shall terminate; provided, however, that all
obligations of the Borrower which by the terms of the Existing Credit Agreement survive the termination thereof shall survive. 
 ARTICLE
III  
 CHANGE IN CIRCUMSTANCES 
 3.01 Yield Protection. If after the date hereof the introduction of, or any change in, any Law or governmental or quasi-governmental rule, regulation, policy, guideline or directive (whether or not having the
force of law), any interpretation thereof or compliance by Lender therewith: 
 (a) subjects Lender or any applicable lending
office to any Tax on or from payments due from Borrower, excluding any Taxes or Other Taxes required to be paid by Borrower pursuant to Section 3.05 hereof, or changes the basis of taxation of payments to a Lender in respect of the Loans or
other amounts due it hereunder; 
  

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 (b) imposes or increases or deems applicable any reserve (other than the Reserve
Requirement), assessment, insurance charge, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, a Lender or any applicable lending office; or 
 (c) imposes any other condition on a Lender, 
 the result of which is to increase the cost to such Lender or any applicable lending office of making, funding or maintaining Loans, to reduce any amount received by such Lender or any applicable lending office in connection with its Loans
or to require such Lender or any applicable lending office to make any payment calculated by reference to the amount of loans held or interest received by such Lender, by an amount deemed material by such Lender, then, within fifteen days after
demand by such Lender (through the Agent), Borrower shall pay such Lender that portion of such increased cost incurred or reduction in amount received that such Lender determines is attributable to making, funding and/or maintaining its Loans and/or
its Commitment. 
 3.02 Changes in Capital Adequacy Regulations. If a Lender determines that, after the date hereof, the adoption or
implementation of any applicable Law regarding capital requirements for banks or bank holding companies, or any change therein (including, without limitation, any change according to a prescribed schedule of increasing requirements, whether or not
known on the date hereof), or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by such Lender with
any request or directive of any such Person regarding capital adequacy (whether or not having the force of law) has the effect of reducing the return on such Lender’s capital to a level below that which such Lender could have achieved (taking
into consideration such Lender’s policies with respect to capital adequacy immediately before such adoption, implementation, change or compliance and assuming that such Lender’s capital was fully utilized prior to such adoption,
implementation, change or compliance) but for such adoption, implementation, change or compliance as a consequence of such Lender’s Commitment or outstanding Loans by any amount deemed by such Lender to be material, Borrower shall pay to such
Lender from time to time on demand, as an additional fee, such amount as Lender determines and notifies Borrower (through the Agent) to be necessary to compensate such Lender for such reduction. The determination by a Lender of such amount shall be
conclusive in the absence of manifest error. Each Lender may use any reasonable averaging and attribution methods. 
 3.03 Availability of
Eurodollar Loans. If a Lender determines that the making or maintenance of Eurodollar Loans would violate any Law applicable to such Lender, whether or not having the force of law, or if a Lender determines that funds of a type and maturity
appropriate to match fund Eurodollar Loans are not available to such Lender, then such Lender shall so notify Borrower and the Agent and such Lender’s obligation to make Eurodollar 

  

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Loans hereunder shall be suspended, any requested Eurodollar Loan shall be made by such Lender as a Base Rate Loan and any outstanding Eurodollar Loans of
such Lender shall be converted to Base Rate Loans at the end of the then current Interest Period therefor or at such earlier time as may be required by applicable Law. 
 3.04 Funding Reimbursement. If any payment of a Eurodollar Loan occurs on a date that is not the last day of an Interest Period for such Eurodollar Loan, whether because of demand for payment, acceleration,
mandatory prepayment, optional prepayment or otherwise (including a Cleanup Payment), or a Eurodollar Loan is not made on the date specified by Borrower for any reason other than default by Lender, Borrower shall reimburse each Lender for any loss
or cost (excluding lost profits) incurred by such Lender resulting therefrom, including (but not limited to) any loss or cost in liquidating or employing deposits acquired to fund or maintain such Eurodollar Loan. 
 3.05 Taxes. (a) Any and all payments by Borrower hereunder or under each Note shall be made free and clear of, and without deduction for, any
and all Taxes now or hereafter imposed. If Borrower shall be required by law to deduct or withhold Taxes from or in respect of any sum payable to a Lender or the Agent hereunder or under a Note, (i) Borrower shall pay such Lender or the Agent,
as the case may be, such additional amount as may be necessary in order that the net amount received by such Lender or the Agent, as the case may be, after every required deduction or withholding (including any required deduction from, or
withholding with respect to, any such additional amount) shall equal the amount such Lender or the Agent, as the case may be, would have received had no such deduction or withholding been made, (ii) Borrower shall make such deduction or
withholding, (iii) Borrower shall pay the full amount deducted or withheld to the relevant taxation authority or other authority in accordance with applicable Law, and (iv) Borrower shall obtain and deliver to the affected Lender or the
Agent, as the case may be, official receipts from the relevant taxing authority evidencing such payment, a copy of the return reporting such payment, or other evidence of such payment satisfactory to Lender or the Agent, as the case may be, in its
sole discretion. 
 (b) In addition, Borrower agrees to pay any present or future stamp or documentary taxes and all other excise or property
taxes, charges or similar levies (excluding any tax on any transfer or assignment of, or any participation in, this Agreement, any Note or any other Credit Document (or any portion thereof) that is not made or granted at Borrower’s request)
which arise from any payment made hereunder or under any Note or from the execution or delivery of, or otherwise with respect to, this Agreement, any Note or any other Credit Document (“Other Taxes”). Within 30 days after payment by
Borrower of any Other Taxes pursuant to this Section 3.05(b), Borrower shall obtain and deliver to the affected Lender official receipts from the relevant taxing authority evidencing such payment, a copy of the return reporting such payment, or
other evidence of such payment satisfactory to Lender in its sole discretion. 
 (c) Borrower will indemnify each Lender and the Agent for
the full amount of Taxes or Other Taxes required to be paid by Borrower pursuant to Section 3.05(a) or 3.05(b) but which are asserted directly against any Lender or the Agent and paid by any Lender or the Agent in respect of any payment
hereunder or the execution and delivery of any Credit Document (including any Taxes or Other Taxes imposed or asserted by any jurisdiction on amounts payable 

  

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under this Section 3.05), and any liability (including penalties, interest and expenses) arising therefrom or with respect thereto, whether or not such
Taxes or Other Taxes were correctly or legally asserted. This indemnification shall be made within 15 days after the date such Lender or the Agent makes demand therefor, accompanied by a certificate of a Lender or the Agent setting forth in
reasonable detail the amount to be paid to it under this paragraph (c), which certificate shall be, absent manifest error, prima facie evidence of such amount. Nothing contained herein shall impose any obligation on Lender or the Agent to
apply for any refund or credit, or disclose to Borrower or any other Person its tax returns or any document or information regarding or containing its proprietary information with respect to its tax affairs and computations. 
 3.06 Lender Statements, Survival of Indemnity. To the extent reasonably possible, each Lender shall (upon Borrower’s written request and
agreement to reimburse such Lender for its costs and expenses incurred in connection therewith) designate an alternate lending office with respect to Eurodollar Loans to reduce any liability of Borrower to such Lender under Sections 3.01 and 3.02 or
to avoid the unavailability of Eurodollar Loans under Section 3.03, so long as such designation is not, in such Lender’s judgment, disadvantageous to such Lender. Any such Lender or the Agent regarding compensation payments under
Section 3.01, 3.02 or 3.04 shall deliver to Borrower a written statement as to the amount due (if any) under Section 3.01, 3.02 or 3.04. Such written statement shall set forth in reasonable detail the calculations upon which such Lender or
the Agent determined such amount and shall be final, conclusive and binding on Borrower in the absence of manifest error. Determination of amounts payable under such Sections in connection with a Eurodollar Loan shall be calculated as though the
affected Lender funded such Eurodollar Loan through the purchase of a deposit of the type and maturity corresponding to the deposit used as a reference in determining the LIBOR applicable to such Loan, whether or not that is in fact the case. Unless
otherwise provided herein, the amount specified in any such written statement shall be payable on demand after the receipt by Borrower of the written statement. Borrower’s obligations under Sections 3.01, 3.02, 3.04 and 3.05 shall survive the
payment of the Obligations and termination of this Agreement. 
 ARTICLE IV  
 CONDITIONS PRECEDENT 
 4.01
Conditions Precedent to Initial Loan. Each Lender’s obligation to make its initial Loan hereunder is subject to the fulfillment, to the satisfaction of the Agent and its counsel, of each of the following conditions: 
 (a) The Agent shall have received the following, each (as applicable) duly executed and in form and substance satisfactory to the Agent in its sole
discretion: 
 (i) the Notes, duly executed by Borrower, payable to the order of each Lender; 
 (ii) the Security Agreement duly executed by Borrower AHL and Cohen & Company Securities LLC and all documents contemplated
thereby; 
  

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 (iii) the AHL Security Agreement duly executed by AHL; 
 (iv) the Dain Control Agreement duly executed by Borrower and Dain; 
 (v) a copy of the Dain Account Agreement; 
 (vi) copy of the Certificate of Formation and LLC Agreement of Borrower as then in effect; 
 (vii) copy of the Guarantor’s articles of incorporation and By-laws as then in effect; 
 (viii) a copy of the
Management Agreement as in effect on the date hereof; 
 (ix) certified copies of (A) resolutions of the Board of
Managers of Borrower and of the Board of Directors of Guarantor authorizing and approving the execution, delivery and performance by Borrower and Guarantor of this Agreement and the other Credit Documents and the borrowings hereunder, and
(B) documents evidencing all other necessary actions and governmental approvals, if any, with respect to this Agreement and any other Credit Document and the transactions contemplated hereby and thereby; 
 (x) a certificate of Borrower, executed by an authorized officer, certifying the names, titles and true signatures of the officers of
Borrower authorized to sign this Agreement or any other Credit Document to which Borrower is a party and to make Borrowings hereunder and otherwise to act on behalf of Borrower hereunder and stating that Lender is authorized to rely thereon until
notified of any change by Borrower; 
 (xi) a certificate of Guarantor, executed by its Secretary, certifying the names,
titles and true signatures of the officers of Guarantor authorized to sign this Agreement or any other Credit Document to which Guarantor is a party and authorized to act on behalf of Guarantor hereunder and stating that Lender is entitled to rely
thereon until notified of any change by Guarantor in writing; 
 (xii) a certificate issued by the Secretary of State of
Delaware, dated a date not more than ten Business Days prior to the Closing Date, as to the valid existence and good standing of Borrower; 
 (xiii) a certificate issued by the Secretary of State of the State of Maryland dated a date not more than ten Business Days prior to the Closing Date, as to the valid existence and good standing of Guarantor;

 (xiv) written opinion(s) of Lamb McErlane PC, counsel to Borrower and Guarantor, in form and substance satisfactory to the
Agent, addressed to the Agent and each Lender and dated the Closing Date covering such matters as the Agent or any Lender shall specify; 
  

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 (xv) written opinion of Cayman Islands counsel to AHL, satisfactory in form and substance
to the Agent, as to the power and authority of AHL to execute, deliver and perform the AHL Security Agreement and each other Credit Document executed and delivered by it, as to its due execution and delivery thereof and as to such other matter as
the Agent or any Lender shall specify; 
 (xvi) evidence that the Alesco Funding Preferred Shares set forth in Schedule
4.01(a) hereto are credited to the Dain Account and that such Alesco Funding Preferred Shares have a Value of not less than $160,000,000; 
 (xvii) evidence of the due filing in each appropriate jurisdiction of such documents, and the taking of all such other actions, as the Bank shall specify to obtain a first priority, perfected Lien on the Collateral;

 (xviii) the results of tax, judgment and lien searches on Borrower in all jurisdictions specified by the Agent, each dated
a date not more than ten Business Days prior to the Closing Date; 
 (xix) a copy of a Valuation Report as of
February 28, 2007; and 
 (xx) such other approvals, opinions and documents relating to the organization, existence and
good standing of each Obligor, this Agreement and the transactions contemplated hereby as Lender shall have requested. 
 (b) Borrower shall
have reimbursed the Agent and each Lender for legal fees incurred by the Agent pursuant to Section 10.04 that have been invoiced to Borrower. 
 4.02 Conditions Precedent to Each Loan. No Lender shall be required to make any Loan (including its initial Loan), to continue a Loan for an additional Interest Period or to convert Loans of one Type to the other Type, unless on the
applicable Credit Date: 
 (a) The Agent has received (and has forwarded to each Lender), in the case of (i) the making
of a Loan, the relevant Notice of Borrowing, or (ii) the conversion of a Loan, the relevant Notice of Conversion, in each case duly executed by Borrower; 
 (b) no Default exists or would result from such borrowing or the application of the proceeds thereof, such continuation or such
conversion; 
 (c) each Obligor’s representations and warranties contained in Article V or in the Security Agreement, are
true and correct in all material respects on and as of such Credit Date as though made on and as of such Credit Date; 
 (d)
there has not been promulgated, enacted, entered or enforced by any governmental or regulatory authority, body or entity any Law applicable to the transactions contemplated hereby, nor is there pending any action or proceeding by or before any such
authority, body or entity involving a substantial likelihood of an order, that would prohibit, restrict, delay or otherwise materially affect the execution, delivery, performance or enforceability of the Credit Documents, or the making of the Loans
or the enforceability, perfection or priority of Lender’s Lien on the Collateral; 
  

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 (e) the Agent has received from counsel to Borrower, Guarantor and/or AHL (who shall be
reasonably satisfactory to the Agent) a written opinion, in form and substance satisfactory to the Agent, addressed to the Agent and each Lender and dated the date of such borrowing, conversion or continuation covering such matters incident to the
transactions contemplated hereby as the Agent or any Lender may request, if as a result of a change in Law or change in other circumstances, the Agent or any Lender has requested such an opinion; 
 (f) all legal matters incident to the making, continuation or conversion of such Loan are satisfactory to the Agent Lender and its
counsel; and 
 (g) there shall have occurred no event, condition or circumstance which a Lender reasonably determines (and
notifies the Agent, the other Lenders and Borrower) constitutes, or could constitute, a Material Adverse Effect. 
 Each borrowing, continuation or
conversion of a Loan shall constitute a representation and warranty by Borrower that the conditions contained in Sections 4.02 (b), (c), and (d) have been satisfied. 
 ARTICLE V  
 REPRESENTATIONS AND WARRANTIES 
 Borrower and Guarantor represent and warrant, jointly and severally, to the Agent and each Lender on and as of the date hereof and each Credit Date that:

 5.01 Existence and Good Standing; Subsidiaries. Borrower is a limited liability company duly organized, validly existing and in good
standing under the laws of Delaware. Guarantor is a real estate investment trust duly organized, validly existing and in good standing under the laws of Maryland. Each Obligor is duly qualified and in good standing as a foreign company in each other
jurisdiction in which its ownership or leasing of property or the conduct of its business requires it to so qualify or be licensed and where failure so to qualify and be in good standing or to be licensed could have a Material Adverse Effect. The
Borrower has all requisite power and authority to own the Collateral, and each Obligor has the requisite power and authority to own or lease and operate its other properties, and to carry on its business as now conducted and as proposed to be
conducted. Guarantor qualifies as a real estate investment trust under Section 856 of the Code. The LLC Agreement is in full force and effect. The copies of the LLC Agreement and the Guarantor’s charter documents delivered to Lender
pursuant to Section 4.01 are true and correct copies thereof as in effect on the date hereof. Guarantor owns all outstanding capital stock of Borrower. Schedule 5.01 sets forth as of the date hereof a list of all Subsidiaries of Borrower on the
date hereof and its percentage ownership interest therein. 
 5.02 Power and Authority; No Conflict. The execution, delivery and
performance by each Obligor of this Agreement and the other Credit Documents to which it is a 
  

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party, and the grant by Borrower to Lender of the Lien contemplated hereby with respect to the Collateral, are within its powers, have been duly authorized
by all necessary action of the relevant Obligor and do not (a) contravene or violate the LLC Agreement or the Guarantor’s charter documents, as applicable, (b) contravene or violate any contractual restriction binding on the relevant
Obligor or require any consent under any agreement or instrument to which it or any of its Affiliates is a party or by which it or any of its properties or assets is bound, (c) result in or require the creation or imposition of any Lien upon
any property or assets of any Obligor other than Liens permitted by Section 6.02(c), or (d) violate any Law, order, writ, judgment, injunction, decree, determination or award. 
 5.03 No Filings or Approvals. Except for any filings specifically provided for in the Security Agreement or in Section 4.01 hereof, no order,
consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption or waiver by, any governmental or regulatory authority, body or entity or any other third party (except such as have been obtained or
made and are in full force and effect) is required to authorize, or is required in connection with (a) the execution, delivery and performance by an Obligor of any Credit Document to which it is a party or the grant of the Security Interest to
the Lender under (and as defined in) the Security Agreement, (b) the legality, validity, binding effect or enforceability of any Credit Document, or (c) the validity, enforceability, perfection or priority of any Lien created under any
Credit Document. 
 5.04 Execution; Validity. This Agreement and the other Credit Documents have been duly executed and delivered and
are, and any other Credit Document entered into after the date hereof will be duly executed and delivered and will be, legal, valid and binding obligations of each Obligor party thereto, enforceable against such Obligor in accordance with their
respective terms, except as enforceability may be limited by bankruptcy, insolvency or similar Law affecting the enforcement of creditors’ rights generally or by general principles of equity (regardless of whether such enforceability is
considered in a proceeding at law or in equity). 
 5.05 Financial Statements; No Material Adverse Effect. (a) The audited
consolidated financial statements of Guarantor and the unaudited consolidating balance sheet and income statement of Guarantor as at and for fiscal year ended December 31, 2006, heretofore delivered to Lender fairly present, in accordance with
GAAP, the consolidated financial condition and results of operations of such Obligor as of the dates thereof and for the periods covered thereby. There are no material liabilities, contingent or otherwise, of either Obligor or its Subsidiaries which
are not reflected in such financial statements or the notes thereto. 
 (b) There has occurred no material adverse change in the financial
condition or results of operations of either Obligor from those reflected in its financial statements referred to in Section 5.05(a), and there does not exist on the date hereof, and there has not occurred since the date of such financial
statements, any event, condition or circumstance which has or can reasonably be expected to have, a Material Adverse Effect. 
 (c) Each
Obligor is Solvent. No Obligor is (i) engaged in a business, or is about to engage in a business for which the property remaining with such Obligor constitutes an unreasonable small capital or (ii) intends to incur, or believes that it
would incur debts that would be beyond such Obligor’s ability to pay as they mature. 
  

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 5.06 No Litigation. There is no pending or threatened action or proceeding affecting an Obligor
before any court, governmental agency or arbitrator that (i) could reasonably be expected to have a Material Adverse Effect or (ii) purports to affect the legality, validity or enforceability of this Agreement or any other Credit Document.

 5.07 Not a Regulated Borrower. Neither Obligor is (i) an “investment company” or a Person “controlled by”
an “investment company,” as such terms are defined in the Investment Company Act of 1940, as amended, required to register under such act or (ii) a “holding company” or an “affiliate” of a “holding
company” or a “subsidiary company” of a “holding company” within the meaning of the Public Utility Holding Company Act of 2005, as amended. 
 5.08 Compliance with Law, Agreements, Etc. 
 (a) Each of Obligor and its Subsidiaries is, and since
the date of its formation has been, in compliance with all Laws binding on or applicable to it or its properties except for any such noncompliance which could not reasonably be expected to have a Material Adverse Effect. 
 (b) Each material agreement or instrument to which an Obligor is a party or which relates to the Collateral is in full force and effect, and Borrower is
not in default under any provision of any such material agreement or instrument. 
 (c) All licenses, permits, approvals, concessions or other
authorizations necessary to the conduct of the business of each Obligor and each of its Subsidiaries have been duly obtained and are in full force and effect except where the failure to obtain and maintain any of the foregoing would not have a
Material Adverse Effect. There are no restrictions or requirements which limit either Obligor’s ability lawfully to conduct its business or perform its obligations under this Agreement or any other Credit Document. 
 5.09 Good Title. (a) Borrower has good and marketable title to all Collateral other than Collateral Owned by AHL, and AHL has good and
marketable title to all other Collateral, and Borrower has good and marketable title to, or valid leasehold interests in, all its other material properties and assets, and Guarantor has good and marketable title to, or a valid leasehold interest in,
all of its material properties and assets, in each case free and clear of Liens other than Liens permitted by Section 6.02(c) and (in the case of assets other than the Collateral) Liens set forth on Schedule 5.09. Except as set forth on
Schedule 5.09, no Obligor has made any registrations, filings or recordations in any jurisdiction evidencing or referring to a Lien on any Collateral, including but not limited to UCC-1 financing statements. 
 (b) On the date hereof Borrower owns the Pledged Alesco securities for which it is indicated as the owner on Schedule 4.01(a) hereto and AHL owns the
Pledged Alesco Funding Securities for which it is indicated as the owner on Schedule 4.01(a) hereto. Each of the Borrower and AHL will at all times have good title to all Alesco Funding Securities and other items of Collateral Pledged by them to the
Agent pursuant to the Security Agreement or the AHL Security Agreement 
  

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 5.10 Taxes. Each Obligor and its Subsidiaries has filed all income tax returns and all other
material tax returns that are required to be filed by it in all jurisdictions and has paid all taxes, assessments, claims, governmental charges or levies imposed on it or its properties, except for taxes contested in good faith as to which adequate
reserves have been provided in accordance with GAAP. No Obligor nor any of its Subsidiaries has entered into any agreement or waiver or been requested to enter into any agreement or waiver extending any statute of limitations relating to the payment
or collection of taxes of such Obligor or such Subsidiary or is aware of any circumstances that would cause the taxable years or other taxable periods of such Obligor or such Subsidiary not to be subject to the normally applicable statute of
limitations. 
 5.11 Margin Regulations. (a) No Obligor nor any of its Subsidiaries is engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of buying or carrying Margin Stock. 
 (b) None of the Pledged
Alesco Funding Securities constitutes Margin Stock. None of the transactions contemplated hereby, including the borrowings hereunder and the use of any of the proceeds of the Loans, violates or will violate any provisions of Regulation T, U or
X of the Board of Governors of the Federal Reserve System. No part of the proceeds of any Loan will be used, whether directly or indirectly, and whether immediately, incidentally or ultimately, to acquire Margin Stock or for any purpose that
would result in a violation of said Regulations T, U, or X. Immediately following the making and application of each Loan, not more than 25% of the value of the assets of Borrower will consist of Margin Stock, and none of the Collateral includes or
will include Margin Stock. 
 5.12 Material Adverse Effect. Except as disclosed to Lender in writing prior to the date hereof, no
Obligor has knowledge of event or circumstance that could reasonably be expected to have a Material Adverse Effect. 
 5.13 No Immunity
from Jurisdiction. No Obligor, nor any of its assets, properties or revenues, has any right of immunity on the grounds of sovereignty or otherwise from jurisdiction of any court or from set-off or any legal process (whether through service or
notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) under the Law of any jurisdiction. 
 5.14
Ranking of Loans; Debt. The Borrower’s obligations to repay the Loans and Guarantor’s obligations under Article VIII, and each Obligor’s other obligations hereunder, constitute direct, general, unconditional and unsubordinated
obligations of such Obligor. On the date hereof no Obligor has any Debt, other than Debt under the Credit Documents and Debt set forth for such Obligor on Schedule 5.14. 
 5.15 Management Agreement. The Management Agreement is in full force and effect and neither Guarantor nor, to Guarantor’s knowledge, Cohen & Company Management is in default thereunder. The copy
of the Management Agreement delivered to Lender pursuant to Section 4.01 is a true and correct copy thereof as in effect on the date hereof. 
  

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 5.16 Dain Account. The Dain Account Agreement is in full force and effect and the Dain Account has
been duly established pursuant thereto. Borrower and Dain are the sole parties to the Dain Account Agreement, and the Agent and (to the limited extent provided in the Dain Control Agreement) Borrower are the sole Persons entitled to originate
entitlement orders in respect of the Dain Account or security entitlements relating thereto. Cohen Securities has no interest in the Dain Account. The copy of the Dain Account Agreement delivered to Lender pursuant to Section 4.01(a)(iv) is a
true and correct copy thereof. Neither Borrower nor to Borrower’s knowledge, Dain is in default under the Dain Account. The number and types of Alesco Funding Preferred Shares credited to the Dain Account on the Closing Date is as set forth on
Schedule 4.01(a)(xiv). 
 5.17 Accurate Information. All information provided to Lender with respect to each Obligor and its
Affiliates or its or their assets, including the Collateral, or with respect to any Alesco Funding Entity or Cohen & Company Management, by or on behalf of an Obligor, any Alesco Funding Entity or Cohen & Company Management, in
connection with the negotiation, execution and delivery of this Agreement and the other Credit Documents or the transactions contemplated hereby and thereby was (or will be), on or as of the applicable date of provision thereof, complete and correct
in all material respects and does not (or will not) contain any untrue statement of a material fact or omit to state a fact necessary to make the statements contained therein not misleading in light of the time and circumstances under which such
statements were made. 
 5.18 Fiscal Year Record. Each Obligor’s fiscal year ends on December 31. 
 ARTICLE VI  
 COVENANTS

 6.01 Affirmative Covenants. So long as any Commitment is in effect and until the full payment and performance of all of the
Obligations, the Obligors agree, jointly and severally, that, unless the Majority Lenders otherwise consent in writing: 
 (a) Existence,
Compliance with Laws. Each Obligor will, and will cause each of its Subsidiaries to, do or cause to be done all things necessary to preserve and keep in full force and effect its existence, rights and franchises and remain or become qualified to
engage in business and in good standing in all jurisdictions in which the character of its properties or the transaction of its business makes such qualification necessary, except where the failure to be so qualified or in good standing would not
reasonably be expected to have a Material Adverse. Each Obligor will, and will cause each of its Subsidiaries to, observe and comply in all material respects with all Laws that now or at any time hereafter may be applicable to it, noncompliance with
which would reasonably be expected to have a Material Adverse Effect except for those Laws the necessity of compliance with which is being contested in good faith by appropriate proceedings provided such contest does not pose risk of forfeiture or
impairment of any Collateral or impairment of the validity, perfection or priority of Lender’s Lien thereon. 
  

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 (b) Preservation of Rights. Each Obligor will, and will cause each of its Subsidiaries to,
preserve all of its rights, licenses and other assets that are used or useful in the conduct of its business. 
 (c) Financial Information
and Reports, Notices. Each Obligor will keep proper books, records and accounts in which full, true and correct entries will be made of all dealings or transactions of or in relation to its business and affairs in accordance with GAAP and
Guarantor will furnish to the Agent (for distribution to Lenders) the following: 
 (i) as soon as available and in any event
within 90 days after the end of each fiscal year of Guarantor, the audited consolidated financial statements of the Guarantor and its Subsidiaries, and the unaudited consolidating balance sheet and income statement of Guarantor, for such fiscal
year, which audited financial statements shall include a statement of financial position as of the end of such fiscal year and statements of operations and of cash flows for such fiscal year, all setting forth in comparative form the corresponding
figures from the previous fiscal year, all prepared in conformity with GAAP and accompanied (in the case of Guarantor’s financial statements) by an unqualified report and opinion of independent certified public accountants of national standing
and reputation, which shall state that such financial statements, in the opinion of such accountants, fairly present the financial position of Borrower and its Subsidiaries as of the date thereof and the results of its operations and cash flows for
the period covered thereby in conformity with GAAP; 
 (ii) as soon as available but in any event within 45 days after the end
of each fiscal quarter of the Guarantor, (x) the consolidated financial statements of the Guarantor for such quarter and for the portion of the fiscal year then ended, which financial statements shall include a statement of financial position
as of the end of such fiscal quarter and a statement of operation and cash flows for such fiscal quarter and fiscal period, and (y) the consolidating balance sheet and income statement of the Guarantor for such quarter and fiscal period, such
financial statements, balance sheet and income statement to be prepared in accordance with GAAP (subject to normal year-end audit adjustments); 
 (iii) Together with the financial statements referred to in clauses (i) and (ii) above, a certificate of the Chief Financial Officer of Guarantor (x) certifying that said financial statements have been
prepared in accordance with GAAP (subject, in the case of the financial statements referred to in clause (ii) above, to normal year-end audit adjustments) and fairly present the financial condition and results of operation and cash flows of
each Obligor and its subsidiaries as at the end of and for the periods covered thereby, (y) containing calculations showing Guarantor’s compliance with the provisions of Section 6.02(a) and (z) stating there does not exist as of
the date of such certificate, and that there has not occurred during the period covered by the financial statements referred to in such certificate, any Default (or if a Default exists or has occurred describing the nature thereof and the action
which the Obligors have taken or propose to take in respect thereof); 
  

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 (iv) as soon as possible and in any event within two Business Days after an Obligor
obtains actual knowledge of the occurrence of: 
 (A) any Default that has occurred and is continuing, 
 (B) any actual or threatened litigation involving an Obligor or any Subsidiary thereof, Cohen & Company Management or any Alesco
Funding Entity that, if adversely determined to such Obligor, such Subsidiary, Cohen & Company Management or Alesco Funding Entity, could have a Material Adverse Effect, 
 (C) any insolvency of any Alesco Funding Entity or any event or circumstance which has, or could reasonably be expected to have, a
Material Adverse Effect, 
 (D) any default by Borrower or Dain under the Dain Account Agreement; or 
 (E) the Dain Account or any other Collateral Account becoming subject to any writ of garnishment, attachment or execution, restraining
order or similar court process of 
 a statement of a Responsible Officer of such Obligor setting forth the details thereof and the action
Borrower has taken and proposes to take with respect thereto; 
 (v) at least 10 days’ prior written notice of any
proposed change to the Dain Account Agreement; 
 (vi) at least 30 days’ prior written notice of any proposed amendment
of the LLC Agreement or the Management Agreement together with copies of the proposed amendment; 
 (vii) at least 30
days’ prior written notice of any proposed Change in Management; 
 (viii) promptly, copies of all financial statements
and reports furnished by Guarantor or any Alesco Funding Entity to holders of its securities; 
 (ix) promptly, notice of any
issuance of equity securities of the Guarantor, specifying the date of issuance and the net proceeds received by Guarantor from such issuance; 
 (x) promptly after request therefor, such other business and financial information respecting the financial or other condition or operations of an Obligor or any of its Subsidiaries or any Consolidated VIE as the
Agent or any Lender (through the Agent) may from time to time reasonably request; and 
  

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 (xi) prior to effecting the same, any change in an Obligor’s fiscal year.

 (d) Valuation Reports. Not later than five (5) Business Days after the end of each calendar month, and not later than five
(5) days after any request by the Agent or any Lender (through the Agent) therefor, a report of Merrill Lynch or Bear Stearns (or such other valuation expert as the Agent shall specify if Merrill Lynch or Bear Stearns cease to issue Valuation
Reports) in reasonable detail satisfactory to the Agent (a “Valuation Report”) setting forth (i) the value of the Pledged Alesco Funding Securities constituting part of the Collateral, (ii) the basis for such valuation and
(iii) the manner in which such value was determined (including any assumptions made in determining such value). 
 (e) Change in
Nature of Business. Guarantor will either (i) as of the date of this Agreement and so long as it intends to be principally engaged in the business as a real estate investment trust under Section 856 of the Code be a qualified real
estate investment trust under Section 856 of the Code or (ii) upon determining to restructure its corporate structure, becomes (and thereafter remain) qualified under the Code as a publicly traded limited partnership that, in the case of
either (i) or (ii), invests primarily in securities that evidence ownership in collateralized debt obligations or collateralized loan obligations. 
 (f) Use of Proceeds. Borrower will use the proceeds of the Loans for operating and working capital purposes. Borrower will not use any proceeds of the Loans to pay dividends or other distributions to Guarantor.
Borrower shall specify in each Borrowing Notice the purpose for which such borrowing is made. 
 (g) Payment of Taxes, Etc. Each
Obligor will, and will cause each of its Subsidiaries to, pay and discharge, before the same become delinquent, all taxes, assessments, claims and governmental charges or levies imposed upon it or upon its property; provided that no Obligor
or its Subsidiaries shall be required to pay or discharge any such tax, assessment, claim or charge if (i) such tax, assessment or claim is being diligently contested in good faith and by proper proceedings and as to which appropriate reserves
are being maintained, and (ii) such failure to pay does not create a risk of forfeiture or loss of the Collateral or the impairment of the Agent’s or Lenders’ Lien thereon. 
 (h) Visitation Rights. Each Obligor will, at any reasonable time during normal business hours and upon reasonable prior notice, from time to time
permit the Agent or any Lender or any agent or representative thereof to (i) visit the properties and offices of such Obligor and discuss the affairs, finances, assets and accounts of such Obligor, its Subsidiaries and any Consolidated VIEs
with any of its officers or directors and examine and make copies of and abstracts from its records and books of account, and (ii) discuss the affairs, finances, assets and accounts of such Obligor, its Subsidiaries and any Consolidated VIEs
with its accountants, including any independent certified public accountants retained by such Obligor. 
 (i) Management Agreement.
Guarantor will notify the Agent of any default by Guarantor or Cohen & Company Management under the Management Agreement promptly 

  

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upon Guarantor acquiring knowledge thereof, and Guarantor will deliver to the Agent copies of all notices delivered or received by Guarantor asserting the
existence of a default under the Management Agreement or purporting to terminate the Management Agreement. 
 6.02 Negative Covenants.
So long as the Commitment is in effect and until the full payment and performance of all of the Obligations, the Obligors agree, jointly and severally, that, unless the Majority Lenders otherwise consent in writing: 
 (a) Shareholders Equity. Guarantor will not permit Shareholders Equity to be less than $365,000,000 plus 75% of the aggregate net proceeds received
by the Guarantor at any time or from time to time after the Closing Date from the issuance of any equity securities of the Guarantor. 
 (b)
Debt. The Obligors will not, and will not cause or permit any of their respective Subsidiaries to, incur, create, assume or suffer to exist any Debt except: 
 (i) Debt hereunder; 
 (ii) Debt incurred in connection with the purchase by Borrower or one of its Subsidiaries of securities, specifically including, without limitation, trust preferred securities, that are to be packaged into a Collateralized Debt Obligation,
a Collateralized Loan Obligation, warehouse lines entered into in connection therewith, or any other similar structured finance transactions, including that Debt, if any, which is required to be included in Borrower’s or Guarantor’s
consolidated financial statements pursuant to GAAP or the Financial Accounting Standards Board’s Interpretation Number 46; 
 (iii) Debt described in Schedule 5.14; and 
 (iv) Debt consisting of convertible securities, which Debt is
subordinated, in a manner and on terms acceptable to each Lender, to the Borrower’s indebtedness hereunder, under the Notes and under the other Credit Documents. 
 (c) Liens. The Obligors will not, and will not permit any of their respective Subsidiaries to, create, incur, assume or suffer to exist any Lien upon any item of Collateral or any of their other assets, whether
now owned or hereafter acquired, except: 
 (i) Liens in favor of the Agent or any Lender created under the Credit Documents;

 (ii) Liens described in Schedule 5.09; 
 (iii) Liens created in connection with transactions described in Section 6.02(b)(ii) above on property other than the Collateral; and

 (iv) Liens imposed by law for taxes that are not yet due or are being contested in good faith by appropriate proceedings.

  

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 (d) Mergers, Transfer of Assets, Etc. No Obligor will, and no Obligor will permit any of its
Subsidiaries to, merge or consolidate with or into, or convey, transfer, lease or otherwise dispose of, whether in one transaction or in a series of transactions, all or substantially all of its property and assets (whether now owned or hereafter
acquired) to, any Person; provided that any of an Obligor’s Subsidiaries may merge or consolidate with or into (or convey, transfer, lease or otherwise dispose of all or substantially all of its property and assets to) such Obligor or
any wholly-owned Subsidiary of such Obligor if (i) no Default has occurred and is continuing at the time of such merger, consolidation or disposition and (ii) in the case of any merger, consolidation or transfer of assets to which an
Obligor is a party, such Obligor is the surviving company. 
 (e) Dividends, Etc. If there exists any Default, no Obligor will declare
or make any dividend payment or other distribution of assets, property, cash, rights, obligations or securities on account of any equity interests of such Obligor, or purchase, redeem, retire or otherwise acquire for value any equity interests of
such Obligor, or any warrants, rights or options to acquire any such interests or shares, now or hereafter outstanding. Borrower shall not in any event, whether or not a Default exists, use any proceeds of the Loan to pay any dividends or
distributions to its members. 
 (f) Advances and Investments. The Obligors will not, and will not permit any of their respective
Subsidiaries to, lend money or credit or make advances to any Person, or purchase or acquire any stock, obligations or securities of, or any other interest in, or make any capital contribution to, any other Person, except for capital contributions
to its Subsidiaries, provided that no such investment may in any event be made if there exists any Default. 
 (g) Charter
Documents. Borrower will not amend or modify the LLC Agreement, and Guarantor will not amend or modify its Second Articles of Amendment and Restatement or By-laws, in a manner which would have a Material Adverse Effect. 
 (h) Management Agreement. Guarantor will not terminate, or consent to the termination of, the Management Agreement. Guarantor will not amend or
modify the Management Agreement if such amendment or modification would have a Material Adverse Effect. 
 (h) Voluntary Payments and
Modification of Debt. The Obligors will not, and will not permit any of their respective Subsidiaries to, (i) make any voluntary or optional payment or prepayment on or redemption or acquisition for value of any Debt other than any amounts
outstanding hereunder or under the other Credit Documents (including but not limited to by way of depositing with the trustee with respect thereto money or securities before the due date thereof for the purpose of paying such Debt when due), or
(ii) amend or modify, or permit the amendment or modification of, any provision of any Debt or of any agreement (including but not limited to any purchase agreement, subscription agreement, indenture, loan agreement or security agreement)
relating to any Debt. The foregoing restrictions in the paragraph (i) shall not apply to Collateralized Debt Obligations or Collateralized Loan Obligations incurred by Subsidiaries of the Obligors in the ordinary course of business. 

 

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 (j) Restrictions of Subsidiary Dividends and Distributions. The Obligors will not, and will not
permit any of their respective Subsidiaries to, directly or indirectly, create or cause or suffer to exist or become effective any encumbrance or restriction on the ability of any Subsidiary to (i) pay dividends or make any other distributions
on its capital stock or any other interest or participation in its profits owned by an Obligor or any Subsidiary of an Obligor, or pay any Debt owed to an Obligor or a Subsidiary of an Obligor, (ii) make loans or advances to an Obligor, or
(iii) transfer any of its properties or assets to an Obligor, except for such encumbrances or restrictions existing under or by reason of (x) applicable Law, (y) this Agreement, or (z) any other Credit Document. 
 (k) Dain Account. Borrower will not terminate or cancel the Dain Account or originate any entitlement orders in respect of any financial assets
credited thereto. 
 (l) Transactions with Affiliates. No Obligor will, directly or indirectly, (i) make any investment in an
Affiliate of an Obligor (whether by means of share purchase, capital contribution, loan, advance or any other extension of credit, including repurchase agreements, securities lending transactions or any other transaction, deposit, or otherwise,
including any agreement or commitment to enter into any of the foregoing) or (ii) transfer, sell, lease, assign or otherwise dispose of any tangible or intangible property to an Affiliate or enter into any other transaction, directly or
indirectly, with or for the benefit of an Affiliate (including but not limited to Guaranties and assumptions of obligations of an Affiliate) except (x) the Management Agreement and (y) transactions constituting investments in an entity
engaged in a Collateralized Debt Obligation or Collateralized Loan Obligation, structured finance transaction or any other similar transaction, including investments of restricted cash securing any Subsidiary’s obligations under a
“warehouse” credit facility entered into in connection with a Collateralized Debt Obligation or Collateralized Loan Obligation and any guaranty required in connection therewith; provided that (i) any Affiliate who is an
individual may serve as a director, officer, manager or employee of, or otherwise have management authority with respect to, an Obligor or any of its Subsidiaries or other Affiliates and receive reasonable compensation for his or her services in
such capacity, (ii) an Obligor may enter into transactions with Affiliates of an Obligor providing for the leasing of property, the rendering or receipt of services or the purchase or sale of tangible or intangible property in the ordinary
course of business if (x) the monetary and business terms of such transaction are substantially as advantageous to Borrower as the monetary and business terms which would obtain in a comparable transaction by Borrower with a Person who is not
an Affiliate of Borrower and (y) such transaction is of the kind that would be entered into by a prudent Person in the position of Borrower with a Person that is not one of its Affiliates, (iii) Guarantor may make capital contributions to
Borrower and (subject to the provisions of the Section 6.01(f) and 6.02(e)) Borrower may pay dividends to Guarantor. Obligors and their respective Subsidiaries will not be party to any tax sharing or similar arrangement if the effect of such
arrangement would be to increase the tax liability or adversely affect the cash flow or any tax loss carry forward (or other tax benefit) of the Obligors in an amount greater than would have been the case in the absence of such an arrangement and
(iv) AHL may transfer Alesco Funding Securities to the Dain Account and pledge, and permit Borrower to pledge, AHL’s interest in such Alesco Funding Securities to the Agent and pursuant to the AHL Security Agreement and the Security
Agreement. 
  

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 ARTICLE VII  
 DEFAULTS 
 7.01 Events of Default. If any one or more of the following events
(“Events of Default”) occurs and is continuing: 
 (a) Borrower fails to pay when due any principal of any
Loan, including any Cleanup Payment when due and any payment required by Section 6.01(j); 
 (b) Borrower fails to pay
when due any interest on any Loan or any Obligor fails to pay when due any other amount payable hereunder or under any other Credit Document (other than principal), and such failure remains unremedied for three (3) Business Days;

 (c) any representation or warranty made by an Obligor herein or in any other Credit Document or by an Obligor (or any
officers or representatives thereof) in connection with this Agreement or any other Credit Document is incorrect in any material respect when made or deemed to have been made; 
 (d) an Obligor fails to perform or observe any term, covenant or agreement contained in Section 6.01(a) (with respect to itself),
6.01(d), 6.01(e), 6.01(j) or 6.02; 
 (e) an Obligor fails to perform or observe any other term, covenant or agreement
contained in this Agreement or any other Credit Document on its part to be performed or observed and such failure remains unremedied for thirty (30) Business Days after notice thereof has been given to Borrower by Lender; 
 (f) an Obligor fails to pay all or any portion of the principal of any Debt of such Obligor (other than the Loans) for or in respect of
borrowed money that is outstanding in an aggregate principal amount of at least $2,000,000 when the same becomes due and payable (whether at scheduled maturity, by required prepayment, acceleration, demand or otherwise); or any event occurs or
condition exists under any agreement or instrument relating to any such other Debt and if the effect of such event or condition is to accelerate, or to permit the acceleration of, the maturity of such Debt; or any such Debt is declared to be due and
payable, or required to be prepaid (other than by a regularly scheduled required prepayment), redeemed, purchased or defeased, or an offer to prepay, redeem, purchase or defease any such Debt is required to be made, in each case prior to the stated
maturity thereof; 
 (g) an Obligor or any of its Subsidiaries or Cohen Brothers Management fails to pay its debts generally
as such debts become due, or admits in writing its inability to pay its debts generally, or makes a general assignment for the benefit of creditors; or any proceeding is instituted by or against an Obligor or any of its Subsidiaries or
Cohen & Company Management seeking to adjudicate it bankrupt or insolvent, or seeking liquidation, winding-up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any Law of any 

  

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jurisdiction relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a
receiver, trustee, custodian or other similar official for it or for any substantial part of its property and assets and, in the case of any such proceeding instituted against an Obligor or any of its Subsidiaries or Cohen & Company
Management, such proceeding remains undismissed or unstayed for a period of 30 days; or a receiver, trustee, custodian or similar official is appointed for an Obligor or any of its Subsidiaries or Cohen & Company Management or for all or a
substantial part of the property of any of the foregoing; or an Obligor or any of its Subsidiaries or Cohen & Company Management is adjudicated bankrupt or insolvent, or an order for relief is entered in respect of an Obligor or any of its
Subsidiaries or Cohen & Company Management under the Bankruptcy Code; or an Obligor, Cohen & Company Management is dissolved or liquidated; or an Obligor or any of its Subsidiaries or Cohen & Company Management takes any
action to authorize any of the actions set forth above in this paragraph; 
 (h) any judgment or order for the payment of
money in excess of $1,000,000 is rendered against an Obligor or any of its Subsidiaries and either (x) enforcement proceedings are commenced by any creditor upon such judgment or order that are not stayed or dismissed within 30 days after the
commencement of such proceedings or (y) there is any period of 30 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, is not in effect, or such judgment remains unpaid, or
(ii) any non-monetary judgment is entered against an Obligor or Cohen & Company Management or any of its Affiliates which has or could reasonably be expected to have a Material Adverse Effect; 
 (i) any Default under (and as defined in) the Security Agreement or the AHL Security Agreement occurs and is continuing; 
 (j) the Agent’s security interest on the Collateral ceases to be a valid, enforceable, perfected and through no fault of Agent or any
Lender, senior security interest therein for the benefit of the Agent and the Lenders subject to no other Lien; 
 (k) an
Obligor denies or disaffirms any of its obligations under this Agreement or any other Credit Document to which it is a party or asserts that such obligations are unenforceable or invalid; or any Law purports to render invalid, or preclude
enforcement of, any provision of this Agreement or any other Credit Document or the Security Interest or impairs the performance of an Obligor’s obligations hereunder or under any other Credit Document to which it is a party; 
 (l) a Change of Control occurs; 
 (m) the Management Agreement terminates; 
 (n) a Change in Management occurs which, in
Lender’s good faith judgment, could have a Material Adverse Effect; 
  

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 (o) Guarantor ceases to be the beneficial and record owner of all outstanding capital
stock of Borrower or the indirect beneficial owner of all outstanding capital stock of AHL; 
 (p) any writ of garnishment,
attachment or any restraining order, is issued in respect of the Dain Account or any financial assets credited thereto and remains in effect for a period exceeding 30 days; or 
 (q) any other event or condition occurs or exists that, in Lender’s good faith judgment, has or could have a Material Adverse Effect;

 then, and at any time thereafter, the Agent may, and at the request of any Lender or Lenders whose outstanding Loans total at least 50% of the outstanding
principal amount of all Loans or, if no Loans are outstanding, whose Commitment Percentages total at least 50% shall, by notice to Borrower, (x) declare the Commitments to be terminated, whereupon each Lender’s Commitment shall immediately
terminate, and/or (y) declare the Loans, all interest thereon and all other amounts payable under this Agreement or any other Credit Document to be forthwith due and payable, whereupon the Loans, all such interest and all such other amounts
shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by Borrower, and/or (z) exercise all its rights and remedies under the Security
Agreement or the AHL Security Agreement; provided that upon the occurrence with respect to Borrower of any Event of Default specified in paragraph (g) of this Section 7.01, each Lender’s Commitment shall automatically terminate
immediately and the Loans, all such interest and all such other amounts shall automatically be immediately due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by Borrower.

 ARTICLE VIII  
 GUARANTY 
 8.01 Guaranty by Guarantor. (a) For valuable consideration, the sufficiency and receipt of
which are hereby acknowledged, and to induce each Lender to enter into this Agreement and to make and maintain Loans to Borrower hereunder, Guarantor hereby irrevocably and unconditionally guarantees, as primary obligor and not merely as surety, to
each Creditor the prompt and complete payment when due (whether at the stated maturity, by acceleration or otherwise) of all Obligations of Borrower to such Creditor, now existing or hereafter incurred, under this Agreement or any other Credit
Document, whether for principal, interest, fees, expenses indemnities or otherwise (including (i) amounts which would become due but for the operation of any automatic stay in any case under the Bankruptcy Code and (ii) interest which
would have accrued on the Obligations following the commencement of any Insolvency Proceeding by or against Borrower, whether or not such interest constitutes an allowable claim against Borrower in any such case or Insolvency Proceeding). Guarantor
hereby irrevocably and unconditionally agrees that, upon default by Borrower in the payment when due of any amount owing by Borrower hereunder or under any other Credit Document to a Creditor, Guarantor will immediately pay the same to the Agent
(for the benefit of such Creditor) in Dollars and in immediately available funds, at the place and in the manner specified for such 

  

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defaulted payment in this Agreement or such other Credit Document and otherwise in accordance with the terms of this agreement and each other Credit
Document, together with any and all reasonable expenses that are incurred by such Creditor or the Agent in collecting the same, without further notice or demand (other than notice to the Guarantor of the amount due Lender hereunder and of
Borrower’s failure to make such payment). 
 (b) Guarantor’s guaranty contained in this Section 8.01 is a guaranty of payment
and not of collection. Any Creditor may proceed immediately against Guarantor upon any default by Borrower in the payment when due of any Obligation, and no Creditor shall be required to (i) obtain or enforce any judgment against Borrower,
(ii) file a claim in any bankruptcy, insolvency or reorganization proceeding involving Borrower, (iii) resort to any Collateral or (iv) enforce or exhaust any rights against Borrower or any other Person or their respective assets.

 8.02 Obligations Unconditional. (a) The obligations of the Guarantor under Section 8.01 shall be continuing, absolute and
unconditional irrespective of (i) the legality, genuineness, validity, regularity or enforceability (as against Borrower or Lender) of this Agreement or any other Credit Document, (ii) the existence, value, validity or extent of any
collateral for the Obligations or the validity, perfection or priority of Lender’s Liens thereon, (iii) any provision of applicable law or regulation purporting to prohibit the payment by Borrower of the Obligations, (iv) any default,
failure or delay, willful or otherwise, in the performance by Borrower of the Obligations, or any other act by Borrower that may or might in any manner or to any extent vary the risk of Borrower or Guarantor, (v) any extension of the Stated
Termination Date or any other extension of time given to Borrower by any Creditor or any failure on the part of any Creditor to exercise recourse against Borrower or other person or the renunciation of any such recourse, (vi) any default by
Dain under the Dain Account Agreement or Dain Control Agreement or any default by any other Intermediary in respect of any Collateral Account or any Control Agreement in respect thereof, (vii) the discharge of Borrower from the Obligations in
any case under the Bankruptcy Code or other Insolvency Proceedings, or otherwise, or any modification of the Obligations under any plan or reorganization in any bankruptcy case or other Insolvency Proceeding, (viii) a Lender’s election, in
any case instituted with respect to Borrower under the Bankruptcy Code, of the application of Section 1111(b)(2) of the Bankruptcy Code, (ix) any borrowing or grant of a security interest by Borrower as debtor-in-possession under
Section 364 of the Bankruptcy Code, (x) the disallowance under Section 502 of the Bankruptcy Code of all or any portion of a Creditor’s claim against Borrower or (xi) any other circumstances which might constitute in legal
or equitable discharge or defense of a guarantor. 
 (b) Without limiting the generality of the foregoing, Guarantor hereby agrees that a
Creditor may at any time, or from time to time, in such Creditor’s discretion, but subject to the terms of this Agreement, (i) renew and/or extend or accelerate the time of payment, and/or the manner, place or terms of payment of, all or
any part of the Obligations, or any renewal or renewals thereof, (ii) extend the time for Borrower’s performance of, or compliance with, any term, covenant or agreement contained in this Agreement or any other Credit Document or waive such
compliance or performance, (iii) waive any condition specified herein to the Closing Date or to the extension of credit hereunder, (iv) extend the Stated Termination Date or any other dates for any payment hereunder or under any other
Credit Document, (v) exchange, release and/or surrender all or any part of any Collateral or other security that may hereafter be held by, 

  

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or on behalf of, such Creditor in connection with any or all of the Obligations, (vi) sell and/or purchase any or all of such collateral or other
security at public or private sale, or any broker’s board, and after deducting all costs and expenses of every kind for collection, sale or delivery, apply the proceeds of any such sale or sales to any of the Obligations (with Guarantor
remaining liable for any deficiency) and (vii) settle or compromise any and all of the Obligations with Borrower and/or any other Person(s) liable thereon and/or subordinate the payment of same or any part thereof to the payment of any other
debts or claims that may at any time be due or owing by Borrower to a Creditor and/or any other Person(s), all in such manner and upon such terms as Lender may see fit, and without notice to or further assent from the Guarantor. 
 (c) The obligations of Guarantor under this Article VIII shall not be subject to any defense, set-off, counterclaim, recoupment or termination whatsoever
by reason of any circumstance or occurrence, including without limitation any of the actions or circumstances set forth in paragraphs (a) or (b) above. 
 8.03 Stay of Acceleration. If demand for, or acceleration of the time for, payment by Borrower to a Creditor of any Obligations of Borrower is stayed upon the commencement of any case under the Bankruptcy Code
or any other Insolvency Proceeding for Borrower, all such Obligations otherwise subject to demand for payment or acceleration under the terms of this Agreement or any other Credit Document shall nonetheless be payable by Guarantor hereunder
forthwith on demand by the Agent. 
 8.04 Subrogation. No payment by Guarantor pursuant to Article VIII or other satisfaction of the
Obligations of Guarantor under Article VIII shall entitle it, by subrogation to the rights of any Creditor, or by right of contribution, reimbursement, exoneration or otherwise, to any payment from Borrower or out of the property of Borrower, except
after the payment in full to each Creditor of all sums which are or may become payable to it at any time or from time to time by the Borrower and the Guarantor under this Agreement or any other Credit Document. Upon the payment in full of all sums
referred to in the immediately preceding sentence, Guarantor shall be subrogated to the rights of Creditors hereunder to the extent of any payments made by Guarantor under its guaranty contained herein. 
 8.05 Subordination. Guarantor agrees that (i) all existing and future Debt and other indebtedness of Borrower to the Guarantor shall be
subject and subordinate to the Obligations of Borrower to the Creditors hereunder or under any other Credit Document and (ii) so long as there exists any Default hereunder, Borrower shall not pay the Guarantor, and the Guarantor shall not
accept payment from Borrower of any Debt or other indebtedness owing by Borrower or any Subsidiary thereof to Guarantor until all Obligations of Borrower to the Creditors are paid in full. 
 8.06 Cumulative Remedies. Each Creditor may pursue its rights and remedies under this Article VIII and shall be entitled to payment from Guarantor
under this Article VIII notwithstanding any other guarantee of or security for all or any part of the Obligations of Borrower or any other Person, and notwithstanding any action taken or omitted to be taken by any Creditor to enforce any of its
rights or remedies against Borrower or any other Person hereunder or under such other guarantee or with respect to any other security. 
  

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 8.07 Waivers. Except for notices and demands expressly provided for herein, Guarantor hereby
waives diligence, presentment, demand of payment, protest and all notices (whether of nonpayment, dishonor, protest or otherwise) with respect to the Obligations, notice of acceptance of the guaranty by Guarantor contained in this Article VIII and
of the incurrence by Borrower of any Obligation and all demands whatsoever. 
 8.08 Survival of Guaranty. The provisions of Article
VIII shall continue in effect and be binding upon Guarantor until all of the Obligations have been paid in full. The liability of Guarantor under this Article VIII shall be reinstated and revived with respect to any amount at any time paid to or for
the account of any Creditor by Borrower or any other Person which is thereafter required to be, and that is, restored and returned by a Creditor to Borrower or such Person, or its trustee or receiver or similar official, upon the bankruptcy,
insolvency or reorganization of Borrower or such Person, or for any other reason, all as though such amount had not been paid by Borrower or such Person. 
 ARTICLE IX  
 THE AGENT 
 9.01 Appointment and Authorization. (a) Each Lender hereby designates and appoints The Agent as (i) such Lender’s agent under this
Agreement and the other Credit Documents and (ii) such Lender’s agent and bailee to hold and administer the Collateral and the Security Interest for the benefit of such Lender and its successors and assigns and the holders from time to
time of the Loans and Notes of such Lender, and each Lender hereby irrevocably authorizes the Agent to take such action on its behalf under the provisions of this Agreement and each other Credit Document and to exercise such powers and perform such
duties as are expressly delegated to it by the terms of this Agreement or any other Credit Document, together with such powers as are reasonably incidental thereto. The Agent agrees to act as such on the express conditions contained in this Article
IX. The provisions of this Article IX are solely for the benefit of the Agent and the Lenders, and the Obligors shall have no rights as third party beneficiaries, or otherwise of any of the provisions contained herein. (b) Each Lender further hereby
appoints the Agent, and the Agent hereby agrees to act, as agent and bailee of such Lender for the purpose of perfecting the Lenders’ security interest in assets which, in accordance with Article 9 of the UCC, can be perfected only by
possession or control. Should any Lender (other than the Agent) obtain possession of any such Collateral, such Lender shall notify the Agent thereof, and, promptly upon the Agent’s request therefor shall deliver such Collateral to the Agent or
in accordance with the Agent’s instructions. 
 9.02 Agent’s Duties Limited. (a) Notwithstanding any provision
to the contrary contained elsewhere in this Agreement or in any other Credit Document, the Agent shall not have any duties or responsibilities, except those expressly set forth herein, nor shall the Agent have or be deemed to have any fiduciary
relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Agent. Without limiting the
generality of the foregoing sentence, the use of the term “agent” in this Agreement with reference to the Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any
applicable law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. 
  

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 (b) The Agent shall not be required to exercise any discretionary power granted to it under this
Agreement, and as to any matters not expressly provided for by this Agreement the Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting upon the written instructions of the
Majority Lenders or (to the extent provided herein) any or all Lenders, and only if furnished with indemnity satisfactory to the Agent by the Lenders, and such instructions shall be binding upon each Lender and its successors and assigns and each
holder of any Note or Loans; provided, however, that each Agent shall not be required to take any action that it determines in good faith, or is advised by counsel, (x) exposes it to liability or (y) is or may be contrary to
this Agreement or any other Credit Document or applicable law. The Agent shall be fully protected, and shall incur no liability whatsoever to any Lender or any other Person, in acting or refraining to act in accordance with institution believed by
it to have been given by a Lender. The Agent agrees to give Lenders prompt notice of each notice and copies of all other documents given to it in its capacity as Agent pursuant to this Agreement. 
 9.03 Actions of Agent. The Lenders authorize and direct the Agent to enter into this Agreement and the other Credit Documents, for the ratable
benefit of the Lenders, and to hold the Security Interest and to obtain and exercise “control” (within the meaning of Sections 8-106 and 9-104 of the UCC) on behalf of and for the ratable benefit of such other Lenders. Each Lender
agrees that any action taken by the Agent, in accordance with the terms of this Agreement or the other Credit Documents, and the exercise by the Agent of its powers set forth therein or herein, together with such other powers that are reasonably
incidental thereto, shall be binding upon all of the Lenders. 
 9.04 Delegation of Duties. The Agent may execute any of its duties
under this Agreement or any other Loan Document by or through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Agent shall not be responsible for the negligence
or misconduct of any agent or attorney-in-fact that it selects as long as such selection was made without gross negligence or willful misconduct. 
 9.05 Exculpation of Agent-Related Persons. (a) None of the Agent-Related Persons shall (i) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Credit
Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct), or (ii) be responsible in any manner to any of the Lenders for any recital, statement, representation or warranty made by any Obligor
or any Subsidiary or Affiliate of any Obligor, or any officer thereof, contained in this Agreement or in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by the Agent
under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any failure of any Obligor or any other party to
any Loan Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or
conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of any Obligor or any Subsidiaries or Affiliates of any Obligor. 
  

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 (b) The Agent shall have no obligation whatsoever to any of the Lenders (i) to assure that the
Collateral exists or is owned by any Obligor or is cared for, protected or insured or has been encumbered, or that the Security Interest is enforceable or has been properly or sufficiently or lawfully created, perfected or protected or is entitled
to any particular priority. Without limiting the foregoing, the Agent shall fully discharge its duty of care in respect of the Collateral or the Security Interest if it administers it in the same manner as it administers similar collateral or
security interests held by it in its individual capacity, and the Agent shall have no other duty of care, disclosure or fidelity hereunder in respect of the Collateral. The Agent shall not be obligated to continue exercising any of the rights,
authorities and powers granted or available to the Agent pursuant to any of the Credit Documents, it being understood and agreed that in respect of the Collateral, or any act, omission or event related thereto, the Agent shall have no other duty or
liability whatsoever to any Lender as to any of the foregoing. 
 9.06 Reliance by Agent. Neither Agent nor any other Agent-Related
Person shall be liable for any action taken or omitted to be taken by it or them under or in connection with this Agreement or any other Credit Document, except for its or their own gross negligence or willful misconduct. Without limiting the
generality of the foregoing: (i) the Agent may treat each Lender as the holder of all Loans made by it until the Agent receives notice of the assignment of a Loan from the assignor and assignee thereof and the assignee and assignor comply with
the provisions of Section 10.06(b) hereof; (ii) the Agent may consult with legal counsel (including counsel for an Obligor or Lender) and other experts selected by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or experts; (iii) the Agent shall not be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it without gross negligence or
willful misconduct in the employment of such agents or attorneys-in-fact; (iv) the Agent makes no warranty or representation to any Lender as to, nor shall it be responsible to Lender or holder of any Obligations for, any statements, warranties
or representations made in or in connection with this Agreement or any other Credit Document by Obligor or by any other party; (v) the Agent shall not have any duty to ascertain or to inquire as to the performance or observance of any of the
terms, covenants or conditions of this Agreement or any other Credit Document on the part of any Obligor or any other party or to inspect any Collateral (including the books and records relating thereto); (vi) the Agent shall not be responsible
to Lender for the execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other Credit Document or any other instrument or document furnished pursuant hereto or thereto or any Collateral;
(vii) the Agent shall not be liable to any Lender for any losses incurred as the result of any sale or disposition of any Collateral; (viii) the Agent makes no representation or warranty nor shall the Agent have any responsibility
concerning the existence, value or validity of any Collateral or the validity perfection or the perfection of the Security Interest; and (ix) the Agent shall not incur any liability under or in respect of this Agreement by acting upon any
notice, consent, certificate or other instrument or writing (which may be by telecopy, cable or telex) believed by it to be genuine and signed or sent by the proper party or parties. 
 9.07 Notice of Default. Except for defaults in the payment of principal, interest and Commitment Fees payable for the account of the Lenders
hereunder (“Payment  

  

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Defaults”), the Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, unless the Agent
shall have received written notice from a Lender or an Obligor referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default.” The Agent will notify the Lenders of any Payment
Defaults known to it and of its receipt of any such notice. The Agent shall take such action with respect to such Default or Event of Default as may be requested by the Lenders in accordance with Section 7.01; provided, however,
that unless and until the Agent has received any such request, the Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable.

 9.08 Credit Decision. Each Lender acknowledges, and each subsequent holder of any Loan or Note shall be deemed to have
acknowledged, that none of the Agent-Related Persons has made any representation or warranty to it, and that no act by the Agent hereinafter taken, including any review of the affairs of any Obligor and its Affiliates, shall be deemed to constitute
any representation or warranty by any Agent-Related Person to any Lender. Each Lender represents to the Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of each Obligor and its Affiliates, and all applicable bank laws relating to the
transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to the Borrowers. Each Lender also represents that it will, independently and without reliance upon any Agent-Related Person and based on
such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Credit Documents, and to make such
investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of the Obligors. Except for notices, reports and other documents expressly herein required
to be furnished to the Lenders by the Agent, the Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other condition or
creditworthiness of any Obligor which may come into the possession of any of the Agent-Related Persons. 
 9.09 Indemnification.
Whether or not the transactions contemplated hereby are consummated, the Lenders shall indemnify upon demand the Agent-Related Persons (to the extent not reimbursed by or on behalf of the Obligors and without limiting the obligation of the Obligors
to do so), pro rata, in accordance with each Lender’s Commitment Percentage, from and against any and all losses, liabilities, damages, costs and expenses, including fees and expenses of Agent’s counsel (collectively,
“Losses”), incurred by the Agent under, in connection with or by reason of (i) this Agreement or any other Credit Document, (ii) the Collateral or the Security Interest, or (iii) the Agent’s performance of any
services or taking or omitting to take any action, in its capacity as Agent, under or in connection with this Agreement, any other Credit Document, or the Collateral or the Security Interest and for any Losses of the Agent or any other Agent-Related
Person referred to in Section 10.04(b); provided, however, that no Lender shall be liable for the payment to the Agent-Related Persons of any portion of any Losses resulting solely from such Person’s gross negligence or
willful misconduct. Without limitation of the foregoing, each Lender shall reimburse the Agent upon demand for its ratable share (in accordance with such Lender’s Commitment Percentage) of any costs or out-of-pocket expenses (including 

  

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reasonable fees and disbursements of counsel) incurred by the Agent in connection with the preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to
herein, or, the Collateral or the Security Interest to the extent that the Agent is not reimbursed for such expenses by or on behalf of the Obligors. The undertaking in this Section shall survive the payment of all Obligations hereunder and the
resignation or replacement of the Agent. 
 9.10 Agent in Individual Capacity. The Agent, in its individual capacity, and its
Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with any Obligor and
its Subsidiaries and Affiliates as though it were not the Agent hereunder and without notice to or consent of the Lenders. The Lenders acknowledge that, pursuant to such activities, the Agent, in its individual capacity, or its Affiliates may
receive information regarding the Obligors or their Affiliates (including information that may be subject to confidentiality obligations in favor of an Obligor or such Subsidiary) and acknowledge that the Agent and the Bank shall be under no
obligation to provide such information to them. With respect to its Loans, the Agent, in its individual capacity, shall have the same rights and powers under this Agreement as any other Lender and may exercise the same as though it were not the
Agent, and the terms “Lender” and “Lenders” include the Agent in its individual capacity. 
 9.11 Successor Agent.
The Agent may resign as Agent upon 30 days’ notice to the Lenders and the Borrower, such resignation to be effective upon the acceptance of a successor agent to its appointment as Agent. If the Agent resigns under this Agreement, subject to the
proviso in the preceding sentence, the Majority Lenders shall appoint from among the Lenders a successor agent for the Lenders. If no successor agent is appointed prior to the effective date of the resignation of the Agent, the Agent may appoint,
after consulting with the Lenders and the Borrowers, a successor agent. Upon the acceptance of its appointment as successor agent hereunder, such successor agent shall succeed to all the rights, powers and duties of the retiring Agent and the term
“Agent” shall mean such successor agent and the retiring Agent’s appointment, powers and duties as Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the provisions of this Article IX shall
inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement. 
 9.12 Withholding
Tax. (a) If any Lender is a “foreign corporation, partnership or trust” within the meaning of the Code and such Lender claims exemption from, or a reduction of, U.S. withholding tax under Sections 1441 or 1442 of the Code, such
Lender agrees with and in favor of the Agent, to deliver to the Agent: 
 (i) if such Lender claims an exemption from, or a
reduction of, withholding tax under a United States of America tax treaty, two properly completed original IRS Forms W-8BEN and W-8 before the payment of any interest in the first calendar year and before the payment of any interest in each third
succeeding calendar year during which interest may be paid under this Agreement; 
  

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 (ii) if such Lender claims that interest paid under this Agreement is exempt from United
States of America withholding tax because it is effectively connected with a United States of America trade or business of such Lender, two properly completed and original executed copies of IRS Form W-8ECI before the payment of any interest is due
in the first taxable year of such Lender and in each succeeding taxable year of such Lender during which interest may be paid under this Agreement, and IRS Form W-9; and 
 (iii) such other form or forms as may be required under the Code or other laws of the United States of America as a condition to exemption
from, or reduction of, United States of America withholding tax. 
 Such Lender agrees to promptly notify the Agent of any change in circumstances which
would modify or render invalid any claimed exemption or reduction or of its inability to deliver any such forms, in which case such Lender will not be required to deliver such forms pursuant to this Section 9.12. 
 (b) If any Lender claims exemption from, or reduction of, withholding tax under a United States of America tax treaty by providing IRS Form W-8BEN and
such Lender sells, assigns, grants a participation in, or otherwise transfers all or part of the Obligations owing to such Lender, such Lender agrees to notify the Agent of the percentage amount in which it is no longer the beneficial owner of
Obligations of the Borrowers to such Lender. To the extent of such percentage amount, the Agent will treat such Lender’s IRS Form W-8BEN as no longer valid. 
 (c) If any Lender claiming exemption from United States of America withholding tax by filing IRS Form W-8ECI with the Agent sells, assigns, grants a participation in, or otherwise transfers all or part of the
Obligations owing to such Lender, such Lender agrees to undertake sole responsibility for complying with the withholding tax requirements imposed by Sections 1441 and 1442 of the Code. 
 (d) If any Lender is entitled to a reduction in the applicable withholding tax, the Agent may withhold from any interest payment to such Lender an amount
equivalent to the applicable withholding tax after taking into account such reduction. If the forms or other documentation required by subsection (a) of this Section are not delivered to the Agent, then the Agent may withhold from any interest
payment to such Lender not providing such forms or other documentation an amount equivalent to the applicable withholding tax. 
 (e) If the
IRS or any other Governmental Authority of the United States of America or other jurisdiction asserts a claim that the Agent did not properly withhold tax from amounts paid to or for the account of any Lender (because the appropriate form was not
delivered, was not properly executed, or because such Lender failed to notify the Agent of a change in circumstances which rendered the exemption from, or reduction of, withholding tax ineffective, or for any other reason) such Lender shall
indemnify the Agent fully for all amounts paid, directly or indirectly, by the Agent as tax or otherwise, including penalties and interest, and including any taxes imposed by any jurisdiction on the amounts payable to the Agent under this Section,
together with all costs and expenses (including fees and disbursements of counsel). The obligation of the Lenders under this subsection shall survive the payment of all Obligations and the resignation or replacement of the Agent. 
  

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 9.13 Release of Collateral. The Lenders hereby irrevocably authorize the Agent to release any
Security Interest upon any Collateral (i) upon the termination of the Commitments and payment and satisfaction in full by the Obligors of all Loans and all other Obligations, or (ii) as provided in Section 6 of the Security Agreement
(or the AHL Security Agreement), or (iii) as otherwise provided in this Agreement or any other Credit Document. 
 9.14 Sharing of
Payments. If at any time or times any Lender shall receive (i) by payment, foreclosure, setoff or otherwise, any proceeds of Collateral or any payments with respect to the Obligations of any Obligor to such Lender arising under, or relating
to, this Agreement or the other Credit Documents, except for any such proceeds or payments received by such Lender from the Agent pursuant to the terms of this Agreement, or (ii) payments from the Agent in excess of such Lender’s ratable
portion of all such distributions by the Agent, such Lender shall promptly (1) turn the same over to the Agent, in kind, and with such endorsements as may be required to negotiate the same to the Agent, or in same day funds, as applicable, for
the account of all of the Lenders and for application to the Obligations in accordance with the applicable provisions of this Agreement, or (2) purchase, without recourse or warranty, an undivided interest and participation in the Obligations
owed to the other Lenders so that such excess payment received shall be applied ratably as among the Lenders in accordance with their Commitment Percentages; provided, however, that if all or part of such excess payment received by the
purchasing party is thereafter recovered from it, those purchases of participation’s shall be rescinded in whole or in part, as applicable, and the applicable portion of the purchase price paid therefor shall be returned to such purchasing
party, but without interest except to the extent that such purchasing party is required to pay interest in connection with the recovery of the excess payment. The provisions of this Section 9.14 shall not apply to a payment made to a
Non-Extending Lender pursuant to Section 2.11 if there exists no Event of Default at the time of such payment. 
 9.15 Payments by
Agent to Lenders. All payments required to be made by the Agent to the Lenders shall be made on the day of receipt (or on the following Business Day if received by the Agent after 2:00 p.m. or on a day which is not a Business Day) by bank wire
transfer or internal transfer of immediately available funds to each Lender pursuant to wire transfer instructions delivered in writing to the Agent on or prior to the Closing Date (or if such Lender is an Assignee, on the applicable Assignment and
Acceptance), or pursuant to such other wire transfer instructions as each party may designate for itself by written notice to the Agent. Concurrently with each such payment, the Agent shall identify whether such payment (or any portion thereof)
represents principal, interest or fees on Loans, or otherwise. 
 9.16 Relation Among Lenders. The Lenders are not partners or
co-venturers, and no Lender shall be liable for the acts or omissions of, or (except as otherwise set forth herein in case of the Agent) authorized to act for, any other Lender. 
  

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 ARTICLE X 
 MISCELLANEOUS 
 10.01 Amendments and Waivers. (a) No amendment or wavier of any
provision of this Agreement or any other Credit Document, and no consent with respect to any departure by any Obligor therefrom, shall be effective unless the same shall be in writing and signed by the Majority Lenders (or by the Agent at the
written request of the Majority Lenders), the Agent and the Obligors party thereto, and then any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however,
that no such waiver, amendment, or consent shall, unless in writing and signed by all the Lenders and the Obligors party thereto and acknowledged by the Agent, do any of the following: 
 (i) Increase or extend the Commitment of any Lender; 
 (ii) postpone or delay any date fixed by this Agreement or any other Credit Document for any payment of principal, interest, fees or other
amounts due to the Lenders (or any of them) hereunder or under any other Loan Document; 
 (iii) reduce the principal of, or
the rate of interest specified herein on any Loan, or any fees or other amounts payable hereunder or under any other Credit Document; 
 (iv) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Loans which is required for the Lenders or any of them to take any action hereunder; 
 (v) change the definition of Loan Limit or LTV Ratio; 
 (vi) amend this Section or any provision of the Agreement providing for consent or other action by all Lenders; 
 (vii) release any material item of Collateral other than as expressly permitted by the terms in this Agreement, the Security Agreement or
the AHL Security agreement; 
 (viii) release the Guarantor; and 
 (ix) change the definition of “Majority Lenders”; 
 provided, further, that no amendment, waiver or consent shall, unless in writing and signed by the Agent, adversely affect the rights or duties of the Agent under this Agreement or any other Credit
Document. 
 (b) No failure on the part of a Lender or the Agent to exercise and no delay in exercising, and no course of dealing with
respect to, any right, power or privilege under this Agreement or any other Credit Document shall operate as a waiver thereof or an acquiescence therein, nor shall the making of a Loan or acquiescence to the conversion of a Base Rate Loan to 

  

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a Eurodollar Loan when a Default exists or Borrower is unable to satisfy the conditions precedent thereto (and notwithstanding that Lenders or the Agent may
have had notice or knowledge or reason to believe that such Default or inability existed at the time of such Loan or conversion) constitute any such waiver or acquiescence. No single or partial exercise of any right, power or privilege under this
Agreement or the Note shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 
 10.02 Notices. Except as otherwise specified herein, all notices, requests, demands or other communications to or upon the respective parties hereto under or with respect to any Credit Document shall be in writing unless otherwise
specified in the relevant Credit Document. Written notices shall be deemed to have been duly given or made (x) five (5) Business Days after being mailed, properly addressed with first class postage prepaid, or (y) upon actual receipt
thereof by the receiving party, if delivered by hand, overnight courier or facsimile transmission (and, if received on any day that is not a Business Day or after close of business on a Business Day, at the opening of business of the receiving party
on the next succeeding Business Day); provided that notice to a Lender or the Agent shall not be effective until actually received by it. Each such notice shall be addressed to the addressee at its address or facsimile number set forth below
or at such other address or facsimile number as such addressee shall have hereafter (and prior to the delivery of such notice) specified by a written notice to the other party. 
 As of the date hereof, the address, telephone number, and facsimile number of each party are: 
  

					
	Borrower:	  	Alesco Financial Holdings, LLC
		  	2929 Arch Street – Suite 1703
		  	Philadelphia, Pa. 19104
		  	Attention:	 	John Longino,
		  		 	Chief Financial Officer
		  	Telephone Number: 215-701-9687
		  	Facsimile Number: 215-701-8281
		
	Guarantor:	  	Alesco Financial Inc.
		  	2929 Arch Street – Suite 1703
		  	Philadelphia, Pa. 19104
		  	Attention:	 	John Longino,
		  		 	Chief Financial Officer
		  	Telephone Number: 215-701-9687
		  	Facsimile Number: 215-701-8281

  

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	Agent:	  	Royal Bank of Canada, as Agent
		  	Royal Bank of Canada Agency Services Group
		  	Royal Bank Plaza
		  	P. O. Box 50, 200 Bay Street
		  	12th Floor, South Tower
		  	Toronto, Ontario M5J 2W7
		  	Attn: Manager Agency
		  	Telecopy: (416) 842-4023
		  	Telephone: (416) 842-3901
		
	Lenders:	  	Royal Bank of Canada
		  	New York Branch
		  	One Liberty Plaza, 3rd Floor
		  	New York, NY 10006-1404
		  	Attention: Loans Administration
		  	Telephone Number: 212-428-6212
		  	Facsimile Number: 212-428-2372
			
		  	with copies to:	  	
		
		  	Royal Bank of Canada
		  	One Liberty Plaza, 3rd Floor
		  	New York, NY 10006-1404
		  	Attention: Alexander Birr
		  	Telephone Number: 212-428-6404
		  	Facsimile Number: 212-428-6201
		
		  	U.S. Bank National Association.
		  	777 E. Wisconsin Ave.
		  	Milwaukee, Wisconsin 53202
		  	Attention: Jon B. Biggs
		  	Telephone: 414-765-4411
		  	Telecopy: 414-765-6236

 10.03 Preservation of Rights. All rights and remedies contained in the Credit Documents or
afforded by law or equity shall be cumulative, and all shall be available to Lender until this Agreement has terminated and the Obligations have been paid in full. 
 10.04 Expenses; Indemnity. (a) The Obligors agree, jointly and severally, to pay and reimburse on demand all of the Agent’s and each Lender, reasonable costs and expenses, including (but not limited
to) the fees and expenses of its counsel, in connection with (i) the negotiation, preparation, execution and delivery of this Agreement, the other Credit Documents and other documents to be delivered hereunder or in respect of the transactions
contemplated hereby or (ii) the administration of this Agreement and the other Credit Documents. The Obligors also agree, jointly and severally, to pay and reimburse on demand to each Creditor all reasonable costs and expenses, including
reasonable fees and disbursements of counsel, incurred by each Creditor in connection with (i) any amendment, consent or waiver with 

  

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respect to this Agreement or any other Credit Document. The Obligors further agree, jointly and severally, to pay on demand all costs and expenses (including
but not limited to reasonable counsel fees and expenses), if any, incurred by Lender in connection with modification and supplementation of this Agreement or any other Credit Document or the Collateral, any waiver or consent hereunder or thereunder
and the enforcement (whether through negotiations, legal proceedings or otherwise) of this Agreement, any other Credit Document or any other document delivered hereunder or thereunder or in respect of the transactions contemplated hereby or thereby.

 (b) The Obligors shall, jointly and severally, indemnify each Creditor and each of its Affiliates and the respective officers, directors,
employees, agents and advisors of such Creditor and its Affiliates (each, an “Indemnified Party”) from and against any and all claims, damages, losses, liabilities and expenses (including but not limited to fees and disbursements of
counsel), joint or several, that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or relating to any investigation, litigation, proceeding, or claim or the preparation of any
defense with respect thereto arising out of or in connection with or relating to this Agreement, any other Credit Document, the transactions contemplated hereby or thereby, the Collateral, any consent (or lack of consent) rendered by a Creditor in
connection with Collateral, or any use made or proposed to be made of the proceeds of the Loans, whether or not such investigation, litigation, proceeding or claim is brought or asserted by an Obligor, any of its members, shareholders or creditors,
an Indemnified Party or any other Person, or an Indemnified Party is otherwise a party thereto, and whether or not the conditions precedent set forth in Article IV are satisfied or the transactions contemplated by this Agreement are consummated,
except, as to any Indemnified Party, to the extent such claim, damage, loss, liability or expense results from such Indemnified Party’s gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final
non-appealable judgment of such court. 
 10.05 Binding Effect. This Agreement shall become effective when it has been executed and
delivered by each of Borrower, Lenders and the Agent. 
 10.06 Successors and Assigns; Participations. (a) The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that no Obligor may assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of each Lender (and any assignment by an Obligor without such consent shall be null and void). A Lender may assign or otherwise transfer any of its rights or obligations hereunder and under its Note and each other Credit
Document (i) to an assignee in accordance with the provisions of paragraph (b) of this Section, (ii) by way of participation in accordance with the provisions of paragraph (c) of this Section, or (iii) by way of pledge,
assignment or grant of a Lien subject to the restrictions of paragraph (d) of this Section. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby and, to the extent provided in paragraph (c) of this Section, Participants) any legal or equitable right, remedy or claim under or by reason of this Agreement. 
  

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 (b) A Lender may at any time, with the consent of Borrower and the Agent (such consent not to be
unreasonably withheld or delayed), assign to one or more Persons all or a portion of its rights and obligations under this Agreement (including all or a portion of the Commitment and the Loans at the time owing to it); provided that no such
consent by Borrower shall be required if (x) a Default has occurred and is continuing at the time of such assignment or (y) such assignment is to another Lender or to an Affiliate of a Lender. From and after the effective date of the
assignment, the assignee shall be a party to this Agreement as a Lender with respect to the interest assigned and, to the extent of the interest assigned to it, have the rights and obligations of Lender under this Agreement, and the assignor shall,
to the extent of the interest assigned by it, be released from its obligations under this Agreement (and, in the case of an assignment covering all of the assignor’s rights and obligations under this Agreement, the assignor shall cease to be a
party hereto) but shall continue to be entitled to the benefits of Article III and Sections 10.04 and 10.19 with respect to facts and circumstances occurring prior to the effective date of such assignment. Any such assignment shall be made pursuant
to an Assignment and Acceptance substantially in the form of Exhibit E hereto (an “Assignment and Acceptance”) executed by the assignor and assignee which shall be submitted to the Agent and, if required pursuant hereto, to the
Borrower for their acceptance (with such commercially reasonable changes thereto as are reasonably acceptable to the Agent). Concurrently with the delivery of an Assignment and Acceptance to the Agent, and as a condition to the effectiveness
thereof, there shall be paid to the Agent by the assignor a processing fee of $3,000. 
 (c) A Lender may at any time, without the consent of
or notice to Borrower or the Agent, sell participations to any Person (a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of the Commitment and/or
the Loans owing to it); provided that (i) Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to Borrower and the Agent for the performance of such obligations, and
(iii) Borrower and the Agent shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. The Obligors agree that each Participant shall be entitled to the
benefits of Article III to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section. To the extent permitted by Law, each Participant also shall be entitled to the benefits of
Section 10.12 as though it were a Lender. 
 (d) Notwithstanding the foregoing, any Lender may at any time pledge, assign or grant a
Lien on all or any portion of its rights under this Agreement (including its Loans and its Note) to secure obligations of such Lender, including without limitation any pledge, assignment or grant of a Lien to a Federal Reserve Bank; provided
that no such pledge, assignment or grant of a Lien shall release such Lender from any of its obligations hereunder or substitute the pledgee, assignee or grantee for Lender as a party hereto. 
 10.07 Judgment Currency. If a judgment, order or award is rendered by any court or tribunal for the payment of any amounts owing to a Creditor
under this Agreement or any other Credit Document or for the payment of damages in respect of a judgment or order of another court or tribunal for the payment of such amount or damages, and such judgment, order or award is expressed in a currency
(the “Judgment Currency”) other than Dollars, each Obligor agrees (a) that its obligations in respect of any such amounts owing shall be discharged only to the extent of the amount of Dollars that such Creditor may purchase
with a payment in the 

  

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Judgment Currency on the Business Day following Lender’s receipt of such payment and (b) to indemnify and hold harmless such Creditor against any
deficiency in Dollars in the amounts actually received by such Creditor following any such purchase (after deduction of any premiums and costs of exchange payable in connection with the purchase of, or conversion into, Dollars). The indemnity of
each Obligor set forth in the preceding sentence shall (notwithstanding any judgment referred to in the preceding sentence) constitute an obligation of such Obligor separate and independent from its other obligations hereunder and shall apply
irrespective of any time or other indulgence granted by a Creditor. 
 10.08 Severability. Any provision in this Agreement or any
other Credit Document that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of such Credit Document,
and any such prohibition or unenforceability in any jurisdiction shall not invalidate such provision or render it unenforceable in any other jurisdiction. 
 10.09 Counterparts. This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one agreement. Any of the parties hereto may execute this Agreement by signing any
such counterpart. Delivery of an executed counterpart of a signature page of this Agreement by facsimile shall be effective as delivery of a manually executed counterpart of this Agreement. Any party delivering a counterpart of this Agreement by
facsimile transmission shall, if so requested by the other party, deliver an original manually signed to the other party, but failure by a party to make such delivery shall not impair the effectiveness of the delivery by such party of such
counterpart by facsimile transmission. 
 10.10 Survival. Each Obligor’s obligations hereunder shall remain in full force and
effect during the term of this Agreement. Each Obligor’s obligations under Sections 3.01, 3.02, 3.04, 3.05, 10.04, 10.07, 10.15, 10.18 and 10.19 shall survive termination of this Agreement. 
 10.11 No Fiduciary Relationship; No Joint Venture. Each Obligor acknowledges that (i) neither any Lender nor the Agent has any fiduciary
relationship with, or fiduciary duty to, such Obligor arising out of or in connection with the Credit Documents and (ii) the relationship between each Creditor and each Obligor is solely that of creditor and debtor. This Agreement does not
create a joint venture among the parties. 
 10.12 Right of Set-off. In addition to, and without limitation of, any rights of Lender
under applicable Law, if any Event of Default occurs, each Lender and the Agent is hereby authorized at any time or from time to time, without presentment, demand, protest or other notice of any kind to any Obligor or to any other Person, any such
notice being hereby expressly waived, to set-off and to appropriate and apply any and all deposits (general or special) and any other indebtedness matured or not yet due at any time held or owing by such Creditor or any of its Affiliates (including
but not limited to by any of its or their branches and agencies wherever located), and in whatever currency denominated, to or for the credit or the account of any Obligor against and on account of the Obligations, including but not limited to all
claims of any nature or description arising out of or connected with this Agreement or any other Credit Document, whether or not such Creditor shall have made any demand hereunder or thereunder 

  

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and although such obligations, liabilities or claims, or any of them, shall be contingent or unmatured or denominated in a currency other than Dollars. For
purposes of effecting any such set-off, a Creditor may convert any deposit or other indebtedness from one currency to another at the exchange rate prevailing on the date of such set-off, as determined by Lender. 
 10.13 Entire Agreement. This Agreement and the other Credit Documents constitute the entire agreement between the parties hereto relating to the
subject matter hereof and supersede any and all previous agreements and understandings, oral or written, between the parties hereto relating to the subject matter hereof. 
 10.14 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS CONFLICT OF LAWS PRINCIPLES THAT WOULD MAKE THE LAWS OF ANY
OTHER JURISDICTION APPLICABLE TO THIS AGREEMENT. 
 10.15 Submission to Jurisdiction; Waiver of Immunity. (a) For purposes of any
suit, action or proceeding involving this Agreement or any other Credit Document or any judgment entered by any court in respect of such suit, action or proceeding, each Obligor expressly submits to the non-exclusive jurisdiction of any New York
state or U.S. federal court sitting in the Borough of Manhattan, The City of New York, New York, and agrees that any order, process or other paper may be served upon such Obligor within or without such court’s jurisdiction by mailing a
copy by registered or certified mail, postage prepaid, to such Obligor at such Obligor’s address for notices provided in this Agreement, such service to become effective 30 days after such mailing. Each Obligor irrevocably waives any objection
it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Credit Document brought in any such court and further irrevocably waives any claim that any such suit,
action or proceeding brought in any such court has been brought in an inconvenient forum. A final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner
provided by Law. Nothing contained in this Agreement or any other Credit Document shall affect Lender’s right to serve legal process in any manner permitted by Law or to bring any action or proceeding against Borrower or Borrower’s
property in the courts of other jurisdictions. 
 (b) To the extent that any Obligor has or hereafter may acquire any immunity from
jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its property, such Obligor hereby irrevocably
waives such immunity in respect of its obligations under this Agreement and the other Credit Documents and, without limiting the generality of the foregoing, agrees that the waivers set forth herein shall have the fullest scope permitted under the
Foreign Sovereign Immunities Act of 1976 of the United States and are intended to be irrevocable for purposes of such Act. 
 10.16
Customer Identification Program Requirements. Lenders and the Agent hereby notify each Obligor pursuant to the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), amending the Bank Secrecy Act (31 U.S.C.
§ 5311 et seq.), Lenders and the Agent are required to obtain, verify and record information that identifies 

  

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such Obligor, which information includes the name and address of such Obligor and other information that will allow Lenders and the Agent to identify such
Obligor in accordance with such Acts. Any Lender or the Agent may also request identifying documents of each Obligor. Each Obligor agrees that it will promptly comply with any request by any Lender or the Agent for any such information. Any Lender
or the Agent may also screen each Obligor against various databases and lists to determine whether such Obligor appears thereon. 
 10.17
Recordings. Each Obligor, each Lender and the Agent consent to the recording of all telephonic or electronic communications made in respect hereof or in respect of the other Credit Documents and agree that either may produce telephonic or
electronic recordings or computer records as evidence in any proceedings brought in connection with this Agreement or any other Credit Document. 
 10.18 Waiver of Jury Trial. THE OBLIGORS, LENDERS AND THE AGENT HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO TRIAL BY JURY IN ANY JUDICIAL PROCEEDING
INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO OR CONNECTED WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT, THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY OR
THE RELATIONSHIP ESTABLISHED HEREUNDER OR THEREUNDER AND AGREE THAT ANY SUCH PROCEEDING SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY. 
 10.19 Waiver of Certain Claims. EACH OBLIGOR AGREES THAT IT WILL NOT ASSERT AGAINST ANY LENDER OR THE AGENT OR ANY OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS THEREOF, AND HEREBY WAIVES, ANY CLAIMS IT MAY AT ANY TIME HAVE FOR PUNITIVE,
CONSEQUENTIAL, INCIDENTAL OR SPECIAL DAMAGE IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 
 [Remainder of page intentionally left blank; signature page following] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered by their
respective duly authorized representatives as of the date first written above. 
  

			
	Borrower:
	
	ALESCO FINANCIAL HOLDINGS, LLC
		
	By	 	 /s/ John J. Longino

	Name:	 	John J. Longino
	Title:	 	Chief Financial Officer
	
	Guarantor:
	
	ALESCO FINANCIAL INC.
		
	By	 	 /s/ John J. Longino

	Name:	 	John J. Longino
	Title:	 	Chief Financial Officer
	
	Agent:
	
	ROYAL BANK OF CANADA, as Agent
		
	By	 	 /s/ Gail Watkin

	Name:	 	Gail Watkin
	Title:	 	Manager, Agency

					
		 	Lenders:
		
	 Commitment: $20,000,000
	 	ROYAL BANK OF CANADA
	 Commitment Percentage: 50%
	 	
			
		 	By	 	 /s/ Alexander Birr

		 	Name:	 	Alexander Birr
		 	Title:	 	Authorized Signatory
		
	 Commitment: $20,000,000
	 	U.S. BANK NATIONAL ASSOCIATION
	 Commitment Percentage: 50%
	 		 	
			
		 	By	 	 /s/ Jon B. Beggs

		 	Name:	 	Jon B. Beggs
		 	Title:	 	Vice President

 TABLE OF CONTENTS 
  

							
	 ARTICLE I
	 	 DEFINITIONS AND ACCOUNTING TERMS; RULES OF CONSTRUCTION
	  	1
				
		 	1.01	 	DEFINITIONS AND RULES OF CONSTRUCTION	  	1
		 	1.02	 	COMPUTATION OF TIME PERIODS	  	11
		 	1.03	 	ACCOUNTING TERMS	  	11
		 	1.04	 	PRINCIPLES OF CONSTRUCTION	  	11
			
	 ARTICLE II
	 	 THE CREDIT FACILITY
	  	12
				
		 	2.01	 	LOANS	  	12
		 	2.02	 	PROCEDURE FOR BORROWING	  	12
		 	2.03	 	CONVERSION AND CONTINUATION	  	13
		 	2.04	 	EVIDENCE OF INDEBTEDNESS, NOTE	  	13
		 	2.05	 	PREPAYMENTS	  	14
		 	2.06	 	REDUCTION OR TERMINATION OF COMMITMENTS	  	14
		 	2.07	 	FEES	  	15
		 	2.08	 	INTEREST RATES AND PAYMENTS DATES	  	15
		 	2.09	 	INTEREST AND FEE BASIS	  	16
		 	2.10	 	METHOD OF PAYMENT	  	17
		 	2.11	 	EXTENSION OF COMMITMENT	  	17
		 	2.12	 	ADJUSTMENTS TO VALUE	  	18
		 	2.13	 	PRO RATA TREATMENT	  	18
		 	2.14	 	TERMINATION OF EXISTING CREDIT AGREEMENT	  	18
			
	 ARTICLE III
	 	 CHANGE IN CIRCUMSTANCES
	  	18
				
		 	3.01	 	YIELD PROTECTION	  	18
		 	3.02	 	CHANGES IN CAPITAL ADEQUACY REGULATIONS	  	19
		 	3.03	 	AVAILABILITY OF EURODOLLAR LOANS	  	19
		 	3.04	 	FUNDING REIMBURSEMENT	  	20
		 	3.05	 	TAXES	  	20
		 	3.06	 	LENDER STATEMENTS, SURVIVAL OF INDEMNITY	  	21
			
	 ARTICLE IV
	 	 CONDITIONS PRECEDENT
	  	21
				
		 	4.01	 	CONDITIONS PRECEDENT TO INITIAL LOAN	  	21
		 	4.02	 	CONDITIONS PRECEDENT TO EACH LOAN	  	23
			
	 ARTICLE V
	 	 REPRESENTATIONS AND WARRANTIES
	  	24
				
		 	5.01	 	EXISTENCE AND GOOD STANDING; SUBSIDIARIES	  	24
		 	5.02	 	POWER AND AUTHORITY; NO CONFLICT	  	24
		 	5.03	 	NO FILINGS OR APPROVALS	  	25
		 	5.04	 	EXECUTION; VALIDITY	  	25
		 	5.05	 	FINANCIAL STATEMENTS; NO MATERIAL ADVERSE EFFECT	  	25
		 	5.06	 	NO LITIGATION	  	26
		 	5.07	 	NOT A REGULATED BORROWER	  	26
		 	5.08	 	COMPLIANCE WITH LAW, AGREEMENTS, ETC.	  	26

  

 (i) 

							
		 	5.09	 	GOOD TITLE	  	26
		 	5.10	 	TAXES	  	27
		 	5.11	 	MARGIN REGULATIONS	  	27
		 	5.12	 	MATERIAL ADVERSE EFFECT	  	27
		 	5.13	 	NO IMMUNITY FROM JURISDICTION	  	27
		 	5.14	 	RANKING OF LOANS; DEBT	  	27
		 	5.15	 	MANAGEMENT AGREEMENT	  	27
		 	5.16	 	DAIN ACCOUNT	  	28
		 	5.17	 	ACCURATE INFORMATION	  	28
		 	5.18	 	FISCAL YEAR RECORD	  	28
			
	 ARTICLE VI
	 	 COVENANTS
	  	28
				
		 	6.01	 	AFFIRMATIVE COVENANTS	  	28
		 	6.02	 	NEGATIVE COVENANTS	  	32
			
	 ARTICLE VII
	 	 DEFAULTS
	  	35
				
		 	7.01	 	EVENTS OF DEFAULT	  	35
			
	 ARTICLE VIII
	 	 GUARANTY
	  	37
				
		 	8.01	 	GUARANTY BY GUARANTOR	  	37
		 	8.02	 	OBLIGATIONS UNCONDITIONAL	  	38
		 	8.03	 	STAY OF ACCELERATION	  	39
		 	8.04	 	SUBROGATION	  	39
		 	8.05	 	SUBORDINATION	  	39
		 	8.06	 	CUMULATIVE REMEDIES	  	39
		 	8.07	 	WAIVERS	  	40
		 	8.08	 	SURVIVAL OF GUARANTY	  	40
			
	 ARTICLE IX
	 	 THE AGENT
	  	40
				
		 	9.01	 	APPOINTMENT AND AUTHORIZATION	  	40
		 	9.02	 	AGENT’S DUTIES LIMITED	  	40
		 	9.03	 	ACTIONS OF AGENT	  	41
		 	9.04	 	DELEGATION OF DUTIES	  	41
		 	9.05	 	EXCULPATION OF AGENT-RELATED PERSONS	  	41
		 	9.06	 	RELIANCE BY AGENT	  	42
		 	9.07	 	NOTICE OF DEFAULT	  	42
		 	9.08	 	CREDIT DECISION	  	43
		 	9.09	 	INDEMNIFICATION	  	43
		 	9.10	 	AGENT IN INDIVIDUAL CAPACITY	  	44
		 	9.11	 	SUCCESSOR AGENT	  	44
		 	9.12	 	WITHHOLDING TAX	  	44
		 	9.13	 	RELEASE OF COLLATERAL	  	46
		 	9.14	 	SHARING OF PAYMENTS	  	46
		 	9.15	 	PAYMENTS BY AGENT TO LENDERS	  	46
		 	9.16	 	RELATION AMONG LENDERS	  	46

  

 (ii) 

							
			
	 ARTICLE X
	 	 MISCELLANEOUS
	  	47
				
		 	10.01	 	AMENDMENTS AND WAIVERS	  	47
		 	10.02	 	NOTICES	  	48
		 	10.03	 	PRESERVATION OF RIGHTS	  	49
		 	10.04	 	EXPENSES; INDEMNITY	  	49
		 	10.05	 	BINDING EFFECT	  	50
		 	10.06	 	SUCCESSORS AND ASSIGNS; PARTICIPATIONS	  	50
		 	10.07	 	JUDGMENT CURRENCY	  	51
		 	10.08	 	SEVERABILITY	  	52
		 	10.09	 	COUNTERPARTS	  	52
		 	10.10	 	SURVIVAL	  	52
		 	10.11	 	NO FIDUCIARY RELATIONSHIP; NO JOINT VENTURE	  	52
		 	10.12	 	RIGHT OF SET-OFF	  	52
		 	10.13	 	ENTIRE AGREEMENT	  	53
		 	10.14	 	GOVERNING LAW	  	53
		 	10.15	 	SUBMISSION TO JURISDICTION; WAIVER OF IMMUNITY	  	53
		 	10.16	 	CUSTOMER IDENTIFICATION PROGRAM REQUIREMENTS	  	53
		 	10.17	 	RECORDINGS	  	54
		 	10.18	 	WAIVER OF JURY TRIAL	  	54
		 	10.19	 	WAIVER OF CERTAIN CLAIMS	  	54

  

			
	EXHIBITS	 	
		
	Exhibit A:	 	Form of Note
	Exhibit B:	 	Form of Notice of Borrowing
	Exhibit C:	 	Form of Notice of Conversion
	Exhibit D:	 	Form of Request for Extension
	Exhibit E:	 	Form of Assignment and Acceptance Agreement
		
	SCHEDULES	 	
		
	Schedule 4.01(a):	 	Alesco Funding Preferred Shares
	Schedule 5.01:	 	Subsidiaries and Consolidated VIEs
	Schedule 5.09:	 	Existing Liens
	Schedule 5.14:	 	Existing Debt

  

 (iii)Indenture

 Exhibit 4.1 
 AMBASSADORS INTERNATIONAL, INC. 
 3.75% CONVERTIBLE SENIOR NOTES DUE 2027 
  

 INDENTURE 
 DATED AS OF APRIL 3, 2007 
  

 WELLS FARGO BANK, NATIONAL ASSOCIATION 
 AS TRUSTEE 
  

 TABLE OF CONTENTS 
  

					
	 	  	Page
	 ARTICLE I
	  	1
		
	 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	  	1
			
	 SECTION 1.1
	  	 Definitions
	  	1
	 SECTION 1.2
	  	 Compliance Certificates And Opinions
	  	9
	 SECTION 1.3
	  	 Form of Documents Delivered to the Trustee
	  	10
	 SECTION 1.4
	  	 Acts of Holders of Securities; Record Dates
	  	10
	 SECTION 1.5
	  	 Notices, Etc. to the Trustee and Company
	  	12
	 SECTION 1.6
	  	 Notice to Holders of Securities; Waiver
	  	13
	 SECTION 1.7
	  	 Effect of Headings and Table of Contents
	  	13
	 SECTION 1.8
	  	 Successors and Assigns
	  	14
	 SECTION 1.9
	  	 Separability Clause
	  	14
	 SECTION 1.10
	  	 Benefits of Indenture
	  	14
	 SECTION 1.11
	  	 Governing Law
	  	14
	 SECTION 1.12
	  	 Legal Holidays
	  	14
	 SECTION 1.13
	  	 Conflict With Trust Indenture Act
	  	14
		
	 ARTICLE II
	  	15
		
	 SECURITY FORMS
	  	15
			
	 SECTION 2.1
	  	 Form Generally
	  	15
	 SECTION 2.2
	  	 Form of Security
	  	15
	 SECTION 2.3
	  	 Form of Repurchase Notice and Scheduled Repurchase Notice
	  	26
	 SECTION 2.4
	  	 Form of Certificate of Authentication
	  	28
	 SECTION 2.5
	  	 Form of Conversion Notice
	  	28
	 SECTION 2.6
	  	 Form of Assignment
	  	29
		
	 ARTICLE III
	  	30
		
	 THE SECURITIES
	  	30
			
	 SECTION 3.1
	  	 Title and Terms
	  	30
	 SECTION 3.2
	  	 Denominations
	  	31
	 SECTION 3.3
	  	 Execution, Authentication, Delivery and Dating
	  	31
	 SECTION 3.4
	  	 Global Securities; Non-global Securities; Book-entry Provisions
	  	31
	 SECTION 3.5
	  	 Registration; Registration of Transfer and Exchange; Restrictions on Transfer
	  	33
	 SECTION 3.6
	  	 Mutilated, Destroyed, Lost or Stolen Securities
	  	36
	 SECTION 3.7
	  	 Payment of Interest; Interest Rights Preserved
	  	37
	 SECTION 3.8
	  	 Persons Deemed Owners
	  	38
	 SECTION 3.9
	  	 Cancellation
	  	38
	 SECTION 3.10
	  	 Computation of Interest
	  	38
	 SECTION 3.11
	  	 CUSIP Numbers
	  	38

  

 i 

					
	 ARTICLE IV
	  	39
		
	 SATISFACTION AND DISCHARGE
	  	39
			
	 SECTION 4.1
	  	 Satisfaction and Discharge of Indenture
	  	39
	 SECTION 4.2
	  	 Application of Trust Money
	  	40
		
	 ARTICLE V
	  	40
		
	 REMEDIES
	  	40
			
	 SECTION 5.1
	  	 Events of Default
	  	40
	 SECTION 5.2
	  	 Acceleration of Maturity; Rescission and Annulment
	  	41
	 SECTION 5.3
	  	 Collection of Indebtedness and Suits for Enforcement by Trustee
	  	42
	 SECTION 5.4
	  	 Trustee May File Proofs of Claim
	  	43
	 SECTION 5.5
	  	 Trustee May Enforce Claims Without Possession of Securities
	  	43
	 SECTION 5.6
	  	 Application of Money Collected
	  	44
	 SECTION 5.7
	  	 Limitation on Suits
	  	44
	 SECTION 5.8
	  	 Unconditional Right of Holders to Receive Principal, Premium and Interest and to Convert
	  	45
	 SECTION 5.9
	  	 Restoration of Rights and Remedies
	  	45
	 SECTION 5.10
	  	 Rights and Remedies Cumulative
	  	45
	 SECTION 5.11
	  	 Delay or Omission Not Waiver
	  	45
	 SECTION 5.12
	  	 Control by Holders of Securities
	  	46
	 SECTION 5.13
	  	 Waiver of Past Defaults
	  	46
	 SECTION 5.14
	  	 Undertaking for Costs
	  	46
	 SECTION 5.15
	  	 Waiver of Stay, Usury or Extension Laws
	  	47
		
	 ARTICLE VI
	  	47
		
	 THE TRUSTEE
	  	47
			
	 SECTION 6.1
	  	 Certain Duties and Responsibilities
	  	47
	 SECTION 6.2
	  	 Notice of Defaults
	  	48
	 SECTION 6.3
	  	 Certain Rights of Trustee
	  	48
	 SECTION 6.4
	  	 Not Responsible for Recitals or Issuance of Securities
	  	50
	 SECTION 6.5
	  	 May Hold Securities, Act as Trustee under Other Indentures
	  	50
	 SECTION 6.6
	  	 Money Held in Trust
	  	50
	 SECTION 6.7
	  	 Compensation and Reimbursement
	  	50
	 SECTION 6.8
	  	 Corporate Trustee Required; Eligibility
	  	51
	 SECTION 6.9
	  	 Resignation and Removal; Appointment of Successor
	  	51
	 SECTION 6.10
	  	 Acceptance of Appointment by Successor
	  	52
	 SECTION 6.11
	  	 Merger, Conversion, Consolidation or Succession to Business
	  	53
	 SECTION 6.12
	  	 Authenticating Agents
	  	53
	 SECTION 6.13
	  	 Disqualification; Conflicting Interests
	  	54
	 SECTION 6.14
	  	 Preferential Collection of Claims Against Company
	  	54
		
	 ARTICLE VII
	  	54
		
	 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	  	54
			
	 SECTION 7.1
	  	 Company May Consolidate, Etc. Only on Certain Terms
	  	54
	 SECTION 7.2
	  	 Successor Substituted
	  	55

  

 ii 

					
	 	  	Page
	 ARTICLE VIII
	  	55
		
	 SUPPLEMENTAL INDENTURES
	  	55
			
	 SECTION 8.1
	  	 Supplemental Indentures Without Consent of Holders of Securities
	  	55
	 SECTION 8.2
	  	 Supplemental Indentures with Consent of Holders of Securities
	  	56
	 SECTION 8.3
	  	 Execution of Supplemental Indentures
	  	57
	 SECTION 8.4
	  	 Effect of Supplemental Indentures
	  	57
	 SECTION 8.5
	  	 Reference in Securities to Supplemental Indentures
	  	57
	 SECTION 8.6
	  	 Notice of Supplemental Indentures
	  	58
		
	 ARTICLE IX
	  	58
		
	 MEETINGS OF HOLDERS OF SECURITIES
	  	58
			
	 SECTION 9.1
	  	 Purposes for Which Meetings May Be Called
	  	58
	 SECTION 9.2
	  	 Call, Notice and Place of Meetings
	  	58
	 SECTION 9.3
	  	 Persons Entitled to Vote at Meetings
	  	58
	 SECTION 9.4
	  	 Quorum; Action
	  	58
	 SECTION 9.5
	  	 Determination of Voting Rights; Conduct and Adjournment of Meetings
	  	59
	 SECTION 9.6
	  	 Counting Votes and Recording Action of Meetings
	  	60
		
	 ARTICLE X
	  	60
		
	 COVENANTS
	  	60
			
	 SECTION 10.1
	  	 Payment of Principal, Premium and Interest
	  	60
	 SECTION 10.2
	  	 Maintenance of Offices or Agencies
	  	60
	 SECTION 10.3
	  	 Money for Security Payments to Be Held in Trust
	  	61
	 SECTION 10.4
	  	 Existence
	  	62
	 SECTION 10.5
	  	 Payment of Taxes and Other Claims
	  	62
	 SECTION 10.6
	  	 Statement by Officers as to Default
	  	63
	 SECTION 10.7
	  	 Reserved
	  	63
	 SECTION 10.8
	  	 Delivery of Certain Information
	  	63
	 SECTION 10.9
	  	 Waiver of Certain Covenants
	  	63
	 SECTION 10.10
	  	 Additional Interest
	  	64
		
	 ARTICLE XI
	  	64
		
	 REDEMPTION OF SECURITIES
	  	64
			
	 SECTION 11.1
	  	 Right of Redemption
	  	64
	 SECTION 11.2
	  	 Applicability of Article
	  	65
	 SECTION 11.3
	  	 Election to Redeem; Notice to Trustee
	  	65
	 SECTION 11.4
	  	 Selection by Trustee of Securities to Be Redeemed
	  	65
	 SECTION 11.5
	  	 Notice of Redemption
	  	65
	 SECTION 11.6
	  	 Deposit of Redemption Price
	  	66
	 SECTION 11.7
	  	 Securities Payable on Redemption Date
	  	67
	 SECTION 11.8
	  	 Conversion Arrangement on Call for Redemption
	  	67

  

 iii 

					
	 ARTICLE XII
	  	68
		
	 CONVERSION OF SECURITIES
	  	68
			
	 SECTION 12.1
	  	 Conversion Right and Conversion Rate
	  	68
	 SECTION 12.2
	  	 Exercise of Conversion Right
	  	68
	 SECTION 12.3
	  	 Fractions of Shares
	  	70
	 SECTION 12.4
	  	 Adjustment of Conversion Rate
	  	70
	 SECTION 12.5
	  	 Notice of Adjustments of Conversion Rate
	  	75
	 SECTION 12.6
	  	 Notice of Certain Corporate Action
	  	76
	 SECTION 12.7
	  	 Company to Reserve Common Stock
	  	77
	 SECTION 12.8
	  	 Taxes on Conversions
	  	77
	 SECTION 12.9
	  	 Covenant as to Common Stock
	  	77
	 SECTION 12.10
	  	 Cancellation of Converted Securities
	  	77
	 SECTION 12.11
	  	 Provision in Case of Reclassification, Consolidation, Merger or Sale of Assets
	  	77
	 SECTION 12.12
	  	 Rights Issued in Respect of Common Stock
	  	78
	 SECTION 12.13
	  	 Responsibility of Trustee for Conversion Provisions
	  	79
		
	 ARTICLE XIII
	  	79
		
	 RESERVED.
	  	79
		
	 ARTICLE XIV
	  	79
		
	 REPURCHASE OF SECURITIES AT THE OPTION OF THE HOLDER
	  	79
			
	 SECTION 14.1
	  	 Right to Require Repurchase Upon a Fundamental Change
	  	79
	 SECTION 14.2
	  	 Notices; Method of Exercising Repurchase Right, Etc
	  	80
	 SECTION 14.3
	  	 Certain Definitions
	  	83
	 SECTION 14.4
	  	 Consolidation, Merger, Etc
	  	85
	 SECTION 14.5
	  	 Repurchase of Securities at Option of the Holder on Specified Dates
	  	85
		
	 ARTICLE XV
	  	88
		
	 HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY; NON-RECOURSE
	  	88
			
	 SECTION 15.1
	  	 Company to Furnish Trustee Names and Addresses of Holders
	  	88
	 SECTION 15.2
	  	 Preservation of Information
	  	89
	 SECTION 15.3
	  	 Reports by Trustee
	  	89
	 SECTION 15.4
	  	 Reports by Company
	  	89
		
	 ARTICLE XVI
	  	90
		
	 IMMUNITY OF INCORPORATORS, SHAREHOLDERS, OFFICERS AND DIRECTORS
	  	90
			
	 SECTION 16.1
	  	 Indenture and Securities Solely Corporate Obligations
	  	90

  

 iv 

 CROSS REFERENCE TABLE* 
  

					
	TIA
SECTION	  	 	  	 INDENTURE
 SECTION

	Section	  	 310
	  	1.13
		  	 310(a)(1)
	  	6.8
		  	 (a)(2)
	  	6.8
		  	 (a) (3)
	  	N.A.**
		  	 (a) (4)
	  	N.A.
		  	 (a) (5)
	  	6.8
		  	 (b)
	  	6.8
		  	 (c)
	  	N.A.
	Section	  	 311
	  	1.13
		  	 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. 

 Indenture, dated as of April 3, 2007, between AMBASSADORS INTERNATIONAL, INC., a corporation duly
organized and existing under the laws of the State of Delaware, having its principal office at 1071 Camelback Street, Newport Beach, California 92660 (herein called the “Company”), and Wells Fargo Bank, National Association, a national
banking association organized and existing under the laws of the United States, as trustee hereunder (herein called the “Trustee”). 
 RECITALS OF THE COMPANY 
 The Company has duly authorized the creation of and issue of its 3.75% Convertible Senior Notes due 2027
(herein called the “Securities”) of substantially the tenor and in the amount hereinafter set forth, and to provide therefor the Company has duly authorized the execution and delivery of this Indenture. 
 All things necessary to make the Securities, when the Securities are executed by the Company and authenticated and delivered hereunder, the valid
obligations of the Company, and to make this Indenture a valid agreement of the Company, in accordance with their and its terms, have been done. Further, all things necessary to duly authorize the issuance of the Common Stock of the Company issuable
upon the conversion of the Securities, and to duly reserve for issuance the number of shares of Common Stock issuable upon such conversion, have been done. 
 NOW, THEREFORE, THIS INDENTURE WITNESSETH: 
 For and in consideration of the premises and the purchase of
the Securities by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the Securities, as follows: 
 ARTICLE I 
 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 
 SECTION 1.1 Definitions. 
 For all purposes of this
Indenture, except as otherwise expressly provided or unless the context otherwise requires: 
 (1) the terms defined in this Article
I have the meanings assigned to them in this Article I and include the plural as well as the singular; 
 (2) all accounting terms
not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles in the United States, and, except as otherwise herein expressly provided, the term “generally accepted accounting
principles” with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted at the date of such computation; 
 (3) the word “premium” includes the Additional Payment, if any; and 
 (4) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and
not to any particular Article, Section or other subdivision. 
  

 1 

 “Acquired Person” means, with respect to any specified Person, any other Person which merges
with or into or becomes a subsidiary of such specified Person. 
 “Act,” when used with respect to any Holder of a Security, has
the meaning specified in Section 1.4. 
 “Additional Interest” has the meaning specified in the Registration Rights Agreement.

 “Additional Payment” means, with respect to each $1,000 in principal amount of Securities, an amount in cash equal to $75.00
less the amount of interest paid on such $1,000 in principal amount of the Securities after April 15, 2010, but in no event less than $0. 
 “Additional Shares” means additional shares of Common Stock by which the Conversion Rate shall be increased for Securities surrendered for conversion pursuant to an adjustment of the Conversion Rate upon the occurrence of a
specified Fundamental Change. The number of Additional Shares shall be determined based on the Effective Date of the Fundamental Change and the Stock Price in such Fundamental Change transaction, all in accordance with Section 12.4(14).

 “Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct
or indirect common control with such specified Person. For the purposes of this definition, “control,” when used with respect to any specified Person, means the power to direct 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 Security Registrar, Authenticating Agent, Paying Agent, or Conversion Agent. 
 “Agent Member” means any member of, or participant in, the Depositary. 
 “Applicable Conversion Price” means, at any given time, $1,000 divided by the Applicable
Conversion Rate, rounded to the nearest  1/10th of a cent. 
 “Applicable Conversion Rate” means, at any given time, the Conversion Rate then in
effect, rounded to the nearest  1/10,000th of a share. 
 “Applicable Procedures” means, with respect to any transfer or transaction involving a Global Security or beneficial interest therein, the
rules and procedures of DTC or any successor Depositary, in each case to the extent applicable to such transaction and as in effect from time to time. 
 “Authenticating Agent” means any Person authorized pursuant to Section 6.12 to act on behalf of the Trustee to authenticate Securities. 
 “Board of Directors” means either the board of directors of the Company or, except as used in the definition of Fundamental Change or where the
context otherwise requires, any duly authorized committee of that board. 
 “Board Resolution” means a resolution duly adopted by
the Board of Directors, a copy of which, certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, shall have been
delivered to the Trustee. 
  

 2 

 “Business Day,” when used with respect to any Place of Payment, Place of Conversion or any
other place, as the case may be, means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in such Place of Payment, Place of Conversion or other place, as the case may be, are authorized or
obligated by law or executive order to close. 
 “Closing Price Per Share” means, with respect to the Common Stock, for any day,
(i) the last reported sale price regular way on the Nasdaq Stock Market or, (ii) if the Common Stock is not listed on the Nasdaq Stock Market, the last reported sale price regular way per share or, in case no such reported sale takes place
on such day, the average of the reported closing bid and asked prices regular way, in either case, on the principal national securities exchange on which the Common Stock is listed or admitted to trading, or (iii) if the Common Stock is not
listed on the Nasdaq Stock Market or listed or admitted to trading on any national securities exchange, the average of the closing bid prices in the over-the-counter market as furnished by any New York Stock Exchange member firm selected from time
to time by the Company for that purpose. 
 “Code” has the meaning specified in Section 2.l. 
 “Commission” means the United States Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or,
if at any time after the execution of this Indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time. 
 “Common Stock” means the common stock, $0.01 par value per share, of the Company authorized at the date of this Indenture as originally
executed. Subject to the provisions of Section 12.11, shares issuable on conversion or repurchase of Securities shall include only shares of Common Stock or shares of any class or classes of common stock resulting from any reclassification or
reclassifications thereof; provided, however, that if at any time there shall be more than one such resulting class, the shares so issuable on conversion of Securities shall include shares of all such classes, and the shares of each such
class then so issuable 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. 
 “common stock” includes any stock of any class of capital stock which has no preference in respect of
dividends or of amounts payable in the event of any voluntary or involuntary liquidation, dissolution or winding up of the issuer thereof and which is not subject to redemption by the issuer thereof. 
 “Company” means the Person named as the “Company” in the first paragraph of this instrument until a successor Person shall have
become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor Person. References to the Company shall not include any Subsidiary, unless otherwise stated. 
 “Company Notice” has the meaning specified in Section 14.2(2). 
 “Company Request” or “Company Order” means a written request or order signed in the name of the Company by (i) its Chairman of
the Board, its Vice Chairman of the Board, its Chief Executive Officer, its President, or any Vice President (whether or not such title is preceded by any modifier such as “Executive,” “Senior” or the like), and by (ii) its
principal financial officer, Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee. 
 “Constituent Person” has the meaning specified in Section 12.11. 
  

 3 

 “Conversion Agent” means any Person authorized by the Company to convert Securities in
accordance with Article XII. The Company has initially appointed the Trustee as its Conversion Agent pursuant to Section 10.2 hereof. 
 “Conversion Price” has the meaning specified in Section 14.3(5). 
 “Conversion Rate” has the meaning
specified in Section 12.1. 
 “Corporate Trust Office” means the office
of the Trustee at which at any particular time the trust created by this Indenture shall be principally administered (which at the date of this Indenture is located at Corporate Trust Services, 707 Wilshire Boulevard, 17th Floor, Los Angeles, California 90017 Attention: Madeliena Hall. 
 “corporation” means a corporation, company, association, joint-stock company or business trust. 
 “Defaulted Interest” has the meaning specified in Section 3.7. 
 “Depositary” means, with respect to any Securities (including any Global Securities), a clearing agency that is registered as such under the
Exchange Act and is designated by the Company to act as Depositary for such Securities (or any successor securities clearing agency so registered), which shall initially be DTC. 
 “Dollar” or “U.S.$” or “$” means a dollar or other equivalent unit in such coin or currency of the United States as at the
time shall be legal tender for the payment of public and private debts. 
 “DTC” means The Depository Trust Company, a New York
corporation. 
 “Effective Date” means the date that a Fundamental Change becomes effective. 
 “Event of Default” has the meaning specified in Section 5.1. 
 “Exchange Act” means the United States Securities Exchange Act of 1934 (or any successor statute), as amended from time to time. 
 “Fundamental Change” has the meaning specified in Section 14.3(4). 
 “Fundamental Change Company Notice” has the meaning specified in Section 14.2(1). 
 “GAAP” means generally accepted accounting principles in the United States of America, as in effect from time to time. 
 “Global Security” means a Security that is registered in the Security Register in the name of a Depositary or a nominee thereof. 
 “Holder” means the Person in whose name a Security is registered in the Security Register. 
 “Indenture” means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof, including, for all purposes of this Indenture and any such supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of and govern
this instrument and any such supplemental indenture, respectively. 
  

 4 

 “Initial Purchaser” means Thomas Weisel Partners LLC. 
 “Interest Payment Date” means the Stated Maturity of an installment of interest on the Securities. 
 “Issue Date” means April 3, 2007. 
 “Maturity,” when used with respect to any Security, means the date on which the principal of such Security becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration,
call for redemption, exercise of any repurchase right set forth in Article XIV or otherwise. 
 “Non-electing Share” has the
meaning specified in Section 12.11. 
 “Non-global Security” means a Security that is not a Global Security. 
 “Non-recourse Indebtedness” means indebtedness or lease payment obligations substantially related to the acquisition of assets or the financing
of substantial improvements thereto, including any refinancing, modification or replacement thereof, in which the obligee with respect to such indebtedness has no recourse to the Company or any of its Subsidiaries or any asset of the Company or any
of its Subsidiaries other than the assets so acquired with the proceeds of such indebtedness or such assets and the improvements thereto financed with the proceeds of such indebtedness. 
 “Notice of Default” has the meaning specified in Section 5.1. 
 “Officers’ Certificate” means a certificate signed by (i) the Chairman of the Board, a Vice Chairman of the Board, the Chief
Executive Officer, the President, or any Vice President (whether or not such title is preceded by any modifier such as “Executive,” “Senior” or the like), and by (ii) the principal financial officer, the Treasurer, an
Assistant Treasurer, the Secretary or an Assistant Secretary of the Company, and delivered to the Trustee. One of the Officers signing an Officers’ Certificate given pursuant to Section 10.6 or Section 10.10 shall be the principal
executive, financial or accounting officer of the Company. 
 “Opinion of Counsel” means a written opinion of counsel, who may be
an employee of or counsel to the Company and who shall be acceptable to the Trustee, which opinion shall comply with the provisions of Sections 1.2 and 1.3. 
 “Outstanding,” when used with respect to Securities, means, as of the date of determination, all Securities theretofore authenticated and delivered under this Indenture, except: 
  

	 	(i)	Securities theretofore canceled by the Trustee or delivered to the Trustee for cancellation; 

  

	 	(ii)	Securities for the payment, redemption or repurchase of which money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other than the
Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for the Holders of such Securities, provided that if such Securities are to be redeemed or repurchased, notice of such
redemption or repurchase has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; 

  

 5 

	 	(iii)	Securities which have been paid pursuant to Section 3.6 or in exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to this
Indenture, other than any such Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such Securities are valid obligations of the
Company; and 

  

	 	(iv)	Securities converted into Common Stock pursuant to Article XII; 

 provided, however, that in determining whether the Holders of the requisite aggregate principal amount of Outstanding Securities are present at a meeting of Holders of Securities for quorum purposes or have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or such other obligor shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Trustee shall be protected in relying upon any such determination as to the presence of a quorum or upon any such request, demand, authorization, direction, notice, consent or waiver, only Securities as to
which a Responsible Officer of the Trustee actually received written notice of such ownership shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of the Company or such other obligor, and the Trustee
shall be protected in relying upon an Officers’ Certificate to such effect. 
 “Paying Agent” means any Person authorized by
the Company to pay the principal of or interest on any Securities on behalf of the Company and, except as otherwise specifically set forth herein, such term shall include the Company if it shall act as its own Paying Agent. The Company has initially
appointed the Trustee as its Paying Agent pursuant to Section 10.2 hereof. 
 “Person” means any individual, corporation,
limited liability company, partnership, joint venture, trust, estate, unincorporated organization or government or any agency or political subdivision thereof. 
 “Place of Conversion” has the meaning specified in Section 3.1. 
 “Place of
Payment” has the meaning specified in Section 3.1. 
 “Predecessor Security” of any particular Security means every
previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 3.6 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Security. 
 “Provisional Redemption” has the meaning specified in Section 11.1. 
 “Purchase Agreement” means the
Purchase Agreement, dated as of March 28, 2007, between the Company and the Initial Purchaser, as such agreement may be amended from time to time. 
 “Qualified Institutional Buyer” shall mean a “qualified institutional buyer” as defined in Rule 144A under the Securities Act. 
 “Record Date” means any Regular Record Date or Special Record Date. 
  

 6 

 “Record Date Period” means the period from the close of business of any Regular Record Date
next preceding any Interest Payment Date to the opening of business on such Interest Payment Date. 
 “Redemption Date,” when used
with respect to any Security to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture. 
 “Redemption
Price,” when used with respect to any Security to be redeemed, means the price at which it is to be redeemed pursuant to this Indenture. 
 “Registrable Securities” has the meaning specified in the Registration Rights Agreement. 
 “Registration
Default” has the meaning specified in Section 2.2. 
 “Registration Rights Agreement” means the Registration Rights
Agreement, dated as of April 3, 2007, between the Company and the Initial Purchaser, as such agreement may be amended from time to time. 
 “Regular Record Date” for interest payable in respect of any Security on any Interest Payment Date means the April 1 or October 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment
Date. 
 “Repurchase Date” has the meaning specified in Section 14.1. 
 “Repurchase Price” has the meaning specified in Section 14.1. 
 “Responsible Officer,” when used with respect to the Trustee, means any officer within the corporate trust department of the Trustee, including
any vice president, assistant vice president, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of such Person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture. 
 “Restricted Global Security” has the meaning specified in Section 2.1. 
 “Restricted Securities” means all Securities required pursuant to Section 3.5(3) to bear any Restricted Securities Legend. Such term
includes the Restricted Global Security. 
 “Restricted Securities Certificate” means a certificate substantially in the form set
forth in Annex A. 
 “Restricted Securities Legend” means, collectively, the legends substantially in the forms of the legends
required in the form of Security set forth in Section 2.2 to be placed upon each Restricted Security. 
 “Rights Plan” has the
meaning specified in Section 12.4(13). 
 “Rule 144A” means Rule 144A under the Securities Act (or any successor
provision), as it may be amended from time to time. 
 “Rule 144A Information” has the meaning specified in Section 10.8.

 “Scheduled Repurchase Date” has the meaning specified in Section 14.5(1). 
  

 7 

 “Scheduled Repurchase Election Notice” has the meaning specified in Section 14.5(2).

 “Scheduled Repurchase Notice” has the meaning specified in Section 14.5(2). 
 “Scheduled Repurchase Price” has the meaning specified in Section 14.5(1). 
 “Securities” has the meaning ascribed to it in the first paragraph under the caption “Recitals of the Company.” 
 “Securities Act” means the United States Securities Act of 1933 (or any successor statute), as amended from time to time. 
 “Security Register” and “Security Registrar” have the respective meanings specified in Section 3.5(1). 
 “Shelf Registration Statement” has the meaning specified in the Registration Rights Agreement. 
 “Significant Subsidiary” means any Subsidiary of the Company (i) which has consolidated assets equal to or greater than 10% of the
Company’s total consolidated assets as of the end of the Company’s most recently completed fiscal year, provided that any assets that are maritime vessels shall be included in consolidated assets net of any Non-recourse Indebtedness
to which they are subject, (ii) in which the Company and our its Subsidiaries have investments equal to or greater than 10% of the Company’s total consolidated assets as of the end of the Company’s most recently completed fiscal year;
or (iii) which has income from continuing operations before income taxes, extraordinary items and cumulative effect of a change in accounting principles equal to or greater than 10% of our consolidated income for the Company’s most
recently completed fiscal year; provided, however, if such Subsidiary has a loss from continuing operations then such loss shall be excluded from this calculation. 
 “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the Company pursuant to Section 3.7. 
 “Stated Maturity,” when used with respect to the principal of any Security or any installment of interest thereon, means the date specified in
such Security as the fixed date on which the principal of such Security or such installment of interest is due and payable, and when used with respect to Additional Interest means the date specified in the Officers’ Certificate provided for in
Section 10.10. 
 “Stock Price” means the price paid per share of our Common Stock in a Fundamental Change transaction
determined as follows: (i) if the holders of the Common Stock receive only cash in the Fundamental Change transaction, the Stock Price will be the cash amount paid per share and (ii) in all other circumstances, the Stock Price will be the
average of the Closing Price Per Share of the Common Stock on each of the five consecutive Trading Days prior to but not including the Effective Date of the Fundamental Change. 
 “Subsidiary” means a corporation more than 50% of the outstanding voting stock of which is owned, directly or indirectly, by the Company or by
one or more other Subsidiaries, or by the Company and one or more other Subsidiaries. For the purposes of this definition, “voting stock” means stock or other similar interests in the corporation which ordinarily has or have voting power
for the election of directors, or persons performing similar functions, whether at all times or only so long as no senior class of stock or other interests has or have such voting power by reason of any contingency. 
  

 8 

 “Successor Security” of any particular Security means every Security issued after, and
evidencing all or a portion of the same debt as that evidenced by, such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 3.6 in exchange for or in lieu of a mutilated,
destroyed, lost or stolen Security shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Security. 
 “Surrender Certificate” means a certificate substantially in the form set forth in Annex C. 
 “Trading Day”
means (i) if the Common Stock is listed on the Nasdaq Stock Market, days on which the Nasdaq Stock Market is open for business, (ii) if the Common Stock is quoted on any system of automated dissemination of quotations of securities prices,
days on which trades may be effected through such system, (iii) if the Common Stock is listed or admitted for trading on any national or regional securities exchange, days on which such national or regional securities exchange is open for
business, or (iv) if the Common Stock is not listed on a national or regional securities exchange or listed on the Nasdaq Stock Market or quoted on any other system of automated dissemination of quotation of securities prices, days on which the
Common Stock is traded regular way in the over-the-counter market and for which a closing bid and a closing asked price for the Common Stock are available. 
 “Trigger Event” has the meaning specified in Section 12.l2. 
 “Trust Indenture Act”
means the Trust Indenture Act of 1939, and the rules and regulations thereunder, as in force at the date as of which this Indenture was executed, except as otherwise provided in Section 8.3, provided, however, that in the event the Trust
Indenture Act of 1939 is amended after such date, “Trust Indenture Act” means, to the extent required by any such amendment, the Trust Indenture Act of 1939, and the rules and regulations thereunder, as so amended. 
 “Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture until a successor Trustee shall have
become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean such successor Trustee. 
 “United States” means the United States of America (including the States and the District of Columbia), its territories, its possessions and other areas subject to its jurisdiction (its “possessions” including Puerto
Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands). 
 “Unrestricted Securities
Certificate” means a certificate substantially in the form set forth in Annex B. 
 SECTION 1.2 Compliance Certificates And Opinions. 
 Upon any application or request by the Company to the Trustee to take or refrain from taking any action under any provision of this Indenture, the Company
shall furnish to the Trustee an Officers’ Certificate in form and substance satisfactory to the Trustee stating that, in the opinion of the signers thereof, all conditions precedent and covenants, if any, provided for in this Indenture relating
to the proposed action have been complied with and an Opinion of Counsel in form and substance satisfactory to the Trustee stating that, in the opinion of such counsel, all such conditions precedent, if any, have been complied with, except that in
the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or opinion need be
furnished. Each such Officers’ Certificate and Opinion of Counsel shall comply with the requirements of the Trust Indenture Act and any other requirements set forth in this Indenture. 
  

 9 

 Every Officers’ Certificate or Opinion of Counsel provided for in this Indenture (other than a
certificate provided pursuant to Trust Indenture Act Section 314(a)(4)) (including certificates provided for in Section 10.6 or Section 10.10) shall include: 
 (1) a statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein relating thereto;

 (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 each such individual, 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, in the opinion of each such individual, such condition or covenant has been complied with. 
 An Officers’ Certificate, statement or Opinion of Counsel may be based, insofar as it relates to accounting matters, upon a certificate or opinion of or representation by an accountant (who may be an employee of
the Company), or firm of accountants, unless such officer or counsel, as the case may be, knows that the certificate or opinion or representation with respect to the accounting matters upon which his or her certificate, statement or opinion may be
based as aforesaid is erroneous. 
 SECTION 1.3 Form of Documents Delivered to the Trustee. 
 In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such
matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
 Any
Officers’ Certificate may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows that the certificate or opinion or representations with respect to the
matters upon which such Officers’ Certificate is based are erroneous. Any Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company
or any other Person deemed appropriate by such counsel, unless such counsel knows that the certificate or opinion or representations with respect to such matters are erroneous. 
 Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 
 SECTION 1.4 Acts of Holders of Securities; Record
Dates. 
 (1) Any request, demand, authorization, direction, notice, consent, waiver or other action provided or permitted by this Indenture
to be given or taken by Holders of Securities may be embodied in 

  

 10 

 
and evidenced by (A) one or more instruments of substantially similar tenor signed (either physically or by means of a facsimile or an electronic
transmission, provided that such electronic transmission is transmitted through the facilities of a Depositary) by such Holders in person or by an agent or proxy duly appointed in writing by such Holders or (B) the record of Holders of
Securities voting in favor thereof, either in person or by proxies duly appointed in writing, at any meeting of Holders of Securities duly called and held in accordance with the provisions of Article IX. Such action shall become effective when
such instrument or instruments or record is delivered (either physically or by means of a facsimile or an electronic transmission, provided that such electronic transmission is transmitted through the facilities of a Depositary) to the
Trustee and, where it is hereby expressly required, to the Company. The Trustee shall promptly deliver to the Company copies of all such instruments and records delivered to the Trustee. Such instrument or instruments and records (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders of Securities signing such instrument or instruments and so voting at such meeting. Proof of execution of any such instrument or of a
writing appointing any such agent or proxy, or of the holding by any Person of a Security, shall be sufficient for any purpose of this Indenture and (subject to Section 6.1) conclusive in favor of the Trustee and the Company if made in the
manner provided in this Section. The record of any meeting of Holders of Securities shall be proved in the manner provided in Section 9.6. Without limiting the generality of the foregoing, a Holder, including a Depositary that is a Holder of a
Global Security, may make, give or take, by a proxy or proxies, duly appointed in writing, any request, demand, authorization, direction, notice, consent, waiver or other action provided in this Indenture to be made, given or taken by Holders, and a
Depositary that is a Holder of a Global Security may provide its proxy or proxies to the beneficial owners of interests in any such Global Security. 
 (2) The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate of a notary public or other officer authorized
by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him or her the execution thereof. Where such execution is by a signer acting in a capacity other than his or her individual
capacity, such certificate or affidavit shall also constitute sufficient proof of his or her authority. 
 (3) The aggregate principal amount
and serial number of any Security held by any Person, and the date of his holding the same, shall be proved by the Security Register. 
 (4)
The fact and date of execution of any such instrument or writing and the authority of the Person executing the same may also be proved in any other manner which the Trustee deems sufficient; and the Trustee may in any instance require further proof
with respect to any of the matters referred to in this Section 1.4. 
 (5) The Company may set any day as the record date for the
purpose of determining the Holders entitled to give or take any request, demand, authorization, direction, notice, consent, waiver or other action, or to vote on any action, authorized or permitted by this Indenture to be given or taken by Holders.
Promptly and in any case not later than ten days after setting a record date, the Company shall notify the Trustee and the Holders of such record date. If not set by the Company prior to the first solicitation of a Holder made by any Person in
respect of any such action, or, in the case of any such vote, prior to such vote, the record date for any such action or vote shall be the 30th day (or, if later, the date of the most recent list of Holders required to be provided pursuant to
Section 15.1) prior to such first solicitation or vote, as the case may be. With regard to any record date, the Holders of Outstanding Securities on such date (or their duly appointed agents or proxies), and only such Persons, shall be entitled
to give or take, or vote on, the relevant action, whether or not such Holders remain Holders after such record date. Notwithstanding the foregoing, the Company shall not set a record date for, and the provisions of this paragraph shall not apply
with respect to, any notice, declaration or direction referred to in the next paragraph. 
  

 11 

 Upon actual receipt by a Responsible Officer of the Trustee from any Holder of (i) any notice of
default or breach referred to in Section 5.1(5), if such default or breach has occurred and is continuing and the Trustee shall not have given such a notice to the Company, (ii) any declaration of acceleration referred to in
Section 5.2, if an Event of Default has occurred and is continuing and the Trustee shall not have given such a declaration to the Company, or (iii) any direction referred to in Section 5.12, if the Trustee shall not have taken the
action specified in such direction, then, with respect to clauses (ii) and (iii), a record date shall automatically and without any action by the Company or the Trustee be set for determining the Holders entitled to join in such declaration or
direction, which record date shall be the close of business on the tenth day (or, if such day is not a Business Day, the first Business Day thereafter) following the day on which the Trustee so receives such declaration or direction, and, with
respect to clause (i), the Trustee may set any day as a record date for the purpose of determining the Holders entitled to join in such notice of default. Promptly after such receipt by the Trustee of any such declaration or direction referred to in
clause (ii) or (iii), and promptly after setting any record date with respect to clause (i), and as soon as practicable thereafter, the Trustee shall notify the Company and the Holders of any such record date so fixed. The Holders on such
record date (or their duly appointed agents or proxies), and only such Persons, shall be entitled to join in such notice, declaration or direction, whether or not such Holders remain Holders after such record date; provided that, unless such
notice, declaration or direction shall have become effective by virtue of Holders of the requisite aggregate principal amount of Securities on such record date (or their duly appointed agents or proxies) having joined therein on or prior to the 90th
day after such record date, such notice, declaration or direction shall automatically and without any action by any Person be canceled and of no further effect. Nothing in this paragraph shall be construed to prevent a Holder (or a duly appointed
agent or proxy thereof) from giving, before or after the expiration of such 90-day period, a notice, declaration or direction contrary to or different from, or, after the expiration of such period, identical to, the notice, declaration or direction
to which such record date relates, in which event a new record date in respect thereof shall be set pursuant to this paragraph. In addition, nothing in this paragraph shall be construed to render ineffective any notice, declaration or direction of
the type referred to in this paragraph given at any time to the Trustee and the Company by Holders (or their duly appointed agents or proxies) of the requisite aggregate principal amount of Securities on the date such notice, declaration or
direction is so given. 
 (6) Any request, demand, authorization, direction, notice, consent, election, waiver or other Act of the Holder of
any Security shall bind every future Holder of the same Security and the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done
by the Trustee or the Company in reliance thereon, whether or not notation of such action is made upon such Security. 
 (7) The provisions
of this Section 1.4 are subject to the provisions of Section 9.5. 
 SECTION 1.5 Notices, Etc. to the Trustee and Company. 
 Any request, demand, authorization, direction, notice, consent, election, waiver or other Act of Holders of Securities or other document provided or
permitted by this Indenture to be made upon, given or furnished to, or filed with, 
 (1) the Trustee by any Holder of Securities or by the
Company shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing by first class mail postage prepaid (registered or certified, return receipt requested) or by telecopier (receipt confirmed) or delivered by hand

  

 12 

 
or by overnight courier guaranteeing next day delivery, to or with a Responsible Officer of the Trustee and actually received by the Trustee at its Corporate
Trust Office, or at any other address previously furnished in writing by the Trustee, and 
 (2) the Company by the Trustee or by any Holder
of Securities shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing, mailed, first-class postage prepaid, or sent via facsimile (receipt confirmed), or delivered by hand or overnight courier,
addressed to the Company at 1071 Camelback Street, Newport Beach, California 92660, Attention: Chief Executive Officer, Facsimile: (949) 759-5909, or at any other address previously furnished in writing to the Trustee by the Company.

 All notices to the Company will be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business
Days after being deposited in the mail, postage prepaid, if mailed; when receipt confirmed, if sent via facsimile; and the next Business Day after timely delivery to the courier, if delivered by overnight delivery. All notices and communications to
the Trustee will be deemed to have been duly given when actually received by a Responsible Officer of the Trustee. 
 SECTION 1.6 Notice to Holders of
Securities; Waiver. 
 Except as otherwise expressly provided herein, where this Indenture provides for notice to Holders of Securities of any
event, such notice shall be sufficiently given to Holders if in writing and mailed, first-class postage prepaid, or sent via facsimile (receipt confirmed), or delivered by an overnight delivery service, to each Holder of a Security affected by such
event, at the address of such Holder as it appears in the Security Register, not earlier than the earliest date and not later than the latest date prescribed for the giving of such notice. 
 Neither the failure to mail or deliver such notice, nor any defect in any notice so mailed or delivered, to any particular Holder of a Security shall
affect the sufficiency of such notice with respect to other Holders of Securities. In case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give such notice by mail, then such
notification to Holders of Securities as shall be made with the approval of the Trustee shall constitute a sufficient notification to such Holders for every purpose hereunder. 
 Such notice shall be deemed to have been given when such notice is mailed or delivered to the overnight delivery service, as applicable, and shall be
conclusively deemed to have been received by such Holder, whether or not such Holder actually receives such notice. 
 Where this Indenture
provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders of
Securities shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. 
 SECTION 1.7 Effect of Headings and Table of Contents. 
 The Article and Section headings herein and the Table of Contents
are for convenience only and shall not affect the construction hereof. 
  

 13 

 SECTION 1.8 Successors and Assigns. 
 All covenants and agreements in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not. All covenants and agreements in this Indenture by the Trustee shall bind its successors
and assigns, whether so expressed or not. 
 SECTION 1.9 Separability Clause. 
 In case any provision in this Indenture or 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 1.10 Benefits of Indenture. 
 Except as provided in the next sentence, nothing in this Indenture or in the Securities, express or implied, shall give to any Person, other than the parties hereto and their successors and assigns hereunder and the Holders of Securities,
any benefit or legal or equitable right, remedy or claim under this Indenture. 
 SECTION 1.11 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 1.12 Legal Holidays. 
 In any case where any Interest
Payment Date, Redemption Date, Repurchase Date, Scheduled Repurchase Date or Stated Maturity of any Security or the last day on which a Holder of a Security has a right to convert his Security shall not be a Business Day at a Place of Payment or
Place of Conversion, as the case may be, then (notwithstanding any other provision of this Indenture or of the Securities) payment of principal of, premium, if any, or interest on, or the payment of the Redemption Price, or Repurchase Price, or
Scheduled Repurchase Price, or delivery for conversion of, such Security need not be made at such Place of Payment or Place of Conversion, as the case may be, on or by such day, but may be made on or by the next succeeding Business Day at such Place
of Payment or Place of Conversion, as the case may be, with the same force and effect as if made on the Interest Payment Date, Redemption Date, Repurchase Date or Scheduled Repurchase Date, or at the Stated Maturity or by such last day for
conversion; provided, however, that in the case that payment is made on such succeeding Business Day, no interest shall accrue on the amount so payable for the period from and after such Interest Payment Date, Redemption Date, Repurchase
Date, Scheduled Repurchase Date, Stated Maturity or last day for conversion, as the case may be. 
 SECTION 1.13 Conflict With Trust Indenture Act.

 If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture Act, the Trust Indenture Act shall control.
If any provision of this Indenture modifies or excludes any provision of the Trust Indenture Act that may be so modified or excluded, the Indenture provision so modifying or excluding such provision of the Trust Indenture Act shall be deemed to
apply. 
  

 14 

 ARTICLE II 
 SECURITY FORMS 
 SECTION 2.1 Form Generally. 
 The Securities shall be in substantially the form set forth in this Article II, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may
have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange, the Internal Revenue Code of 1986, as amended, and regulations
thereunder (the “Code”), or any applicable securities laws, or as may, consistent herewith, be determined by the officers executing such Securities, as evidenced by their execution thereof. All Securities shall be in fully registered form.

 The Trustee’s certificates of authentication shall be in substantially the form set forth in Section 2.4. 
 Conversion notices shall be in substantially the form set forth in Section 2.5. 
 Repurchase notices shall be substantially in the form set forth in Section 2.3. 
 The Securities shall be printed, lithographed, typewritten or engraved or produced by any combination of these methods or may be produced in any other
manner permitted by the rules of any automated quotation system or securities exchange (including on steel engraved borders if so required by any securities exchange upon which the Securities may be listed) on which the Securities may be quoted or
listed, as the case may be, all as determined by the officers executing such Securities, as evidenced by their execution thereof. 
 Upon
their original issuance, Securities issued as contemplated by the Purchase Agreement to Qualified Institutional Buyers in reliance on Rule 144A shall be issued in the form of one or more Global Securities in definitive, fully registered form
without interest coupons and bearing the Restricted Securities Legend. Each such Global Security shall be registered in the name of DTC, as Depositary, or its nominee, and deposited with the Trustee, as custodian for DTC, for credit by DTC to the
respective accounts of beneficial owners of the Securities represented thereby (or such other accounts as they may direct). Each such Global Security, together with its Successor Securities which are Global Securities, are collectively herein called
the “Restricted Global Security.” 
 SECTION 2.2 Form of Security.
 [FORM OF FACE OF SECURITY] 
 [THE FOLLOWING LEGEND (THE “RESTRICTED SECURITIES LEGEND”) SHALL
APPEAR ON THE FACE OF EACH RESTRICTED SECURITY: 
 THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY AND THE COMMON STOCK ISSUABLE UPON CONVERSION HEREOF MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION
OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS 

  

 15 

 
HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY
RULE 144A THEREUNDER. 
 THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY AND THE SHARES OF COMMON
STOCK ISSUABLE UPON CONVERSION HEREOF MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER
THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (IV) TO AN INSTITUTIONAL INVESTOR THAT IS AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES
ACT PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT (IF AVAILABLE) OR (V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND IN EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN CLAUSE (A) ABOVE. IN
ANY CASE THE HOLDER HEREOF WILL NOT, DIRECTLY OR INDIRECTLY, ENGAGE IN ANY HEDGING TRANSACTION WITH REGARD TO THE SECURITIES EXCEPT AS PERMITTED BY THE SECURITIES ACT. 
 THIS SECURITY, ANY SHARES OF COMMON STOCK ISSUABLE UPON ITS CONVERSION, AND ANY RELATED DOCUMENTATION MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO MODIFY THE RESTRICTIONS ON RESALES AND OTHER TRANSFERS OF
THIS SECURITY AND ANY SUCH SHARES TO REFLECT ANY CHANGE IN APPLICABLE LAW OR REGULATION (OR THE INTERPRETATION HEREOF) OR IN PRACTICES RELATING TO THE RESALE OR TRANSFER OF RESTRICTED SECURITIES GENERALLY. THE HOLDER OF THIS SECURITY AND SUCH SHARES
SHALL BE DEEMED BY THE ACCEPTANCE OF THIS SECURITY AND ANY SUCH SHARES TO HAVE AGREED TO SUCH AMENDMENT OR SUPPLEMENT.] 
 [THE
FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF EACH GLOBAL SECURITY: 
 THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS SECURITY FOR ALL PURPOSES.] 
 [THE FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF EACH GLOBAL SECURITY FOR WHICH THE DEPOSITORY TRUST COMPANY IS TO BE THE DEPOSITARY: 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
  

 16 

 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE REGISTERED FORM IN THE LIMITED
CIRCUMSTANCES REFERRED TO IN THE INDENTURE, THIS GLOBAL 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.] 
  

 17 

 AMBASSADORS INTERNATIONAL, INC. 
 3.75% CONVERTIBLE SENIOR NOTES DUE 2027 
  

			
	No.                     	  	$                    

 CUSIP NO.
[                    ] 
 AMBASSADORS INTERNATIONAL, INC., a corporation duly organized and existing under the laws of the State of Delaware (herein called the “Company”, which term includes any successor Person under the Indenture referred to on the
reverse hereof), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of Eighty-Five Million United States Dollars ($85,000,000) (which principal amount may from time to time be increased or
decreased to such other principal amounts (which, taken together with the principal amounts of all other Outstanding Securities, shall not exceed $100,000,000) by adjustments made on the records of the Trustee hereinafter referred to in accordance
with the Indenture) on April 15, 2027 and to pay interest thereon, from April 3, 2007, or from the most recent Interest Payment Date (as defined below) to which interest has been paid or duly provided for, semi-annually in arrears on
April 15 and October 15 in each year (each, an “Interest Payment Date”), commencing October 15, 2007, at the rate of 3.75% per annum, until the principal hereof is paid, and at the rate of 3.75% per annum on any
overdue principal and premium, if any, and, to the extent permitted by law, on any overdue interest (including Additional Interest, if any). Interest and Additional Interest, if any, will be computed on the basis of a 360-day year composed of twelve
30-day months and, in the case of an incomplete month, the actual number of days elapsed. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the April 1 or October 1 (whether or not a Business Day), as the case may
be, next preceding such Interest Payment Date; provided that if such Interest Payment Date is a Scheduled Repurchase Date, interest on the Securities submitted (and not properly withdrawn) for repurchase on such Scheduled Repurchase Date will
be payable to the Holders in whose names such Securities are registered at the close of business on such Scheduled Repurchase Date. Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest to be fixed by the Company, notice whereof shall be given to Holders of Securities not less than 10 days prior to the Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the
requirements of any automated quotation system or securities exchange on which the Securities may be quoted or listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. Payments of principal shall
be made upon the surrender of this Security at the option of the Holder at any office or agency of the Company as may be designated by it for such purpose in Minneapolis, Minnesota, in such lawful monies of the United States of America as at the
time of payment shall be legal tender for the payment of public and private debts, by United States Dollar check drawn on, or wire transfer to, a United States Dollar account maintained in Minneapolis, Minnesota (such a wire transfer to be made only
to a Holder of an aggregate principal amount of Securities in excess of $2,000,000 and only if such Holder shall have furnished wire instructions in writing to the Trustee no later than 15 days prior to the relevant payment date). Payment of
interest on this Security may be made by United States Dollar check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register, or, upon written application by the Holder to the Security Registrar
setting forth wire instructions not later than the 

  

 18 

 
relevant Record Date, by transfer to a United States Dollar account maintained in Minneapolis, Minnesota (such a transfer to be made only to a Holder of an
aggregate principal amount of Securities in excess of $2,000,000 and only if such Holder shall have furnished wire instructions in writing to the Trustee no later than 15 days prior to the relevant payment date). 
 Except as specifically provided herein or in the Indenture, the Company shall not be required to make any payment with respect to any tax, assessment or
other governmental charge imposed by any government or any political subdivision or taxing authority thereof or therein. 
 Reference is
hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof or an Authenticating Agent by the
manual signature of one of their respective authorized signatories, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
 [SIGNATURE PAGE FOLLOWS] 
  

 19 

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

			
	 AMBASSADORS INTERNATIONAL, INC.

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

			
	 Attest:

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Securities referred to in the within-mentioned Indenture. 
 Dated: 
  

			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,

	 as Trustee

		
	 By:
	 	  

		 	Authorized Signatory

  

 20 

 [FORM OF REVERSE OF SECURITY] 
 This Security is one of a duly authorized issue of securities of the Company designated as its “3.75% Convertible Senior Notes due 2027”
(herein called the “Securities”), limited in aggregate principal amount to $85,000,000, plus such increases to the extent the Initial Purchaser exercises its over-allotment option to purchase up to an additional $15,000,000 in aggregate
principal amount of the Securities, issued and to be issued under an Indenture, dated as of April 3, 2007 (herein called the “Indenture”), between the Company and Wells Fargo Bank, National Association, as Trustee (herein called the
“Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. As provided in the Indenture and subject to certain limitations therein
set forth, Securities are exchangeable for a like aggregate principal amount of Securities of any authorized denominations as requested by the Holder surrendering the same upon surrender of the Security or Securities to be exchanged, at the
Corporate Trust Office of the Trustee. The Trustee upon such surrender by the Holder will issue the new Securities in the requested denominations. 
 No sinking fund is provided for the Securities. 
 Prior to April 20, 2010, the Securities shall not be redeemable. On or after
April 20, 2010 the Company may redeem the Securities if the Closing Price Per Share of the Common Stock exceeds 150% of the Conversion Price then in effect for at least 20 Trading Days within a period of 30 consecutive Trading Days ending
on the Trading Day before the date of mailing of the notice of redemption as set forth in Section 11.5 of the Indenture for cash in whole, or from time to time in part (which must be equal to $1,000 or any integral multiple thereof), at a
Redemption Price equal to $1,000 per $1,000 aggregate principal amount of the Securities being redeemed, plus accrued and unpaid interest (including Additional Interest, if any) to, but excluding, the Redemption Date, plus the Additional Payment. On
or after April 15, 2012, the Company may redeem the Securities for cash in whole, or from time to time in part (which must be equal to $1,000 or any integral multiple thereof), at a Redemption Price equal to $1,000 per $1,000 aggregate
principal amount of the Securities being redeemed, plus accrued and unpaid interest (including Additional Interest, if any) to, but excluding, the Redemption Date. 
 Interest installments on Securities whose Stated Maturity is on or prior to such Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor Securities, of record at the close of
business on the relevant Record Dates referred to on the face hereof, all as provided in the Indenture. Whenever in this Security there is a reference, in any context, to the principal of any Security as of any time, such reference shall be deemed
to include reference to the Redemption Price payable in respect of such Security to the extent that such Redemption Price is, was or would be so payable at such time, and express mention of the Redemption Price in any provision of this Security
shall not be construed as excluding the Redemption Price so payable in those provisions of this Security when such express mention is not made. 
 In the event of a redemption of the Securities, the Company will not be required (a) to register the transfer or exchange of Securities for a period of 15 days immediately preceding the date notice is given identifying the serial
numbers of the Securities called for such redemption or (b) to register the transfer or exchange of any Security, or portion thereof, called for redemption. 
  

 21 

 In any case where the due date for the payment of the principal of, premium, if any, interest, including
Additional Interest, if any, on any Security or the last day on which a Holder of a Security has a right to convert his Security shall not be a Business Day, at any Place of Payment or Place of Conversion as the case may be, then payment of
principal, premium, if any, or interest, including Additional Interest, if any, or delivery for conversion of such Security need not be made on or by such date at such place but may be made on or by the next succeeding Business Day at such Place of
Payment or Place of Conversion, as the case may be, with the same force and effect as if made on the date for such payment or the date fixed for redemption or repurchase, or by such last day for conversion, and if the payment is made on such next
succeeding Business Day no interest shall accrue on the amount so payable for the period after such due date. 
 Subject to and upon
compliance with the provisions of the Indenture, the Holder of this Security is entitled, at his option, at any time on or before the close of business on the date of Maturity, or in case this Security or a portion hereof is called for redemption or
the Holder hereof has exercised his right to require the Company to repurchase this Security or such portion hereof, then in respect of this Security until, but (unless the Company defaults in making any payment due upon redemption or repurchase, as
the case may be, in which case the right will terminate at the close of business on the date such default is cured and the Security is redeemed or repurchased, as the case may be) not after, the close of business on the Business Day immediately
preceding the Redemption Date or the Repurchase Date, or the close of business on the Scheduled Repurchase Date, as the case may be, to convert this Security (or any portion of the aggregate principal amount hereof that is an integral multiple of
$1,000, provided that the unconverted portion of such aggregate principal amount is $1,000 or any integral multiple of $1,000 in excess thereof) into fully paid and nonassessable shares of Common Stock of the Company at an initial Conversion
Rate equal to 17.8763 shares for each $1,000 aggregate principal amount of this Security surrendered for conversion (or at the current adjusted Conversion Rate if an adjustment has been made as provided in the Indenture) by surrender of this
Security, duly endorsed or assigned to the Company or in blank and, in case such surrender shall be made during the Record Date Period (except if this Security or portion thereof has been called for redemption or if a Fundamental Change has occurred
and an offer to repurchase the Securities is pending), also accompanied by payment in New York Clearing House or other funds acceptable to the Company of an amount equal to the interest payable on such Interest Payment Date on the aggregate
principal amount of this Security then being converted, and also the conversion notice hereon duly executed, to the Company at the Corporate Trust Office of the Trustee, or at such other office or agency of the Company, subject to any laws or
regulations applicable thereto and subject to the right of the Company to terminate the appointment of any Conversion Agent (as defined below) as may be designated by it for such purpose in Minneapolis, Minnesota, or at such other offices or
agencies as the Company may designate (each a “Conversion Agent”). The interest that is payable on such Interest Payment Date with respect to any Security (or portion thereof, if applicable) that is surrendered for conversion during the
Record Date Period shall be paid to the Holder of such Security as of such Regular Record Date in an amount equal to the interest that would have been payable on such Security if such Security had been converted as of the close of business on such
Interest Payment Date. Subject to the provisions of the preceding sentence and the next paragraph, the right of the Holder to receive the Additional Payment in connection with the conversion of Securities called for Provisional Redemption and, in
the case of a conversion during the Regular Record Period, to the right of the Holder of this Security (or any Predecessor Security of record as of such Regular Record Date) to receive the related installment of interest to the extent and under the
circumstances provided in the Indenture, no cash payment or adjustment is to be made on conversion for interest accrued hereon from the Interest Payment Date next preceding the day of conversion, or for dividends on the Common Stock issued on
conversion hereof. The Company shall thereafter deliver to the Holder the fixed number of shares of Common Stock (together with any cash adjustment, as provided in the Indenture) into which this Security is convertible and such delivery will be
deemed to satisfy the Company’s obligation to pay the aggregate principal amount of this Security. No 

  

 22 

 
fractions of shares or scrip representing fractions of shares will be issued on conversion, but instead of any fractional interest (calculated to the nearest
 1/100th of a share) the Company shall pay a cash adjustment as provided in the Indenture. The Conversion Rate is
subject to adjustment as provided in the Indenture. In addition, the Indenture provides that in case of certain consolidations or mergers to which the Company is a party (other than a consolidation or merger that does not result in any
reclassification, conversion, exchange or cancellation of the Common Stock) or the conveyance, transfer, sale or lease of all or substantially all of the property and assets of the Company, the Indenture shall be amended, without the consent of any
Holders of Securities, so that this Security, if then Outstanding, will be convertible thereafter, during the period this Security shall be convertible as specified above, only into the kind and amount of securities, cash and other property
receivable upon such consolidation, merger, conveyance, transfer, sale or lease by a holder of the number of shares of Common Stock of the Company into which this Security could have been converted immediately prior to such consolidation, merger,
conveyance, transfer, sale or lease (assuming such holder of Common Stock is not a Constituent Person or an Affiliate of a Constituent Person, or failed to exercise any rights of election and received per share the kind and amount received per share
by a plurality of Non-electing Shares). 
 If this Security is a Registrable Security (as defined in the Indenture), then the Holder
of this Security (including any Person that has a beneficial interest in this Security) and the Common Stock of the Company issuable upon conversion hereof is entitled to the benefits of a Registration Rights Agreement, dated as of April 3,
2007, executed by the Company and the Initial Purchaser (as amended from time to time, the “Registration Rights Agreement”). 
 In
accordance with the terms of the Registration Rights Agreement, during any period in which an Event of Default (as defined in the Registration Rights Agreement) (each, a “Registration Default”) has occurred and is continuing, the Company
will pay Additional Interest from and including the day following such Registration Default to but excluding the day on which such Registration Default has been cured. Additional Interest will be paid semi-annually in arrears, with the first
semi-annual payment due on the first Interest Payment Date, as applicable, in respect of the Registrable Securities following the date on which such Additional Interest begins to accrue, and will accrue at a rate per annum equal to one-quarter of
one percent (0.25%) of the aggregate principal amount of the Registrable Securities to and including the 90th day following such Registration Default and at a rate per annum equal to one-half of one percent (0.50%) thereof from and after the 91st
day following such Registration Default. In no event shall the Company be required to pay Additional Interest in respect of more than one Registration Default at any one time or in excess of the applicable maximum rate per annum of one-half of one
percent (0.50%) set forth above regardless of whether one or multiple Registration Defaults exist. 
 Whenever in this Security there is a
reference, in any context, to the payment of interest on, or in respect of, any Security as of any time, such reference shall be deemed to include reference to Additional Interest, as described in the preceding paragraph, if any, payable in respect
of such Security to the extent that such Additional Interest, if any, is, was or would be so payable at such time, and express mention of Additional Interest, if any, in any provision of this Security shall not be construed as excluding Additional
Interest, if any, so payable in those provisions of this Security when such express mention is not made. 
 If this Security is a Registrable
Security and the Holder of this Security (including any Person that has a beneficial interest in this Security) elects to sell this Security pursuant to the Shelf Registration Statement then, by its acceptance hereof, such Holder of this Security
agrees to be bound by the terms of the Registration Rights Agreement relating to the Registrable Securities which are the subject of such election. 
  

 23 

 The Holders may require the Company to repurchase any outstanding Securities for cash, on April 15,
2012, April 15, 2017 and April 15, 2022 (each a “Scheduled Repurchase Date”) at a purchase price per Security equal to 100% of the aggregate principal amount of the Security, together with any accrued and unpaid interest, to but
not including the applicable Scheduled Repurchase Date. 
 The Company shall give written notice of the applicable Scheduled Repurchase Date
by delivery of the Scheduled Repurchase Notice as provided in the Indenture, to each Holder (at its address shown in the register of the Registrar) and to beneficial owners as required by applicable law, not less than 20 Business Days prior to each
Scheduled Repurchase Date. 
 If a Fundamental Change occurs, the Holder of this Security, at the Holder’s option, shall have the right,
in accordance with the provisions of the Indenture, to require the Company to repurchase this Security (or any portion of the aggregate principal amount hereof that is at least $1,000 or an integral multiple of $1,000 in excess thereof, provided
that the portion of the aggregate principal amount of this Security to be Outstanding after such repurchase is at least equal to $1,000) for cash at a Repurchase Price equal to 100% of the aggregate principal amount thereof plus interest accrued
to the Repurchase Date, as provided in the Indenture. Whenever in this Security there is a reference, in any context, to the principal of any Security as of any time, such reference shall be deemed to include reference to the Repurchase Price
payable in respect of such Security to the extent that such Repurchase Price is, was or would be so payable at such time, and express mention of the Repurchase Price in any provision of this Security shall not be construed as excluding the
Repurchase Price so payable in those provisions of this Security when such express mention is not made. 
 If a holder surrenders its
Securities (or any portion thereof) for conversion after receipt of a Company Notice in connection with a Fundamental Change and prior to the Repurchase Date, and the Fundamental Change constitutes a specified Fundamental Change defined in the
Indenture, the Company will increase the Conversion Rate as set forth in the Indenture. 
 In the event of a deposit or withdrawal of an
interest in this Security, including an exchange, transfer, redemption, repurchase or conversion of this Security in part only, the Trustee, as custodian of the Depositary, shall make an adjustment on its records to reflect such deposit or
withdrawal in accordance with the Applicable Procedures. 
 If an Event of Default shall occur and be continuing, the principal of all the
Securities, together with accrued interest to the date of declaration and any premium thereon, may be declared due and payable in the manner and with the effect provided in the Indenture. Upon payment (i) of the amount of principal so declared
due and payable, together with accrued interest to the date of declaration and any premium thereon, and (ii) of interest on any overdue principal and, to the extent permitted by applicable law, overdue interest and premium, all of the
Company’s obligations in respect of the payment of the principal of and interest on the Securities shall terminate. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the Holders of the Securities under the Indenture at any time by the Company and the Trustee with either (a) the written consent of the Holders of not less than a
majority in aggregate principal amount of the Outstanding Securities, or (b) by the adoption of a resolution, at a meeting of Holders of the Outstanding Securities at which a quorum is present, by the Holders of at least 66  2/3% in aggregate principal amount of the Outstanding Securities represented and entitled to vote at such meeting. The
Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Securities at the time Outstanding, on behalf of the Holders of all the Securities, to waive compliance by the Company with
certain provisions of 

  

 24 

 
the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent or waiver is
made upon this Security or such other Security. Certain modifications or amendments to the Indenture require the consent of the Holder of each Outstanding Security affected. 
 As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default, the Holders of not less than 25%
in aggregate principal amount of the Outstanding Securities shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee security or indemnity reasonably satisfactory
to the Trustee and the Trustee shall not have received from the Holders of a majority in aggregate principal amount of the Securities Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for
60 days after receipt of such notice, request and offer of security or indemnity (or if requested, receipt of security or indemnity). The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any
payment of principal hereof, premium if any, or interest (including Additional Interest, if any) hereon on or after the respective due dates expressed herein or for the enforcement of the right to convert this Security as provided in the Indenture.

 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair (without the consent of
the Holder hereof) the obligation of the Company, which is absolute and unconditional, to pay the principal of, premium, if any, and interest (including Additional Interest, if any) on this Security at the times, places and rate, and in the coin or
currency, herein prescribed or to convert this Security as provided in the Indenture. 
 As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable on the Security Register upon surrender of this Security for registration of transfer at the Corporate Trust Office of the Trustee or at such other office or agency of the
Company as may be designated by it for such purpose in Minneapolis, Minnesota (which shall initially be an office or agency of the Trustee), or at such other offices or agencies as the Company may designate, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder thereof or his attorney duly authorized in writing, and thereupon one or more new Securities, of authorized denominations and
for the same aggregate principal amount, will be issued to the designated transferee or transferees by the Security Registrar. No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of
a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this Security
for registration of transfer, the Company, the Trustee, any Agent and any agent of the Company, the Trustee or any Agent may treat the Person in whose name such Security is registered as the owner thereof for all purposes, whether or not such
Security be overdue, and neither the Company, the Trustee nor any Agent or other such agent shall be affected by notice to the contrary. 
 No recourse for the payment of the principal (and premium, if any) or interest on this Security and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture or any indenture supplemental thereto or in
any Security, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, shareholder, employee, agent, officer or director or subsidiary, as such, past, present or future, of the Company or of any
successor corporation, either 

  

 25 

 
directly or through the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of consideration for the issue hereof, expressly waived and released by the Holder hereof. 
 THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND 
 CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 All terms used in this Security which are defined in the Indenture shall have the
meanings assigned to them in the Indenture. 
 ABBREVIATIONS 
 The following abbreviations, when used in the inscription of the face of this Security, shall be construed as though they were written out in full according to applicable laws or regulations: 
  

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

		  		  		  	(State)

 Additional abbreviations may also be used though not in the above list. 
 SECTION 2.3 Form of Repurchase Notice and Scheduled Repurchase Notice.
 (1) Form of Repurchase Notice. 
 ELECTION OF HOLDER TO REQUIRE REPURCHASE 
 (1) Pursuant to Section 14.1 of the Indenture, the undersigned hereby elects to have this Security repurchased by the Company. 
 (2) The undersigned hereby directs the Trustee or the Company to pay it or
                     an amount in cash equal to 100% of the aggregate principal amount to be repurchased (as set forth below), plus interest
and Additional Interest, if any, accrued to, but excluding, the Repurchase Date, as provided in the Indenture. 
  

					
	Dated:                         	    	 
			
	 	 	 	    	  

			
	 	 	 	    	  

		 		    	Signature(s)

			
	Signature(s) must be guaranteed by an Eligible Guarantor Institution with membership in an approved signature guarantee program pursuant to Rule 17Ad-15 under the Securities Exchange Act of
1934.	    	
		
	  
	    	
	 Signature Guaranteed
	    	

  

 26 

			
		 	 Principal amount to be repurchased (at
 least $1,000 or an integral multiple of
 $1,000 in excess thereof):

		 	  

		
		 	 Remaining aggregate principal amount
 following such repurchase (not less than
 $1,000):

		 	  

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

	 	(2)	Form of Scheduled Repurchase Election Notice 

 SCHEDULED
REPURCHASE ELECTION NOTICE 
  

	To:	Ambassadors International, Inc. 

 The undersigned
registered owner of this Security hereby requests and instructs Ambassadors International, Inc. (the “Company”) to repurchase 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 Indenture referred to in this Security at the Scheduled Repurchase Price on April 15,         , together with accrued interest to, but
excluding, such date, to the registered Holder hereof. 
  

			
	 Dated:
                        
	 	  

		
		 	  

		
		 	 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

  

 27 

			
	 Principal amount to be redeemed

	
	 (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 alteration or any change whatsoever. 
 SECTION 2.4 Form of Certificate of Authentication. 
 The Trustee’s certificate of authentication shall be in substantially the following form: 
 This is one of the Securities referred to in the within-mentioned Indenture. 
  

					
	Dated:                     	 		 	
		
		 	 Wells Fargo Bank, National Association,

		 	 as Trustee

			
		 	 By:
	 	  

		 		 	Authorized Signatory

 SECTION 2.5 Form of Conversion Notice. 
 CONVERSION NOTICE 
 The undersigned Holder of this Security hereby irrevocably
exercises the option to convert this Security, or any portion of the aggregate principal amount hereof (which is $1,000 or an integral multiple of $1,000 in excess thereof, provided that the unconverted portion of such aggregate principal
amount is $1,000 or any integral multiple of $1,000 in excess thereof) below designated, into shares of Common Stock in accordance with the terms of the Indenture referred to in this Security, and directs that such shares, together with a check in
payment for any fractional share and any Additional Payment and any Securities representing any unconverted aggregate principal amount hereof, be delivered to and be registered in the name of the undersigned unless a different name has been
indicated below. If shares of Common Stock or Securities are to be registered in the name of a Person other than the undersigned, (a) the undersigned will pay all transfer taxes payable with respect thereto and (b) signature(s) must be
guaranteed by an Eligible Guarantor Institution with membership in an approved signature guarantee program pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934. Any amount required to be paid by the undersigned on account of
interest accompanies this Security. 
  

			
	 Dated:
                        
	 	  

		 	Signature(s)
		
	 If shares or Securities are to be registered in the name of a Person
 other than the Holder, please print such Person’s name and
 address:
	 	
		
	  
	 	
	 (Name)
	 	

  

 28 

	
	  

	
	  

	(Address)
	
	  

	Social Security or other Identification Number, if any
	
	  

	Signature Guaranteed

 If only a portion of the Securities is to be converted, please indicate: 
  

	1.	Principal amount to be converted: $                     

  

	2.	Principal amount and denomination of Securities representing unconverted aggregate principal amount to be issued: 

 Amount: $
                        Denominations: $
                     
 ($1,000 or any integral
multiple of $1,000 in excess thereof, provided that the unconverted portion of such aggregate principal amount is $1,000 or any integral multiple of $1,000 in excess thereof) 
 SECTION 2.6 Form of Assignment. 
 ASSIGNMENT FORM 
 For value received                      hereby
sell(s), assign(s) and transfer(s) unto                      (Please insert social security or other identifying number of assignee) the
within Security, and hereby irrevocably constitutes and appoints                      as attorney to transfer the said Security on the books
of the Company, with full power of substitution in the premises. 
  

					
	Dated:                         	  	  

			
	 	 	 	  	  

		 		  	Signature(s)
			
		 		  	Signature(s) must be guaranteed by an Eligible Guarantor Institution with membership in an approved signature guarantee program pursuant to Rule 17Ad - 15 under the Securities Exchange
Act of 1934.
			
		 		  	  

		 		  	Signature Guaranteed

  

 29 

 ARTICLE III 
 THE SECURITIES 
 SECTION 3.1 Title and Terms. 
 The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is limited to $85,000,000 and shall be increased to the extent the Initial Purchaser exercises its
over-allotment option to purchase up to an additional $15,000,000 in aggregate principal amount of Securities, such that the total aggregate principal amount of Securities which may be authenticated and delivered under this Indenture shall not
exceed $100,000,000 of Securities from the Company, except for Securities authenticated and delivered pursuant to Section 3.4, 3.5, 3.6, 8.5, 12.2, 14.2(7) or 14.5(6) in exchange for, or in lieu of, other Securities previously authenticated and
delivered under this Indenture. 
 (1) The Securities shall be known and designated as the “3.75% Convertible Senior Notes due
2027” of the Company. The Stated Maturity with respect to the principal of the Securities shall be April 15, 2027 and they shall bear interest on their aggregate principal amount from April 3, 2007, payable semi-annually in arrears on
April 15 and October 15 in each year, commencing October 15, 2007, at the rate of 3.75% per annum until the principal thereof is due and at the rate of 3.75% per annum on any overdue principal and, to the extent permitted by
law, on any overdue interest; provided, however, that payments shall only be made on a Business Day as provided in Section 1.12. 
 The principal of, premium, if any, and interest (including Additional Interest, if any) on the Securities shall be payable as provided in the form of Securities set forth in Section 2.2, and the Repurchase Price, the Scheduled
Repurchase Price, and the Redemption Price, shall be payable at such places in Minneapolis, Minnesota, as are identified in the applicable notice given pursuant to Section 11.5, Section 14.2 or Section 14.5, as appropriate (each
location of any Paying Agent in Minneapolis, Minnesota, is being herein called a “Place of Payment”). 
 The Registrable Securities
are entitled to the benefits of the Registration Rights Agreement and in the form of Security set forth in Section 2.2. The Securities are entitled to the payment of Additional Interest as provided in the Registration Rights Agreement and in
the form of Security set forth in Section 2.2. Whenever in this Indenture there is a reference, in any context, to the payment of interest on, or in respect of, any Security as of any time, such reference shall be deemed to include reference to
Additional Interest, if any, payable in respect of such Security to the extent that such Additional Interest, if any, is, was or would be so payable at such time, and express mention of Additional Interest, if any, in any provision of this Indenture
shall not be construed as excluding Additional Interest, if any, so payable in those provisions of this Indenture when such express mention is not made. 
 The Securities shall be redeemable at the option of the Company at any time on or after April 15, 2012, and in certain instances on or after April 15, 2010, in whole or in part, subject to the conditions and
as otherwise provided in Article XI and in the form of Security set forth in Section 2.2. 
 The Securities shall be convertible as
provided in Article XII (any city in which any Conversion Agent is located being herein called a “Place of Conversion”). 
 The Securities shall be subject to repurchase by the Company at the option of the Holders as provided in Article XIV. 
  

 30 

 SECTION 3.2 Denominations. 
 The Securities shall be issuable only in registered form, without coupons, in denominations of $1,000 and integral multiples of $1,000 in excess thereof. 
 SECTION 3.3 Execution, Authentication, Delivery and Dating. 
 The Securities shall be executed on behalf of
the Company by its Chairman of the Board, its Vice Chairman of the Board, its Chief Executive Officer, its President, its Chief Financial Officer, any Vice President (whether or not such title is preceded by any modifier such as
“Executive,” “Senior” or the like), and attested by its principal financial officer, Secretary or one of its Assistant Secretaries. Any such signature may be manual or facsimile. 
 Securities bearing the manual or facsimile signature of individuals who were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices at the date of such Securities. 
 At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities executed by the Company to the
Trustee or to its order for authentication, together with a Company Order for the authentication and delivery of such Securities, and the Trustee in accordance with such Company Order shall authenticate and make available for delivery such
Securities as in this Indenture provided. 
 Each Security shall be dated the date of its authentication. 
 No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein executed by the Trustee by manual signature of an authorized signatory, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder. 
 SECTION 3.4 Global Securities; Non-global Securities; Book-entry Provisions. 
  

	 	(1)	Global Securities 

 (i) Each Global Security authenticated
under this Indenture shall be registered in the name of the Depositary designated by the Company for such Global Security 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 all purposes of this Indenture. 
 (ii) Except for exchanges of Global Securities for definitive,
Non-global Securities at the sole discretion of the Company, no Global Security may be exchanged in whole or in part for Securities registered, and no transfer of a Global Security in whole or in part may be registered, in the name of any Person
other than the Depositary for such Global Security or a nominee thereof unless (A) such Depositary (i) has notified the Company that it is unwilling or unable to continue as Depositary for such Global Security or (ii) has ceased to be
a clearing agency registered as such under the Exchange Act or announces an intention permanently to cease business or does in fact do so or (B) there shall have occurred and be continuing an Event of Default with respect to such Global
Security. In such event, if a successor Depositary for such Global Security is not appointed by the Company within 90 days after the Company 

  

 31 

 
receives such notice or becomes aware of such ineligibility, the Company will execute, and the Trustee, upon actual receipt by a Responsible Officer of an
Officers’ Certificate directing the authentication and delivery of Securities and an Opinion of Counsel with respect thereto, will authenticate and deliver pursuant to such instructions, Securities, in any authorized denominations in an
aggregate principal amount equal to the aggregate principal amount of such Global Security in exchange for such Global Security. 
 (iii) If
any Global Security is to be exchanged for other Securities or canceled in whole, it shall be surrendered by or on behalf of the Depositary or its nominee to the Trustee, as Security Registrar, for exchange or cancellation, as provided in this
Article III. If any Global Security is to be exchanged for other Securities or canceled in part, or if another Security is to be exchanged in whole or in part for a beneficial interest in any Global Security, in each case, as provided in
Section 3.5, then either (A) such Global Security shall be so surrendered for exchange or cancellation, as provided in this Article III, or (B) the aggregate principal amount thereof shall be reduced or increased by an amount
equal to the portion thereof to be so exchanged or canceled, or equal to the aggregate principal amount of such other Security to be so exchanged for a beneficial interest therein, as the case may be, by means of an appropriate adjustment made on
the records of the Trustee, as Security Registrar, whereupon the Trustee, in accordance with the Applicable Procedures, shall instruct the Depositary or its authorized representative to make a corresponding adjustment to its records. Upon any such
surrender or adjustment of a Global Security, the Trustee shall, subject to Section 3.5(3) and as otherwise provided in this Article III, authenticate and deliver any Securities issuable in exchange for such Global Security (or any portion
thereof) to or upon the order of, and registered in such names as may be directed by, the Depositary or its authorized representative. Upon the request of the Trustee in connection with the occurrence of any of the events specified in the preceding
paragraph, the Company shall promptly make available to the Trustee a reasonable supply of Securities that are not in the form of Global Securities. The Trustee shall be entitled to rely upon any order, direction or request of the Depositary or its
authorized representative which is given or made pursuant to this Article III and the Trustee may request an Officers’ Certificate directing the authentication and delivery of the Securities and an Opinion of Counsel related thereto.

 (iv) Every Security authenticated and delivered upon registration of transfer of, or in exchange for or in lieu of, a Global Security or
any portion thereof, whether pursuant to this Article III or otherwise, shall be authenticated and delivered in the form of, and shall be, a registered Global Security, unless such Security is registered in the name of a Person other than the
Depositary for such Global Security or a nominee thereof, in which case such Security shall be authenticated and delivered in definitive, fully registered form, without interest coupons. 
 (v) The Depositary or its nominee, as registered owner of a Global Security, shall be the Holder of such Global Security for all purposes under the
Indenture and the Securities, and owners of beneficial interests in a Global Security shall hold such interests pursuant to the Applicable Procedures. Accordingly, any such owner’s beneficial interest in a Global Security will be shown only on,
and the transfer of such interest shall be effected only through, records maintained by the Depositary or its nominee or its Agent Members and such owners of beneficial interests in a Global Security will not be considered the owners or holders
thereof. 
 (2) Non-global Securities. Securities issued upon the events described in Section 3.4(l)(ii) shall be in definitive, fully
registered form, without interest coupons, and shall bear the Restricted Securities Legend if and as required by this Indenture. 
  

 32 

 SECTION 3.5 Registration; Registration of Transfer and Exchange; Restrictions on Transfer. 
 (1) The Company shall cause to be kept at the Corporate Trust Office of the Trustee a register (the register maintained in such office referred to as the
“Security Register”) in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of Securities and of transfers of Securities. The Trustee is hereby appointed “Security
Registrar” for the purpose of registering Securities and transfers and exchanges of Securities as herein provided. 
 Subject to the
other provisions of this Section 3.5, upon surrender for registration of transfer of any Security at an office or agency of the Company designated pursuant to Section 10.2 for such purpose, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities of any authorized denominations and of a like aggregate principal amount and bearing such restrictive legends as may be required by this
Indenture. 
 At the option of the Holder, and subject to the other provisions of this Section 3.5, Securities may be exchanged for
other Securities of any authorized denomination and of a like aggregate principal amount, upon surrender of the Securities to be exchanged at any such office or agency. Whenever any Securities are so surrendered for exchange, and subject to the
other provisions of this Section 3.5, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities that the Holder making the exchange is entitled to receive. Every Security presented or surrendered for registration
of transfer or for exchange shall (if so required by the Company or the Security Registrar) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company, the Trustee and the Security Registrar, duly
executed by the Holder thereof or his attorney duly authorized in writing. 
 All Securities issued upon any registration of transfer or
exchange of Securities shall be the valid obligations of the Company, evidencing the same debt and entitled to the same benefits under this Indenture as the Securities surrendered upon such registration of transfer or exchange. 
 No service charge shall be made to a Holder for any registration of transfer or exchange of Securities except as provided in Section 3.6, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Securities, other than exchanges pursuant to Section 3.4, 8.5,
12.2, 14.2 or 14.5 (other than where the shares of Common Stock are to be issued or delivered in a name other than that of the Holder of the Security) not involving any transfer and other than any stamp and other duties, if any, which may be imposed
in connection with any such transfer or exchange by the United States or any political subdivision thereof or therein, which shall be paid by the Company. 
 In the event of a redemption of the Securities, neither the Company nor the Securities Registrar will be required (a) to register the transfer of or exchange Securities for a period of 15 days immediately
preceding the date notice is given identifying the serial numbers of the Securities called for such redemption or (b) to register the transfer of or exchange any Security, or portion thereof, called for redemption, except for the unredeemed
portion of any Securities being redeemed in part. 
 (2) Certain Transfers and Exchanges. Notwithstanding any other provision of this
Indenture or the Securities, transfers and exchanges of Securities and beneficial interests in a Global Security of the kinds specified in this Section 3.5(2) shall be made only in accordance with this Section 3.5(2). 
 (i) Restricted Global Security to Restricted Non-global Security. In the event that Non-global Securities are to be issued pursuant to
Section 3.4(1)(ii) in connection with any transfer of Securities, such transfer may be effected only in accordance with the provisions of this Clause (2)(i) and 

  

 33 

 
subject to the Applicable Procedures. Upon actual receipt by a Responsible Officer of the Trustee, as Security Registrar, of (A) a Company Order from
the Company directing the Trustee, as Security Registrar, to (x) authenticate and deliver pursuant to such Order one or more Securities of the same aggregate principal amount as the beneficial interest in the Restricted Global Security to be
transferred, such instructions to contain the name or names of the designated transferee or transferees, the authorized denomination or denominations of the Securities to be so issued and appropriate delivery instructions and (y) decrease the
beneficial interest of a specified Agent Member’s account in a Restricted Global Security by a specified aggregate principal amount not greater than the aggregate principal amount of such Restricted Global Security, and (B) such other
certifications, legal opinions or other information as the Company or the Trustee may require for any reason, including to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act and/or that the transfer is being made pursuant to the terms of this Indenture, then the Trustee, as Security Registrar, shall decrease the aggregate principal amount of the Restricted Global Security by the
specified amount and authenticate and deliver Securities in accordance with such instructions from the Company as provided in Section 3.4(1)(iii). 
 (ii) Restricted Non-global Security to Restricted Global Security. If the Holder of a Restricted Security (other than a Global Security) wishes at any time to transfer all or any portion of such Restricted
Security to a Person who wishes to take delivery thereof in the form of a beneficial interest in the Restricted Global Security, such transfer may be effected only in accordance with the provisions of this Clause (2)(ii) and subject to the
Applicable Procedures. Upon actual receipt by a Responsible Officer of the Trustee, as Security Registrar, of (A) such Restricted Security as provided in Section 3.5(1) and instructions from the Company directing that a beneficial interest
in the Restricted Global Security in a specified aggregate principal amount not greater than the aggregate principal amount of such Security be credited to a specified Agent Member’s account, and (B) a Restricted Securities Certificate,
satisfactory to the Trustee, and duly executed by such Holder or its attorney duly authorized in writing, then the Trustee, as Security Registrar, shall cancel such Restricted Security (and issue a new Restricted Security in respect of any
untransferred portion thereof) as provided in Section 3.5(1) and increase the aggregate principal amount of the Restricted Global Security by the specified aggregate principal amount as provided in Section 3.4(1)(iii). 
 (iii) Exchanges Between Global Security and Non-global Security. A beneficial interest in a Global Security may be exchanged for a Security that
is not a Global Security only as provided in Section 3.4 or only if such exchange occurs in connection with a transfer effected in accordance with Clause 2(i) above, provided that, if such interest is a beneficial interest in the
Restricted Global Security, then such interest shall be exchanged for a Restricted Security (subject in each case to Section 3.5(3)). A Security that is not a Global Security may be exchanged for a beneficial interest in a Global Security only
if such exchange occurs in connection with a transfer effected in accordance with Clause (2)(ii) above. 
 (3) Securities Act
Legends. All Securities issued pursuant to this Indenture, and all Successor Securities, shall bear the Restricted Securities Legend, subject to the following: 
 (i) subject to the following Clauses of this Section 3.5(3), a Security or any portion thereof which is exchanged, upon transfer or otherwise, for a Global Security or any portion thereof shall bear the
Restricted Securities Legend borne by such Global Security for which the Security was exchanged; 
 (ii) subject to the following Clauses of
this Section 3.5(3), a new Security that is not a Global Security and is issued in exchange for another Security (including a Global Security) or any portion thereof, upon transfer or otherwise, shall bear the Restricted Securities Legend borne
by the Security for which the new Security was exchanged; 
  

 34 

 (iii) any Securities that are sold or otherwise disposed of pursuant to an effective registration
statement under the Securities Act (including the Shelf Registration Statement), together with their Successor Securities shall not bear a Restricted Securities Legend; the Company shall inform the Trustee in writing of the effective date of any
such registration statement registering the Securities under the Securities Act and shall notify the Trustee in writing at any time when prospectuses must be delivered with respect to Securities to be sold pursuant to such registration statement.
Neither the Trustee nor any of its agents shall be liable, and the Company shall indemnify the Trustee and each such agent, for any action taken or omitted to be taken by it in good faith in accordance with the aforementioned registration statement;

 (iv) at any time after the Securities may be freely transferred without registration under the Securities Act or without being subject to
transfer restrictions pursuant to the Securities Act, a new Security that does not bear a Restricted Securities Legend may be issued in exchange for or in lieu of a Security (other than a Global Security) or any portion thereof that bears such a
legend if a Responsible Officer of the Trustee has actually received an Unrestricted Securities Certificate, satisfactory to the Trustee and duly executed by, or on behalf of, the Holder of such Security bearing a Restricted Securities Legend or his
attorney duly authorized in writing, and after such date and receipt of such certificate, the Trustee shall at the direction of the Company in a Company Order authenticate and deliver such new Security in exchange for or in lieu of such other
Security as provided in this Article III; 
 (v) a new Security that does not bear a Restricted Securities Legend may be issued in
exchange for or in lieu of a Security or any portion thereof that bears such a legend if, in the Company’s judgment, placing such a legend upon such new Security is not necessary to ensure compliance with the registration requirements of the
Securities Act, and the Trustee, at the direction of the Company in a Company Order to such effect, shall authenticate and deliver such a new Security as provided in this Article III; and 
 (vi) notwithstanding the foregoing provisions of this Section 3.5(3), a Successor Security of a Security that does not bear a Restricted Securities
Legend shall not bear such legend unless the Company has reasonable cause to believe that such Successor Security is a “restricted security” within the meaning of Rule 144, in which case the Trustee, at the direction of the Company in
a Company Order to such effect, shall authenticate and deliver a new Security bearing a Restricted Securities Legend in exchange for such Successor Security as provided in this Article III. 
 (4) Any stock certificate representing shares of Common Stock issued upon conversion of the Securities shall bear the Restricted Securities Legend borne
by such Securities, to the extent required by this Indenture, unless such shares of Common Stock have been sold pursuant to a registration statement that has been declared effective under the Securities Act (including the Shelf Registration
Statement) (and that continues to be effective at the time of such transfer) or sold pursuant to Rule 144(k) of the Securities Act, or unless otherwise agreed by the Company in writing with written notice thereof to the transfer agent for the
Common Stock. With respect to the transfer of shares of Common Stock issued upon conversion of the Securities that are restricted hereunder, any deliveries of certificates, legal opinions or other instruments that would be required to be made to the
Security Registrar in the case of a transfer of Securities, as described above, shall instead be made to the transfer agent for the Common Stock. 
 (5) Neither the Trustee, the Paying Agent, the Security Registrar, the Conversion Agent or any other Agent nor any of their respective agents shall (i) have any duty to monitor compliance with or with respect to any federal or state or
other securities or tax laws or (ii) have any duty to obtain documentation on any transfers or exchanges other than as specifically and expressly required hereunder. 
  

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 SECTION 3.6 Mutilated, Destroyed, Lost or Stolen Securities. 
 If any mutilated Security is surrendered to the Trustee (together with such security or indemnity as may be satisfactory to the Company and the Trustee to
fully protect each of them and any Agent or other agent of either of them or any Agent, from any loss, damage, liability, cost or expense which any of them may suffer or incur if the Security is replaced), the Company shall execute and, upon actual
receipt by a Responsible Officer of the Trustee of a Company Request to such effect, the Trustee shall authenticate and deliver in exchange therefor a new Security of like tenor and aggregate principal amount and bearing a number not
contemporaneously outstanding. 
 If there be delivered to the Company and to the Trustee: 
 (1) evidence to their satisfaction of the destruction, loss or theft of any Security, and 
 (2) such security, indemnity bond or other indemnity as may be satisfactory to the Company and the Trustee to fully protect and hold harmless each of
them and any Agent or other agent of either of them or any Agent from any loss, damage, liability, cost or expense which any of them may suffer or incur, if the Security is replaced, 
 then, in the absence of actual notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall execute and, upon actual receipt by a Responsible Officer of the
Trustee of a Company Request to such effect, the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Security, a new Security of like tenor and aggregate principal amount and bearing a number not contemporaneously
Outstanding. If, after the delivery of such new Security, a bona fide purchaser of the original Security in lieu of which such new Security was issued presents for payment or registration such original Security, the Trustee shall be entitled to
recover such new Security from the party to whom it was delivered or any party taking therefrom, except a bona fide purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage,
liability, cost or expense incurred by the Company and the Trustee in connection therewith. 
 In case any Security which has become, or is
about to become, due and payable is submitted for redemption or repurchase pursuant to Article XI or Article XIV, respectively, or is about to be converted into Common Stock pursuant to Article XII shall become mutilated, destroyed, lost or stolen,
the Company in its discretion, but subject to any conversion rights, may, instead of issuing a new Security, pay or authorize the payment of or convert or authorize the conversion of such Security (without surrender thereof, except in the case of a
mutilated Security), upon satisfaction of the conditions set forth in the preceding paragraph. 
 Upon the issuance of any new Security under
this Section 3.6, 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 (other than any stamp and other duties, if any, which may be imposed in connection
therewith by the United States or any political subdivision thereof or therein, which shall be paid by the Company) and any other expenses (including the fees and expenses of the Trustee) connected therewith. 
 Every new Security issued pursuant to this Section 3.6 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 such new Security shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities duly issued, authenticated and delivered hereunder. 
  

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 The provisions of this Section 3.6 are exclusive and shall preclude (to the extent lawful) all other
rights and remedies of any Holder with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities. 
 SECTION 3.7 Payment of
Interest; Interest Rights Preserved. 
 Subject to the last paragraph of this Section, interest, including Additional Interest, if any, 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 (or one or more Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest; provided that if such Interest Payment Date is a Scheduled Repurchase Date, interest on the Securities submitted (and not properly withdrawn) for repurchase on such Scheduled Repurchase Date will be payable to
the Holders in whose names such Securities are registered at the close of business on such Scheduled Repurchase Date. 
 Any interest,
including Additional Interest, if any, on any Security that is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holder on
the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in Clause (1) or (2) below: 
 (1) The Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Securities (or their respective Predecessor
Securities) are registered at the close of business on a “Special Record Date” for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall promptly notify the Trustee in writing of the amount
of Defaulted Interest proposed to be paid on each Security, the date of the proposed payment and the Special Record Date, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be
paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to
such Defaulted Interest as in this Clause provided. The Special Record Date for the payment of such Defaulted Interest shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after
the actual receipt by a Responsible Officer of the Trustee of the notice of the proposed payment. The Trustee, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor to be mailed, first-class postage prepaid, to each Holder at such Holder’s address as it appears in the Security Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Securities (or their respective Predecessor Securities) are registered at the close of business on
such Special Record Date and shall no longer be payable pursuant to the following Clause (2). 
 (2) The Company may make payment of any
Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange or automated quotation system on which the Securities may be listed or designated for issuance, and upon such notice as may be required
by such exchange or automated quotation system, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this Clause, such manner of payment shall be deemed practicable by the Trustee. 
 Subject to the provisions of this Section 3.7 and Section 3.5, each Security delivered under this Indenture upon registration of transfer of or
in exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security. 
  

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 Interest on any Security that is converted in accordance with Section 12.2 during a Record Date
Period shall be payable in accordance with the provisions of Section 12.2. 
 SECTION 3.8 Persons Deemed Owners. 
 Prior to due presentment of a Security for registration of transfer, the Company, the Trustee, the Securities Registrar, any Paying Agent or Conversion
Agent and any other Agent, and any agent of the Company, the Trustee, the Securities Registrar, any Paying Agent or Conversion Agent or any other Agent may treat the Person in whose name such Security is registered as the owner of such Security for
the purpose of receiving payment of principal of, premium, if any, and (subject to Section 3.7) interest including any Additional Interest, if any, on such Security and for all other purposes whatsoever, whether or not such Security be overdue,
and none of the Company, the Trustee, the Securities Registrar, any Paying Agent or Conversion Agent nor any other Agent nor any agent of the Company, the Trustee, the Securities Registrar, any Paying Agent or Conversion Agent or any other Agent,
shall be affected by notice to the contrary. No holder of any beneficial interest in any Global Security held on its behalf by a Depositary (including through its nominee) shall have any rights under this Indenture with respect to such Global
Security, and such Depositary (including through its nominee) may be treated by the Company, the Trustee and each Agent and any agent of the Company or the Trustee or any Agent, as the owner of such Global Security for all purposes whatsoever. None
of the Company, the Trustee or any Agent or any agent of the Company or the Trustee or any Agent will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a
Global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests. 
 SECTION 3.9 Cancellation.

 All Securities surrendered for payment, redemption, repurchase, registration of transfer or exchange or conversion shall, if surrendered to
any Person other than the Trustee, be delivered to the Trustee. All Securities so delivered to the Trustee shall be canceled promptly by the Trustee. The Company may at any time deliver to the Trustee for cancellation any Security which the Company
may have acquired in any manner. No Securities shall be authenticated in lieu of or in exchange for any Securities canceled as provided in this Section 3.9. The Trustee shall dispose of all canceled Securities held by the Trustee in accordance
with applicable law and its customary practices in effect from time to time. Upon written request of the Company actually received by a Responsible Officer of the Trustee, the Trustee shall deliver certification of the disposal of all cancelled
Securities to the Company. 
 SECTION 3.10 Computation of Interest. 
 Interest on the Securities (including any Additional Interest) shall be computed on the basis of a 360-day year of twelve 30-day months and, in the case of an incomplete month, the actual number of days elapsed.

 SECTION 3.11 CUSIP Numbers. 
 The Company in
issuing Securities may use CUSIP numbers (if then generally in use) in addition to serial numbers; if so, the Trustee shall use such CUSIP numbers in addition to serial numbers in notices of redemption or repurchase as a convenience to Holders;
provided that any such notice may state that no representation is made as to the correctness of such CUSIP numbers either as printed on the Securities or as contained in any notice of a redemption or repurchase and that reliance may be placed
only on the serial or other identification numbers printed on the Securities, and any such redemption or repurchase shall not be affected by any defect in or omission of such CUSIP numbers. 
  

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 ARTICLE IV 
 SATISFACTION AND DISCHARGE 
 SECTION 4.1 Satisfaction and Discharge of Indenture. 
 This Indenture shall, upon a Company Request, cease to be of further effect (except as to any surviving rights of conversion, or registration of transfer
or exchange, or replacement of Securities herein expressly provided for and any right to receive Additional Interest as provided in the Registration Rights Agreement and in the form of Securities set forth in Section 2.2 and the Company’s
obligations to the Trustee pursuant to Section 6.7), and the Trustee, at the expense of the Company, shall execute proper instruments in form and substance satisfactory to the Trustee acknowledging satisfaction and discharge of this Indenture,
when 
 (1) either 
 (i) all
Securities theretofore authenticated and delivered pursuant to this Indenture (other than (A) Securities which have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 3.6 and (B) Securities for
whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 10.3) have been delivered to the Trustee for
cancellation; or 
 (ii) all such Securities not theretofore cancelled or delivered to the Trustee or its agent for cancellation (other than
Securities referred to in clauses (A) and (B) of clause (1)(i) above) 
 (a) have become due and payable, or 
 (b) will have become due and payable at their Stated Maturity within one year, or 
 (c) are to be called for redemption within one year under arrangements reasonably satisfactory to the Trustee for the giving of notice of redemption by
the Trustee in the name, and at the expense, of the Company, 
 and the Company, in the case of clause (a), (b) or (c) above, has irrevocably
deposited or caused to be deposited with the Trustee in trust, funds (immediately available to the Holders in the case of clause (a)) in cash sufficient to pay and discharge the entire indebtedness on such Securities not theretofore delivered to the
Trustee for cancellation, for principal, premium, if any, and interest (including any Additional Interest, if any) to the date of such deposit (in the case of Securities which have become due and payable) or to the Stated Maturity or Redemption
Date, as the case may be; 
 (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 provided for relating to the satisfaction and discharge of this Indenture have been complied with. 
 Notwithstanding the satisfaction
and discharge of this Indenture, (x) the obligations of the Company to the Trustee under Section 6.7, the obligations of the Company to any Authenticating Agent under Section 6.12, the obligation of the Company to pay Additional
Interest, and the right of the Trustee to 

  

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resign under Section 6.9 shall survive and (y) if money shall have been deposited with the Trustee pursuant to clause (1)(ii) of this
Section 4.1, the obligations of the Trustee under Section 4.2 and the last paragraph of Section 10.3, the obligations of the Company under Section 15.1, and the obligations of the Company and the Trustee under Section 3.5
and Article XII shall survive. 
 SECTION 4.2 Application of Trust Money. 
 Subject to the provisions of the last paragraph of Section 10.3, all money deposited with the Trustee pursuant to Section 4.1 shall be held in trust for the sole benefit of the Holders, and such monies shall
be applied by the Trustee, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent, to the Persons entitled thereto, of the principal, premium, if any, and interest
(including Additional Interest, if any) for whose payment such money has been deposited with the Trustee. 
 All moneys deposited with the
Trustee pursuant to Section 4.1 (and held by it or any Paying Agent) for the payment of Securities subsequently converted shall be returned to the Company upon Company Request. 
 The Company shall pay and indemnify the Trustee and each Agent against any tax, fee or other charge imposed or assessed against all money deposited with
the Trustee pursuant to Section 4.1. 
 ARTICLE V 
 REMEDIES 
 SECTION 5.1 Events of Default. 
 “Event of Default”, wherever used herein, means any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of
law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): 
 (1) default in the payment of the principal of or premium, if any, on any Security at its Stated Maturity or the date when due; or 
 (2) default in the payment of any interest (including Additional Interest, if any) upon any Security when it becomes due and payable, and continuance of such default for a period of 30 days; or 
 (3) failure by the Company to give a Company Notice in accordance with Section 14.2; or 
 (4) failure by the Company to deliver shares of Common Stock upon conversion of the Securities within 15 days after the conversion date; or 

(5) default in the performance, or breach, of any covenant or warranty of the Company in this Indenture (other than a covenant or warranty, a default
in the performance or breach of which is specifically dealt with elsewhere in this Section), and continuance of such default or breach for a period of 60 days after there has been given written notice, sent by registered or certified mail, to the
Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Securities specifying such default or breach and requiring it to be remedied and stating that such notice is a
“Notice of Default” hereunder; or 
  

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 (6) any indebtedness under any bonds, debentures, notes or other evidences of indebtedness for money
borrowed (or guarantee thereof) by the Company or any Significant Subsidiary with an aggregate principal amount in excess of $5,000,000, whether such indebtedness now exists or shall hereafter be created, is not paid when due (either at its stated
maturity or upon acceleration thereof), and such indebtedness is not discharged, or such acceleration is not rescinded or annulled, within a period of 30 days after there has been given written notice, sent by registered or certified mail, to the
Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Securities specifying such default and requiring the Company to cause such indebtedness to be discharged or
cause such default to be cured or waived or such acceleration to be rescinded or annulled and stating that such notice is a “Notice of Default” hereunder; or 
 (7) the entry by a court having jurisdiction in the premises of (A) a decree or order for relief in respect of the Company or any Significant Subsidiary in an involuntary case or proceeding under any applicable
Federal or State bankruptcy, insolvency, reorganization or other similar law or (B) a decree or order adjudging the Company or any Significant Subsidiary a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company or any Significant Subsidiary under any applicable Federal or State law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Company or any Significant Subsidiary or of any substantial part of the property of either, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order for relief or any such other decree
or order unstayed and in effect for a period of 60 consecutive days; or 
 (8) the commencement by the Company or any Significant Subsidiary
of a voluntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by either to the entry
of a decree or order for relief in respect of the Company or any Significant Subsidiary in an involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or to the commencement of
any bankruptcy or insolvency case or proceeding against either, or the filing by either of a petition or answer or consent seeking reorganization or similar relief under any applicable Federal or State law, or the consent by either to the filing of
such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or any Significant Subsidiary or of any substantial part of the property of
either, or the making by either of an assignment for the benefit of creditors, or the admission by either in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by the Company or any Significant
Subsidiary in furtherance of any such action. 
 SECTION 5.2 Acceleration of Maturity; Rescission and Annulment. 
 If an Event of Default (other than an Event of Default specified in Section 5.1(7) or 5.1(8) with respect to the Company) occurs and is continuing,
then in every such case the Trustee or the Holders of not less than 25% in aggregate principal amount of the Outstanding Securities may declare the principal of, premium, if any, and accrued and unpaid interest (including Additional Interest, if
any) on all the Securities to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders), and upon any such declaration such principal, premium, if any, and accrued and unpaid interest
(including Additional Interest, if any) thereon shall become immediately due and payable. If an Event of Default specified in Section 5.1(7) or 5.1(8) with respect to the Company occurs, the principal of, premium, if any, and accrued and unpaid
interest (including Additional Interest, if any) on, all the Securities shall ipso facto become immediately due and payable without any declaration or other Act of the Holders or any act on the part of the Trustee. 
  

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 At any time after such declaration of acceleration has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this Article V provided, the Holders of a majority in aggregate principal amount of the Outstanding Securities, by written notice to the Company and the Trustee, may,
on behalf of all Holders, rescind and annul such declaration and its consequences if: 
 (1) the Company has paid or deposited with the
Trustee a sum sufficient to pay 
 (i) all overdue interest on all Securities, 
 (ii) the principal of and premium, if any, on any Securities that have become due otherwise than by such declaration of acceleration and any interest,
including Additional Interest, if any, thereon at the rate borne by the Securities, 
 (iii) to the extent permitted by applicable law,
interest upon overdue interest at a rate of 3.75% per annum, and 
 (iv) all sums paid or advanced by the Trustee or any Agent hereunder
and the reasonable compensation, expenses, disbursements and advances of each of the Trustee and such Agents and their respective agents and counsel; 
 (2) all Events of Default, other than the nonpayment of the principal of and any premium, and interest, including Additional Interest, if any, on, Securities which have become due solely by such declaration of
acceleration, have been cured or waived as provided in Section 5.13; and 
 (3) such rescission and annulment would not conflict with
any judgment or decree issued in appropriate judicial proceedings regarding the payment by the Trustee to the Holders of the amounts referred to in 5.2(1). 
 No rescission or annulment referred to above shall affect any subsequent default or impair any right consequent thereon. 
 SECTION 5.3 Collection of Indebtedness and Suits for Enforcement by Trustee. 
 The Company covenants that if: 
 (1) default is made in the payment of any interest (including any Additional Interest, if any), on any Security when it becomes due and payable and such
default continues for a period of 30 days, or 
 (2) default is made in the payment of the principal of or premium, if any, on any Security
at the Maturity thereof, 
 the Company will, upon written demand of the Trustee pay to the Trustee for the benefit of the Holders of such Securities the
whole amount then due and payable on such Securities for principal and premium, if any, and interest (including any Additional Interest, if any) and interest on any overdue principal and premium, if any, and, to the extent permitted by applicable
law, on any overdue interest (including any Additional Interest, if any), at a rate of 3.75% per annum, and in addition thereto, such further amount as shall be sufficient to cover the reasonable costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 
  

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 If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as
trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor upon the
Securities and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or any other obligor upon the Securities, wherever situated. 
 If an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy. 
 SECTION 5.4 Trustee May File Proofs of Claim. 
 In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or the creditors of either, the Trustee (irrespective of whether the principal of, and any interest on, the
Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or interest) shall be entitled and
empowered, by intervention in such proceeding or otherwise, 
 (1) to file a proof of claim for the whole amount of principal, premium, if
any, and interest owing and unpaid in respect of the Securities and take such other actions, including participating as a member, voting or otherwise, of any official committee of creditors appointed in such matter, and to file such other papers or
documents, in each of the foregoing cases, as may be necessary or advisable, and to take any and all actions authorized under the Trust Indenture Act, 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 of the Holders of Securities allowed in such judicial proceeding, and 
 (2) to collect and receive any moneys or other property payable or deliverable on any such claim and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar
official in any such judicial proceeding is hereby authorized by each Holder of Securities to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders of Securities 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 6.7. 
 Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder of a Security 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 of a Security in any such proceeding; provided,
however, that the Trustee may, on behalf of such Holders, vote for the election of a trustee in bankruptcy or similar official and be a member of a creditors’ or other similar committee. 
 SECTION 5.5 Trustee May Enforce Claims Without Possession of Securities. 
 All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any 

  

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proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which
judgment has been recovered. 
 SECTION 5.6 Application of Money Collected. 
 Any money or property collected or to be applied by the Trustee pursuant to this Article V shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of
such money or property on account of principal, premium, if any, or interest, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid: 
 FIRST: To the payment of all amounts due the Trustee under Section 6.7; 
 SECOND: To the payment of the amounts then due and unpaid for principal of, premium, if any, or accrued and unpaid interest (including Additional
Interest, if any) on, the Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal,
premium, if any, and accrued and unpaid interest (including Additional Interest), respectively; 
 THIRD: To such other Person or Persons, if
any, to the extent entitled thereto; and 
 FOURTH: Any remaining amounts shall be repaid to the Company. 
 The Trustee shall notify the Company in writing of the payment date or dates fixed by the Trustee pursuant to this Section. 
 SECTION 5.7 Limitation on Suits. 
 Subject to
Section 5.8, no Holder of any Security shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:

 (1) such Holder has previously given written notice to the Trustee of an Event of Default and such Event of Default is continuing at the
time of such institution; 
 (2) the Holders of not less than 25% in aggregate principal amount of the Outstanding Securities shall have made
written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder; 
 (3) such
Holder or Holders have offered to the Trustee, and if requested, shall have provided to the Trustee, security or indemnity reasonably satisfactory to the Trustee against the costs, expenses and liabilities to be incurred in compliance with such
request; 
 (4) the Trustee for 60 days after its actual receipt by a Responsible Officer of such notice under Section 5.7(1), request
under 5.7(2) and offer of security or indemnity (or if requested, actual receipt of security or indemnity) under Section 5.7(3) has failed to institute any such proceeding; and 
  

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 (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 Outstanding Securities, 
 it being understood and intended that no one or more of
such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of such Holders, or to obtain or seek to obtain priority or preference
over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders. 
 SECTION 5.8 Unconditional Right of Holders to Receive Principal, Premium and Interest and to Convert.
 Notwithstanding any other provision in this Indenture the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of, premium, if any, and (subject to Section 3.7) interest
(including Additional Interest, if any) on such Security on the respective Stated Maturities expressed in such Security (or, in the case of redemption or repurchase, on the Redemption Date, the Repurchase Date or the Scheduled Repurchase Date, as
the case may be), and to convert such Security in accordance with Article XII, and to institute suit for the enforcement of any such payment and right to convert, and such rights shall not be impaired without the consent of such Holder.

 SECTION 5.9 Restoration of Rights and Remedies. 
 If the Trustee or any Holder of a Security has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the
Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company, the Trustee and the Holders of Securities shall be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and such Holders shall continue as though no such proceeding had been instituted. 
 SECTION 5.10 Rights
and Remedies Cumulative. 
 Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen
Securities in the last paragraph of Section 3.6, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders of Securities is intended to be exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 
 SECTION 5.11 Delay or Omission Not Waiver. 

No delay or omission of the Trustee or of any Holder of any Security to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or any acquiescence therein. Every right and remedy given by this Article V or by law to the Trustee or to the Holders of Securities may be exercised from time to
time, and as often as may be deemed expedient, by the Trustee or (subject to the limitations contained in this Indenture) by the Holders of Securities as the case may be. 
  

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 SECTION 5.12 Control by Holders of Securities.
 Subject to Section 6.3, the Holders of a majority in aggregate principal amount of the Outstanding Securities shall have the right to direct the
time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee, provided that 
 (1) such direction shall not be in conflict with any rule of law or with this Indenture, and 
 (2) the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction, and 
 (3) the Trustee need not take any action that might involve it in personal liability or be unjustly prejudicial to the Holders of Securities not
consenting or that it in good faith believes would otherwise be contrary to applicable law. 
 SECTION 5.13 Waiver of Past Defaults. 
 The Holders, either (i) through the written consent of not less than a majority in aggregate principal amount of the Outstanding Securities or
(ii) by the adoption of a resolution, at a meeting of Holders of the Outstanding Securities at which a quorum is present, by the Holders of at least 66-2/3% in aggregate principal amount of the Outstanding Securities represented at such
meeting, may on behalf of the Holders of all the Securities waive any past default hereunder and its consequences, except a default (A) in the payment of the principal of, premium, if any, or interest (including Additional Interest, if any) on
any Security, or (B) in respect of a covenant or provision hereof which under Article VIII cannot be modified or amended without the consent of the Holder of each Outstanding Security affected. 
 Upon any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon. 
 SECTION 5.14 Undertaking for
Costs. 
 All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that
any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee or otherwise, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in such suit, having due
regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section 5.14 shall not apply to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders,
holding in the aggregate more than 10% in aggregate principal amount of the Outstanding Securities, or to any suit instituted by any Holder of any Security for the enforcement of the payment of the principal of, premium, if any, or interest
(including Additional Interest, if any) on any Security on or after the respective Stated Maturity or Maturities or such other dates when due as expressed herein or in such Security (or, in the case of redemption or repurchase, on or after the
Redemption Date, Repurchase Date or Scheduled Repurchase Date, as the case may be) or for the enforcement of the right to convert any Security in accordance with Article XII. 
  

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 SECTION 5.15 Waiver of Stay, Usury or Extension Laws. 
 The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay, usury or extension law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do
so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not hinder, delay or impede by reason of any such law 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. 
 ARTICLE VI 
 THE TRUSTEE 
 SECTION 6.1 Certain Duties and Responsibilities. 
 (1) Except during the continuance of an Event of Default, 
 (i) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture with respect to the Securities, and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and 
 (ii) 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, but in the case of any such certificates or opinions which by any
provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they substantially conform to the requirements of this Indenture, but not to confirm or
investigate the accuracy of mathematical calculations or otherwise verify or investigate the facts stated therein or the contents thereof. 
 (2) In case an Event of Default 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 their exercise, as a prudent person would
exercise or use under the circumstances in the conduct of his own affairs. 
 (3) No provision of this Indenture shall be construed to
relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that 
 (i) this paragraph (3) shall not be construed to limit the effect of paragraph (1) of this Section; 
 (ii) the Trustee
shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; 
 (iii) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the
Holders of a majority in aggregate principal amount of the Outstanding Securities relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the
Trustee, under this Indenture; and 
  

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 (iv) 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, if a Responsible Officer of the Trustee shall not have actually received security or indemnity satisfactory
to the Trustee against any such risk, claim, loss, liability, damage, cost or expense. 
 (4) Whether or not therein expressly so provided,
every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section 6.1. 
 SECTION 6.2 Notice of Defaults. 
 Within 90 days after the
occurrence of any default hereunder as to which a Responsible Officer of the Trustee has actually received written notice, the Trustee shall give to all Holders of Securities, in the manner provided in Section 1.6, notice of such default,
unless such default shall have been cured or waived; provided, however, that, except in the case of a default in the payment of the principal of, premium, if any, or interest on any Security, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive committee or a trust committee of directors or any Responsible Officer of the Trustee in good faith determines that the withholding of such notice is in the interest of
the Holders; and provided, further, that in the case of any default of the character specified in Section 5.1(5), no such notice to Holders of Securities shall be given until at least 60 days after the occurrence thereof or, if
applicable, the cure period specified therein. For the purpose of this Section, the term “default” means any event which is, or after notice or lapse of time or both would become, an Event of Default. 
 SECTION 6.3 Certain Rights of Trustee. 
 Subject to the
provisions of Section 6.1: 
 (1) the Trustee may conclusively rely, and shall be protected in acting or refraining from acting, upon any
resolution, Officers’ Certificate, other certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, coupon, other evidence of indebtedness or other paper or document, in each case
whether in original or facsimile form (collectively, the “Documents”) believed by it to be genuine and to have been signed or presented by the proper party or parties, and the Trustee need not investigate any fact or matter stated in such
Documents; 
 (2) any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company
Order (except that a Company Order shall be required for authentication and delivery of any Security as provided in Section 3.3) and any resolution of the Board of Directors shall be sufficiently evidenced by a Board Resolution; 
 (3) whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee (unless other evidence be the one specifically prescribed) shall be entitled to receive and may, in the absence of bad faith on its part, request and rely upon an Officers’ Certificate or
Opinion of Counsel or both; 
  

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 (4) the Trustee may consult with counsel of its selection and the advice of such counsel or any Opinion
of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon; 
 (5) the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of
the Holders of Securities pursuant to this Indenture, unless such Holders shall have offered, and, if requested by the Trustee, delivered to the Trustee security or indemnity reasonably satisfactory to the Trustee against the risks, claims, losses,
liabilities, damages, costs and expenses which might be incurred by it in compliance with such request or direction; 
 (6) 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, coupon, 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 expense of the Company and shall incur no liability by reason of such inquiry or investigation; 
 (7) the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys
and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder and shall not be responsible for the supervision of officers or employees of any of such agents or
attorneys; 
 (8) the Company shall deliver an Officers’ Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture, which Officers’ Certificate shall be signed by any Person authorized to sign an Officers’ Certificate, including any Person specified as so authorized in any
such certificate previously delivered and not superseded; 
 (9) the Trustee shall not be liable for any action taken, suffered, or omitted
to be taken by it in good faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture; 
 (10) the Trustee shall not be deemed to have notice or actual knowledge of any default or Event of Default 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 or Event of Default is actually received by a Responsible Officer of the Trustee at the Corporate Trust Office of the Trustee and such notice references the Securities and this Indenture; 
 (11) the rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each Agent and each other agent, custodian and other Person employed to act hereunder; and without limiting the foregoing, the Trustee shall be entitled
to the rights and protections afforded to the Trustee pursuant to this Article VI in acting as a Paying Agent, Conversion Agent, or Security Registrar hereunder; and 
 (12) neither the Trustee nor any Agent, nor any agent of any such Person, will have any responsibility for any action taken or not taken by the Depositary. 
  

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 SECTION 6.4 Not Responsible for Recitals or Issuance of Securities. 
 The recitals contained herein and in the Securities (except the Trustee’s certificates of authentication) shall be taken as the statements of the
Company, and neither the Trustee nor any Agent, assumes any responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture, of the Securities or of the Common Stock issuable upon the
conversion of the Securities. Neither the Trustee nor any Agent, nor any agent of the Trustee or any Agent, shall be accountable for the use or application by the Company of Securities or the proceeds thereof. 
 SECTION 6.5 May Hold Securities, Act as Trustee under Other Indentures. 
 The Trustee, the Securities Registrar, any Authenticating Agent, any Paying Agent, any Conversion Agent, any other Agent, or any other agent of the Company, the Trustee, in its individual or any other capacity, or any
Agent, or any of their respective Affiliates, may become the owner or pledgee of Securities and may otherwise deal with the Company or any of its Affiliates with the same rights it would have if it were not Trustee, Securities Registrar,
Authenticating Agent, Paying Agent, Conversion Agent or other Agent, or any such other agent or Affiliate. 
 The Trustee may become and act
as trustee under other indentures under which other securities, or certificates of interest or participation in other securities, of the Company are outstanding in the same manner as if it were not Trustee hereunder. 
 SECTION 6.6 Money Held in Trust. 
 Money held by the Trustee
in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed in writing with the Company.

 SECTION 6.7 Compensation and Reimbursement. 
 The Company agrees: 
 (1) to pay to the Trustee from time to time such compensation as the Company and the Trustee shall from time
to time agree in writing for its acceptance of this Indenture and for all services rendered by it hereunder in its various capacities (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an
express trust); 
 (2) except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee (including costs and expenses of enforcing this Indenture and defending itself against any claim (whether asserted by the Company, any Holder of Securities or any other Person) or liability
in connection with the exercise of any of its powers or duties hereunder) in accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to its own negligence or bad faith; and 
 (3) to fully indemnify each of the
Trustee, any Agent and any predecessor of the same (and each of their respective directors, officers, employees and agents) for, and to hold it harmless against, any loss, liability claim, damage, cost or expense incurred without negligence or
willful misconduct on its part, arising out of or in connection with the acceptance or administration of this trust, including the costs, expenses and attorneys’ fees and expenses of defending itself against any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder. 
  

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 Without limiting any rights available to the Trustee under applicable law, when the Trustee incurs
expenses or renders services in connection with an Event of Default specified in Section 5.1(7) or Section 5.1(8), the expenses (including the charges and expenses of its counsel) and the compensation for the services are intended to
constitute expenses of the administration under any applicable Federal or state bankruptcy, insolvency or other similar law. 
 The
provisions of this Section shall survive the termination or satisfaction and discharge of this Indenture or the payment in full of the Securities or the earlier resignation or removal of the Trustee. 
 SECTION 6.8 Corporate Trustee Required; Eligibility. 
 There
shall at all times be a Trustee hereunder which shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such, having (or be part of a holding company group with) a combined capital and surplus of at least $50,000,000,
subject to supervision or examination by federal or state authority, and in good standing. The Trustee or an Affiliate of the Trustee shall maintain an established place of business in Minneapolis, Minnesota. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published. The Trustee shall not be an obligor upon the Securities or an Affiliate of any obligor thereon. If at any time the Trustee shall cease to be eligible in accordance with
the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article VI and a successor shall be appointed pursuant to Section 6.9. 
 SECTION 6.9 Resignation and Removal; Appointment of Successor. 
 (1) No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article VI shall become effective until the acceptance of appointment by the successor Trustee in accordance with the applicable
requirements of Section 6.10. 
 (2) The Trustee may resign at any time by giving written notice thereof to the Company. If the
instrument of acceptance by a successor Trustee required by Section 6.10 shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may, at the expense of the Company,
petition any court of competent jurisdiction for the appointment of a successor Trustee. 
 (3) The Trustee may be removed at any time by an
Act of the Holders of a majority in aggregate principal amount of the Outstanding Securities, delivered to the Trustee and the Company. If the instrument of acceptance by a successor Trustee required by Section 6.10 shall not have been
delivered to the Trustee within 30 days after the giving of such notice of removal, the removed Trustee may, at the expense of the Company, petition any court of competent jurisdiction for the appointment of a successor Trustee. 
 (4) If at any time: 
 (i) the Trustee shall
cease to be eligible under Section 6.8 and shall fail to resign after written request therefor by the Company or by any Holder of a Security who has been a bona fide Holder of a Security for at least six months, or 
  

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 (ii) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a
receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, 
 then, in any such case (i) the Company by a Board Resolution may remove the Trustee, or (ii) subject to Section 5.14, any Holder of a Security who has
been a bona fide Holder of a Security for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

 (5) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any
cause, the Company, by a Board Resolution, shall promptly appoint a successor Trustee and shall comply with the applicable requirements of this Section and Section 6.10. If, within one year after such resignation, removal or incapability,
or the occurrence of such vacancy, a successor Trustee shall be appointed by Act of the Holders of a majority in aggregate principal amount of the Outstanding Securities delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment in accordance with the applicable requirements of Section 6.10, become the successor Trustee and supersede the successor Trustee appointed by the Company. If no successor
Trustee shall have been so appointed by the Company or the Holders of Securities and accepted appointment in the manner required by this Section and Section 6.10, any Holder of a Security who has been a bona fide Holder of a Security for
at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee. 
 (6) The Company shall give notice of each resignation and each removal of the Trustee and each appointment of a successor Trustee to all Holders of Securities in the manner provided in Section 1.6. Each notice
shall include the name of the successor Trustee and the address of its Corporate Trust Office. 
 SECTION 6.10 Acceptance of Appointment by Successor.

 Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee; but, on the request of the Company or the successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor Trustee all the rights, powers
and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder. Upon request of any such successor Trustee, the Company and the retiring Trustee
shall execute any and all instruments to more fully and with more certainty vest in and confirm to such successor Trustee all such rights, powers and trusts. 
 No successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be eligible under this Article VI. 
  

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 SECTION 6.11 Merger, Conversion, Consolidation or Succession to Business. 
 Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee (including the trust created by this Indenture), shall be the successor of
the Trustee hereunder, provided such corporation shall be otherwise eligible under this Article VI, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any Securities shall have
been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee had itself authenticated such Securities. 
 SECTION 6.12 Authenticating Agents. 
 The Trustee may, upon notice to the Company, appoint an “Authenticating Agent” or Agents reasonably acceptable to the Company with respect to
the Securities, which Authenticating Agent shall be authorized to act on behalf of the Trustee to authenticate Securities issued upon exchange or substitution pursuant to this Indenture. 
 Securities authenticated by an Authenticating Agent shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all
purposes as if authenticated by the Trustee hereunder, and every reference in this Indenture to the authentication and delivery of Securities by the Trustee or the Trustee’s certificate of authentication shall be deemed to include
authentication and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be subject to acceptance not to be
unreasonably withheld by the Company and shall at all times be a corporation organized and doing business under the laws of the United States of America, any State thereof or the District of Columbia, authorized under such laws to act as
Authenticating Agent and subject to supervision or examination by government or other fiscal authority. If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section 6.12, such
Authenticating Agent shall resign immediately in the manner and with the effect specified in this Section 6.12. 
 Any corporation into
which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any corporation
succeeding to all or substantially all the corporate agency or corporate trust business of an Authenticating Agent (including the authenticating agency contemplated by this Indenture), shall continue to be an Authenticating Agent, provided
such corporation shall be otherwise eligible under this Section 6.12, without the execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent. 
 An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee and to the Company. The Trustee may at any time terminate
the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon actual receipt by a Responsible Officer of the Trustee of such a notice of resignation or upon such a termination, or in
case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section 6.12, the Trustee may appoint a successor Authenticating Agent which shall be subject to acceptance not to be unreasonably
withheld by the Company. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an
Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section 6.12. 
  

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 The Company agrees to pay to each Authenticating Agent from time to time reasonable compensation for its
services under this Section 6.12. 
 If an Authenticating Agent is appointed with respect to the Securities pursuant to this
Section 6.12, the Securities may have endorsed thereon, in addition to or in lieu of the Trustee’s certification of authentication, an alternative certificate of authentication in the following form: 
 This is one of the Securities referred to in the within-mentioned Indenture. 
  

			
	 WELLS FARGO BANK, NATIONAL
ASSOCIATION,
 as Trustee

		
	By:	 	  

		 	As Authenticating Agent
		
	By:	 	  

		 	Authorized Signatory

 SECTION 6.13 Disqualification; Conflicting Interests. 
 If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall either eliminate such interest
or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture. 
 SECTION 6.14
Preferential Collection of Claims Against Company. 
 If and when the Trustee shall be or become a creditor of the Company (or any other
obligor upon the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of claims against the Company (or any such other obligor). 
 ARTICLE VII 
 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE 
 SECTION 7.1 Company May Consolidate, Etc. Only on Certain Terms. 
 The Company shall not consolidate with or merge into any other Person or convey, transfer, sell or lease all its properties and assets substantially as an entirety to any Person, and the Company shall not permit any Person to consolidate
with or merge into the Company unless: 
 (1) the Person formed by such consolidation or into or with which the Company is merged or the
Person to which the properties and assets of the Company are so conveyed, transferred, sold or leased shall be a corporation organized and validly existing under the laws of the United States of America, any 

  

 54 

 
State thereof or the District of Columbia and, if other than the Company, shall expressly assume, by an indenture supplemental hereto, executed and delivered
to the Trustee, in form reasonably satisfactory to the Trustee, the due and punctual payment of the principal of, premium, if any, and interest (including Additional Interest, if any) on all of the Securities as applicable, and the performance or
observance of every covenant of this Indenture on the part of the Company to be performed or observed and shall have provided for conversion rights in accordance with Article XII; 
 (2) immediately after giving effect to such transaction, no Event of Default, and no event that after notice or lapse of time or both, would become an
Event of Default, shall have occurred and be continuing; and 
 (3) the Company has delivered to the Trustee an Officers’ Certificate
and an Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture comply with this Article
VII and that all conditions precedent herein provided for relating to such transaction have been complied with, together with any documents required under Section 8.3. 
 SECTION 7.2 Successor Substituted. 
 Upon any consolidation of the Company with, or merger of the Company
into any other Person or any conveyance, transfer or lease of all or substantially all the properties and assets of the Company in accordance with Section 7.1, the successor Person formed by such consolidation or into or with 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, the predecessor Person shall be relieved of all obligations and covenants under this Indenture and the Securities. 
 ARTICLE VIII 
 SUPPLEMENTAL INDENTURES 
 SECTION 8.1 Supplemental Indentures Without Consent of Holders of Securities. 
 Without the consent of any Holders of Securities the Company, when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in
form reasonably satisfactory to the Trustee, for any of the following purposes: 
 (1) to evidence the succession of another Person to the
Company and the assumption by any such successor of the covenants and obligations of the Company herein and in the Securities as permitted by Article VII of this Indenture; or 
 (2) to add to the covenants of the Company and Events of Default for the benefit of the Holders of Securities or to surrender any right or power herein
conferred upon the Company; or 
 (3) to secure the Securities; or 
 (4) to make provision with respect to the conversion rights of Holders of Securities pursuant to Section 12.11 or to make provision with respect to
the repurchase rights of Holders of Securities pursuant to Section 14.4; or 
  

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 (5) to make any changes or modifications to this Indenture necessary in connection with the registration
of any Registrable Securities under the Securities Act as contemplated by the Registration Rights Agreement, provided such action pursuant to this clause (5) shall not adversely affect the interests of the Holders of Securities; or

 (6) to comply with the requirements of the Trust Indenture Act or the rules and regulations of the Commission thereunder in order to
effect or maintain the qualification of this Indenture under the Trust Indenture Act, as contemplated by this Indenture or otherwise; or 
 (7) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee; or 
 (8) to cure any ambiguity, to
correct or supplement any provision herein that may be inconsistent with any other provision herein or that is otherwise defective, or to make any other provisions with respect to matters or questions arising under this Indenture as the Company and
the Trustee may deem necessary or desirable, provided such action pursuant to this clause (8) shall not adversely affect the interests of the Holders of Securities in any material respect. 
 Upon Company Request, accompanied by a Board Resolution authorizing the execution of any such supplemental indenture, and subject to and upon actual
receipt by a Responsible Officer of the Trustee of the documents described in Section 8.3 hereof, the Trustee is hereby authorized to join with the Company in the execution of any supplemental indenture authorized or permitted by the terms of
this Indenture and to make any further appropriate agreements and stipulations that may be therein contained. 
 SECTION 8.2 Supplemental Indentures with
Consent of Holders of Securities. 
 With either (i) the written consent of the Holders of not less than a majority in aggregate
principal amount of the Outstanding Securities, by the Act of said Holders delivered to the Company and the Trustee, or (ii) by the adoption of a resolution, at a meeting of Holders of the Outstanding Securities at which a quorum is present, by
the Holders of at least 66 2/3% in aggregate principal amount of the Outstanding Securities represented at such meeting, the Company, when authorized by a Board Resolution, and the Trustee may enter into an indenture or indentures supplemental
hereto, in form reasonably satisfactory to the Trustee, for the purpose of adding any provisions to or changing in any manner or eliminating or waiving compliance by the Company with any of the provisions of this Indenture or of modifying in any
manner the rights of the Holders of Securities under this Indenture; provided, however, that no such supplemental indenture shall, without the consent or affirmative vote of the Holder of each Outstanding Security affected thereby,

 (1) change the Stated Maturity of the principal of, or any installment of interest on, any Security, or reduce the aggregate principal
amount of, or the premium, if any, or the rate of interest payable thereon, or reduce the amount payable upon a redemption, or mandatory repurchase, or reduce the amount payable upon acceleration of the Maturity of the Securities, or change the
place or currency of payment of the principal of, premium, if any, or interest on any Security (including any payment of Additional Interest or any Additional Payment or the Redemption Price, Repurchase Price or Scheduled Repurchase Price, if
applicable, in respect of such Security) or impair the right to institute suit for the enforcement of any payment in respect of any Security on or after the Stated Maturity thereof (or, in the case of redemption or any repurchase, on or after the
Redemption Date, the Repurchase Date or Scheduled Repurchase Date, as the case may be) or, except as permitted by Section 12.11, adversely affect the right of Holders to convert any Security as provided in Article XII; or 
  

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 (2) reduce the requirements of Section 9.4 for quorum or voting, or reduce the percentage in
aggregate principal amount of the Outstanding Securities the consent of whose Holders is required for any such supplemental indenture or the consent of whose Holders is required for any waiver of compliance with certain provisions of this Indenture
or certain defaults hereunder and their consequences provided for in this Indenture; or 
 (3) modify the provisions of Section 10.8; or

 (4) modify any of the provisions of this Section or Section 5.13, except to increase any percentage contained herein or therein
or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Security affected thereby; or 
 (5) modify the provisions of Article XIV in a manner adverse to the Holders; or 
 (6) modify the provisions of Section 11.1 in a manner adverse to the Holders. 
 It shall not be necessary for any Act of Holders of Securities under this Section to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the substance thereof. 
 SECTION 8.3 Execution of Supplemental Indentures. 
 In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article VIII or the modifications thereby
of the trusts created by this Indenture, the Trustee shall be entitled to receive, and (subject to Sections 6.1 and 6.3) shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture, and that such supplemental indenture has been duly authorized, executed and delivered by the Company and constitutes a valid and legally binding obligation of the Company enforceable against the Company in
accordance with its terms. The Trustee may, but shall not be obligated to, enter into any such supplemental indenture which affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise. Every supplemental indenture
executed pursuant to this Article VIII shall conform to the requirements of the Trust Indenture Act as then in effect. 
 SECTION 8.4 Effect of Supplemental
Indentures. 
 Upon the execution of any supplemental indenture under this Article VIII, 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 appertaining thereto shall be bound thereby. 

SECTION 8.5 Reference in Securities to Supplemental Indentures. 
 Securities authenticated and delivered after the execution of any supplemental indenture pursuant to this Article VIII may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided
for in such supplemental indenture. If the Company shall so determine, new Securities so modified as to conform, in the opinion of the Company and the Trustee, to any such supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding Securities. 
  

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 SECTION 8.6 Notice of Supplemental Indentures. 
 Promptly after the execution by the Company and the Trustee of any supplemental indenture pursuant to the provisions of Section 8.3, the Company
shall give notice to all Holders of Securities of such fact, setting forth in general terms the substance of such supplemental indenture, in the manner provided in Section 1.6. Any failure of the Company to give such notice, or any defect
therein, shall not in any way impair or affect the validity of any such supplemental indenture. 
 ARTICLE IX 
 MEETINGS OF HOLDERS OF SECURITIES 
 SECTION 9.1 Purposes for
Which Meetings May Be Called. 
 A meeting of Holders of Securities may be called at any time and from time to time pursuant to this Article
IX to make, give or take any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be made, given or taken by Holders of Securities. 
 SECTION 9.2 Call, Notice and Place of Meetings. 
 (1) The
Trustee may at any time call a meeting of Holders of Securities for any purpose specified in Section 9.1, to be held at such time and at such place in the Borough of Manhattan, The City of New York, as the Trustee shall determine. Notice of
every meeting of Holders of Securities, setting forth the time and the place of such meeting and in general terms the action proposed to be taken at such meeting, shall be given, in the manner provided in Section 1.6, not less than 21 nor more
than 180 days prior to the date fixed for the meeting. 
 (2) In case at any time the Company, pursuant to a Board Resolution, or the Holders
of at least 25% in aggregate principal amount of the Outstanding Securities shall have requested the Trustee to call a meeting of the Holders of Securities for any purpose specified in Section 9.1, by written request setting forth in reasonable
detail the action proposed to be taken at the meeting, and the Trustee shall not have mailed the notice of such meeting within 21 days after its actual receipt by a Responsible Officer of such request or shall not thereafter proceed to cause the
meeting to be held as provided herein, then the Company or the Holders of Securities in the amount specified, as the case may be, may determine the time and the place in the Borough of Manhattan, The City of New York, for such meeting and may call
such meeting for such purposes by giving notice thereof as provided in paragraph (1) of this Section. 
 SECTION 9.3 Persons Entitled to Vote at
Meetings. 
 To be entitled to vote at any meeting of Holders of Securities, a Person shall be (i) a Holder of one or more Outstanding
Securities, or (ii) a Person appointed by an instrument in writing as proxy for a Holder or Holders of one or more Outstanding Securities by such Holder or Holders. The only Persons who shall be entitled to be present or to speak at any meeting
of Holders shall be the Persons entitled to vote at such meeting and their counsel, any representatives or agents of the Trustee and its counsel and any representatives of the Company and its counsel. 
 SECTION 9.4 Quorum; Action. 
 The Persons entitled to vote a
majority in aggregate principal amount of the Outstanding Securities shall constitute a quorum. In the absence of a quorum within 30 minutes of the time appointed for any such 

  

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meeting, the meeting shall, if convened at the request of Holders of Securities, be dissolved. In any other case, the meeting may be adjourned for a period
of not less than 10 days as determined by the chairman of the meeting prior to the adjournment of such meeting. In the absence of a quorum at any such adjourned meeting, such adjourned meeting may be further adjourned for a period not less than 10
days as determined by the chairman of the meeting prior to the adjournment of such adjourned meeting (subject to repeated applications of this sentence). Notice of the reconvening of any adjourned meeting shall be given by the Trustee as provided in
Section 9.2(1), except that such notice need be given only once not less than five days prior to the date on which the meeting is scheduled to be reconvened. Notice of the reconvening of an adjourned meeting shall state expressly the percentage
of the aggregate principal amount of the Outstanding Securities that shall constitute a quorum. 
 Subject to the foregoing, at the
reconvening of any meeting adjourned for a lack of a quorum, the Persons entitled to vote 25% in aggregate principal amount of the Outstanding Securities at the time shall constitute a quorum for the taking of any action set forth in the notice of
the original meeting. 
 At a meeting or an adjourned meeting duly reconvened and at which a quorum is present as aforesaid, any resolution
and all matters (except as limited by the proviso to Section 8.2 and except to the extent Section 5.13 requires a different vote) shall be effectively passed and decided if passed or decided by the lesser of (i) the Holders of not
less than a majority in aggregate principal amount of Outstanding Securities and (ii) the Persons entitled to vote not less than 66 2/3% in aggregate principal amount of Outstanding Securities represented and entitled to vote at such meeting.

 Any resolution passed or decisions taken at any meeting of Holders of Securities duly held in accordance with this Section shall be
binding on all the Holders of Securities whether or not present or represented at the meeting. The Trustee shall, pursuant to a Company Order setting forth the action taken, in the name and at the expense of the Company, notify all the Holders of
Securities of any such resolutions or decisions pursuant to Section 1.6. 
 SECTION 9.5 Determination of Voting Rights; Conduct and Adjournment of
Meetings.
 (1) Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem
advisable for any meeting of Holders of Securities in regard to proof of the holding of Securities and of the appointment of proxies and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem appropriate. Except as otherwise permitted or required by any such regulations, the holding of Securities shall be
proved in the manner specified in Section 1.4 and the appointment of any proxy shall be proved in the manner specified in Section 1.4 or by having the signature of the Person executing the proxy guaranteed by any bank, broker or other
eligible institution participating in a recognized medallion signature guarantee program. Neither the Trustee nor any of its agents shall be liable, and the Company shall indemnify the Trustee and each such agent, for any action taken or omitted to
be taken by it in good faith in connection with any such meeting. 
 (2) The Trustee shall, by an instrument in writing, appoint a temporary
chairman (which may be the Trustee) of the meeting, unless the meeting shall have been called by the Company or by Holders of Securities as provided in Section 9.2(2), in which case the Company or the Holders of Securities calling the meeting,
as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Persons entitled to vote a majority in aggregate principal amount of the Outstanding
Securities represented at the meeting. 
  

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 (3) At any meeting, each Holder of a Security or proxy shall be entitled to one vote for each $1,000
aggregate principal amount of Securities held or represented by him; provided, however, that no vote shall be cast or counted at any meeting in respect of any Security challenged as not Outstanding and ruled by the chairman of the meeting to
be not Outstanding. The chairman of the meeting shall have no right to vote, except as a Holder of a Security or proxy. 
 (4) Any meeting of
Holders of Securities duly called pursuant to Section 9.2 at which a quorum is present may be adjourned from time to time by Persons entitled to vote a majority in aggregate principal amount of the Outstanding Securities represented at the
meeting, and the meeting may be held as so adjourned without further notice. 
 SECTION 9.6 Counting Votes and Recording Action of Meetings. 
 The vote upon any resolution submitted to any meeting of Holders of Securities shall be by written ballots on which shall be subscribed the signatures of
the Holders of Securities or of their representatives by proxy and the aggregate principal amounts at Stated Maturity and serial numbers of the Outstanding Securities held or represented by them. The permanent chairman of the meeting shall appoint
two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in duplicate of all votes cast at the meeting. A record,
at least in duplicate, of the proceedings of each meeting of Holders of Securities shall be prepared by the secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot
taken thereat and affidavits by one or more Persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was given as provided in Section 9.2 and, if applicable, Section 9.4. Each
copy shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one such copy shall be delivered to the Company and another to the Trustee to be preserved by the Trustee, the latter to have attached
thereto the ballots voted at the meeting. Any record so signed and verified shall be conclusive evidence of the matters therein stated. 
 ARTICLE X 
 COVENANTS 
 SECTION 10.1
Payment of Principal, Premium and Interest. 
 The Company covenants and agrees that it will duly and punctually pay the principal of and
premium, if any, and interest (including Additional Interest, if any) on the Securities in accordance with the terms of the Securities and this Indenture. The Company will deposit or cause to be deposited with the Trustee or its nominee, no later
than 10:00 a.m. (New York City time) on the date of the Stated Maturity of any Security or no later than 10:00 a.m. (New York City time) on the due date for any installment of interest (subject to the requirements of Section 3.7 with respect to
Defaulted Interest), all payments so due, which payments shall be in immediately available funds on the date of such Stated Maturity or due date, as the case may be. 
 SECTION 10.2 Maintenance of Offices or Agencies. 
 The Company will maintain in Minneapolis, Minnesota, an
office or agency where the Securities may be surrendered for registration of transfer or exchange or for presentation for payment or for conversion, redemption or repurchase and where notices and demands to or upon the Company in respect of the
Securities and this Indenture may be served. The Company will give prompt written notice to the 

  

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Trustee of the location, and any change in the location, of such office or agency not designated or appointed by the Trustee. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the office or agency of the Trustee in Minneapolis,
Minnesota located at c/o Wells Fargo Bank, N.A., Corporate Trust Operations, N9303-121, Sixth and Marquette Avenue, Minneapolis, Minnesota 55479. 
 The Company may at any time and from time to time vary or terminate the appointment of any such agent or appoint any additional agents for any or all of such purposes; provided, however, that until all of the Securities have been
delivered to the Trustee for cancellation, or moneys sufficient to pay the principal of, premium, if any, and interest on the Securities have been made available for payment and either paid or returned to the Company pursuant to the provisions of
Section 10.3, the Company will maintain in Minneapolis, Minnesota, an office or agency where Securities may be presented or surrendered for payment and conversion, which shall initially be at the office of the Trustee, located at the address
specified in the last paragraph of this Section 10.2, where Securities may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities and this Indenture may be
served. The Company will give prompt written notice to the Trustee, and notice to the Holders in accordance with Section 1.6, of the appointment or termination of any such agents and of the location, and any change in the location, in each
case, in Minneapolis, Minnesota, of any such office or agency. 
 The Company hereby initially designates the Trustee as Paying Agent,
Security Registrar and Conversion Agent, and the Corporate Trust Office of the Trustee as one such office or agency of the Company for each of the aforesaid purposes. 
 SECTION 10.3 Money for Security Payments to Be Held in Trust. 
 If the Company shall act as its own Paying
Agent, it will, on or before each due date of the principal of, premium, if any, or interest (including Additional Interest, if any) on any of the Securities, segregate and hold in trust for the benefit of the Persons entitled thereto a sum
sufficient to pay the principal, premium, if any, or interest (including Additional Interest, if any) so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided and the Company will promptly notify the
Trustee of its action or failure so to act. 
 Whenever the Company shall have one or more Paying Agents, it will, no later than 10:00 a.m.
(New York City time) on each due date of the principal of, premium, if any, or interest (including Additional Interest, if any) on any Securities, deposit with the Trustee a sum in funds immediately payable on the payment date sufficient to pay the
principal, premium, if any, or interest (including Additional Interest, if any) so becoming due, such sum to be held for the benefit of the Persons entitled to such principal, premium, if any, or interest (including Additional Interest, if any), and
(unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of any failure so to act. 
 The Company will cause
each Paying Agent other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will: 
 (1) hold all sums held by it for the payment of the principal of, premium, if any, or interest (including Additional Interest, if any) on Securities for
the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided; 
  

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 (2) give the Trustee notice of any default by the Company (or any other obligor upon the Securities) in
the making of any payment of principal, premium, if any, or interest (including Additional Interest, if any); and 
 (3) at any time during
the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held by such Paying Agent. 
 The Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the
Company or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money. 
 Any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of the principal of, premium, if any, or interest (including Additional Interest, if any) on any Security and remaining unclaimed for two years after such principal, premium, if any, or interest (including
Additional Interest, if any) has become due and payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured general
creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease. 
 SECTION 10.4 Existence. 
 Subject to Article VII, the
Company will do or cause to be done all things necessary to preserve and keep in full force and effect its existence, rights (charter and statutory) and franchises; provided, however, that the Company shall not be required to preserve any
such right or franchise if the Company shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries, taken as a whole, and that the loss thereof is not disadvantageous in any
material respect to the Holders. 
 SECTION 10.5 Payment of Taxes and Other Claims. 
 The Company will pay or discharge, or cause to be paid or discharged, before the same may become delinquent, (a) all taxes, assessments and
governmental charges levied or imposed upon the Company or any Subsidiary or upon the income, profits or property of the Company or any Subsidiary, (b) all claims for labor, materials and supplies which, if unpaid, might by law become a lien or
charge upon the property of the Company or any Subsidiary, and (c) all stamps and other duties, if any, which may be imposed by the United States or any political subdivision thereof or therein in connection with the issuance, transfer,
exchange or conversion of any Securities or with respect to this Indenture; provided, however, that, in the case of clauses (a) and (b), the Company shall not be required to pay or discharge or cause to be paid or discharged any such
tax, assessment, charge or claim (i) if the failure to do so will not, in the aggregate, have a material adverse impact on the Company and its Subsidiaries, taken as a whole, or (ii) if the amount, applicability or validity is being
contested in good faith by appropriate proceedings and adequate reserves therefor are maintained by the Company and its Subsidiaries in accordance with GAAP. 
  

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 SECTION 10.6 Statement by Officers as to Default. 
 The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of the Company ending after the date hereof, an Officers’
Certificate, stating whether or not, to the best knowledge of the signers thereof, the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Indenture (without regard to any period of grace or
requirement of notice provided hereunder) and, if the Company shall be in default, specifying all such defaults and the nature and status thereof of which they may have knowledge. 
 The Company will deliver to the Trustee, forthwith upon becoming aware of any default or any Event of Default under the Indenture, an Officers’
Certificate specifying with particularity the details of such default or Event of Default and further stating what action the Company has taken, is taking or proposes to take with respect thereto. For the purpose of this Section, the term
“default” means any event which is, or after notice or lapse of time or both would become, an Event of Default. 
 Any notice
required to be given under this Section 10.6 shall be delivered to the Trustee at its Corporate Trust Office. 
 SECTION 10.7 Reserved. 
 SECTION 10.8 Delivery of Certain Information. 
 At any time
when the Company is not subject to Section 13 or 15(d) of the Exchange Act, upon the request of a Holder of a Restricted Security or the holder of shares of Common Stock issued upon conversion thereof, the Company will promptly furnish or cause
to be furnished Rule 144A Information (as defined below) to such Holder of Restricted Securities or such holder of shares of Common Stock issued upon conversion of Restricted Securities, or to a prospective purchaser of any such security
designated by any such Holder or holder, as the case may be, to the extent required to permit compliance by such Holder or holder with Rule 144A under the Securities Act (or any successor provision thereto) in connection with the resale of any
such security; provided, however, that the Company shall not be required to furnish such information in connection with any request made on or after the date which is two years from the later of (i) the Issue Date, (ii) the
date such a security (or any such predecessor security) was last acquired from the Company or (iii) the date such a security (or any such predecessor security) was last acquired from an “affiliate” of the Company within the meaning of
Rule 144 under the Securities Act (or any successor provision thereto). “Rule 144A Information” shall be such information as is specified pursuant to Rule 144A(d)(4) under the Securities Act (or any successor provision
thereto). 
 SECTION 10.9 Waiver of Certain Covenants. 
 The Company may omit in any particular instance to comply with any covenant or condition set forth in Sections 10.4 (other than with respect to the existence of the Company (subject to Article VII)) and 10.8 (other than a covenant or
condition which under Article VIII cannot be modified or amended without the consent of the Holder of each Outstanding Security affected), if before the time for such compliance the Holders shall, through (a) the written consent of not
less than a majority in aggregate principal amount of the Outstanding Securities or (b) the adoption of a resolution at a meeting of Holders of the Outstanding Securities at which a quorum is present by the Holders of not less than 66-2/3% in
aggregate principal amount of the Outstanding Securities represented at such meeting, either waive such compliance in such instance or generally waive compliance with such covenant or condition, but no such waiver shall extend to or affect such
covenant or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee or any Paying or Conversion Agent in respect of any such covenant or
condition shall remain in full force and effect. 
  

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 SECTION 10.10 Additional Interest. 
 If Additional Interest is payable under the Registration Rights Agreement, the Company shall deliver to the Trustee an Officers’ Certificate to that effect stating (a) the amount of Additional Interest that
is payable and (b) the date on which Additional Interest is due and payable, as specified in the Registration Rights Agreement. Unless and until a Responsible Officer of the Trustee actually receives at the Corporate Trust Office such a
certificate, the Trustee may assume without inquiry that no Additional Interest is due or payable. If Additional Interest has been paid by the Company directly to the persons entitled to it, the Company shall deliver to the Trustee a certificate
setting forth the particulars of such payment. 
 ARTICLE XI 
 REDEMPTION OF SECURITIES 
 SECTION 11.1 Right of Redemption. 
 Prior to April 20, 2010, the Securities shall not be redeemable. On or after April 20, 2010 the Company may redeem the Securities if the Closing
Price Per Share of the Common Stock exceeds 150% of the Conversion Price then in effect for at least 20 Trading Days within a period of 30 consecutive Trading Days ending on the Trading Day before the date of mailing of the notice of redemption
as set forth in Section 11.5 hereof (a “Provisional Redemption”) for cash in whole, or from time to time in part (which must be equal to $1,000 or any integral multiple thereof), at a Redemption Price equal to $1,000 per $1,000
aggregate principal amount of the Securities being redeemed, plus accrued and unpaid interest (including Additional Interest, if any) to, but excluding, the Redemption Date, plus the Additional Payment. The Company must make the Additional Payment
on all Securities called for Provisional Redemption, including any Securities converted after the date of the mailing of the notice of redemption and before the applicable Redemption Date. 
 On or after April 15, 2012, the Company may redeem the Securities for cash in whole, or from time to time in part (which must be equal to $1,000 or
any integral multiple thereof), at a Redemption Price equal to $1,000 per $1,000 aggregate principal amount of the Securities being redeemed, plus accrued and unpaid interest (including Additional Interest, if any) to, but excluding, the Redemption
Date. 
 Whenever in this Indenture (including Sections 2.2, 3.1, 5.1(1) and 5.8) there is a reference, in any context, to the principal of
any Security as of any time, such reference shall be deemed to include reference to the Redemption Price payable in respect of such Security to the extent that such Redemption Price is, was or would be so payable at such time, and express mention of
the Redemption Price in any provision of this Indenture shall not be construed as excluding the Redemption Price in those provisions of this Indenture when such express mention is not made. 
 Interest installments on Securities whose Stated Maturity is on or prior to a Redemption Date will be payable to the Holders of such Securities, or one
or more Predecessor Securities, of record at the close of business on the relevant Record Dates. 
 Securities or portions of the Securities
called for redemption shall be convertible by the Holder in accordance with the provisions of Article XII until the close of business on the Business Day prior to the Redemption Date. 
  

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 SECTION 11.2 Applicability of Article. 
 Redemption of Securities at the election of the Company or otherwise, as permitted or required by any provision of the Securities or this Indenture, shall be made in accordance with such provision and this
Article XI. 
 SECTION 11.3 Election to Redeem; Notice to Trustee. 
 The election of the Company to redeem any Securities shall be evidenced by a Board Resolution. Subject to Section 11.5, in case of any redemption at the election of the Company of any of the Securities, the
Company shall, at least 30 days but no more than 60 days prior to the Redemption Date fixed by the Company, notify the Trustee in writing of such Redemption Date. 
 SECTION 11.4 Selection by Trustee of Securities to Be Redeemed. 
 If less than all the Securities are to be redeemed, the particular
Securities to be redeemed shall be selected by the Trustee within five Business Days after the actual receipt by a Responsible Officer of the Trustee the notice described in Section 11.3, from the Outstanding Securities not previously called
for redemption, on a pro rata basis, by lot or by such other method as the Trustee may deem fair and appropriate. 
 If any Security selected
for partial redemption is converted in part before termination of the conversion right with respect to the portion of the Security so selected, the converted portion of such Security shall be deemed (so far as may be) to be the portion selected for
redemption. Securities which have been converted during a selection of Securities to be redeemed may be treated by the Trustee as Outstanding for the purpose of such selection. The Trustee shall notify the Company in writing of the Securities
selected for redemption and, in the case of any Securities selected for partial redemption, the aggregate principal amount thereof to be redeemed. 
 For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to be redeemed only in part, to the portion of the
aggregate principal amount of such Securities which has been or is to be redeemed. 
 SECTION 11.5 Notice of Redemption. 
 Notice of redemption shall be given in the manner provided in Section 1.6 to the Holders of Securities to be redeemed not less than 30 nor more
than 60 days prior to the Redemption Date, and such notice shall be irrevocable. 
 All notices of redemption shall state: 
 (1) the Redemption Date, 
 (2) the Redemption
Price, and accrued interest, if any (including Additional Interest, if any), to, but excluding, the Redemption Date, and the amount of the Additional Payment, if applicable, 
 (3) if less than all Outstanding Securities are to be redeemed, the aggregate principal amount of Securities to be redeemed and the aggregate principal
amount of Securities which will be outstanding after such partial redemption, 
  

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 (4) that on the Redemption Date the Redemption Price, and accrued but unpaid interest, if any (including
Additional Interest, if any), to, but excluding, the Redemption Date, and the Additional Payment, if any, will become due and payable upon each such Security to be redeemed, and that interest thereon shall cease to accrue on and after said date,

 (5) the Conversion Rate, the date on which the right to convert the Securities to be redeemed will terminate and the places where such
Securities may be surrendered for conversion, and that Holders who convert the Securities will be entitled to the Additional Payment in the case of a Provisional Redemption; 
 (6) the place or places where such Securities are to be surrendered for payment of the Redemption Price and accrued interest, if any (including
Additional Interest, if any), to, but excluding, the Redemption Date, and 
 (7) that no representation is made as to the correctness or
accuracy of the CUSIP number that is listed in such notice or printed on the Securities. 
 In case of a partial redemption, the notice shall
specify the serial and CUSIP numbers (if any) and the portions thereof called for redemption and that transfers and exchanges may occur on or prior to the Redemption Date. 
 Notice of redemption of Securities to be redeemed at the election of the Company shall be given by the Company or, at the Company’s written request,
by the Trustee in the name of and at the expense of the Company; provided that, in the event the Trustee is to give such notice, the Company has delivered to the Trustee at least 45 days prior to the Redemption Date (unless a shorter notice
shall be satisfactory to the Trustee) a Company Order requesting the Trustee to give such notice and setting forth all the information to be included in such notice including information required by this Section 11.5. 
 SECTION 11.6 Deposit of Redemption Price. 
 On or prior to
10:00 a.m. (New York City time) on the Redemption Date, the Company shall deposit with the Trustee (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 10.3) an amount of money (which shall
be in immediately available funds on such Redemption Date) sufficient to pay the Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date) accrued interest (including Additional Interest, if any) to, but excluding,
the Redemption Date on, all the Securities which are to be redeemed on that date other than any Securities called for redemption on that date which have been converted prior to the date of such deposit; provided that the Company shall also
deposit with the Trustee at the time specified in this Section 11.6 the Additional Payment, if any, payable on the Redemption Date on the Securities called for redemption and converted prior to the Redemption Date. 
 If any Security called for redemption is converted, any money deposited with the Trustee or so segregated and held in trust for the redemption of such
Security, other than any Additional Payment which will be paid as provided in this Article XI, shall (subject to any right of the Holder of such Security or any Predecessor Security to receive interest as provided in the last paragraph of
Section 3.7) be paid to the Company or, if then held by the Company, shall be discharged from such trust. 
  

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 SECTION 11.7 Securities Payable on Redemption Date. 
 Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified and from and after such date (unless the Company shall default in the payment of the Redemption Price, including accrued interest) such Securities shall cease to bear interest. Upon surrender of any Security for
redemption in accordance with said notice, such Security shall be paid by the Company at the Redemption Price together with accrued and unpaid interest (including Additional Interest, if any) to, but excluding, the Redemption Date, provided,
however, that installments of interest on Securities whose Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such on the relevant Record
Date according to their terms and the provisions of Section 3.7; provided further that the Additional Payment, if any, shall be paid on the Redemption Date to Holders whose Securities were called for redemption and were converted prior
to the Redemption Date. 
 If any Security called for redemption shall not be so paid on the Redemption Date, the aggregate principal amount
of, premium, if any, and, to the extent permitted by applicable law, accrued interest (including Additional Interest, if any), on such Security shall, until paid, bear interest from the Redemption Date at a rate of 3.75% per annum and such
Security shall remain convertible until the Redemption Price of such Security (or portion thereof, as the case may be) shall have been paid or duly provided for. 
 Any Security that is to be redeemed only in part shall be surrendered at the Corporate Trust Office or an office or agency of the Company designated for that purpose pursuant to Section 10.2 (with, if the Company
or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing), and the Company shall execute,
and, upon its actual receipt by a Responsible Officer of a Company Order to such effect, the Trustee shall authenticate and make available for delivery to the Holder of such Security without service charge, a new Security or Securities, of any
authorized denomination as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered. 
 SECTION 11.8 Conversion Arrangement on Call for Redemption. 
 In connection with any redemption of
Securities, the Company may arrange for the purchase and conversion of any Securities by an agreement with one or more investment bankers or other purchasers (the “Purchasers”) to purchase such Securities by paying to the Trustee in trust
for the Holders, on or before 10:00 a.m. (New York City time) on the Redemption Date, an amount not less than the applicable Redemption Price, together with interest accrued to, but excluding, the Redemption Date of such Securities, and the
Additional Payment, if any. Notwithstanding anything to the contrary contained in this Article XI, the obligation of the Company to pay the Redemption Price, together with interest accrued to, but excluding, the Redemption Date and the
Additional Payment, if any, shall be deemed to be satisfied and discharged to the extent such amount is so paid by such Purchasers. If such an agreement is entered into (a copy of which shall be filed with the Trustee prior to the close of business
on the Business Day immediately prior to the Redemption Date), any Securities called for redemption that are not duly surrendered for conversion by the Holders thereof may, at the option of the Company, be deemed, to the fullest extent permitted by
law, and consistent with any agreement or agreements with such Purchasers, to be acquired by such Purchasers from such Holders and (notwithstanding anything to the contrary contained in Article XII) surrendered by such Purchasers for
conversion, all as of immediately prior to the close of business on the Redemption Date (and the right to convert any such Securities shall be extended through such time), subject to payment of the above amount as aforesaid. At the direction of the
Company, pursuant to a written Company Order, the Trustee shall hold and dispose of any such amount paid to it by the 

  

 67 

 
Purchasers to the Holders in the same manner as it would monies deposited with it by the Company for the redemption of Securities. Without the Trustee’s
prior written consent expressly authorizing a change, no arrangement between the Company and such Purchasers for the purchase and conversion of any Securities shall increase or otherwise affect any of the powers, duties, responsibilities or
obligations of the Trustee as set forth in this Indenture, and the Company agrees to indemnify the Trustee from, and hold it harmless against, any loss, liability or expense arising out of or in connection with any such arrangement for the purchase
and conversion of any Securities between the Company and such Purchasers, including the costs and expenses, including reasonable legal fees, incurred by the Trustee in the defense of any claim or liability arising out of or in connection with the
exercise or performance of any of its powers, duties, responsibilities or obligations under this Indenture. 
 ARTICLE XII 
 CONVERSION OF SECURITIES 
 SECTION 12.1 Conversion Right and
Conversion Rate. 
 Subject to and upon compliance with the provisions of this Article XII, at the option of the Holder thereof, any Security
may be converted, in whole or in part, into fully paid and nonassessable shares (calculated as to each conversion to the nearest 1/100th of a share) of Common Stock of the Company at the Conversion Rate, determined as hereinafter provided, in effect
at the time of conversion. Such conversion right shall commence on the Issue Date and expire at the close of business on the date of Maturity, subject, in the case of conversion of any Global Security, to any Applicable Procedures. In case a
Security or portion thereof is called for redemption at the election of the Company or the Holder thereof exercises his right to require the Company to repurchase the Security, such conversion right in respect of the Security, or portion thereof so
called for redemption or submitted for repurchase, shall expire at the close of business on the Business Day immediately preceding the Redemption Date or the Repurchase Date or at the close of business on a Scheduled Repurchase Date, as the case may
be, unless the Company defaults in making the payment due upon redemption or repurchase, as the case may be, in which case the conversion right will terminate at the close of business on the date such default is cured and the Securities are redeemed
or repurchased, as the case may be (in each case subject as aforesaid to any Applicable Procedures with respect to any Global Security). 
 If a holder surrenders its Securities (or any portion thereof) for conversion after receipt of a Company Notice in connection with a Fundamental Change and prior to the Repurchase Date, the Company will make an adjustment to the Conversion
Rate to the shares of Common Stock deliverable upon conversion of the Securities in accordance with Section 12.4(14). 
 The rate at
which shares of Common Stock shall be delivered upon conversion (herein called the “Conversion Rate”) shall be initially equal to 17.8763 shares for each $1,000 aggregate principal amount of Securities. The Conversion Rate shall be
adjusted in certain instances as provided in this Article XII. All calculations under this Article XII shall be made to the nearest 1/10th cent or to the nearest 1/10,000ths of a share, as the case may be. 
 SECTION 12.2 Exercise of Conversion Right. 
 In order to
exercise the Conversion Right, the Holder of any Security to be converted shall surrender such Security, duly endorsed or assigned to the Company or in blank, at any office or agency of the Company maintained for that purpose pursuant to
Section 10.2, accompanied by a duly signed conversion notice substantially in the form set forth in Section 2.5 stating that the Holder elects to convert 

  

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such Security or, if less than the entire aggregate principal amount thereof is to be converted, the portion thereof to be converted. Each Security
surrendered for conversion (in whole or in part) during the Record Date Period shall (except in the case of any Security or portion thereof which has been called for redemption or if a Fundamental Change has occurred and an offer to repurchase the
Securities is pending) be accompanied by payment to the Trustee in New York Clearing House funds or other funds acceptable to the Company of an amount equal to the interest payable (including Additional Interest, if any) on such Interest Payment
Date on the aggregate principal amount of such Security (or part thereof, as the case may be) being surrendered for conversion. The interest (including Additional Interest, if any) so payable on such Interest Payment Date with respect to any
Security (or portion thereof, if applicable) that is surrendered for conversion during the Record Date Period shall be paid to the Holder of such Security as of such Regular Record Date in an amount equal to the interest (including Additional
Interest, if any) that would have been payable on such Security if such Security had been converted as of the close of business on such Interest Payment Date. Interest (including Additional Interest, if any) payable on any Interest Payment Date in
respect of any Security surrendered for conversion on or after such Interest Payment Date shall be paid to the Holder of such Security as of the Regular Record Date next preceding such Interest Payment Date, notwithstanding the exercise of the right
of conversion. Except as provided in this paragraph or in Section 11.1 and subject to the last paragraph of Section 3.7, no cash payment or adjustment shall be made upon any conversion on account of any interest (including Additional
Interest, if any) accrued from the Interest Payment Date next preceding the conversion date, in respect of any Security (or part thereof, as the case may be) surrendered for conversion, or on account of any dividends on the Common Stock issued upon
conversion. The Company’s delivery to the Holder of the number of shares of Common Stock (and cash in lieu of fractions thereof, as provided in this Indenture) into which a Security is convertible will be deemed to satisfy the Company’s
obligation to pay the aggregate principal amount of the Security. 
 Securities shall be deemed to have been converted immediately prior to
the close of business on the day of surrender of such Securities for conversion in accordance with the foregoing provisions, and at such time the rights of the Holders of such Securities as Holders shall cease, and the Person or Persons entitled to
receive the Common Stock issuable upon conversion shall be treated for all purposes as the record holder or holders of such Common Stock at such time. As promptly as practicable on or after the conversion date, the Company shall issue and deliver to
the Trustee, for delivery to the Holder, a certificate or certificates for the number of full shares of Common Stock issuable upon conversion, together with payment in lieu of any fraction of a share, as provided in Section 12.3. The Company
shall determine such number of shares and the amounts of the required cash with respect to any fractional share, and shall set forth such information in an Officers’ Certificate delivered to the Conversion Agent and the Trustee. The Conversion
Agent shall have no duties under this Article XII unless and until it has actually received such Officers’ Certificate. In the event the Trustee is no longer the Conversion Agent, the Trustee will deliver the certificate or certificates for the
number of full shares of Common Stock issuable upon conversion, together with payment in lieu of any fraction of a share, as provided in Section 12.3, to the Conversion Agent for delivery to the Holder. 
 All shares of Common Stock delivered upon such conversion of Restricted Securities shall bear restrictive legends substantially in the form of the
legends required to be set forth on the Restricted Securities pursuant to Section 3.5 and shall be subject to the restrictions on transfer provided in such legends. Neither the Trustee nor any agent maintained for the purpose of such conversion
shall have any responsibility for the inclusion or content of any such restrictive legends on such Common Stock; provided, however, that the Trustee or any agent maintained for the purpose of such conversion shall have provided, to the
Company or to the Company’s transfer agent for such Common Stock, prior to or concurrently with a request to the Company to deliver such Common Stock, written notice that the Securities delivered for conversion are Restricted Securities.

  

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 In the case of any Security which is converted in part only, upon such conversion the Company shall
execute and, upon Company Order to such effect, the Trustee shall authenticate and deliver to the Holder thereof, at the expense of the Company, a new Security or Securities of authorized denominations in an aggregate principal amount equal to the
unconverted portion of the aggregate principal amount of such Security. A Security may be converted in part, but only if the aggregate principal amount of such Security to be converted is any integral multiple of $1,000 and the aggregate 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. 
 If shares of Common Stock to be issued upon conversion of a Restricted Security, or Securities to be issued upon conversion of a Restricted Security in part only, are to be registered in a name other than that of the beneficial owner of
such Restricted Security, then such Holder must deliver to the Conversion Agent a Surrender Certificate, dated the date of surrender of such Restricted Security and signed by such beneficial owner, as to compliance with the restrictions on transfer
applicable to such Restricted Security. Neither the Trustee nor any Conversion Agent, Registrar or Transfer Agent shall be required to register in a name other than that of the beneficial owner, shares of Common Stock or Securities issued upon
conversion of any such Restricted Security not so accompanied by a properly completed Surrender Certificate. 
 SECTION 12.3 Fractions of Shares. 

No fractional shares of Common Stock shall be issued upon conversion of any Security or Securities. If more than one Security shall be surrendered for
conversion at one time by the same Holder, the number of full shares which shall be issuable upon conversion thereof shall be computed on the basis of the aggregate principal amount of the Securities (or specified portions thereof) so surrendered.
Instead of any fractional share of Common Stock that would otherwise be issuable upon conversion of any Security or Securities (or specified portions thereof), the Company shall calculate and pay a cash adjustment in respect of such fraction
(calculated to the nearest 1/100th of a share) in an amount equal to the same fraction of the Closing Price Per Share on the last Trading Day prior to the day of conversion. 
 SECTION 12.4 Adjustment of Conversion Rate. 
 The Conversion Rate shall be subject to adjustments from time
to time as follows: 
 (1) In case the Company shall pay or make a dividend or other distribution on shares of Common Stock payable in shares
of Common Stock, the Conversion Rate in effect at the opening of business on the day following the date fixed for the determination of shareholders entitled to receive such dividend or other distribution shall be increased by dividing such
Conversion Rate by a fraction of which the numerator shall be the number of shares of Common Stock outstanding at the close of business on the date fixed for such determination and the denominator shall be the sum of such number of shares of Common
Stock outstanding at the close of business on the date fixed for such determination and the total number of shares of Common Stock constituting such dividend or other distribution, such increase to become effective immediately after the opening of
business on the day following the date fixed for such determination. If, after any such date fixed for determination, any dividend or distribution is not in fact paid, the Conversion Rate shall be immediately readjusted, effective as of the date the
Board of Directors determines not to pay such dividend or distribution, to the Conversion Rate that would have been in effect if such determination date had not been fixed. For the purposes of this paragraph (1), the number of shares of Common Stock
at any time outstanding shall not include shares held in the treasury of the Company but shall include shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock. The Company will not pay any dividend or
make any distribution on shares of Common Stock held in the treasury of the Company. 
  

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 (2) In case the Company shall issue rights, options or warrants to all holders of its Common Stock (other
than rights issued pursuant to the Rights Plan (as defined in paragraph (13) of this Section 12.4), except as specified in paragraph (13) of this Section 12.4) entitling them for a period of not more than 60 days to subscribe for
or purchase shares of Common Stock at a price per share less than the current market price per share (determined as provided in paragraph (8) of this Section 12.4) of the Common Stock on the date fixed for the determination of shareholders
entitled to receive such rights, options or warrants (other than any rights, options or warrants that by their terms will also be issued to any Holder upon conversion of a Security into shares of Common Stock without any action required by the
Company or any other Person), the Conversion Rate in effect at the opening of business on the day following the date fixed for such determination shall be increased by dividing such Conversion Rate by a fraction of which the numerator shall be the
number of shares of Common Stock outstanding at the close of business on the date fixed for such determination plus the number of shares of Common Stock that the aggregate offering price of the total number of shares of Common Stock so offered for
subscription or purchase would purchase at such current market price and the denominator shall be the number of shares of Common Stock outstanding at the close of business on the date fixed for such determination plus the number of shares of Common
Stock so offered for subscription or purchase, such increase to become effective immediately after the opening of business on the day following the date fixed for such determination. If, after any such date fixed for determination, any such rights,
options or warrants are not in fact issued, or are not exercised prior to the expiration thereof, the Conversion Rate shall be immediately readjusted, effective as of the date such rights, options or warrants expire, or the date the Board of
Directors determines not to issue such rights, options or warrants, to the Conversion Rate that would have been in effect if the unexercised rights, options or warrants had never been granted or such determination date had not been fixed, as the
case may be. For the purposes of this paragraph (2), the number of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Company but shall include shares issuable in respect of scrip certificates issued
in lieu of fractions of shares of Common Stock. The Company will not issue any rights, options or warrants in respect of shares of Common Stock held in the treasury of the Company. 
 (3) In case outstanding shares of Common Stock shall be subdivided into a greater number of shares of Common Stock, the Conversion Rate in effect at the
opening of business on the day following the day upon which such subdivision becomes effective shall be proportionately increased, and, conversely, in case outstanding shares of Common Stock shall be combined into a smaller number of shares of
Common Stock, the Conversion Rate in effect at the opening of business on the day following the day upon which such subdivision or combination becomes effective shall be proportionately reduced, such increase or reduction, as the case may be, to
become effective immediately after the opening of business on the day following the day upon which such subdivision or combination becomes effective. 
 (4) In case the Company shall, by dividend or otherwise, distribute to all holders of its Common Stock evidences of its indebtedness, shares of any class of capital stock or other property (including cash or assets or
securities, but excluding (i) any rights, options or warrants referred to in paragraph (2) of this Section, (ii) any dividend or distribution paid exclusively in cash referred to in paragraph (5) of this Section, (iii) any
dividend or distribution referred to in paragraph (1) of this Section, and (iv) any rights issued pursuant to the Rights Plan (as defined in paragraph (13) of this Section 12.4) except as specified in paragraph (13) of this
Section 12.4), the Conversion Rate shall be adjusted so that the same shall equal the rate determined by dividing the Conversion Rate in effect immediately prior to the close of business on the date fixed for the determination of shareholders
entitled to receive such distribution by a fraction of which the numerator shall be the current market price per share (determined as provided in paragraph (8) of this Section 12.4) of the Common Stock on the date fixed for such
determination less the then fair market value (as determined by the Board of Directors, whose determination shall be conclusive and described in a Board Resolution filed with the Trustee) of the portion of the evidences of indebtedness, shares of
any class of capital stock or other property so distributed applicable to one share of Common 

  

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Stock and the denominator shall be such current market price per share of the Common Stock, such adjustment to become effective immediately prior to the
opening of business on the day following the date fixed for the determination of shareholders entitled to receive such distribution. If after any such date fixed for determination, any such distribution is not in fact made, the Conversion Rate shall
be immediately readjusted, effective as of the date of the Board of Directors determines not to make such distribution, to the Conversion Rate that would have been in effect if such determination date had not been fixed. 
 (5) In case the Company shall, by dividend or otherwise, make one or more dividends or distributions in cash during any fiscal quarter of the Company to
all or substantially all holders of its Common Stock (other than in connection with the Company’s liquidation, dissolution or winding up) in an aggregate amount that, together with all other all-cash dividends or distribution made during any
fiscal quarter period, exceeds the product of $0.10 (appropriately adjusted from time to time for any stock dividends on or subdivisions of the Company’s Common Stock), then in such case the Conversion Rate shall be adjusted so that the same
shall equal the rate determined by dividing such Conversion Rate in effect immediately prior to the close of business on such date fixed for determination by a fraction the numerator of which shall be equal to the current market price per share
(determined as provided in paragraph (8) of this Section 12.4) of the Common Stock and the denominator of which shall be equal to such current market price per share of the Common Stock plus the amount per share of such dividend or
distribution. The adjustment will be made successively whenever any such event occurs. 
 (6) In case the Company or any Subsidiary purchases
all or any portion of the Common Stock and the cash and the fair market value of any other consideration included in the payment per share of Common Stock exceeds the current market price per share of the Common Stock immediately prior to
contracting to purchase such Common Stock, the Conversion Rate shall be adjusted so that the same shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior to close of business on the date of such purchase or
purchases of Common Stock are made by the sum of (i) one plus (ii) the quotient of (x) the product of the amount by which the cash and fair market value of any other consideration included in the payment per share of Common Stock
exceeds the current market price per share of Common Stock immediately prior to contracting to purchase such Common Stock, and the number of shares of Common Stock purchased, over (y) the product of the current market price per share of Common
Stock immediately prior to contracting to purchase such Common Stock and the total number of shares of Common Stock outstanding immediately prior to contracting to purchase such Common Stock, such adjustment to become effective immediately after the
opening of business on the day following the date of such purchase. For purposes of the preceding sentence only current market price means, with respect to the Common Stock, at any time, (i) the last reported sale price regular way on the
Nasdaq Global Market or, (ii) if the Common Stock is not listed on the Nasdaq Global Market, the last reported sale price regular way per share or, in case no such reported sale takes place on such day, the average of the reported closing bid
and asked prices regular way on the day prior to such purchase, in either case, on the principal national securities exchange on which the Common Stock is listed or admitted to trading, or (iii) if the Common Stock is not listed on the Nasdaq
Global Market or listed or admitted to trading on any national securities exchange, the average of the bid prices in the over-the-counter market as furnished by any New York Stock Exchange member firm selected from time to time by the Company for
that purpose. In the event of a tender offer in which the cash and the fair market value of any other consideration included in the payment per share of Common Stock exceeds the current market price per share (determined as provided in paragraph
(8) of this Section 12.4) of the Common Stock on the Trading Day next succeeding the last day tenders could have been made pursuant to such tender offer (as it may be amended), the Conversion Rate shall be adjusted so that the same shall
equal the rate determined by multiplying the Conversion Rate in effect immediately prior to close of business on the Trading Day next succeeding the last day tenders could have been made pursuant to such tender offer (as it may be amended)
(provided that the Conversion Rate in effect at such time shall not include the adjustment provided for in this sentence) by 

  

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the sum of (i) one plus (ii) the quotient of (x) the product of the amount by which the cash and fair market value of any other consideration
included in the payment per share of Common Stock exceeds current market price per share (determined as provided in paragraph (8) of this Section 12.4) of the Common Stock on the Trading Day next succeeding the last day tenders could have
been made pursuant to such tender offer (as it may be amended), and the number of shares of Common Stock validly tendered and not withdrawn, over (y) the product of current market price per share (determined as provided in paragraph (8) of
this Section 12.4) of the Common Stock on the Trading Day next succeeding the last day tenders could have been made pursuant to such tender offer (as it may be amended) and the total number of shares of Common Stock outstanding (including
shares of Common Stock validly tendered and not withdrawn) immediately prior to the last day tenders could have been made pursuant to such tender offer (as it may be amended), such adjustment to become effective immediately prior to the opening of
business on the Trading Day next succeeding the last day tenders could have been made pursuant to such tender offer (as it may be amended). If the Company is obligated to purchase shares of the Common Stock 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 on
the number of shares actually purchased. 
 (7) The reclassification of Common Stock into securities other than Common Stock (other than any
reclassification upon a consolidation or merger to which Section 12.11 applies) shall be deemed to involve (a) a distribution of such securities other than Common Stock to all holders of Common Stock (and the effective date of such
reclassification shall be deemed to be “the date fixed for the determination of shareholders entitled to receive such distribution” and “the date fixed for such determination” within the meaning of paragraph (4) of this
Section), and (b) a subdivision or combination, as the case may be, of the number of shares of Common Stock outstanding immediately prior to such reclassification into the number of shares of Common Stock outstanding immediately thereafter (and
the effective date of such reclassification shall be deemed to be “the day upon which such subdivision becomes effective” or “the day upon which such combination becomes effective”, as the case may be, and “the day upon
which such subdivision or combination becomes effective” within the meaning of paragraph (3) of this Section 12.4). 
 (8) For
the purpose of any computation under paragraphs (2), (4) or (6) (but only in the event of a tender offer under paragraph (6)) of this Section 12.4 and Section 14.1, the current market price per share of Common Stock on any
date shall be calculated by the Company and be the average of the daily Closing Prices Per Share for the five consecutive Trading Days selected by the Company commencing not more than five Trading Days before, and ending not later than the earlier
of the day in question and the day before the “ex date” with respect to the issuance or distribution requiring such computation. For the purpose of any computation under paragraph (5) of this Section 12.4, the current market
price per share of Common Stock shall be the average of the daily Closing Prices Per Share for the first five Trading Days from and including the “ex date.” For purposes of this paragraph, the term “ex date,” when used with
respect to any issuance or distribution, means the first date on which the Common Stock trades regular way in the applicable securities market or on the applicable securities exchange without the right to receive such issuance or distribution.

 (9) All calculations under this Article XII shall be made to the nearest cent or to
the nearest ten-thousandth (1/10,000th) of a share, as the case may be. Additionally, no adjustment need be
made for a change in the par value of the Common Stock. 
 (10) The Company may make such increases in the Conversion Rate, for the remaining
term of the Securities or any shorter term, in addition to those required by paragraphs (1), (2), (3), (4), (5) and (6) of this Section 12.4, as it considers to be advisable in order to avoid or diminish any income tax to any holders
of shares of Common Stock resulting from any dividend or distribution of stock or issuance of 

  

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rights or warrants to purchase or subscribe for stock or from any event treated as such for income tax purposes. The Company shall have the power to resolve
any ambiguity or correct any error in this paragraph (10) and its actions in so doing shall, absent manifest error, be final and conclusive. 
 (11) Notwithstanding the foregoing provisions of this Section, no adjustment of the Conversion Rate shall be required to be made upon the issuance of shares of Common Stock pursuant to any present or future plan for the reinvestment of
dividends. 
 (12) To the extent permitted by applicable law, the Company from time to time may increase the Conversion Rate by any amount
for any period of time if the period is at least twenty (20) days, the increase is irrevocable during such period, and the Board of Directors shall have made a determination that such increase would be in the best interests of the Company,
which determination shall be conclusive; provided, however, that no such increase shall be taken into account for purposes of determining whether the Closing Price Per Share of the Common Stock equals or exceeds 105% of the Conversion Price
in connection with an event which would otherwise be a Fundamental Change pursuant to Section 14.3. Whenever the Conversion Rate is increased pursuant to the preceding sentence, the Company shall give notice of the increase to the Holders in
the manner provided in Section 1.6 and to the Trustee at least fifteen (15) days prior to the date the increased Conversion Rate takes effect, and such notice shall state the increased Conversion Rate and the period during which it will be
in effect. 
 (13) Pursuant to rights issued under any rights plan of the Company (the “Rights Plan”), to the extent the Rights
Plan is still in effect, upon conversion of any Security by the holder thereof, such holders will receive, in addition to the Common Stock issuable upon such conversion, the rights described in the Rights Plan, whether or not the rights have
separated from the underlying Common Stock at the time of conversion, unless the distribution of such rights would cause certain tax implications as specified in the Rights Plan, in which case the holder shall not receive such rights upon
conversion, and in lieu thereof, the Conversion Rate will be adjusted effective immediately prior to conversion pursuant paragraph (4) of this Section 12.4, as though such rights had been distributed to holders of Common Stock on the day
immediately preceding the conversion date. 
 (14) In case of a Fundamental Change as specified in clauses (ii), (iii) or (iv) of
the definition thereof occurring prior to April 15, 2012, solely upon receipt by the Conversion Agent of any Holder’s Conversion Notice on or after the Effective Date of the Fundamental Change and prior to the 45th day following such
Effective Date (or, if earlier and to the extent applicable, the close of business on the second Business Day immediately preceding the Fundamental Change Repurchase Date (as specified in the Fundamental Change Repurchase Right Notice)), the Company
shall increase the Conversion Rate for the Securities so surrendered for conversion by such Holder by the number of Additional Shares determined in accordance with this Section 12.4; provided, however, that no increase shall be
made in the case of a Fundamental Change if at least 90% of the consideration paid for the Common Stock (excluding cash payments for fractional shares and cash payments made pursuant to dissenters’ appraisal rights) in such Fundamental Change
transaction consists of shares of capital stock traded on New York Stock Exchange or another United States national securities exchange or quoted on an established automated over-the-counter trading market in the United States (or that will be so
traded or quoted immediately following the transaction) and as a result of such transaction or transactions the Securities become convertible solely into such common stock. The number of Additional Shares will be determined by reference to the table
below. 
  

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 The following table sets forth number of Additional Shares issuable per $1,000 initial principal amount
of Securities as a result of a Fundamental Change that occurs in the corresponding period: 
  

																											
	 Effective Date of
 Fundamental Change
	  	Stock Price on Date of Fundamental Change
	 	  	$44.75	  	$55.00	  	$65.00	  	$75.00	  	$85.00	  	$95.00	  	$105.00	  	$115.00	  	$125.00	  	$135.00	  	$145.00	  	$155.00	  	$165.00
	 April 3, 2007
	  	4.92	  	3.70	  	2.61	  	1.92	  	1.47	  	1.16	  	0.93	  	0.77	  	.064	  	0.54	  	0.47	  	0.40	  	0.35
	 April 15, 2008
	  	4.92	  	3.67	  	2.51	  	1.80	  	1.34	  	1.04	  	0.82	  	0.67	  	0.55	  	0.46	  	0.39	  	0.34	  	0.29
	 April 15, 2009
	  	4.92	  	3.56	  	2.32	  	1.60	  	1.15	  	0.86	  	0.67	  	0.53	  	0.43	  	0.36	  	0.30	  	0.26	  	0.22
	 April 15, 2010
	  	4.92	  	3.33	  	2.02	  	1.29	  	0.87	  	0.62	  	0.46	  	0.36	  	0.29	  	0.24	  	0.20	  	0.17	  	0.15
	 April 15, 2011
	  	4.92	  	2.92	  	1.49	  	0.80	  	0.47	  	0.30	  	0.21	  	0.16	  	0.13	  	0.11	  	0.09	  	0.08	  	0.07
	 April 15, 2012
	  	4.92	  	0.35	  	0.00	  	0.00	  	0.00	  	0.00	  	0.00	  	0.00	  	0.00	  	0.00	  	0.00	  	0.00	  	0.00

 The Stock Prices and Additional Share amounts set forth above are based upon an initial Conversion
Price of $55.94. The Stock Prices set forth in the first row of the table above shall be adjusted as of any date on which the Conversion Rate of the Securities is adjusted in accordance with Section 12.4 hereof. The adjusted Stock Prices shall
equal the Stock Prices applicable immediately prior to such adjustment, multiplied by an adjustment factor equal to a fraction, the numerator of which is the Conversion Rate immediately prior to the adjustment giving rise to the Stock Price
adjustment and the denominator of which is the Conversion Rate as so adjusted. The number of Additional Shares shall be adjusted in the same manner and for the same events as the Conversion Rate as set forth in Section 12.4 hereof. 

The exact Stock Price and conversion dates may not be set forth on the table; in which case, if: 
 (A) the Stock Price is between two Stock Price amounts on the table or the conversion date is between two dates on the table, the number of
Additional Shares will be determined by straight-line interpolation between the number of Additional Shares set forth for the higher and lower stock price amounts and the two dates, as applicable, based on a 365-day year; 
 (B) the Stock Price is more than $165.00 per share (subject to adjustment), no further adjustment will be made to the Conversion Rate as a result of
the Fundamental Change; and 
 (C) the Stock Price is less than $44.75 per share (subject to adjustment), no further adjustment will be
made to the Conversion Rate as a result of the Fundamental Change. 
 Notwithstanding the foregoing, in no event shall the total number of
shares of Common Stock issuable upon conversion of a Security exceed 22.7963 per $1,000 initial principal amount of the Securities, subject to proportional adjustment in the same manner as the Conversion Rate as set forth in Section 12.4
hereof. 
 SECTION 12.5 Notice of Adjustments of Conversion Rate. 
 Whenever the Conversion Rate is adjusted as herein provided: 
 (1) the Company shall compute the adjusted
Conversion Rate in accordance with Section 12.4 and shall prepare a certificate signed by the principal financial officer of the Company setting forth the adjusted Conversion Rate and showing in reasonable detail the facts upon which such
adjustment is based, and such certificate shall promptly be filed with the Trustee and with each Conversion Agent; and 
  

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 (2) upon each such adjustment, a notice stating that the Conversion Rate has been adjusted and setting
forth the adjusted Conversion Rate shall be required, and as soon as reasonably practicable after it is required, such notice shall be provided by the Company to all Holders in accordance with Section 1.6 and to the Trustee. 
 Neither the Trustee nor any Conversion Agent shall be under any duty or responsibility with respect to any such certificate or the information and
calculations contained therein, except to exhibit the same to any Holder of Securities desiring inspection thereof at its office during normal business hours, and shall not be deemed to have knowledge of any adjustment in the Conversion Rate unless
and until a Responsible Officer of the Trustee shall have actually received such a certificate. Until a Responsible Officer of the Trustee so receives such a certificate, the Trustee and each Conversion Agent may assume without inquiry that the last
Conversion Rate of which the Trustee has knowledge of remains in effect. 
 SECTION 12.6 Notice of Certain Corporate Action. 
 In case: 
 (1) the Company shall declare a
dividend (or any other distribution) on its Common Stock payable otherwise than exclusively in cash; or 
 (2) the Company shall authorize
the granting to all or substantially all of the holders of its Common Stock of rights, options or warrants to subscribe for or purchase any shares of capital stock of any class or of any other rights; or 
 (3) of any reclassification of the Common Stock, or of any consolidation, merger or share exchange to which the Company is a party and for which approval
of any shareholders of the Company is required, or of the conveyance, sale, transfer or lease of all or substantially all of the assets of the Company; or 
 (4) of the voluntary or involuntary dissolution, liquidation or winding up of the Company; 
 then the Company shall cause to
be filed at each office or agency maintained for the purpose of conversion of Securities pursuant to Section 10.2, and shall cause to be provided to all Holders in accordance with Section 1.6, at least 10 days prior to the applicable
record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, rights, options or warrants, or, if a record is not to be taken, the date as of which
the holders of Common Stock of record to be entitled to such dividend, distribution, rights, options or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, conveyance, transfer, sale, lease,
dissolution, liquidation or winding up is expected to become effective, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their shares of Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, conveyance, transfer, sale, lease, dissolution, liquidation or winding up. Neither the failure to give such notice or the notice referred to in the following paragraph nor any defect
therein shall affect the legality or validity of the proceedings described in clauses (1) through (4) of this Section 12.6. If at the time the Trustee shall not be the Conversion Agent, a copy of such notice shall also forthwith be
filed by the Company with the Trustee. 
 The Company shall cause to be filed at the Corporate Trust Office and each office or agency
maintained for the purpose of conversion of Securities pursuant to Section 10.2, and shall cause to be provided to all Holders in accordance with Section 1.6, notice of any purchase by the Company or any Subsidiary of all or any portion of
the Common Stock at or about the time that such notice of purchase, if any, is provided to the public generally. 
  

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 SECTION 12.7 Company to Reserve Common Stock. 
 The Company shall at all times reserve and keep available, free from preemptive rights, out of its authorized but unissued Common Stock, for the purpose
of effecting the conversion of Securities, the full number of shares of Common Stock then issuable upon the conversion of all Outstanding Securities. 
 SECTION 12.8 Taxes on Conversions. 
 Except as provided in the next sentence, the Company will pay any and all taxes and duties that
may be payable in respect of the issue or delivery of shares of Common Stock on conversion of Securities pursuant hereto. The Company shall not, however, be required to pay any tax or duty that may be payable in respect of (i) income of the
Holder, or (ii) any transfer involved in the issue and delivery of shares of Common Stock in a name other than that of the Holder of the Security or Securities to be converted, and no such issue or delivery shall be made unless and until the
Person requesting such issue has paid to the Company the amount of any such tax or duty, or has established to the satisfaction of the Company that such tax or duty has been paid. 
 SECTION 12.9 Covenant as to Common Stock. 
 Before taking any action which would cause an adjustment reducing
the Conversion Price below the then par value, if any, of the shares of Common Stock issuable upon conversion of the Securities, the Company shall take all corporate action which may, in the opinion of its counsel, be necessary in order that the
Company may validly and legally issue shares of such Common Stock at such adjusted Conversion Price. 
 The Company agrees that all shares of
Common Stock that may be delivered upon conversion of Securities, upon such delivery, will have been duly authorized and validly issued and will be fully paid and nonassessable and free of any lien or adverse claim created by the Company and, except
as provided in Section 12.8, the Company will pay all taxes, liens and charges with respect to the issue thereof. 
 The Company further
covenants that as long as the Common Stock is listed on the Nasdaq Stock Market, the Company shall use its best efforts to cause all Common Stock issuable upon conversion of the Securities to be listed on the Nasdaq Stock Market in accordance with,
and at the times required under, the requirements of the Nasdaq Stock Market, and if at any time the Common Stock becomes listed or admitted to trading on any other national securities exchange, or quoted on any other automated quotation system, the
Company shall use its best efforts to cause all Common Stock issuable upon conversion of the Securities to be so listed or quoted and kept so listed or quoted. 
 SECTION 12.10 Cancellation of Converted Securities. 
 All Securities delivered for conversion shall be delivered to the Trustee or
its agent to be canceled by or at the direction of the Trustee, which shall dispose of the same as provided in Section 3.9. 
 SECTION 12.11 Provision
in Case of Reclassification, Consolidation, Merger or Sale of Assets. 
 In case of (i) any reclassification or change of the outstanding
shares of Common Stock (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of 

  

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a subdivision or combination), (ii) any consolidation or merger of the Company with or into any other Person, any merger of another Person with or into
the Company (other than a merger that does not result in any reclassification, conversion, exchange or cancellation of outstanding shares of Common Stock of the Company), or (iii) any conveyance, sale, transfer or lease of all or substantially
all of the property or assets of the Company (other than a sale of all or substantially all of the property or assets of the Company that does not result in any reclassification, conversion, exchange or cancellation of outstanding shares of Common
Stock of the Company), in each case as a result of which holders of Common Stock shall be entitled to receive stock, other securities, other property, assets or cash for such holders’ Common Stock, the Person formed by such consolidation or
resulting from such merger or which acquires such assets, as the case may be, shall execute and deliver to the Trustee a supplemental indenture providing that the Holder of each Security then Outstanding shall have the right thereafter, during the
period such Security shall be convertible as specified in Section 12.1, to convert such Security only into the kind and amount of securities, cash and other property receivable upon such reclassification, change, consolidation, merger,
conveyance, sale, transfer or lease by a holder of the number of shares of Common Stock of the Company into which such Security might have been converted immediately prior to such reclassification, change, consolidation, merger, conveyance, sale,
transfer or lease, assuming such holder of Common Stock of the Company (x) is not (A) a Person with which the Company consolidated or merged with or into or which merged into or with the Company or to which such conveyance, sale, transfer
or lease was made, as the case may be (a “Constituent Person”), or (B) an Affiliate of a Constituent Person and (y) failed to exercise his rights of election, if any, as to the kind or amount of securities, cash and other
property receivable upon such reclassification, change, consolidation, merger, conveyance, sale, transfer or lease (provided that, if the kind or amount of securities, cash and other property receivable upon such reclassification, change,
consolidation, merger, conveyance, sale, transfer, or lease is not the same for each share of Common Stock of the Company held immediately prior to such reclassification, change, consolidation, merger, conveyance, sale, transfer or lease by others
than a Constituent Person or an Affiliate thereof and in respect of which such rights of election shall not have been exercised (“Non-electing Share”), then for the purpose of this Section 12.11, the kind and amount of securities,
cash and other property receivable upon such reclassification, change, consolidation, merger, conveyance, sale, transfer or lease by the holders of each Non-electing Share shall be deemed to be the kind and amount elected by a majority of the
Company’s shareholders in any of (i) through (iii) above). Such supplemental indenture shall provide for adjustments that, for events subsequent to the effective date of such supplemental indenture, shall be as nearly equivalent as
may be practicable to the adjustments provided for in this Article XII. The above provisions of this Section 12.11 shall similarly apply to successive consolidations, mergers, conveyances, sales, transfers or leases. Notice of the execution of
such a supplemental indenture shall be given by the Company to the Holder of each Security as provided in Section 1.6 promptly upon such execution. 
 Neither the Trustee nor any Conversion Agent shall be under any responsibility to determine whether a supplemental indenture under this Article XII need be entered into or the correctness of any provisions contained
in any such supplemental indenture relating either to the kind or amount of shares of stock or other securities or property or cash receivable by Holders of Securities upon the conversion of their Securities after any such consolidation, merger,
conveyance, transfer, sale or lease or to any such adjustment or as to any other provisions of any such supplemental indenture relating to this Article XII, but may accept as conclusive evidence of the correctness of any such provisions, and shall
be protected in relying upon, an Opinion of Counsel with respect thereto, which the Company shall cause to be furnished to the Trustee upon request. 
 SECTION 12.12 Rights Issued in Respect of Common Stock. 
 In the event of any distribution of rights or warrants by the Company to
all holders of Common Stock entitling the holders thereof to subscribe for or purchase shares of the Company’s capital stock (either initially or under certain circumstances), which rights or warrants, until the occurrence of a specified event
or events (“Trigger Event”): 
 (i) are deemed to be transferred with such shares of Common Stock, 
  

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 (ii) are not exercisable, and 
 (iii) are also issued in respect of future issuance of Common Stock, 
 shall not be deemed distributed for purposes of Section 12.4(2) until the occurrence of the earliest Trigger Event. In addition, in the event of any distribution of rights or warrants, or any Trigger Event with
respect thereto, shall have resulted in an adjustment to the Conversion Rate under Section 12.4(2), (1) in the case of any such rights or warrants that shall all have been redeemed or repurchased without exercise by any holders thereof,
the Conversion Rate shall be readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger Event, as the case may be, as though it were a cash distribution, equal to the per share redemption or repurchase price
received by a holder of Common Stock with respect to such rights or warrants (assuming such holder had retained such rights or warrants), made to all holders of Common Stock as of the date of such redemption or repurchase, and (2) in the case
of any such rights or warrants all of which shall have expired without exercise by any holder thereof, the Conversion Price shall be readjusted as if such issuance had not occurred. 
 SECTION 12.13 Responsibility of Trustee for Conversion Provisions. 
 The Trustee and any Conversion Agent
shall not at any time be under any duty or responsibility to any Holder of Securities to determine whether any facts exist which may require any adjustment of the Conversion Rate, or with respect to the nature or extent of any such adjustment when
made, or with respect to the method employed, herein or in any supplemental indenture provided to be employed, in making the same, or whether a supplemental indenture need be entered into or whether any provisions of any such supplemental indenture
are correct. Neither the Trustee nor any Conversion Agent shall be accountable with respect to the validity or value (or the kind or amount) of any Common Stock, or of any other securities or property or cash, which may at any time be issued or
delivered upon the conversion of any Security; and it or they do not make any representation with respect thereto. Neither the Trustee, nor any Conversion Agent shall be responsible for any failure of the Company to make or calculate any cash
payment or to issue, transfer or deliver any shares of Common Stock or share certificates or other securities or property or cash upon the surrender of any Security for the purpose of conversion; and the Trustee and any Conversion Agent shall not be
responsible for any failure of the Company to comply with any provisions contained in this Article XII. 
 ARTICLE XIII 
 RESERVED. 
 ARTICLE XIV 
 REPURCHASE OF SECURITIES AT THE OPTION OF THE HOLDER 
 SECTION 14.1 Right to Require Repurchase Upon a Fundamental Change. 
 In the event that a Fundamental Change (as hereinafter
defined) shall occur, then each Holder shall have the right, at the Holder’s option, to require the Company to repurchase, and upon the exercise of such 

  

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right the Company shall repurchase, all of such Holder’s Securities not theretofore converted or called for redemption, or any portion of the aggregate
principal amount thereof that is equal to $1,000 or any integral multiple of $1,000 in excess thereof (provided that no single Security may be repurchased in part unless the portion of the aggregate principal amount of such Security to be
Outstanding after such repurchase is equal to $1,000 or integral multiples of $1,000 in excess thereof), on the date (the “Repurchase Date”) that is not less than 20 and no more than 35 Business Days (subject to extension to comply with
applicable law) after the date of the Company Notice (as defined in Section 14.2) at a purchase price equal to 100% of the aggregate principal amount of the Securities to be repurchased plus interest accrued but unpaid to, but excluding, the
Repurchase Date (the “Repurchase Price”), as provided below; provided, however, that installments of interest on Securities whose Stated Maturity is on or prior to the Repurchase Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such on the relevant Record Date according to their terms and the provisions of Section 3.7. Such right to require the repurchase of the Securities shall not continue after a
discharge of the Company from its obligations with respect to the Securities in accordance with Article IV, unless a Fundamental Change shall have occurred prior to such discharge. Whenever in this Indenture (including Sections 2.2, 3.1, 5.1(1)
and 5.8) there is a reference, in any context, to the principal of any Security as of any time, such reference shall be deemed to include reference to the Repurchase Price payable in respect of such Security to the extent that such Repurchase Price
is, was or would be so payable at such time, and express mention of the Repurchase Price in any provision of this Indenture shall not be construed as excluding the Repurchase Price in those provisions of this Indenture when such express mention is
not made. 
 SECTION 14.2 Notices; Method of Exercising Repurchase Right, Etc. 
 (1) Unless the Company shall have theretofore called for redemption all of the Outstanding Securities, at least 20 Business Days prior to the anticipated date on which a Fundamental Change will become effective or, if
the Company does not have actual notice of a Fundamental Change on or before the 20th Business Day prior to the effective date of the Fundamental Change, as soon as the Company has actual notice of a Fundamental Change, the Company or, at the
request in a Company Order and expense of the Company on or before the 20th Business Day prior to the effective date of the Fundamental Change, the Trustee, shall give to all Holders of Securities, in the manner provided in Section 1.6, notice
(the “Fundamental Change Company Notice”) of the occurrence of the Fundamental Change and of the repurchase right set forth herein arising as a result thereof. The Company shall also deliver a copy of such Company Notice to the Trustee,
the Paying Agent and the Conversion Agent. If such notice is to be given by the Trustee, the Company shall deliver, on or before the fifth Business Day prior to the effective date of the Fundamental Change, a Company Order requesting the Trustee to
give such notice and setting forth all the information to be included in such notice including the information set forth below. 
 Each
Fundamental Change Company Notice shall state: 
 (i) if applicable, whether the Conversion Rate will be adjusted as described under
Section 12.4, 
 (ii) the anticipated date on which the Fundamental Change will become effective, and 
 (iii) whether the Company expects that Holders of the Securities will have the right to require the Company to repurchase the Securities. 
 (2) In addition to the Fundamental Change Company Notice, on or before the 20th Trading Day after the date on which a Fundamental Change becomes
effective (which Fundamental Change results in the Holders of Securities having the right to cause the Company to repurchase their Securities), the 

  

 80 

 
Company shall give to all Holders of Securities, the Trustee, the Paying Agent and the Conversion Agent, in the manner provided in Section 1.5 or
Section 1.6, as applicable, notice (the “Company Notice”) of the occurrence of the Fundamental Change and of the repurchase right set forth herein arising as a result thereof. 
 Each Company Notice shall state: 
 (i) the
events giving rise to a Fundamental Change, 
 (ii) if the Company will adjust the Conversion Rate pursuant to a Fundamental Change that
falls under clause (ii), (iii) or (iv) of the definition of a Fundamental Change, the Conversion Rate and any adjustments to the Conversion Rate, 
 (iii) the effective date of the Fundamental Change, if applicable, 
 (iv) the last date by which a Holder
may exercise the repurchase right, 
 (v) the Repurchase Price, 
 (vi) the Repurchase Date, 
 (vii) the name
and address of the Paying Agent and the Conversion Agent, 
 (viii) that the Securities with respect to which the Company Notice has been
given to the Holder may be converted only if the Holder withdraws any repurchase notice previously delivered by the Holder in accordance with the terms of the Indenture, and 
 (ix) a description of the procedure that a Holder must follow to require the Company to repurchase the Securities. 
 No failure of the Company to give the foregoing notices or defect therein shall limit any Holder’s right to exercise a repurchase right or affect
the validity of the proceedings for the repurchase of Securities. 
 If any of the foregoing provisions or other provisions of this Article
XIV are inconsistent with applicable law, such law shall govern. 
 (3) To exercise a repurchase right, a Holder shall deliver to the Paying
Agent before the close of business on the second Business Day immediately preceding the Repurchase Date (i) the Securities with respect to which the repurchase right is being exercised, and (ii) written notice of the Holder’s exercise
of such right, duly completed, to the Paying Agent. 
 The repurchase notice must state: 
 (i) if certificated, the certificate numbers of the Securities to be delivered to repurchase, 
 (ii) the portion of the principal amount of Securities to be repurchased, which must be $1,000 or an integral multiple of $1,000 in excess thereof, and

 (iii) that the Securities are to be repurchased by the Company as of the Repurchase Date pursuant to the applicable provisions of the
Securities and the Indenture. 
  

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 Such written notice shall be irrevocable, except that the right of the Holder to convert the Securities
with respect to which the repurchase right is being exercised shall continue until the close of business on the Business Day immediately preceding the Repurchase Date. If the Securities are not in certificated form, the repurchase notice must comply
with appropriate DTC procedures. 
 (4) If the Holder exercises the right to have any portion of the principal amount of the Securities
repurchased, the Holder may not surrender that portion of the Securities for conversion unless the Holder withdraws the repurchase notice in accordance with this Section 14.2(4). The Holder may withdraw any repurchase notice (in whole or in
part) by a written notice of withdrawal delivered to the Paying Agent prior to 5:00 p.m. (Eastern time), on the second Business Day prior to the Repurchase Date. 
 The notice of withdrawal must state: 
 (i) the principal amount of the withdrawn Securities, 
 (ii) if certificated, the certificate numbers of the withdrawn Securities, and 
 (iii) the principal amount of the Securities, if any, that remains subject to the repurchase notice. 
 If the Securities are not in certificated form, the notice of withdrawal must comply with appropriate DTC procedures. 
 (5) In the event a repurchase right shall be exercised in accordance with the terms hereof, the Company will be required to repurchase the Securities on
a date chosen by the Company in its sole discretion that is not less than 20 and no more than 35 Business Days after the date of the Company’s mailing of the relevant Company Notice, subject to extension to comply with applicable law. To
receive payment of the Repurchase Price, the Holder must either effect book-entry transfer or deliver the Securities, together with necessary endorsements, to the office of the Paying Agent after delivery of the Company Notice. Holders will receive
payment of the Repurchase Price promptly following the later of the Repurchase Date or the time of book-entry transfer or the delivery of the Securities. If the Paying Agent, other than the Company or a Subsidiary of the Company, holds money or
securities sufficient to pay the Repurchase Price of the Securities on the Business Day following the Repurchase Date, then: 
 (i) the
Securities will cease to be outstanding, and interest, if any, will cease to accrue (whether or not book-entry transfer of the Securities is made and whether or not the Securities are delivered to the Paying Agent), and 
 (ii) all other rights of the Holder will terminate (other than the right to receive the Repurchase Price upon delivery or transfer of the Securities).

 The Company will: 
 (i) comply
with the provisions of Rule 13e-4 and Rule 14e-1, if applicable, under the Exchange Act, 
 (ii) file a Schedule TO or any successor or
similar schedule, if required, under the Exchange Act, and 
  

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 (iii) otherwise comply with all applicable federal and state securities laws in connection with any offer
by the Company to repurchase the Securities upon a Fundamental Change. 
 The rules and regulations promulgated under the Exchange Act
require the dissemination of prescribed information to security holders in the event of an issuer tender offer and may apply in the event that the repurchase right becomes available to Holders of the Securities. The Company shall comply with these
rules to the extent they apply at that time. 
 (6) If any Security (or portion thereof) surrendered for repurchase shall not be so paid on
the Repurchase Date, the aggregate principal amount of such Security (or portion thereof, as the case may be), shall, until paid, bear interest to the extent permitted by applicable law from the Repurchase Date at the rate of 3.75% per annum,
and each Security shall remain convertible into Common Stock until the principal of such Security (or portion thereof, as the case may be) shall have been paid or duly provided for. 
 (7) Any Security that is to be repurchased only in part shall be surrendered to the Trustee (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing), and the Company shall execute, and upon its actual receipt by a
Responsible Officer of a Company Order to such effect, the Trustee shall authenticate and make available for delivery to the Holder of such Security pursuant to such Company Order without service charge, a new Security or Securities, containing
identical terms and conditions, each in an authorized denomination in aggregate principal amount equal to and in exchange for the unrepurchased portion of the principal of the Security so surrendered. 
 (8) All Securities delivered for repurchase shall be delivered to the Trustee to be canceled at the direction of the Trustee, which shall dispose of the
same as provided in Section 3.9. 
 SECTION 14.3 Certain Definitions. 
 For purposes of this Article XIV, 
 (1) the term “beneficial owner” shall be determined in
accordance with Rule 13d-3, as in effect on the date of the original execution of this Indenture, promulgated by the Commission pursuant to the Exchange Act; 
 (2) the term “Capital Stock” means (a) in the case of a corporation, corporate stock, (b) in the case of an association or business entity, shares, interests, participations, rights or other
equivalents (however designated) of corporate stock, (c) in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited) and (d) any other interest or participation that confers
on a person the right to receive a share of the profits and losses of, or distribution of the assets of, the issuing person; 
 (3) the term
“Continuing Directors” means , as of any date of determination, any member of the Company’s Board of Directors who (a) was a member of the Company’s Board of Directors on the date of the Indenture or (b) becomes a
member of the Company’s Board of Directors subsequent to that date and was appointed, nominated for election or elected to the Company’s Board of Directors with the approval of (1) a majority of the continuing directors who were
members of the Company’s Board of Directors at the time of such appointment, nomination or election or (2) a majority of the continuing directors that were serving at the time of such appointment, nomination or election on a committee of
the Company’s Board of Directors that appointed or nominated for election or reelection such board member; 
  

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 (4) a “Fundamental Change” shall be deemed to have occurred, at any time after the original
issuance of the Securities, if any of the following occurs: 
 (i) at any time, the Company’s Continuing Directors cease for any reason
to constitute a majority of the Company’s Board of Directors then in office (or, if applicable, a successor person to the Company); or 
 (ii) the acquisition by any Person of beneficial ownership, directly or indirectly, through a purchase, merger or other acquisition transaction or series of transactions, of shares of Capital Stock of the Company entitling such person to
exercise 50% or more of the total voting power of all shares of Capital Stock of the Company entitled to vote generally in the elections of directors, other than any such acquisition by the Company, any Subsidiary or any employee benefit plan of the
Company; or 
 (iii) any consolidation of the Company with, or merger of the Company into, any other Person, any merger of another Person
into the Company, or any conveyance, sale, transfer or lease or disposal of all or substantially all of the assets of the Company to another Person (other than (a) any such transaction (x) involving a merger or consolidation that does not
result in any reclassification, conversion, exchange or cancellation of outstanding shares of Capital Stock of the Company (other than any reclassification, conversion, exchange or cancellation of outstanding shares of Capital Stock of the Company
solely for shares of publicly traded common stock listed on an established national securities exchange or automated over-the-counter trading market in the United States) and (y) pursuant to which the holders of 50% or more of the total voting
power of all shares of the Company’s Capital Stock entitled to vote generally in the election of directors immediately prior to such transaction have the entitlement to exercise, directly or indirectly, 50% or more of the total voting power of
all shares of capital stock entitled to vote generally in the election of directors of the continuing or surviving corporation immediately after such transaction or (b) any transaction which is effected solely to change the jurisdiction of
incorporation of the Company and results in a reclassification, conversion or exchange of outstanding shares of Common Stock into solely shares of common stock); or 
 (iv) the Common Stock into which the Securities are convertible ceases to be listed on the Nasdaq Global Market and is not listed on an established national securities exchange or automated over-the-counter trading
market in the United States; or 
 (v) the stockholders of the Company pass a resolution approving a plan of liquidation, dissolution or
winding up; 
 provided, however, that a Fundamental Change under clauses (i) through (iii) above shall not be deemed to have occurred if
the Closing Price Per Share of the Common Stock for any five Trading Days within the period of ten consecutive Trading Days ending immediately after the later of the Fundamental Change or the public announcement of the Fundamental Change (in the
case of a Fundamental Change under clause (ii) above) or the period of ten consecutive Trading Days ending immediately before the Fundamental Change (in the case of a Fundamental Change under clause (i) or (iii) above) shall equal or
exceed 105% of the Conversion Price in effect on each such Trading Day. 
 (5) the term “Conversion Price” shall equal the quotient
obtained by dividing $1,000 by the Conversion Rate; and 
 (6) for purposes of Section 14.3, the term “Person” shall include
any syndicate or group which would be deemed to be a “person” under Section 13(d)(3) of the Exchange Act, as in effect on the date of the original execution of this Indenture. 
  

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 SECTION 14.4 Consolidation, Merger, Etc. 
 In the case of any merger, consolidation, conveyance, sale, transfer or lease of all or substantially all of the assets of the Company to which Section 12.11 applies, in which the Common Stock of the Company is
changed or exchanged as a result into the right to receive shares of stock and other securities or property or assets (including cash) which includes shares of Common Stock of the Company or common stock of another Person that are, or upon issuance
will be, traded on a United States national securities exchange or approved for trading on an established automated over-the-counter trading market in the United States and such shares constitute at the time such change or exchange becomes effective
in excess of 50% of the aggregate fair market value of such shares of stock and other securities, property and assets (including cash) (as determined by the Company, which determination shall be conclusive and binding), then the Person formed by
such consolidation or resulting from such merger or combination or which acquires the properties or assets (including cash) of the Company, as the case may be, shall execute and deliver to a Responsible Officer of the Trustee a supplemental
indenture (which shall comply with the Trust Indenture Act as in force at the date of execution of such supplemental indenture) modifying the provisions of this Indenture relating to the right of Holders to cause the Company to repurchase the
Securities following a Fundamental Change, including without limitation the applicable provisions of this Article XIV and the definitions of the Common Stock and Fundamental Change, as appropriate, and such other related definitions set forth herein
as determined in good faith by the Company (which determination shall be conclusive and binding), to make such provisions apply in the event of a subsequent Fundamental Change to the common stock and the issuer thereof if different from the Company
and Common Stock of the Company (in lieu of the Company and the Common Stock of the Company). 
 SECTION 14.5 Repurchase of Securities at Option of the
Holder on Specified Dates. 
 (1) The Holders may require the Company to repurchase any outstanding Securities for cash, in accordance with
the provisions of the Securities, on April 15, 2012, April 15, 2017 and April 15, 2022 (each a “Scheduled Repurchase Date”) at a purchase price per Security equal to 100% of the aggregate principal amount of the
Security, together with any accrued and unpaid interest (including Additional Interest), to but not including the applicable Scheduled Repurchase Date (the “Scheduled Repurchase Price”). Whenever in this Indenture (including Sections 2.2,
3.1, 5.1(1) and 5.8) there is a reference, in any context, to the principal of any Security as of any time, such reference shall be deemed to include reference to the Scheduled Repurchase Price payable in respect of such Security to the extent that
such Scheduled Repurchase Price is, was or would be so payable at such time, and express mention of the Scheduled Repurchase Price in any provision of this Indenture shall not be construed as excluding the Scheduled Repurchase Price in those
provisions of this Indenture when such express mention is not made. 
 (2) The Company shall give written notice of the applicable Scheduled
Repurchase Date by notice sent by first-class mail to the Trustee and to each Holder (at its address shown in the register of the Registrar) and to beneficial owners as required by applicable law, not less than 20 Business Days prior to each
Scheduled Repurchase Date (the “Scheduled Repurchase Notice”). Each Scheduled Repurchase Notice shall include a repurchase election notice, in substantially the form included in Section 2.2 (a “Scheduled Repurchase Election
Notice”) to be completed by a Holder. Each Scheduled Repurchase Notice shall state: 
 (i) the Scheduled Repurchase Price, the Scheduled
Repurchase Date and the Conversion Price in effect; 
 (ii) the name and address of the Paying Agent and the Conversion Agent; 
  

 85 

 (iii) that Securities as to which a Scheduled Repurchase Notice has been given may be converted only to
the extent that the Scheduled Repurchase Election Notice has been withdrawn in accordance with the terms of this Indenture; 
 (iv) that
Securities must be surrendered to the Paying Agent to collect payment; 
 (v) that the Scheduled Repurchase Price for any Security as to
which a Scheduled Repurchase Notice has been given and not withdrawn will be paid promptly following the later of the Scheduled Repurchase Date and the time of surrender of such Security as described in subclause (iv) above; 
 (vi) the procedures the Holder must follow to exercise rights under this Section and a brief description of those rights; 
 (vii) briefly, the conversion rights of the Securities; 
 (viii) the procedures for withdrawing a Scheduled Repurchase Election Notice (including pursuant to the terms of Section 14.5(iv)); 
 (ix) that, unless the Company defaults in making payment on Securities for which a Scheduled Repurchase Election Notice has been submitted, interest, if any, on such Securities will cease to accrue on and after the
Scheduled Repurchase Date; and 
 (x) the CUSIP number of the Securities. 
 If any of the Securities are to be redeemed in the form of a Global Security, the Company shall modify such notice to the extent necessary to accord with
the Applicable Procedures of the Depositary applicable to redemptions. 
 At the Company’s request, the Trustee shall give such
Scheduled Repurchase Notice on behalf of the Company and at the Company’s expense; provided, however, that, in all cases, the text of such Scheduled Repurchase Notice shall be prepared by the Company. 
 (3) Repurchases of Securities by the Company pursuant to this Section 14.5 shall be made, at the option of the Holder thereof, upon: 
 (i) delivery to the Paying Agent by the Holder of the Scheduled Repurchase Election Notice at any time from the opening of business on the date that is 20
Business Days prior to the applicable Scheduled Repurchase Date until the close of business on the Scheduled Repurchase Date stating: 
 (a)
the certificate number of the Security which the Holder will deliver to be purchased, 
 (b) the portion (which may be 100%) of the
principal amount of the Security which the Holder will deliver to be purchased, which portion must be in a principal amount of $1,000 or an integral multiple thereof, and 
 (c) that such Security shall be purchased as of the applicable Scheduled Repurchase Date pursuant to the terms and conditions specified in the
Securities and in this Section 14.5 of this Indenture. 
  

 86 

 (ii) delivery of such Security to the Paying Agent at any time after delivery Scheduled Repurchase Notice
(together with all necessary endorsements) at the offices of the Paying Agent. Delivery of such Security shall be a condition to receipt by the Holder of the Scheduled Repurchase Price therefor. The Scheduled Repurchase Price shall be paid pursuant
to this Section 14.5 only if the Security delivered to the Paying Agent shall conform in all respects to the description thereof in the related Scheduled Repurchase Election Notice, as determined by the Company. 
 (4) Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the Scheduled Repurchase Election Notice contemplated by
this Section 14.5 shall have the right to withdraw such Scheduled Repurchase Election Notice at any time prior to the close of business on the Business Day immediately preceding the Scheduled Repurchase Date by delivery of a written notice of
withdrawal to the Paying Agent specifying: 
 (i) the certificate number, if any, of the Security in respect of which such notice of
withdrawal is being submitted, 
 (ii) the aggregate principal amount of the Security with respect to which such notice of withdrawal is
being submitted, and 
 (iii) the aggregate principal amount, if any, of such Security which remains subject to the original Scheduled
Repurchase Election Notice and which has been or will be delivered for purchase by the Company. 
 The Paying Agent shall promptly notify the
Company of the receipt by it of any Scheduled Repurchase Election Notice or written notice of withdrawal thereof. 
 (5) On or before 10:00
a.m. (New York City time) on the Business Day immediately following the applicable Scheduled Repurchase Date, the Company shall deposit with the Trustee or with the 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 10.3) an amount of money (in immediately available funds if deposited on such Scheduled Repurchase Date) sufficient to pay the aggregate Scheduled Repurchase Price of all
the Securities or portions thereof which are to be purchased as of the applicable Scheduled Repurchase Date. The manner in which the deposit required by this Section 14.5(5) is made by the Company shall be at the option of the Company;
provided that such deposit shall be made in a manner such that the Trustee or a Paying Agent shall have immediately available funds on the applicable Scheduled Repurchase Date. 
 If a Paying Agent holds, in accordance with the terms hereof, money sufficient to pay the Scheduled Repurchase Price of any Security for which a
Scheduled Repurchase Election Notice has been tendered and not withdrawn, on the Business Day immediately following the applicable Scheduled Repurchase Date, then, on and after such date, such Security will cease to be outstanding, whether or not
the Security is delivered to the Paying Agent, and the rights of the Holder in respect thereof shall terminate (other than the right to receive the Scheduled Repurchase Price as aforesaid) and interest will cease to accrue on such Security.

 The Scheduled Repurchase Price shall be paid to such Holder with respect to Securities for which a Scheduled Repurchase Election Notice
has been tendered and not withdrawn, subject to receipt of funds by the Paying Agent, promptly following the later of (x) the Scheduled Repurchase Date with respect to such Security (provided the conditions in Section 14.5(3) have been
satisfied) and (y) the time of delivery of such Security to the Paying Agent by the Holder thereof in the manner required by Section 14.5(3). Securities in respect of which a Scheduled Repurchase Election Notice has been given by the
Holder 

  

 87 

 
thereof may not be converted pursuant to Article XII hereof on or after the date of the delivery of such Scheduled Repurchase Election Notice, unless such
Scheduled Repurchase Election Notice has first been validly withdrawn as specified in Section 14.5(4). 
 The Company shall purchase
from the Holder thereof, pursuant to this Section 14.5, 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. 
 There shall be no purchase of any Securities pursuant to this
Section 14.5 if there has occurred (prior to, on or after as the case may be, the giving, by the Holders of such Securities, of the required Scheduled Repurchase Election Notice) and is continuing an Event of Default (other than a default in
the payment of the Scheduled Repurchase Price). The Paying Agent will promptly return to the respective Holders thereof any Securities (x) with respect to which a Scheduled Repurchase Election Notice has been withdrawn in compliance with this
Indenture, or (y) held by it during the continuance of an Event of Default (other than a default in the payment of the Scheduled Repurchase Price) in which case, upon such return, the Scheduled Repurchase Election Notice with respect thereto
shall be deemed to have been withdrawn. 
 The Company will: 
 (i) comply with the provisions of Rule 13e-4 and Rule 14e-1, if applicable, under the Exchange Act, 
 (ii)
file a Schedule TO or any successor or similar schedule, if required, under the Exchange Act, and 
 (iii) otherwise comply with all
applicable federal and state securities laws in connection with any offer by the Company to repurchase the Securities on a Scheduled Repurchase Date. 
 (6) Any Security that is to be repurchased only in part shall be surrendered to the Trustee (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing), and the Company shall execute, and upon its actual receipt by a Responsible Officer of a Company Order to such effect, the
Trustee shall authenticate and make available for delivery to the Holder of such Security pursuant to such Company Order without service charge, a new Security or Securities, containing identical terms and conditions, each in an authorized
denomination in aggregate principal amount equal to and in exchange for the unrepurchased portion of the principal of the Security so surrendered. 
 ARTICLE XV 
 HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY; NON-RECOURSE 
 SECTION 15.1 Company to Furnish Trustee Names and Addresses of Holders. 
 The Company will furnish or cause to be furnished to the Trustee: 
 (1) semi-annually, not more than 15 days
after the Regular Record Date, a list, in such form as the Trustee may reasonably require, of the names and addresses of the Holders of Securities as of such Regular Record Date, and 
  

 88 

 (2) at such other times as the Trustee may request in writing, within 30 days after the receipt by the
Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished; 
 provided,
however, that no such list need be furnished so long as the Trustee is acting as Security Registrar. 
 SECTION 15.2 Preservation of Information.

 (1) The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders contained in the most
recent list furnished to the Trustee as provided in Section 15.1 and the names and addresses of Holders received by the Trustee in its capacity as Security Registrar. The Trustee may destroy any list, if any, furnished to it as provided in
Section 15.1 upon receipt of a new list so furnished. 
 (2) After this Indenture has been qualified under the Trust Indenture Act, the
rights of Holders to communicate with other Holders with respect to their rights under this Indenture or under the Securities, and the corresponding rights, and duties of the Trustee, shall be as provided by the Trust Indenture Act. 
 (3) Every Holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company, the Trustee or any
Agent, nor any agent of any of them, shall be held accountable by reason of any disclosure of information as to names and addresses of Holders made pursuant to the Trust Indenture Act, regardless of the source from which such information has
derived, and neither the Trustee or any Agent, nor any agent of any of them, shall be held accountable by reason of any mailing or transmission of any material pursuant to a request made under this Article XV. 
 SECTION 15.3 Reports by Trustee. 
 (1) After this Indenture
has been qualified under the Trust Indenture Act, the Trustee shall transmit to Holders such reports concerning the Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the manner
provided pursuant thereto. 
 (2) After this Indenture has been qualified under the Trust Indenture Act, a copy of each such report shall, at
the time of such transmission to Holders, if required by applicable law, be filed by the Trustee with each stock exchange upon which the Securities are listed, with the Commission and with the Company. The Company will notify the Trustee when the
Securities are listed on any stock exchange and any delisting thereof. 
 SECTION 15.4 Reports by Company. 
 After this Indenture has been qualified under the Trust Indenture Act, the Company shall file with the Trustee and the Commission, and transmit to
Holders, such information, documents and other reports, and such summaries thereof, as may be required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant to such Act; provided that any such information,
documents or reports required to be filed with the Commission pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the Trustee within 15 days after the same is so required to be filed with the Commission; provided that
such information, documents or reports will be deemed so filed with the Trustee when filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval (EDGAR) system. 
  

 89 

 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 obligations hereunder (as to
which the Trustee is entitled to conclusively rely exclusively on Officers’ Certificates). 
 ARTICLE XVI 
 IMMUNITY OF INCORPORATORS, SHAREHOLDERS, OFFICERS AND DIRECTORS 
 SECTION 16.1 Indenture and Securities Solely Corporate Obligations. 
 No recourse for the payment of the principal of or premium, if
any, or interest on any Security and no recourse under or upon any obligation, covenant or agreement of the Company in this Indenture or in any supplemental indenture or in any Security, or because of the creation of any indebtedness represented
thereby, shall be had against any incorporator, shareholder, employee, agent, officer, or director or subsidiary, as such, past, present or future, of the Company or of any successor corporation, whether by virtue of any constitution, statute or
rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that all such liability is hereby waived and released by each Holder as a condition of, and as a consideration for, the execution of this
Indenture and the issue of the Securities. 
 This instrument may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 
 [Remainder of page
intentionally left blank.] 
  

 90 

 IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed all as of the day
and year first above written. 
  

			
	 AMBASSADORS INTERNATIONAL, INC.

		
	 By:
	 	 /s/ Brian R. Schaefgen

	 Name:
	 	 Brian R. Schaefgen

	 Title:
	 	 Chief Financial Officer

  

			
	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION,
 as Trustee

		
	 By:
	 	 /s/ Maddy Hall

	 Name:
	 	 Maddy Hall

	 Title:
	 	 Assistant Vice-President

 [Signature Page to the Indenture] 

 ANNEX A — Form of Restricted Securities Certificate 
 RESTRICTED SECURITIES CERTIFICATE 
 (For
transfers pursuant to Section 3.5(2)(ii) and (iii) of the Indenture) 
                                       
                              
                                       
                              
                                       
                              
 Attention: Corporate Trust Services 
  

	 	Re:	3.75% CONVERTIBLE SENIOR NOTES DUE 2027 OF AMBASSADORS INTERNATIONAL, INC. (THE “SECURITIES”) 

 Reference is made to the Indenture, dated as of April 3, 2007 (the “Indenture”), between AMBASSADORS INTERNATIONAL, INC. (the
“Company”) and Wells Fargo Bank, National Association, as Trustee. Terms used herein and defined in the Indenture or Rule 144 under the United States Securities Act of 1933, as amended (the “Securities Act”), are used herein as
so defined. 
 This certificate relates to $             aggregate
principal amount of Securities, which are evidenced by the following certificate(s) (the “Specified Securities”): 
 CUSIP No.
[                    ] 
 CERTIFICATE No(s).                      
 The person in whose name this certificate is executed below (the “Undersigned”) hereby certifies that either (i) it is the sole beneficial owner of the Specified Securities or (ii) it is acting on
behalf of all the beneficial owners of the Specified Securities and is duly authorized by them to do so. Such beneficial owner or owners are referred to herein collectively as the “Owner”. If the Specified Securities are represented by a
Global Security, they are held through the Depositary or an Agent Member in the name of the Undersigned, as or on behalf of the Owner. If the Specified Securities are not represented by a Global Security, they are registered in the name of the
Undersigned, as or on behalf of the Owner. 
 The Owner has requested that the Specified Securities be transferred to a person (the
“Transferee”) who will take delivery in the form of a Restricted Security. In connection with such transfer, the Owner hereby certifies that, unless such transfer is being effected pursuant to an effective registration statement under the
Securities Act, it is being effected in accordance with Rule 144A, to an institutional “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7), or pursuant to another exemption from registration under the
Securities Act (if available) or Rule 144 under the Securities Act and all applicable securities laws of the states of the United States and other jurisdictions. Accordingly, the Owner hereby further certifies as: 
 (1) RULE 144A TRANSFERS. If the transfer is being effected in accordance with Rule 144A: 
 (A) the Specified Securities are being transferred to a person that the Owner and any person acting on its behalf reasonably believe is a “qualified
institutional buyer” within the meaning of Rule 144A, acquiring for its own account or for the account of a qualified institutional buyer; and 

 (B) the Owner and any person acting on its behalf have taken reasonable steps to ensure that the
Transferee is aware that the Owner may be relying on Rule 144A in connection with the transfer; and 
 (2) RULE 144 TRANSFERS. If the
transfer is being effected pursuant to Rule 144: 
 (A) the transfer is occurring after a holding period of at least one year (computed in
accordance with paragraph (d) of Rule 144) has elapsed since the date the Specified Securities were acquired from the Company or from an affiliate (as such term is defined in Rule 144) of the Company, whichever is later, and is being effected
in accordance with the applicable amount, manner of sale and notice requirements of paragraphs (e), (f) and (h) of Rule 144; or 
 (B) the transfer is occurring after a period of at least two years has elapsed since the date the Specified Securities were acquired from the Company or from an affiliate (as such term is defined in Rule 144) of the Company, whichever is
later, and the Owner is not, and during the preceding three months has not been, an affiliate of the Company. 
 (3) INSTITUTIONAL ACCREDITED
INVESTORS. If the transfer is to an institutional investor that is an accredited investor within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act, a signed letter containing certain
representations and agreements relating to the restrictions on transfer of the Securities and, if such transfer is for less than an aggregate principal amount of $250,000, an opinion of counsel acceptable to the Company if requested by the Company,
that the transfer is exempt from registration, must be supplied to the Trustee prior to such transfer. 
 (4) TRANSFERS PURSUANT TO OTHER
SECURITY ACT EXEMPTIONS. If the transfer is being effected pursuant to a Security Act Exemption other than ones set forth in (1) through (3) above, there shall be delivered to the Company an opinion of counsel with respect to such holders.

 This certificate and the statements contained herein are made for your benefit and the benefit of the Company and the Initial Purchasers.

 Dated:                      
 Print the name of the Undersigned, as such term is defined in the second paragraph of this certificate.) 
  

			
	  

		
	 By:
	 	  

	Name:	 	  

	Title:	 	  

 (If the Undersigned is a corporation, partnership or fiduciary, the title of the person signing on behalf of the
Undersigned must be stated.) 

 ANNEX B—Form of Unrestricted Securities Certificate 
 UNRESTRICTED SECURITIES CERTIFICATE 
 (For
removal of Restricted Securities Legend pursuant to Section 3.5(3)) 
                                       
                              
                                       
                              
                                       
                              
 Attention: Corporate Trust Services 
  

	 	Re:	3.75% CONVERTIBLE SENIOR NOTES DUE 2027 OF AMBASSADORS INTERNATIONAL, INC. (THE “SECURITIES”) 

 Reference is made to the Indenture, dated as of April 3, 2007 (the “Indenture”), between AMBASSADORS INTERNATIONAL, INC. (the
“Company”) and Wells Fargo Bank, National Association, as Trustee. Terms used herein and defined in the Indenture or in Rule 144 under the United States Securities Act of 1933, as amended (the “Securities Act”), are used
herein as so defined. 
 This certificate relates to $            
aggregate principal amount of Securities, which are evidenced by the following certificate(s) (the “Specified Securities”): 
 CUSIP No. [            ] 
 CERTIFICATE No(s).
             
 The person in whose name this certificate is executed
below (the “Undersigned”) hereby certifies that either (i) it is the sole beneficial owner of the Specified Securities or (ii) it is acting on behalf of all the beneficial owners of the Specified Securities and is duly authorized
by them to do so. Such beneficial owner or owners are referred to herein collectively as the “Owner.” If the Specified Securities are represented by a Global Security, they are held through the Depositary or an Agent Member in the name of
the Undersigned, as or on behalf of the Owner. If the Specified Securities are not represented by a Global Security, they are registered in the name of the Undersigned, as or on behalf of the Owner. 
 The Owner has requested that the Specified Securities be exchanged for Securities bearing no Restricted Securities Legend pursuant to Section 3.5(3)
of the Indenture. In connection with such exchange, the Owner hereby certifies that the exchange is occurring after a period of at least two years has elapsed since the date the Specified Securities were acquired from the Company or from an
“affiliate” (as such term is defined in Rule 144) of the Company, whichever is later, and the Owner is not, and during the preceding three months has not been, an affiliate of the Company. The Owner also acknowledges that any future
transfers of the Specified Securities must comply with all applicable securities laws of the states of the United States and other jurisdictions. 

 This certificate and the statements contained herein are made for your benefit and the benefit of the
Company and the Initial Purchaser. 
 Dated:
                     
 (Print the name of the
Undersigned, as such term is defined in the second paragraph of this certificate.) 
  

			
	  

		
	 By:
	 	  

	Name:	 	  

	Title:	 	  

 (If the Undersigned is a corporation, partnership or fiduciary, the title of the person signing on behalf of the
Undersigned must be stated.) 

 ANNEX C—Form of Surrender Certificate 
 In connection with the certification contemplated by Section 12.2 relating to compliance with certain restrictions relating to transfers of
Restricted Securities, such certification shall be provided substantially in the form of the following certificate, with only such changes thereto as shall be approved by the Company and Thomas Weisel Partners LLC: 
 CERTIFICATE 
 AMBASSADORS INTERNATIONAL, INC.

 3.75% CONVERTIBLE SENIOR NOTES DUE 2027 
 This is to certify that as of the date hereof with respect to $             aggregate principal amount of the above-captioned securities surrendered
on the date hereof (the “Surrendered Securities”) for registration of transfer, or for conversion or repurchase where the securities issuable upon such conversion or repurchase are to be registered in a name other than that of the
undersigned Holder (each such transaction being a “transfer”), the undersigned Holder (as defined in the Indenture) certifies that the transfer of Surrendered Securities associated with such transfer complies with the restrictive legend
set forth on the face of the Surrendered Securities for the reason checked below: 
  

	    	The transfer of the Surrendered Securities complies with Rule 144A under the United States Securities Act of 1933, as amended (the “Securities Act”); or

  

	    	The transfer of the Surrendered Securities complies with Rule 144 under the Securities Act; or 

  

	    	The transfer of the Surrendered Securities has been made to an institution that is an “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7)
under the Securities Act in a transaction exempt from the registration requirements of the Securities Act and a signed letter in form and substance reasonably satisfactory to the Company containing certain representations and agreements which are
true and correct relating to restrictions on transfer of the Securities (and an opinion of counsel in form and substance reasonably acceptable to the Company if requested by the Company, that such transfer is exempt from registration); or

  

	    	The transfer of the Surrendered Securities has been made pursuant to an exemption from registration under the Securities Act and an opinion of counsel has been delivered to the
Company with respect to such transfer. 

  

			
	  

	(Name of Holder)

 Dated:
                        
  

	*	To be dated the date of surrender 

 EXECUTION VERSION 
  

 AMBASSADORS INTERNATIONAL, INC. 
 ISSUER 
 TO 
 WELLS FARGO BANK, NATIONAL ASSOCIATION 
 TRUSTEE 
  

 INDENTURE 
 Dated as of April 3, 2007 
  

 3.75% CONVERTIBLE SENIOR NOTES DUE 2027

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